Good news people, due to the increase value of AUD$, savings interest rate has gone up by a notch. Just this morning receive notification from Rabo Plus saying that they have increase their high interest saving rate to 7.1 % to new and existing customer until 2 January 2008. After that the interest rate will go back to 6.7% which is still very good compared to the other competitors.
Rabo doesn't let you withdrawal funds until maturity otherwise penalities are incurred. So your funds cannot be used while its earning interest =(
Where do you get that?
From Terms and Conditions, there is no fee. Under 19.4,
Savings Accounts
19.4 No fees are payable in respect of Savings Accounts.
You might be confused with Term Deposits, which indeed have an early termination fee of $25.
Yes I was referring to term deposits
Comment removed (typed at the same time as Scotty's)
They also have great access to retail and wholesale managed funds from what i can see on there website. They have a special offer…
"Special offer: We've discounted our entry fee to 0.25% until 2 January 2008."
And no other ongoing fees from RaboPlus.
Its usually 0.75% which is still a great entry fee.
I can see that they have also added some new managed funds.
You can usually get entry fee for waived as most planner also get trail commissions. There are also places that refund you part of their trail commission. They also have a very small selection of funds to choose from, and they all seem to be wholesale funds that require a large initial investment. So I can't see the advantage of investing in managed funds through RaboPlus, unless there's something I have missed…
Yes I am aware of that with some fund managers but not all.
The managed funds available on their platform don’t pay trail commissions to advisors.
As for the wholesale managed funds available, that is why I said they have great access to managed funds.
Usually you would need any where between $50,000.00 - $500,000.00 to invest into a wholesale fund to start with.
With RaboPlus you can start with a minimum of $250.00 which I think is great as it gives people access to managed funds that wouldn’t necessarily have a spare $50,000.00.
Yeah if $250 minimum investment for wholesale fund then it is pretty good.
As of trial commission it should be in the MER, and RaboPlus' MER is exactly the same as the ones in prospectus. 0.75% entry fee is still cheap to get low MER in wholesale fund, but if you have 50k to invest in wholesale fund, there are places that have nil entry fees.
I thought it is the other way around? Higher interest rate drives up the dollar? Nevertheless, great deal!