prawn_86
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Yep i just transferred a large portion of my 'cash' over to ubank yesterday
Interest Rates
- Thread starter Largesse
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Yep i just transferred a large portion of my 'cash' over to ubank yesterday
white_goodman
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telstra is my new ubank, dont get hit nearly as hard by tax+inflation
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Seems you're not the only one, everyone is in that stock, except me but perhaps soon I'll join in.
prawn_86
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I personally wont own Telstra due to the amount of times they have screwed me round. MXUPA looks pretty tasty for yeild though
Bill M
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Alert, UBank in the last couple days have dropped their High Interest Savings Account rate (with bonus) down to 5.16%.
Rabodirects HISA (with bonus) at 5.46%.
But I think RAMS Saver Account is now the highest at 5.75% (with conditions).
Rabodirects HISA (with bonus) at 5.46%.
But I think RAMS Saver Account is now the highest at 5.75% (with conditions).
Julia
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And as government policies remove potential for growth from the economy, jobs are lost, businesses fail, the RBA will be forced to continue lowering rates in an attempt to stimulate some economic activity.
What a stupid farce.
What a stupid farce.
prawn_86
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But according to the government it is due to their prudent fiscal management that the RBA is able to lower rates...
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The notion that lowering interest rates boosts the economy would seem dependent on interest being a significant cost in the first place.
It's like saying that if the price of petrol drops in half, then that might boost household spending on other things since petrol is, for many people, a significant regular expense. But the same does not hold true if the price of matches or tea towels drops in half since these are not a significant expense for most people.
Now, if we get to the (fast approaching) point where interest ceases to be a major expense, then any further reduction in rates would seem to be less and less effective. At that point the RBA runs out of "firepower" in much the same way as other central banks already have.
A drop in rates from 10% to 5% might change consumer spending patterns etc. A drop in rates from 2% to 1% would seem little more than a technicality unlikely to produce much in terms of changed behaviour etc. I don't know exactly where that "tipping point" sits, but I get the feeling we may be not too far away from it.
It's like saying that if the price of petrol drops in half, then that might boost household spending on other things since petrol is, for many people, a significant regular expense. But the same does not hold true if the price of matches or tea towels drops in half since these are not a significant expense for most people.
Now, if we get to the (fast approaching) point where interest ceases to be a major expense, then any further reduction in rates would seem to be less and less effective. At that point the RBA runs out of "firepower" in much the same way as other central banks already have.
A drop in rates from 10% to 5% might change consumer spending patterns etc. A drop in rates from 2% to 1% would seem little more than a technicality unlikely to produce much in terms of changed behaviour etc. I don't know exactly where that "tipping point" sits, but I get the feeling we may be not too far away from it.
Julia
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Well, can you imagine Swannie saying
"Look, folks, I know we've stuffed things up with our wasteful overspending, introduced a tax that disadvantages Australian companies against their global competitors, made Australia a less attractive place to invest, but hey, don't worry about that because the RBA is helping us out by dropping interest rates to stimulate activity"?
The government's unreasonable political obsession with having a surplus is offsetting any benefit to people with mortgages etc with their cuts to private health insurance, cut to baby bonus etc, not to mention the particular disadvantage to savers who have not tied their funds into long term deposits.
I expect there's considerable anger amongst retirees who were burned in the GFC, moved to cash too late, and who are now seeing their incomes reduced as the rates fall.
white_goodman
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the economic literature states that govt running a balanced/surplus budget gives our central bank more leniency/ability to loosen monetary policy without inflation concerns, also some recent stuff coming out from Cochrane at UChicago that inflation is linked to the future expectations of the budget balance. (its long and boring) Problem is we arent in surplus and i dont think anyone genuinely believes we are gonna be in surplus any time soon, the ministry of magic with he who shall not be named as its head has been a terrible manager.
We are lowering rates cause of headwinds in China/Euro and all the associated economic relationships, its hardly to do with Uncle Swanny.
