Interest Rates

[Jester]

I suggest people with funds in at call accounts check them regularly.
I've just done this with my ANZ at call a/c and it has gone from 5.5% to just 3.75%.

If my request to have the 5.5% reinstated (they are still advertising it on Infochoice) is denied, I won't be leaving it there.

Whats the best approach to barter for the higher rate Julia?

 

[Glen48]

If you can get a high I rate lock it in for as long as possible cos it can only go down....way down

 

[cynic]

I just checked my account yesterday and it's back to 5.51%...I swear when I posted it said 4.91%

Perhaps they read your post on ASF and realised that you were about to take your business elsewhere.
Anyway, it's good to hear that you've gotten yourself back to a better rate.

Certainly do. Better than CBA.
www.infochoice.com.au

Thanks for that Julia, that will undoubtedly save me a lot of time in future.

I know that you would already aware of this, but thought I should highlight (for the benefit of other readers of this thread) that a number of the rates mentioned on that infochoice page appear to be introductory offers that will later revert to a lower rate, so one needs to keep a note of the expiry date in order to facilitate a timely renegotiation and/or transfer to a better offer at another institution.

As always, its important to read the fine print.

 

[Jester]

Perhaps they read your post on ASF and realised that you were about to take your business elsewhere.
Anyway, it's good to hear that you've gotten yourself back to a better rate.




Thanks for that Julia, that will undoubtedly save me a lot of time in future.

I know that you would already aware of this, but thought I should highlight (for the benefit of other readers of this thread) that a number of the rates mentioned on that infochoice page appear to be introductory offers that will later revert to a lower rate, so one needs to keep a note of the expiry date in order to facilitate a timely renegotiation and/or transfer to a better offer at another institution.

As always, its important to read the fine print.

It's still 4.91 I think, it's only 5.51 if you have the ASP.

 

[Julia]

I know that you would already aware of this, but thought I should highlight (for the benefit of other readers of this thread) that a number of the rates mentioned on that infochoice page appear to be introductory offers that will later revert to a lower rate, so one needs to keep a note of the expiry date in order to facilitate a timely renegotiation and/or transfer to a better offer at another institution.

As always, its important to read the fine print.

Yes, we very much need to be conscious of when that introductory offer runs out.

Re getting it renewed, I've had this done several times by pointing out to the bank that I'll move the funds elsewhere if it doesn't happen. It perhaps helps that I've been with this fairly small branch for decades and have established relationships there.

 

[drsmith]

Re getting it renewed, I've had this done several times by pointing out to the bank that I'll move the funds elsewhere if it doesn't happen. It perhaps helps that I've been with this fairly small branch for decades and have established relationships there.

If worst comes to the worst, just open another online saver account under the bonus offer and link it to the master account that the current one is linked to.

With 6-figure sums at least, it shouldn't require too much effort to sustain the bonus offers from the various banks over the longer term. That after all is the going rate.

 

[Julia]

If worst comes to the worst, just open another online saver account under the bonus offer and link it to the master account that the current one is linked to.

With 6-figure sums at least, it shouldn't require too much effort to sustain the bonus offers from the various banks over the longer term. That after all is the going rate.

Yes, I have done this a couple of times. One of the problems, though, is that the offer is actually not now available to SMSFs and I don't want to transfer the funds out of Super into my own name for obvious tax reasons.
So it's better if I can get the bank to just re-apply the current 'new' rate.

Also, if one is continually establishing new accounts with different institutions, it's quite a pain with having to send all the documentation of SMSF Trust Deed etc. each time. Much more complicated than the very simple process of just opening a new a/c in your own name.

 

[drsmith]

Yes, I have done this a couple of times. One of the problems, though, is that the offer is actually not now available to SMSFs and I don't want to transfer the funds out of Super into my own name for obvious tax reasons.
So it's better if I can get the bank to just re-apply the current 'new' rate.

