Interest Rates

[FlyingFox]

UBank has risen from 4.66% to 4.91% (with savings bonus), making it higher than any other accounts I know of, although they may rise soon as well.

Seems these accounts are always changing places as they fiddle with the rates. I'm happy to stay with UBank because of the no withdrawal conditions and the high rates don't expire.

Noticed this as well. I was thinking about switching to ME Bank but will stick with them for the time being. Maybe they were losing customers?

 

[Tyler Durden]

That's just an obvious means for the banks to attract new customers. They have to continue to seek growth.

Perhaps consider loyalty to a bank over some years and you might get some benefits back.
I know that will be an unpopular view as most people make it their mission to hate banks, but it has worked for me.

I was with ING for 8 years.

 

[Tyler Durden]

My first impression of ME Bank - although I love the interest rate, I am starting to question their admin. They made a typo error with my account number which prevented linking two accounts together, and they seem to send me mail in duplicates (ie. I get two copies of everything).

 

[Julia]

Just a reminder to people to regularly check their interest rate on at call accounts. Mine which was at 4.75% has abruptly dropped down to 3%, which is apparently ANZ's standard variable rate. Infochoice is showing ANZ offering 4.6% at call. Better rates around but most of them seem unavailable to SMSFs.

Has anyone used ING? They have a "Business Optimiser" for SMSFs offering 4.75% for six months and a few other banks offering 5%. Who owns RAMS?

Any recommendations?

 

[sptrawler]

Just a reminder to people to regularly check their interest rate on at call accounts. Mine which was at 4.75% has abruptly dropped down to 3%, which is apparently ANZ's standard variable rate. Infochoice is showing ANZ offering 4.6% at call. Better rates around but most of them seem unavailable to SMSFs.

Has anyone used ING? They have a "Business Optimiser" for SMSFs offering 4.75% for six months and a few other banks offering 5%. Who owns RAMS?

Any recommendations?

I think RAMS was bought out by Westpac.

UBank give about 4.5 term deposit, I think.

Several banks have 4.75% variable at the moment.

 

[drsmith]

Just a reminder to people to regularly check their interest rate on at call accounts. Mine which was at 4.75% has abruptly dropped down to 3%, which is apparently ANZ's standard variable rate. Infochoice is showing ANZ offering 4.6% at call. Better rates around but most of them seem unavailable to SMSFs.

ANZ have reduced the bonus from 1.75% to 1.6%. This might become a trend depending on how confident the banks are with their sources of funding and interest margins going forward.

I take note of when the bonus rate is due to expire and contact the bank before it does.

 

[stewiejp]

Just a reminder to people to regularly check their interest rate on at call accounts. Mine which was at 4.75% has abruptly dropped down to 3%, which is apparently ANZ's standard variable rate. Infochoice is showing ANZ offering 4.6% at call. Better rates around but most of them seem unavailable to SMSFs.

Has anyone used ING? They have a "Business Optimiser" for SMSFs offering 4.75% for six months and a few other banks offering 5%. Who owns RAMS?

Any recommendations?

I've been with ING for about 15 years - at call account, while it pays 0% interest there are also zero fees, so long as you withdraw $200 or more at an ATM (any ATM in Australia) - if there is a fee, accept it and the fee is reimbursed by ING same day. Also if you withdraw $200+ at a supermarket EFTPOS they credit you 50c. Another gimmick they have at the moment is if you pay by pay and wave (Visa Debit) they rebate you 5% of the value. That ends in July I think. Not a lot of money but sure beats paying fees IMO.
Not with ING for Super, but considering switching. It looks good for SMSF, as well as a "regular" super fund.
ING's online saver isn't bad - 3.25% - 4% (200 deposit/month, no withdrawals), I use this one to put share trading money aside since ComSec ditched the 4% account.

I'm also with RAMS (Owned by Westpac as stated) online saver - 5.01% providing $200+ is deposited per month (excluding interest) and no withdrawals. Drops to 4.21% if either of that criteria isn't met.

Pretty happy with both fee free accounts. Both claim to be covered by Government guarantee if that makes a difference.