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I can't believe they are lowering interest rates at all. If one thing has become evident through other countries and their brilliant 'monetary policy' it's that central bankers should keep their dam noses out of it. We need to cleanse the economy...but no. So here we go on the loong, slow-burning downward spiral that everyone is in. Best we get some more consumer debt pumping through the system.
Julia
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Just a reminder to everyone with funds in an at call a/c to regularly check the interest rate.
Just did so tonight and my 5% has suddenly gone to 3.25%, apropos of nothing in particular, except presumably the published offer time running its course.
I've emailed the bank asking for the 5% to be re-applied.
Just did so tonight and my 5% has suddenly gone to 3.25%, apropos of nothing in particular, except presumably the published offer time running its course.
I've emailed the bank asking for the 5% to be re-applied.
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Alan Kohler's take on NAB's "shocking" monthly business survey released yesterday...
http://www.abc.net.au/news/2012-11-14/kohler-economic-alarm-bells-should-be-ringing/4370804
Alarmist?
A quick scan recently of my local Albury/Wodonga CBD's showing an ever-increasing number of empty shops, For Lease and For Sale signs might suggest not...where once was hustle and bustle during business hours is now a quiet stroll down Main Street..
http://www.abc.net.au/news/2012-11-14/kohler-economic-alarm-bells-should-be-ringing/4370804
Alarmist?
A quick scan recently of my local Albury/Wodonga CBD's showing an ever-increasing number of empty shops, For Lease and For Sale signs might suggest not...where once was hustle and bustle during business hours is now a quiet stroll down Main Street..
Julia, some of the banks provide the courtesy of emailing customers of changes in interest rates. eg Rabobank which I have funds with.
Could you let us know how you go with your request and if they agreed, whether they applied the 5% rate retrospectively.
This is the reason I am not so keen on honeymoon offers, unless you have a large amount to invest for only a limited time.
Cheers.
Julia
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It's ANZ.
Yes, Yelnats, I've had funds with Rabo and still have some term deposits with them. They show more courtesy, as you say, in letting you know if rates change.
As long as ANZ continue to advertise, at least via Infochoice, an at call rate of 5%, the bank has accepted my suggestion that existing customers should not be disadvantaged, and the 5% is re-applied.
My local branch has this morning advised they have so recommended to their head office and I'll receive confirmation (or otherwise) in the next week.
Yes, it's irritating to have to keep checking. I expect they get away with paying out much less because people forget to check if the rate has changed. Will post answer when I hear further.
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While waiting for a reply, open another online saver account that applies the bonus rate and transfer the funds when active.
http://www.anz.com/promo/accounts/o...8|online anz savings account||S|b|15562807277
Funds transfer can be easily made online if both accounts are linked to a primary account such as a credit card.
The link above also advises when the bonus rate ends. You need to take note because this information does not appear under account details on their online banking.
Julia
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Thanks for the suggestion,drsmith. I've tried doing this before but the stumbling block is that ANZ don't (or didn't then at least) make their online saver a/cs available to SMSFs.
It's only via a particularly helpful contact at the local branch that my SMSF a/c is getting the same rate.
So far their head office doesn't seem to have woken up to the fact that it's not an individual savings a/c.
It's only via a particularly helpful contact at the local branch that my SMSF a/c is getting the same rate.
So far their head office doesn't seem to have woken up to the fact that it's not an individual savings a/c.
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I had no problem doing this with a corporate trustee on an SMSF with ANZ, not sure if that helps.
They ended up putting me on something called a Negotiator Investment Account. Not sure whether that is only for business banking customers, there's actually nothing on their website about it and I've been in to branches and they can't see the balance in the account, but the interest rate is good.
Julia
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Can you tell us what the interest rate is?I had no problem doing this with a corporate trustee on an SMSF with ANZ, not sure if that helps.
They ended up putting me on something called a Negotiator Investment Account. Not sure whether that is only for business banking customers, there's actually nothing on their website about it and I've been in to branches and they can't see the balance in the account, but the interest rate is good.
If they don't this time again reinstate the current 5%, I'm not sure I can be bothered fussing about it too much.
There is less than $100K in the a/c. Might actually instead encourage me to dip a toe into the market again.
