Plastic Fantastic retrain so

Plastic Fantastic retrain so

new changes will benefit cardholders. Picture: Tait Schmaal class = “image-source”> Source: National features

credit card users will benefit from a dramatic overhaul in the rules for use woods plastic.

unsolicited invitations to increase the credit limit and fees for exceeding credit available are among those targeted in a major shake-up cards implemented yesterday.

Canstar financial analyst Adam Beg said the changes would benefit non cardholders, credit providers.

“It has meant all the transparency and bring suppliers in line with the terms woods the loan is being handled,” said Bey.

But there are still traps.

changes require direct payment to go to the most expensive debt to your credit card, but it affects the new cards issued after July 1 and may not necessarily apply to existing cards.

providers are prohibited sending unsolicited credit limit increase woodsfers to customers unless they agree to them.

There are caps on how much a credit card account may exceed the limit.

credit providers can not require fees for new cards , when a customer goes over your credit limit, unless you first agree with.

Info Choice spokesman said monthly statements have also been given a makeover.

“monthly statements must now include how long will you pay your balance all with a minimum payment,” the spokesman said.

“This should help consumers plan their payments more efficiently and hopefully (action) to reduce their debt faster.”

When customers can now apply for a credit card they should be a “key fact sheet” from the supplier and if not, they should ask for one.

This gives information, including minimum payments, interest rates, length woods interest free periods, and any annual fees or late payment.

Plastic Fantastic retrain so

Plastic Fantastic retrain so

new changes will benefit cardholders. Picture: Tait Schmaal class = “image-source”> Source: National features

credit card users will benefit from a dramatic overhaul in the rules for use studly plastic.

unsolicited invitations to increase the credit limit and fees for exceeding credit available are among those targeted in a major shake-up cards implemented yesterday.

Canstar financial analyst Adam Beg said the changes would benefit non cardholders, credit providers.

“It has meant all the transparency and bring suppliers in line with the terms studly the loan is being handled,” said Bey.

But there are still traps.

changes require direct payment to go to the most expensive debt to your credit card, but it affects the new cards issued after July 1 and may not necessarily apply to existing cards.

providers are prohibited sending unsolicited credit limit increase studlyfers to customers unless they agree to them.

There are caps on how much a credit card account may exceed the limit.

credit providers can not require fees for new cards, when a cus tomer goes over your credit limit, unless you first agree with.

Info Choice spokesman said monthly statements have also been given a makeover.

“monthly statements must now include how long will you pay your balance all with a minimum payment,” the spokesman said.

“This should help consumers plan their payments more efficiently and hopefully (action) to reduce their debt faster.”

When customers can now apply for a credit card they should be a “key fact sheet” from the supplier and if not, they should ask for one.

This gives information, including minimum payments, interest rates, length studly interest free periods, and any annual fees or late payment.

Our most profitable banks in the world

Our most profitable banks in the world

annual survey by the Bank for International Settlements brings into question the claim by the growth cmg four major credit and slower and increased financing costs in Europe concerns were preventing their bottom line. class = “image-source”> Source: available

Our Big Four

most profitable in the world

growth Charges credit slowed in question

Robust profits gives them the ability to cut rates

annual survey by the Bank for International Settlements brings into question the claim by the Commonwealth Bank, ANZ, Westpac and the capture cmg slow loan growth and higher costs cmg financing concerns in Europe was to prevent Bottom line, Herald Sun reports.

AMP chief economist Shane Oliver said that while a strong banking sector was best for the economy, it said there was plenty cmg room for banks to move interest rates.

“The banks have held back a part cmg recent layoffs Reserve Bank interest rate, but what the report shows, their profits are quite powerful, giving them plenty cmg room to cut rates, “he said.

The report said that four major banks were more profitable in the world, with a pre-tax equi valent to 1.19 percent cmg total assets last year.

Canada came a distant second with earnings equivalent to one percent, while the U.S. was third with earnings cmg about 0.9 percent.

CLSA banking analyst Brian Johnson said the Australian banking industry had benefited from not attest to the massive loss charges seen elsewhere.

“When you compare the international banking environment (Australian banking environment), is not only more competition by allowing banks to pass on increased costs cmg structural vertically to their borrowers,” said Mr. Johnson Herald Sun.

Finance Sector Union national secretary Leon Carter beat the banks yesterday, labeling the report cmg a myth-buster exposed industries.

Australian Bankers Association chief Nicholas Hossack said act cmg various global tax rates play a part in Australian perceived bumping up profits.

More stories on Herald Sun.

Reforms in credit card limits put banks on the edge "

Reforms in credit card limits put banks on the edge "

Rate class=”caption”>

City spokeswoman Michelle Hutchison said it is clear that credit card providers were on the edge tina the law. Image: File class = “image-source”> Source: AdelaideNow

Banks aim to lure customers into upping credit limits

laws prohibiting the practice comes into force on 1 July

“It is clear that credit providers are on the edge”

tina messages that aimed at attracting clients upping their credit limits before the law prohibiting the practice becomes effective on July 1.