 

[YMI]

I've been with ING for about 15 years - at call account, while it pays 0% interest there are also zero fees, so long as you withdraw $200 or more at an ATM (any ATM in Australia) - if there is a fee, accept it and the fee is reimbursed by ING same day. Also if you withdraw $200+ at a supermarket EFTPOS they credit you 50c. Another gimmick they have at the moment is if you pay by pay and wave (Visa Debit) they rebate you 5% of the value. That ends in July I think. Not a lot of money but sure beats paying fees IMO.
Not with ING for Super, but considering switching. It looks good for SMSF, as well as a "regular" super fund.
ING's online saver isn't bad - 3.25% - 4% (200 deposit/month, no withdrawals), I use this one to put share trading money aside since ComSec ditched the 4% account.
...

What is your definition of call account? Isn’t the online saver and a call account the same?

 

[stewiejp]

At call (ING Orange Everyday) = ATM card I can withdraw cash with (the one which pays 0% interest, czero fees etc)

Online Savings = No ATM card, (in my eg. ING Savings Maximiser, and RAMS online saver) - to access the funds via an ATM the money needs to be transferred to an account with ATM access. This is instant if transferring to an account with the same bank.

Not really an issue in my case as I keep enough to live on in my ATM card account (Everyday), and toss the rest of my income into the online saver accounts or share trading accounts. In an emergency funds can be instantly transferred to my linked Everyday/ATM card account and I can withdraw that way.... hope that makes sense.

 

[YMI]

Thanks for enlightening, does make sense now I don’t think there are many banks that pay significant interest for money in transaction accounts though.

 

[Julia]

I take note of when the bonus rate is due to expire and contact the bank before it does.

And as a result do they adjust your rate up to best rate that is currently being offered?

Several banks have 4.75% variable at the moment.

Yes, and more, but few are available to SMSFs.

I've been with ING for about 15 years - at call account, while it pays 0% interest there are also zero fees,

Why would you use an at call account which pays no interest when there are plenty that do pay quite reasonable interest?

 

[stewiejp]

Why would you use an at call account which pays no interest when there are plenty that do pay quite reasonable interest?

Thanks for the heads up... when I opened the thing (ING) - there wasn't any fee free interest bearing accounts with ATM access. Just "did a google" and discovered the Bank West Hero @ 3.5% (is this what you refer to?) which could suit me. Might be time to reshuffle.

Thanks.

 

[drsmith]

And as a result do they adjust your rate up to best rate that is currently being offered?

They adjust it to their current bonus rate on offer, without argument.

Given that they've recently reduced the bonus margin (I'm still currently getting 4.75%), I might try and push them a little harder next time, depending on what else is on offer.

One thing about the ANZ account is that it is unrestricted in terms of deposits and withdrawals whereas some of the others that offer the slightly higher rates have punitive restrictions on the above.

 

[Julia]

They adjust it to their current bonus rate on offer, without argument.

Yep, my experience also, at least so far.

Given that they've recently reduced the bonus margin (I'm still currently getting 4.75%), I might try and push them a little harder next time, depending on what else is on offer.

I've only ever asked for what's being currently offered via Infochoice. Would be very interested to know if you're able to push it further.

One thing about the ANZ account is that it is unrestricted in terms of deposits and withdrawals whereas some of the others that offer the slightly higher rates have punitive restrictions on the above.

Yes, some a/cs require eg $200 to be added every month etc.

 

[noirua]

The European Central Bank cuts its main interest rate to a new low of 0.50% in an attempt to drag the euro zone out of the longest recession in its history.

 

[MrBurns]

I think rates will drop here soon, business is on its knees and the RBA has already said they will act in those circumstances.

 

[white_goodman]

just an fyi there is no zero lower bound, only in theory and if the CB only dictates overnight cash rates... I could forsee the RBA getting to 2.50 then doing unconventional MP

 

[satanoperca]

I think rates will drop here soon, business is on its knees and the RBA has already said they will act in those circumstances.

Agreed that business is getting hit, but alias not our Big Banks, who once again are racking it in.

Property market is stable and unemployment is still relatively low, inflation dead in the middle of the RBA's target range.

While the rest of the world seems to be falling apart, I see rates on hold for some time in Oz.

We do live in the lucky country.

Cheers

 

[MrBurns]

I think rates will drop here soon, business is on its knees and the RBA has already said they will act in those circumstances.

I think it very likely rates will fall on Tuesday, if not certainly next month.

The race to yield will increase, shares will rise again but which ones to buy beside TLS ?
Banks seem too high now and not without risk from Europe , perhaps TAH ???

 

[Tyler Durden]

We do live in the lucky country.

And an expensive one.