ComSec - Account changes = you're fired!

[Septic Bladder]

Hello all, my first post.

I applaud the changes. Having all accounts in NetBank with instant transfers is a major benefit. Having to wait for one or two days to transfer from Comsec to NetBank was very annoying.

I only ever set up the Comsec accounts when I stated up my Super Fund as I had no option. Never changed my personal CDIA Account, and just set up a NetBankSaver when it became available and more recently the Goal Saver Accounts.

So I have today set up a Business Online Saver account for my Super Fund which pays 3% on balances above $10k. Not quite as good as the NetBankSaver. Will transfer all funds before the end of the month and print statements and transactions. Then consider accounts with other banks for surplus cash. Might set up accounts with several banks, a bit of initial heartache, but once set up will be able to switch money around at will to take advantage of rate differences.

Not sure about statements for final interest at Comsec. Will ring them today about that.

 

[bellenuit]

Might set up accounts with several banks, a bit of initial heartache, but once set up will be able to switch money around at will to take advantage of rate differences.

Probably better to not set up accounts with other banks all at once. Most online savings accounts offer an interest bonus of more than 1% for honeymoon periods up to 6 months from the day the account is opened. So wait until the honeymoon period of the first account you set up is over before opening the next etc.

 

[Septic Bladder]

Probably better to not set up accounts with other banks all at once. Most online savings accounts offer an interest bonus of more than 1% for honeymoon periods up to 6 months from the day the account is opened. So wait until the honeymoon period of the first account you set up is over before opening the next etc.

That's the plan.

 

[jimmyizgod]

mebank is probably the best at the moment - you get the bonus 1.something % interest rate if you open up a everyday linjked account (which has no fees etc so even if you dont use it it's worth getting) at the bonus is for 12months. total at the moment is 5.1% at the moment

 

[hughchew]

no am thinking I won't either but didn't want to be caught out without cash if I didn't get my act together getting a new account sorted by the 26th. think this might be the final straw. am sick of being messed around by them

Same here, I've just opened a nab account and intend on going nabtrade, they still offer a high interest saver (currently 4.25% NOT honeymoon period) for dumping cash. CB screwed up my details when setting up my 'new' Netbank account requiring me to call them and don't seem keen to be competitive or keep my business, basically from all angles NAB is looking far superior (except T3 which honestly doesn't bother me at all).

 

[Septic Bladder]

Rang Comsec, and they now say final statements will be available as normal from mid February.

 

[bellenuit]

Same here, I've just opened a nab account and intend on going nabtrade, they still offer a high interest saver (currently 4.25% NOT honeymoon period) for dumping cash. CB screwed up my details when setting up my 'new' Netbank account requiring me to call them and don't seem keen to be competitive or keep my business, basically from all angles NAB is looking far superior (except T3 which honestly doesn't bother me at all).

I think nabtrade offering their High Interest account, just as CommSec removes their Cash Management Account, is a good move and could result in many people moving from CommSec to nabtrade. Especially as the latter offer trades for $14.95, $5 less than CommSec. I know there are issues with the new nabtrade platform, but if they can iron them out, CommSec may regret dispensing with their Cash Management Account in favour of the minuscule interest paying CDIA.

If nabtrade really want to offer an attractive alternative platform that makes it easy to earn high interest between trades, they should roll the High Interest Account into their Cash Account for settlements, so one doesn't need to go through the tedious process of transferring between each. Since I believe most people who have reasonably sized cash balances between trades will do this internal transfer to avail of the high interest rate, why not just make things easier for them by rolling into one.

 

[Bill M]

If nabtrade really want to offer an attractive alternative platform that makes it easy to earn high interest between trades, they should roll the High Interest Account into their Cash Account for settlements, so one doesn't need to go through the tedious process of transferring between each. Since I believe most people who have reasonably sized cash balances between trades will do this internal transfer to avail of the high interest rate, why not just make things easier for them by rolling into one.

That would make so much sense. It is such a tedious procedure. First I had to look around to find where I can sign up for the HIA. It was a few clicks here and there but you had to initiate the sign up for it otherwise you won't get it.