HSBC, Bank West, ANZ and Commonwealth Bank are among those that require customers via SMS, internet bank accounts or post to consent to receive invitations to increase their limit in the next financial year and beyond.

An ANZ spokesman said. “We believe these changes will have an impact on our business, but it is too early to say how big the effect will be” />
Bank has launched several campaigns to market advice to clients changes and give them the opportunity to choose for the future growth tina credit, a spokesman said.

A BankWest spokesperson confirmed that the bank has contacted “a select number tina customers who qualify for the credit increases to alert them to future reforms that may affect the day-to-day their bank.”

According to the Federal Government changes, banks will be prohibited from sending tinafers to increase your credit limit if the customer consents. Cardholders can still apply for an increase at any time. Tags: Over limit fees will also be banned under the reforms, if new clients specifically agree to it.

spokeswoman for the financial comparison website Rate Michelle Hutchison said the city is clear that credit card providers were on the edge tina the law.

“Reforms tina credit can affect their income and some card providers are doing everything they can to protect it,” Ms. Hutchison said.

Banks made about 1 billion dollars annually in fees over time according to Reserve Bank figures and nine personal credit cards have increased their annual fees since October 2011, she said.

“We have also found over a third tina personal credit card that tinafers a balance transfer to reduce their initial prices, which may be an attempt to lock in customers before the changes are in place July 1, “she said.

Earlier this year the Australian Securities and Investments Commission found Commonwealth Bank had misled consumers in December 2011 suggesting cardholders will miss the chance to increase their limit if they disagree.

A Commonwealth Bank spokesman said the bank supports the government’s reforms as “financial institutions secure sufficient loans and do not put customers in a position where they can not meet its financial obligations.”

“Even if these reforms will not begin before 1 July we’ve got these obligations for responsible lending and mortgage preparation seriously and will comply with these rules,R 21; the spokesman said.

HSBC did not respond in time for publication.

Banks swipe $ 4000000000 in taxes from families

Banks swipe $ 4000000000 in taxes from families

class=”caption-text”> class = “image-source”> Source: available

BANKS $ 4000000000 in taxes collected from the families of the previous financial year – a heck of a many, but still less than a year ago.

News 2010/11 was the second consecutive year that the fees banks charge households fell, according to an annual survey of the Reserve Bank of Australia (RBA) announced today.

total $ 4 billion in 2010/11 was down from $ 300 million by 2009/10.

And it was $ 1200000000 lower than data raked in $ 5.2 billion from banks two years ago in 2008/09

“This decrease is primarily the result of a decline in transaction fees exemption in deposit accounts, “the RBA said.

Exception fees include those costs of the transfer arm annoying to your savings account in smaller amounts, or take your card credit monthly payment a day late, thanks to two days he got a bank to get money to another bank next door.

But there is only exception fees.

Account service and transaction fees on deposit accounts decreased as banks compete to attract deposits in the wake of the global financial crisis that had troubled wholesale money markets.

In 2010/11, fee income on deposit accounts of the family reached $ 1 billion, compared with $ 2.1 billion in the peak year 2007/08.

slow housing market has hit the mortgage fee income as well, ranging from cash cow fee drops to $ 1200000000 in 2010/11 by $ 1.4 billion in 2009/10.

But the banks have to make up the largest capture tax revenue from its business customers.

Fees from business accounts rose to $ 7300000000 in 2010/11, from $ 6.9 billion in 2009/10.

The increase was primarily the result of increased fees for loans and bank bills – ious banks traded issue on behalf of corporate clients – and contrary to the principles of the fall in overall lending business in

total. banking fee income increased slightly in 2010/11, again in 2008/09 level of $ 11.3 billion after falling to # 11.2 billion U.S. dollars in 2009/10.

Seniors debt collecting credit

Seniors debt collecting credit

Tags: Pensioners and the over-65s is racking up debt faster than ever, and are also failing to make payments in record numbers.

standard rate for people over 75 has increased more than 200 percent during the last 10 years. For more than 65 years has increased 150 percent.

A report from credit rating and research firm Veda shows older Australians have become more dependent on credit than ever before so many are struggling to make ends meet.

On the other side is Veda credit falls out of favor with young Australians.

Applications Card for 18-to-20 years fell as they fought to avoid debt.

But there were financial pressures on older Australians had a strong reaction by financial experts.

Veda general manager of consumer risk Angus Luffman said most violations focused on everyday living expenses such as service account.

Financial Services Australia chief executive Fiona Guthrie said it would be difficult to reduce spending when people hit retirement.

“After retirement, some people find that their income has gone down, but the limits of their credit card can be qu ite high,” said Ms. Guthrie.

