Out of the blue, I received some documents over the post saying my bank details have been changed in my Link Investor Center account. Scared, I rang them and I was notified that It was changed by my broker. I tried to chat with Selfwealth, but I could not reach a human. Did this happen to any of you guys?
My Link Investor Center Bank Details Was Changed by Selfwealth
amazonaddict on 19/05/2023 - 20:04
Last edited 19/05/2023 - 20:05
Last edited 19/05/2023 - 20:05
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but I recall it defaulted to yes and most would have accepted it.
I find that sneaky as they earn interest income from customers' money held within their ANZ settlement account and i don't think the change of their settlement provider have anything to do with updating bank account details held at share registry.
On a separate question, do you know how to stop receiving paperwork / paper statements from ASX or share registry for every single trades?
I think the process of Selfwealth changing the bank account with the registrar was not possible with the previous settlement provider, but is possible with the new one (FNZ). That is why they decided to ask for permission to do it now.
Now new Selfwealth users for example would by default have dividends come to their Selfwealth cash account, with the option of changing them to go to another account or re-invest dividends (organised through the registry, I expect). Previously it defaulted to 'no account' which left the possibility of failed dividends if the user didn't log into the registry and add an account, meaning the possibility of the registrar charging a fee to re-issue dividends.
So this new way is convenient for some people, except those that approved the change by accident, and then have to log into the registry to update to another account again.
Unfortunately I’m still not aware of any way from stopping all the annoying paperwork when using a CHESS sponsored broker. You’d need to use a broker that doesn’t hold the shares under your name but I guess that is not what most people prefer
Got it thanks.
Although it was a bit sneaky of SW, it not a bad thing to have all dividends automatically directed to a single bank account where you can find all the transactions relating to your shares portfolio.
The very bad thing is that SW is still not giving any interest on the funds held in the linked bank account. That was sort of acceptable when interest rates were 1%, but not now that they are 5%.
Which in turns leads to the fact that you would not leave funds in the account, making it difficult to quickly jump on good opportunity trades since transferring lafge amounts of cash is not immediate.One option you could consider which is what I’ve been doing is buying the AAA betacash ETF which pays about 3% p.a in monthly distributions if the brokerage in and out is not an issue for you. I much prefer this to having to transfer the funds out and back again
I never thought to that. It is a very good way around it.
I just looked into AAA and the 1 year fund return after fees is 2.48%. So unfortunately you still lose about 2.5% compared to a high interest bank account. And the brokerage ends up costing double because you have to do 2 transactions.
I just think SW should give at least 3% on the funds.Yep fair point. Depends on how much cash you have sitting idle but yeah if SelfWealth were to pay interest like Interactive Brokers it would be much easier. I feel due to their languishing share price, they are looking for all the revenue they can squeeze out of the customers at present (fittingly matching your username lol)
I find it to be useful. Get all dividends in one place and can invest or xfer out as / when required.
It was part of the process when they changed their settlement provider to FNZ securities. You would have got an email at the end of March asking you to login and accept the new terms and conditions. When you accepted those there was a question asking whether you’re happy to use the SelfWealth bank acct for dividends. There was an option to choose no too but I recall it defaulted to yes and most would have accepted it.