I then read somewhere that all NAB accounts were instantaneous transfers. I had a few $$ in my NAB Classic account and decided to transfer it over to nabtrade. It was not an instant transfer, had to wait until the next day for the funds to appear. Then when it appeared it was in the cash account. I then had to do another transfer to get it from the cash account to the HIA.

I have since learnt that the transfers can be instantaneous if they are initiated from the nabtrade platform and not the NAB internet banking site.

What a load of mucking around, I think they do it on purpose as some people will forget or won't do the further transfers and thus they don't have to pay the higher interest rate. Not real user friendly.

A simple single HIA that you can transfer in and out of and is linked directly to your trading account would be so much more easier and straight forward.

 

[stewiejp]

A simple single HIA that you can transfer in and out of and is linked directly to your trading account would be so much more easier and straight forward.

Couldn't agree more - it baffles me why banks can't or won't do this. My CBA, ING, & RAMS accounts could all merge from 6 to 3 accounts if an "all in one" account could be created between "fee free zero interest zero fee" type transaction account, and "high interest but can't use as for transactions" accounts.
This goes for trading accounts and general banking.

Surely the banks would benefit somehow by potentially halving the number of accounts out there?

 

[KrisEvolved]

Hi team - long time reader, first time poster here.

I read this thread with interest as I have a large number of clients I work with that run their portfolios through Commsec - so I hear and feel the frustration experienced by all Commsec traders with these changes, although it does highlight some of the short comings with their accounts and the fact they are resting on their laurels to a certain degree.

Although it seems stupid from a customers perspective for them to not offer an 'all in once account' that provides both high interest and the ability settle trades, the banks know that the majority of customers are lazy (present company excluded ) and will leave money in a low interest account. By offering the 'preferred' brokerage at a lower rate when settlements happen via the account with the lower interest, they are again encouraging customers to forgo interest.

The best solution I have found for dealing with these issues is to simply accept the fact that I need 3 accounts:

1. Broker account for settlements (Bell Direct)
2. High interest account (ING)
3. Central CMA which acts as a hub (Macquarie)

The above gives me what I need, but it is frustrating when the broker needs available funds in their linked broker account before processing a buy order, and it can take 48 hours (overnight from high interest to CMA, then another overnight from CMA to broker). That delay obviously costs when the market moves, and it is annoying when you have the T+3 settlement that you can't take advantage of.

For the interest difference it is probably not worth worrying about unless you have significant funds waiting to be invested - but I guess it all adds up.

I note that comments have been made in regards to NABTrade and the ability to initiate same day transfers so I will look into that.

 

[So_Cynical]

A simple single HIA that you can transfer in and out of and is linked directly to your trading account would be so much more easier and straight forward.

Couldn't agree more - it baffles me why banks can't or won't do this. My CBA, ING, & RAMS accounts could all merge from 6 to 3 accounts if an "all in one" account could be created between "fee free zero interest zero fee" type transaction account, and "high interest but can't use as for transactions" accounts.
This goes for trading accounts and general banking.

Surely the banks would benefit somehow by potentially halving the number of accounts out there?

Drives me nuts...ill list all my accounts.

• Comsec (broking etc) (Havent closed yet)
• ANZ CC (12 months interest free balance trans)
• Westpac (line of credit)
• Westpac savings (fee free for the LOC to pay into)
• Westpac CC (cheapest CC in the country)
• Rabo (on-line high interest)
• St George savings (everyday fee free)
• St George CC (includes travel ins)

Because its impossible to get all that from the one or even 2 banks..and am now going to add NAB to the list.

Its crazy why the banks don't take us seriously.

For the interest difference it is probably not worth worrying about unless you have significant funds waiting to be invested - but I guess it all adds up.

$75 > $100 a year in interest, that's what i used to get from the high interest Comsec account that i will no longer get...the pay-off for Comsec was $700 to $850 in brokerage per year they used to get...now the bastards want it all and instead there gona get nothing.

From me anyway.

