Thread: Anyone sacking their Bank? (for upping rates)

I'd like to see rates rise back to what we were paying in the late Eighties/early Nineties - 18%.

At least then I might get a bit of interest on my savings.

I'm going with monday the remain 2 follow with rate rises or at least hold.

This has been coming for months and it comes down to wholesale funding costs.

I'd also put money on next month the rba dropping rates with the banks holding.

Interesting times aheady as all confidence in the RBA's ability to hold banks in line has been lost. I''ll be watching clearance rates closely next week but I think we're going to see a pretty big shift over the next few months hopefully house prices stay flat and don't crash which will let inflation and a falling dollar(which a rate cut should help along) get us out of the hole we've dug. Anyone thinking a property crash will be a good thing is nuts it'll be too big a hit for our econmy to take.

Anyway i'm a pretty avid follower of macrobusiness.com.au which I've found to be pretty accurate on these things

No.

I'm with Ron. Maybe my super will stop dropping. Jim

what the press doesn't properly explain (and neither does the Govt) is that there is not enough money in the Australian economy to meet the insatiable demand for loans to buy property...so the banks, Aussi home loans, RAM and all these so-called "lenders" have to borrow a lot of it from overseas ....

The overseas banks don't trust eachother enough to lend after the GFC debacle, so they wack on a premium to cover their risk... that's why they watch the credit ratings like the weather to gauge trustworthiness of the Australian banks.

Because Australian banks are strong and are making substantial profits it encourages overseas lenders to offer funds to them on the wholesale market at rates better than what would be available otherwise...

There is another benefit: most Australians have a significant exposure to banks in their superannuation funds...so while we bitch about fees and charges, in fact we are all benefiting ...

Our glaring lack of skilled people and general uncompetitiveness in part is another example I guess of our collective decision 30yrs ago to only have "1.2 kidsper family " and stay a small population by the standards of other nations... now we're paying the price: we don't have the critical mass...

Originally Posted by Hoges

There is another benefit: most Australians have a significant exposure to banks in their superannuation funds...so while we bitch about fees and charges, in fact we are all benefiting ...

A false economy and a Robin hood economy. I hope there is no overseas investment in Australian banks.

I don't know why anybody uses the banks - Credit Unions, owned by the members for the members - and not a design to maximise profits for the shareholder.

Originally Posted by Slunnie

A false economy and a Robin hood economy. I hope there is no overseas investment in Australian banks.

I don't know why anybody uses the banks - Credit Unions, owned by the members for the members - and not a design to maximise profits for the shareholder.

I'm with you, I gave the banks away years ago!! I deal only with a Building Society now!! However, I guess it is a bit more difficult to give away banks for small business people and the like!!

Go into you bank and negotiate.

We are with ANZ and get 0.9% off the variable rate.