Thursday 23rd of January 2020

when the banks make no money and give you none...


Until customers start demanding better deals — and switching to providers that offer them — banks won't change. 

And they won't be forced to do what so many other businesses have to do: trim profit margins to woo customers and deal with competition.

This week the Reserve Bank of Australia lowered its cash rate to 0.75 per cent, the first time it's ever gone below 1 per cent.

It's a rate that banks use when buying and selling money to each other.

The cash rate is the amount banks will pay their supplier for a short-term purchase to have enough stock for the next day.

The rate goes on to influence other interest rates, such as mortgages, which is why it's so closely watched.

Although the Reserve Bank cut the rate by 25 basis points to just 0.75 per cent, none of the largest four banks passed it all on.

NAB and Westpac announced they would cut variable rates by 0.15 percentage points, ANZ went with 0.14 points and the Commonwealth Bank just 0.13 percentage points.


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now you know why they are called piggy banks...

piggy banks


.. and zombie accounts...

AMP Superannuation: For ruined retirements

The Banking Royal Commission left AMP’s reputation in shreds, and Choice has rammed the message home, awarding the disgraced firm a Shonky for having more than one million “zombie” super accounts “eating away retirements”.

“If your superannuation is with AMP, chances are you’ve had your retirement leeched off to fund its executives’ lifestyles,” Mr Kirkland said.

“Managing people’s retirement funds isn’t your average business – there’s a higher moral standard to meet when it comes to people’s security and comfort in older age, and AMP have failed this standard.


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were they encouraged to be naughty?...

It once was the exclusive domain of politicians, journalists and real estate agents. 

But in the wake of the Hayne royal commission into banking misconduct, AMP and financial planners in general, took pole position as society's pariahs. 

When it came to financial planners who actually worked for AMP, that was a combination about as toxic as you could get.

For the past few months, however, many of those small, independent advisers aligned with AMP have been living through a private hell.

As it attempted to untangle itself from the post-Hayne train wreck, AMP opted for a brutal restructure of its financial planning division

In August it sent a shock letter to 190 planners aligned with the group, informing them they would be axed by the end of October.

Sacked advisers facing ruin

Most had bought the businesses from AMP with a promise that if they were ever forced to sell, it would be on the same terms. That is no longer the case. Many now are facing ruin.

"I feel [like] a complete failure and that I have let my family down, I am anxious and fearful for the future," one planner wrote in an email to fellow AMP adviser John Kevin, who has been speaking to planners he is worried about. 

"I have contemplated whether my life insurance is the better option for my family, for me. I have now had my will prepared so AMP can't get a single dollar … I tell you this because I believe I'm not the only one thinking like this."

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Do you mean that the planners did not have a retirement plan?...