 

[stewiejp]

I'm with you SC - to be honest it doesn't actually bother me transferring cash from here to there, as I use different accounts for different purposes, and the more I think about it the more I think the banks actually make more money by making the customers less likely to earn interest and more likely to pay fees. I'm in a similar boat to you

ING Everyday - that's where the pay goes, 0 interest 0 fees, not a lot in here
ING Savings - 3.25% - not a lot in here either but will likely soon become my "waiting to buy shares account"
CBA Cash Share Trading Account - 0% interest, 0 fees - balance always zero unless buying shares
CBA (CIA - how cool did that sound?) Investment Account - Used to pay 4% (now close enough to 0%), used to put $ here to buy shares... won't now.
HSBC Visa CC - that's where I get the points for the free flights, and the travel insurance, Qantas Club all that crap
RAMS Action - nothing - just in case i need instant access to the next account
RAMS Savings - 4-4.8%% on my savings

Glad I don't have a mortgage - these 7 could easily morph into 4... in any case.. NAB still looking the goods IF I hear some better reports on the website - some negative reports coming through re how the whole share trading thing is done online there - but I'm sure it couldn't be too hard, I'm not a "day trader".

FWIW CommSec recently emailed me giving me an extra 4 months IIRESS access. They also made some mention that I hadn't used the previous 6 months free access to IIRESS...
In other words.. "We know you have never used IIRESS, even though we have given you free access for the past 6 months, but just in case you decide to jump ship, here's a few more moths access to something you have never accessed before."

Genius. Pure Genius.

Rant over, I'm drunk.

 

[KrisEvolved]

Ah - good - I am definitely not alone then when it comes to having multiple banks and accounts. My wife and I have 20+ accounts across personal, SMSF, family trust and investment property accounts. We have started to use ANZ money manager to keep on top of it all and provide everything in one place. It helps.

Although a little off topic, I have had another example recently when another online broker (ETrade) is basically saying they don't want high value business:

I work with a financial planner who provide strategic advice to a group of high net worth investors, each of who conducts a reasonably high volume of high value trades each year. The brokerage across these 5-6 clients paid to Etrade is any where from $10k to $30k per year each. We have started to look after the administration of these clients (SMSFs mainly) because our software provider can receive a direct feed of trading and cash transactions from Etrade - hence saving the clients in fees due to the automation.

Unfortunately, Etrade made a decision recently to not enable any new retail accounts to feed data through to us unless it came under a wholesale arrangement where all trades were to be conducted via the financial planner. This of course is totally unacceptable to our self-directed clients and the adviser.

This is the email from Etrade:

Hi Mark,

Thanks for sending me the account number.

This account appears to be operating under our Retail (DIY) structure. Unfortunately these types of accounts cannot provide data feeds through to Class (although they can through Praemium).

Accounts under a 'Wholesale' structure however have the capability to feed data through to Class, XPlan, Praemium etc, however it does require that XXX Adviser sign a Wholesale agreement with us.

Let me know if signing a wholesale agreement is something your firm may be keen to do with us. I can provide you with more information/minimum requirements to register with us as a Wholesale group.

Kind Regards,
Von Delizo
Account Service Manager | Broking Services
von.delizo@anz.com.au

Speaking to others, the reason apparently this has happened is because Etrade had a relationship with another SMSF business that used Etrade as their available broker platform that went bad, so they made the decision to pull the plug, effectively hamstringing that business and forcing them across to another broker(s). You probably know the business I am referring to - however I need to confirm that the above is a combination and hearsay and speculation - but I am just trying to get my head around their decision making.

I am not taking this lying down, and we have been in contact with Etrades Head of Online & Direct Markets and we are trying to get a resolution.

I encourage any customers who are unhappy with the services of their online broker to ensure their voices are heard, because if enough people are saying the same thing, it will get their attention and change can happen.

Sorry for the rant. Unlike stewiej I am not drunk .

Kris

 

[nev25]

Sorry Nev, I can't see it either. You should be paying $29.95.

That has never happened to me. I did it as an exercise this morning, they are charging me $19.95 for the same trade as yours. It is a mystery, if you get to the bottom of it I'd like to know what their excuse is. Screen shot attached.

After Numerous emails to Commsec I final rang them
They couldn't explain why but just reset back to the same as everyone else

Thanks for you help Bill M

 

[lclfze]

I've got a Commsec account with a CDIA that I never ported to the CCA and CIA so this change doesn't affect me (I presume). My CDIA balance is zero as all my cash is in a higher interest account.

