Group Deal: Possibly Seek an OzBargain Group Savings Account Deal for High Interest

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  chill on 01/12/2015 - 03:36

  So your thoughts? Is a target of 20M$ enough to sway the banks?

  I'm going to say NO.

  • 

    [Deactivated] on 01/12/2015 - 03:54

    I guess it's partly timing. Twenty years ago bringing $2M deposit to a bank, you could negotiate a rate, so I heard.

    • 

      tomleonhart on 01/12/2015 - 08:59

      Not sure how it used to work in AUS. But in Vietnam, I once took 15 billions VND to a bank once in 2011 (not my money lol), they were more than willing to give us 11% interests as opposed to the headlines rate of 8%.

      • 

        scotty on 01/12/2015 - 12:29

        +1

        Now I can't shake off mental image of Tom in dark suit and sunglasses, walking into a bank branch with a big suitcase, slamming it on the counter, muttering "$15 billion here, what can you offer?!"

      • 

        tomleonhart on 01/12/2015 - 12:32

        @scotty: lol Scotty. 15 billions = 2 big travel suitcases. Not the suit cAse that you are thinking :P

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  DeafMutePretender on 01/12/2015 - 04:26

  +2

  Based on my understanding, the big banks give zero f**ks about plebs like us. If they wanted deposits, they'd ask big businesses and corporations for it. Think of Scrooge McDuck's money bin where he has like billions of coins. Us "mom and pop" investors represent a few of those coins. Institutional investors comprise every other coin. We're not even small fish/fry. We're like the planktons that whales don't even notice they eat. Banks would much prefer us plebs to take out a loan on an overpriced house, and THEN, maybe they might offer a slightly more favourable deal, interest rate-wise.

  Having said that, I'm willing to keep an open mind and I'm also ready to put my money where my mouth is (idiom, not literally) because this low interest economic climate of "put your money in the real estate/mining capitalist ponzi scheme or be penalised for saving and exercising prudent financial behaviour" is pissing me off.

  For what it's worth, I've asked ME Bank "extend the 5% cashback offer or I will close this account" and their reply was more or less "see if I care, biatch." So there's that.

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  suti on 01/12/2015 - 07:55

  +2

  So you want them to pay you 4.25%pa for your savings… what are they going to do with that money? lend it to someone at 4.25%pa on a home loan and not make money?

  $20m is nothing for a bank. You say twenty years ago bringing $2m to a bank you could negotiate a better rate but that was 20 years ago. Since the GFC it has been the opposite. Larger amounts attract lower rates. This is because the regulators think that it is easier for bank to lose 1 depositor with $20m in funds than 1000 deposits with $20,000 each, and thus the 1000 deposits are more 'stable' for the well being of a bank. If you are in NSW, look on your Council's website for the section on their investment funds. The highest rates are already from at-call online banks like ING/Ubank so you would think that they'd stuff all their money into these accounts at 3%pa+ if they could instead of term deposits (which aren't accessible at-call) at less than 3%pa. But these accounts generally have limits of about $250k (government guarantee) and $250k is a drop in the bucket for these investors.

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  tomleonhart on 01/12/2015 - 08:53

  Lol the tax liability will be a nightmare.

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  retiredfeline on 01/12/2015 - 08:57

  +2

  Isn't One Big Switch trying to do this sort of thing? Although it's probably too hard even for them, they're just tinkering around the edges with petrol, electricity, etc.

  Edit: You might want to look up "crowdfunded banking". Apparently it's going to impact traditional banking.

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  [Deactivated] on 01/12/2015 - 09:20

  Well I am happy to conceed it was not a great idea.
  Still I might email a couple banks to see what they say.

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  Baysew on 01/12/2015 - 17:33

  Maybe your timing is out

  NAB, ANZ and Westpac cut deposit interest rates

  Some quotes from the article -

  What little appetite there was for deposits seems to have dried up completely.

  The Reserve Bank's Financial Stability Review in October also said competition for deposit funding had eased, noting banks had been able to reduce their deposit rates by more than the cash rate this year.

  Bell Potter analyst TS Lim said another reason for banks to reduce their deposit rates was an increase in the cost of wholesale funding in recent months.
  "It's just managing the margin. Wholesale funding costs continue to edge up slightly, so they are just trimming their retail deposits," Mr Lim said.

  • 

    DeafMutePretender on 01/12/2015 - 21:09

    Joke's on them, I never deposited my money in the big 4 in the first place.

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  [Deactivated] on 03/12/2015 - 17:25

  +1

  Being fed up with a pitiful 3.37% from UBank, I was just trying to find somewhere to earn better interest - and found this thread.

  Just when you think you've found a better rate on sites like infochoice, there's some dumb catch that makes the effort of changing - pointless.

  Example:

  • Interest paid quarterly or yearly instead of monthly
  • No withdrawals allowed or lose all interest that month
  • Must deposit at least $x per month
  • Must spend $x per month

  So if interest were paid monthly (and basically the opposite of the points above)… and no one person is able to abscond with everyone's money - then sure, I'm interested in at least listening.

  Problem is, I get the feeling potential home buyers are acting like nerds at a blind date party - all looking at each other with scared looks on their faces, and only talking to the guy next to them to say, "So… whaddaya you going to do?" - where the second guys replies: "I dunno… What are YOU going to do!?" - and no-one does much of anything.

  If I'm right, that would mean demand for loans is low - thus banks aren't lusting after deposits.

  Maybe another country? Though I have no idea how to even begin down that path.

