Re: So, forum financial gurus...

[JGK]

Pretty poor decision. It won't make any difference to people's decisions but they have now reduced the amount they can cut rates in the future when they really need to jolt the economy.

[Red]

Interesting though the data from Europe and the US suggests that cutting rates has been making little difference to people's proclivity to spend and thus has made zero difference to employment in the retail industry. It has impacted on self-refunded retirees in a big way though. Soon the govt. will probably have to fork out to pay pensions to many of these.

Of course it's another matter whether or not the banks actually pass any of this on as the financial gurus were saying that they having got much room to move in terms of the borrowing costs and it's a worldwide phenomenon.

[taipan]

Self refunded means you pay yourself back?

[G.Wood]

oops

[Red]

Self refunded means you pay yourself back?

You know I meant self-funded. Perhaps actually address the issue for a change.

[taipan]

Self refunded means you pay yourself back?

You know I meant self-funded. Perhaps actually address the issue for a change.

SIUUBG

[skully]

So, Mick, JGK et al, I have a healthy Term Deposit maturing shortly and most institutions are offering a pretty shitty 4.70% to 4.80% for all terms up to 2 years. Investec Bank is currently offering 5.30% for 90 and 180 day terms, and 5.11% for 12 months.

Is this too good to be true, or is this a sound mob in your experiences?

[JGK]

Well, they are South Africans so they are probably as dodgy as.

But, if the TD is less then $250k then it will be guaranteed by the Fed Govt anyway so nothing to worry about.

I'd be surprised if you couldn't find some other bank offering more than 5% for a year though.

[skully]

Cheers, man. This is based merely on a "Compare TDs" Google search.

I'll ask around anyway, but 5.3% compared to 4.8% makes a 4 digit difference to the annual earnings on this particular TD. Not to be sneezed at.

Also, am I reading this right?

"Interest rates predictions: Market forecast of first base rate rise moves to 'November 2016'"

----------------------------------------------

The graph seems to indicate that interest rates will continue to fall, then level out and climb back to current levels in 3 years then gain a bit after 5 years. In my Super at the moment, one of the managed Funds is offering 5.3% for a 5 year term. I reckon I'd come out in front if that graph is right.

[JGK]

That's a UK article. Their Tory run economy is reasonably farked. Our Pinko lead one is grouse as.

[skully]

So where would I lay my hands on a similar predictive graph for the "grouse pinko Aus economy"*?




































* MrK's strange words, not mine.

[Mick Sawyer]

So, Mick, JGK et al, I have a healthy Term Deposit maturing shortly and most institutions are offering a pretty shitty 4.70% to 4.80% for all terms up to 2 years. Investec Bank is currently offering 5.30% for 90 and 180 day terms, and 5.11% for 12 months.

Is this too good to be true, or is this a sound mob in your experiences?

Investec are roughly equivalent to Macquarie.

I'd have a look at ING. As an alternative to the other thoughts on this page you might want to consider their online call account which is usually offering somewhere up near commonly available TD rates.

[skully]

Cheers Mick. I have a good chunk of money with ING now (it's an ING TD that is maturing) and their rates aren't that flash. I'll do my best to negotiate but they've been pretty resistant in the past, even when you threaten to take your money elsewhere.

[JGK]

To be honest, Australian banks don't actually need a lot of Australian dollars at the moment so they aren't going to pay overs for it.

Assume you've seen this this site.

[embee]

Dont forget to tell them Mick sent you so he can get his trail ....

[JGK]

Dont forget to tell them Mick sent you so he can get his trail ....

Has to do it before 30 June though. Trail is effectively banned after then.

[skully]

Assume you've seen this this site.

Yeah, not that one specifically but a number of similar ones.

Dont forget to tell them Mick sent you so he can get his trail ....

Cheeky.

[skully]

Dont forget to tell them Mick sent you so he can get his trail ....

Has to do it before 30 June though. Trail is effectively banned after then.

I wonder how many Financial Advisers this will put out of work? Might sort the dinkum ones from the trailing commissions bludgers.

[Henry]

I have an ANZ progressive saver account that pays 5.25%, and to keep that rate up all I need to do is pay a minimum $10 a month into it. Plus, being a savings account, I can access it whenever I want (although I would forfeit the interest for that month)

[Henry]

And i've also got quite a substantial amount of money in a Lloyds tsb offshore account, earning a pretty meagre 2.4% (below UK inflation, which stands at 2.8%). The only reason i'm keeping it there is because of the lousy exchange rate the pound is getting at the moment. Toying up whether to bite the bullet and move it all to a higher earning Aus account (And on top of higher interest rates, Aus inflation is only 1.6% atm), or sit it out and hope that the pound strengthens again in the next 6-12 months, and has more worldwide buying power again.

[Henry]

Although realistically I know the Aus dollar will never drop below 50 pence again. Probably wont drop below 60 pence again, for that matter.

[skully]

I have an ANZ progressive saver account that pays 5.25%, and to keep that rate up all I need to do is pay a minimum $10 a month into it. Plus, being a savings account, I can access it whenever I want (although I would forfeit the interest for that month)

That's pretty damn good, Trev. ING is offering 5.6% introductory rate but it's only for 4 months and only to new account holders.

[Henry]

Of course, with a standard savings account there's always the chance the bank will be c*nts and lower the rates. At least with the TD you know the rate will be maintained for the entire duration of the term.

[skully]

Have to say I'm amazed that rate is so high. Most incentive saver accounts are lucky to get 4.0 to 4.5% ATM.

[Henry]

Well, I think it's partly to compensate for the ANZ being such c*nts in regards to pretty much everything else. I've been thinking of switching banks for years, but have never gotten around to it.

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