I see the CIA paid 3.5% and Netbank Saver pays 3% whereas CDIA has a sliding scale and never reaches 3%. So if you open a Netbank Saver account, you are 0.5% worse off in the long run. You still have two accounts (CDIA and Netbank Saver, instead of CCA and CIA).

Also if you don't currently have a Netbank Saver account, you can get a honeymoon rate of 4.5% for 3 months, which gives time for making a decision (during which time you are getting a competitive rate and instant availability of cash for trading).

Transfers between linked CBA accounts like CDIA and Netbank Saver are instant.

I'll have to think about how to get a better rate than Netbank Saver. I don't qualify for the ubank bonus of 0.7% without stuffing around with an artificial savings plan and there is also the $200k limit.

 

[ROE]

I've got a Commsec account with a CDIA that I never ported to the CCA and CIA so this change doesn't affect me (I presume). My CDIA balance is zero as all my cash is in a higher interest account.

I see the CIA paid 3.5% and Netbank Saver pays 3% whereas CDIA has a sliding scale and never reaches 3%. So if you open a Netbank Saver account, you are 0.5% worse off in the long run. You still have two accounts (CDIA and Netbank Saver, instead of CCA and CIA).

Also if you don't currently have a Netbank Saver account, you can get a honeymoon rate of 4.5% for 3 months, which gives time for making a decision (during which time you are getting a competitive rate and instant availability of cash for trading).

Transfers between linked CBA accounts like CDIA and Netbank Saver are instant.

I'll have to think about how to get a better rate than Netbank Saver. I don't qualify for the ubank bonus of 0.7% without stuffing around with an artificial savings plan and there is also the $200k limit.

None of this is suitable for investor who got large cash pile and want their money at call without any condition attached
and while their money isn't used it earns interest without any condition attached..

all CBA saving accounts has condition attached (ie one withdraw a month or you have to deposit some more cash in etc...ok for saver, no good for investors) you violates one of those condition your interest
reduce under 1%.

Nabtrade offers 4.25% interest at call no condition attached ....that how commsec used to be until they got the market share and now they playing hubris and dick around their customers...

 

[Bill M]

Nabtrade offers 4.25% interest at call no condition attached ....that how commsec used to be until they got the market share and now they playing hubris and dick around their customers...

That is true, however if there is no cash in your account then they won't allow you to buy. Comsec up until now still gave you credit for 3 days until you got the funds in their account. Whilst Nabtrade pays better interest they do not give you any credit, not even if you have a current portfolio. Commsec wins in that department. None of them are perfect yet.

 

[lclfze]

None of this is suitable for investor who got large cash pile and want their money at call without any condition attached
and while their money isn't used it earns interest without any condition attached..

all CBA saving accounts has condition attached (ie one withdraw a month or you have to deposit some more cash in etc...ok for saver, no good for investors) you violates one of those condition your interest
reduce under 1%.

I have a CDIA and Netbank saver and Commsec account (plus other CBA accounts) and not subject to any such rules.

Unless you can provide a source, I'd say it's plain wrong.

The Netbank Saver bonus interest rate of 4.5% for 3 months just requires that you "Open a NetBank Saver for the first time".

 

[So_Cynical]

The Netbank Saver bonus interest rate of 4.5% for 3 months just requires that you "Open a NetBank Saver for the first time".

Its a BS honeymoon rate...well for me the honeymoon is over, the old set-up was perfect for me.

----------

And the icing on the cake this week was Comsec charging me $19.95 for selling 19 shares in KSC , $19.95 in brokerage for $40 dollars worth of shares...i mean what knuckle head decided to fill some buy order with a lousy 19 shares from a sell order for 3576
~

 

[Garpal Gumnut]

Its a BS honeymoon rate...well for me the honeymoon is over, the old set-up was perfect for me.

----------

And the icing on the cake this week was Comsec charging me $19.95 for selling 19 shares in KSC , $19.95 in brokerage for $40 dollars worth of shares...i mean what knuckle head decided to fill some buy order with a lousy 19 shares from a sell order for 3576
~

That sounds unfair to you.

Did you sell at market or at limit?

gg