Also, if one is continually establishing new accounts with different institutions, it's quite a pain with having to send all the documentation of SMSF Trust Deed etc. each time. Much more complicated than the very simple process of just opening a new a/c in your own name.

I was meaning the same institution, but you are correct in that getting the bank to apply the bonus rate to an existing account is the better option.

 

[Tyler Durden]

If worst comes to the worst, just open another online saver account under the bonus offer and link it to the master account that the current one is linked to.

With 6-figure sums at least, it shouldn't require too much effort to sustain the bonus offers from the various banks over the longer term. That after all is the going rate.

I have been thinking about this, but is it 'legal' or 'allowed'?

Situation is this: I have a Ubank account where I transfer my savings from my everyday account for the purpose of, well, savings. However, if I get a promotion I have applied for, I want to put my extra income into a separate account so I don't mix my funds. I want to continue living as if I didn't get the promotion and just keep tucking the extra income away.

But can I open another Ubank account under the same name, with the same TFN, and link it to the same everyday account?

 

[drsmith]

I don't know about Ubank as I'm with ANZ.

How I see the legality of how the banks operate their savings bonus rates is that it's their concern, not mine as the customer. If I can maintain the bonus rate on a continous basis, then I'm happy.

The base rate should be viewed by the customer in the same light as the ticket price on an expensive item at Harvey Norman or any other retailer.

 

[blue0810]

But can I open another Ubank account under the same name, with the same TFN, and link it to the same everyday account?

Yes ,see link:
https://www.ubank.com.au/ub/web/customer-help/about-usaver#savingsbonus

 

[Tyler Durden]

Yes ,see link:
https://www.ubank.com.au/ub/web/customer-help/about-usaver#savingsbonus

Wow thanks mate! I had a look last week and couldn't find anything - you must have better eyes than me

 

[Julia]

I was meaning the same institution, but you are correct in that getting the bank to apply the bonus rate to an existing account is the better option.

Success in having the bonus rate applied to existing account.
However, it's obviously important to regularly check the rate as it can alter with no notice and to a substantial extent as from the 5.5 down to 3.75% as posted earlier.

 

[Tyler Durden]

 

[Julia]

Reminder to everyone to check their deposit rates. After dropping the rate on their online at call a/c only a few weeks ago, ANZ have just dropped it another .25%.

They do not let you know either.
This is another aspect of Rabodirect's superior customer relations: they send an email any time they change the rate. I'm sure a lot of people whack money in a deposit and don't bother to check whether the rate has changed.

 

[Julia]

Rabodirect have increased their deposit rate as follows:

How does it work, you ask yourself... It's very simple. All new money you put into your HISA from today until 31st January 2013 will earn 5.71%p.a. interest rather than previously 4.6%p.a. (on balances up to $250k) that's an increase of 1.11%p.a.!* So, from today, some of your rates are going up and some are going down.

Check out the table below for a full breakdown of your High Interest Savings Account rates.

High Interest Savings Account rates Balance range Standard Variable Rate (p.a.) Loyalty Rate* Loyalty + Standard rate (p.a.)*
Under $250k 4.55% 1.16% 5.71%
$250k – $1m 4.20% 1.16% 5.36%
Over $1m 3.95% N/A 3.95%
Purpose Saver 3.95% N/A 3.95%

 

[MrBurns]

Rabodirect have increased their deposit rate as follows:

I really don't understand why the more you have to invest the lower the interest rate.

 

[Julia]

ANZ have just dropped their interest rate on at call online a/c from 5.25% to 5%, despite claiming, when discussing not passing on the full RB cut to borrowers, that they were precluded from so doing by the pressure to keep deposit rates high.

 

[ROE]

comsec cash account drop to 3.5% that's 0.5% drop
time for the cash to fly and look for yield stock ....

 

[Bill M]

The best cash rates around right now are the Rabodirect HISA and UBANK high interest savings, both offering 5.46%, not bad considering how low the official RBA rate is.