  BTW… Something I learned a long time ago. Don't be too easily put off by naysayers - like what I just said, LOL. What they say might be correct. But looking into one option might reveal an answer somewhere else.

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  johninmelb on 04/12/2015 - 15:20

  ANZ Bank have just reduced their so-called High Interest Online Saver account to 1.8%.

  I've sent them a message telling them they've got 48 hours to improve it or I go to Rabo who are offering 2.55% base rate, plus a bonus for 4 months.

  I'm all for finding a better deal if it could be done, although I don't have a lot of money in savings.

  My only criteria is that I will not deal with the Commonwealth Bank under any circumstances whatsoever. Those crooks should be put out of business and all senior management jailed immediately.

  • 

    [Deactivated] on 04/12/2015 - 23:35

    I've done that - several times - with both UBank and a building society. Then I start researching, only to find all the others dropped their rates too. When I log back in, they waffle on about it's still a competitive rate, sorry to see you go.

    BTW… What's up with CBA? Or is it a personal thing?? (If it's in the news, I don't watch TV or read newspapers. But I get the feeling it won't be front page news online either, LOL.)

    They're all crooks as far as I'm concerned. So I don't much care who it is paying me - as long as they are.

    I still remember getting nearly 8.5%!

    Even term deposits which people usually start suggesting are pathetic.

    • 

      johninmelb on 05/12/2015 - 12:20

      CBA have cheated thousands of people out of their savings with their dodgy financial planners, and now doing everything they possibly can to avoid or at least delay as long as possible, any sort of reparation or compensation.

      CBA bankrupted hundreds of businesses when they took over Bankwest.

      Yes, all banks are crooks, no two ways about it, but CBA since privatisation have raised corporate criminality to an art form, and are allowed to get away with it. Amazes me that litigation funders haven't launched class actions yet.

      Not a personal thing with me, I hate seeing people's lives destroyed as this mob have done.

      I dealt with them once a long time ago, and their appalling customer service drove me demented. Never dealt with them since and never will again.

    • 

      [Deactivated] on 05/12/2015 - 21:53

      I don't watch TV or read newspapers.

      That makes two of us. My tv has been on exactly once in the past 18 months for about 5 minutes.

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  eclaw on 05/12/2015 - 12:51

  Sure, it might work when interest rates are going up.
  Interest are at all time low (money is cheap), they rather lend you money rather than take yours

  • 

    DeafMutePretender on 06/12/2015 - 21:38

    they rather lend you money rather than take yours

    They're taking your money regardless…

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  [Deactivated] on 05/12/2015 - 13:16

  So… @Bargitrage - found anything hopeful? If you even read this that is. (There's only one subscriber - me, LOL.)

  • 

    [Deactivated] on 05/12/2015 - 22:04

    Nope. I asked two people at Rams about this idea, and also ING by email regarding increasing the $100,000 cap to $250,000. Basically nothing.

    • 

      [Deactivated] on 05/12/2015 - 22:27

      Just checked RAMS… $200 deposit per month required, no withdrawals, 3.4% - may as well be with UBank which = 3.37% I think.

      Been thinking about learning how to write apps… but everything has been done - and if you come up with something better, someone will just pirate it.

      Maybe I should start collecting aluminium cans from garbage bins.

      • 

        [Deactivated] on 06/12/2015 - 12:11

        Apps wise, anything that gives people more privacy or anonymity online nowadays, may be a good direction, if it inspires you.
        On the other hand, there's a very interesting website called worldbuilding or something, where games developers discuss very interesting, advanced ideas for there dev. Doing stuff because you love it ain't a bad reason.
        Just ideas.

    • 

      [Deactivated] on 05/12/2015 - 23:23

      +1

      Hm… $150,000 for 1 year with:

      • UBank @ 3.37% = $5134 interest
      • Rabo @ 3.5% = $5335 interest

      That's $201 more.

      But it's not for 12 months - it's only for the first 4. Then the money has to be moved again, to chase a better interest rate.

      So interest earned for 4 months (not counting any further deposits) is:

      4 months in UBank = $1752.65
      4 months in Rabo = $1820.55

      The extra made by going with Rago over UBank for 4 months = $67.90

      But if Rabo (or the new bank) delays the transfer by just one day, you've lost $14.02 where neither of them 'had' our money. Thus reducing the 4-month profit to only $53.88

      • 

        [Deactivated] on 06/12/2015 - 12:14

        But why not ING @ 3.5%?

      • 

        [Deactivated] on 06/12/2015 - 13:43

        I'm taking a guess that they chose rabo instead of ing because they have $100k transfer limit without requiring you to call them up.

        This is useful when they decide to drop the interest rate paid.

        I think INGdirect is $25k, but you can do more if you ring them up.

        shrug

      • 

        [Deactivated] on 07/12/2015 - 12:46

        @Bargitrage: As above - pointless hoops to jump through:

        • Minimum monthly deposit of $1000
        • Maximum balance of $100,000

        You can probably withdraw $1000 then deposit it again. But a second account is needed too.

        Same interest rate as Rabo so same calculations apply… Maybe it's worth $200 more to some (less than $200 actually due to the max. $100,000 balance). But still - I can't be bothered switching for only ~$20 more per month.

        For someone with say $50,000 it's worse. They'd get something like $60 a year more, or $5 a month.

        Unless there's other benefits like cashbacks with ING - which wouldn't benefit me. I don't spend much of anything other than a bare minimum on food, petrol, and bills.