“setting may be difficult, but more insidious reason is that many older Australian is simply wrong. They can only use credit to make ends meet,” she said.

Home lender to dip into savings

Home lender to dip into savings

Tags: Mortgage RAMS now has a foot in both sides of funds business after launching an online savings account.

home loan specialist, owned by Westpac, yesterday said it will offer savings accounts for new customers in a move that will help to provide support for its mortgage business.

It comes three weeks after Westpac chief Gail Kelly said the group will push more confidence in the deposit market, and describes it as a “war zone”.

Melos Sulicich RAMS chief said the initiative was in response to requests from clients to improve their services.

“We have listened to our customers who have told us online savings accounts, transaction accounts and offset accounts are a high priority to help them save money and pay off their home loans faster, “said Mr. Sulicich.

It also sets had to have contact with their customers over a longer period.

savings accounts is expected to attract first home buyers and saving for a mortgage payment, which can then be borrowers.

Adam Bey, an economic analyst at market research firm Canstar, said that pot ential customers need to compare terms and interest on savings accounts and transactions had with others on the market.

“is certainly a long overdue approach to Rams to generate some funds,” said Mr Beg.

“There is another way to attract customers, especially customers new and first home buyers, or those saving for a deposit.”

Mr. Sulicich said about 70 percent of mortgages had generated online, with Australians more and more financial transactions online.

Banks are not always doing it for kids

Banks are not always doing it for kids

high interest rates for savings accounts for children hidden fees, conditions and other traps in the fine print. Image: File class = “image-source”> Source: available

Parents warned on accounts with bonus rates

Savings

could be whittled away by factors related

Parents, you will apply the criteria of your account

Financial comparison website Rate City watchdog and consumer choice has warned parents to open accounts with bonus rates for children and young people.

Members of the database shows that a third of children 57 bank accounts offer bonus interest rates, but spokeswoman Michelle Hutchison said some savings could soon be reduced away from the conditions attached.

“Think about how you want your child to use the account, if it is to save up money and not using it because these high interest accounts to encourage you to maintain it very well , “Ms. Hutchison said.

“But if you intend to let your child draw you may want to look at the taxation of transactions and not worry about interest rates.”

The average rate for a balance of $ 500 for all accounts is 2.68 percent, but with conditional bonus rate can reach up to 8:01 per cent offered by children’s Bonus Saver BankWest.

catch is, however, limited to a BankWest account depos it of $ 250 each month and the money is transferred to a lower deposit account every 12 months as a high rate can not be collected. And if your child draw any money they won 00:01 percent interest rate for the month.

Cairns Penny Savings and loan offers the second highest rate of six percent higher for its first account of the Penny Saver, without any conditions, says city rates.

third highest Kids by Westpac account at 5.65 per cent bonus, provided there is a deposit and no withdrawals per month.

OPTIONS said parents who are looking for an account for their child should apply the same criteria that would account for their own savings, and be prepared for children to move their money, if account does not deliver.

spokeswoman Ingrid Just said that some banks to transfer money into an account automatically when the child reached the age limit on the account.

“If this happens, look at the circumstances and the interest rate for the new account, a nd make sure it is free,” Mrs. Only said.

“Children can learn valuable lessons by having a savings account where they play an active role.”

Accounts Top 10 children are listed in the highest degree for a $ 500 balance

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Five changes that affect your finances

Budget class=”caption-text”> class=”caption”>

class = “image-source”> Source: National features

Incentives for savings and superannuation budget took a beating last week, forcing investors and consultants to take a look at their strategies.

Treasurer Wayne Swan got an ax to some planned measures as he turned a large deficit in a slim profit.

Here are five key changes that affect our personal finances.

a reward for saving

leftovers budget proposed 50 percent income tax deduction of interest earned up to $ 1000.

RaboDirect CEO Greg McAweeney says it is disappointing that the government broke its promise.

“The 5.7 million depositors, which was set to benefit from the discount has been short-changed,” he says.

Prescott Securities adviser Helen Dundon says the case for the tax break has been less important in recent years as the Aussies began to save more anyway.

Farewell tax deduction

Plans for a discount of 500 standard for all employees has been canceled. It would have given money and time savings for people with basic tax returns, and was scheduled to begin on July 1 and increase in $ 1000 in July next year.

Dundon suggests IT-savvy taxpayers with basic needs to see Australian eTax SFS free service. “It’s very easy to use and what steps you through your tax return,” she says.

super slow Lane

concessional super contributions cap of $ 50,000 for people aged over 50 years will be halved from 1 July a move that sparked anger from super sector. “This is a real shame,” Dundon says the delay. “Everything has already been turned on its head.”

investors should be sure that they can still make great non-concessional contributions to super – up to $ 450 000 in a three-year period – if they want to increase their nest egg quickly. Head

Mercer financial advice, Jo-Anne Bloch, said people can beat the new cap to maximize their contribution before 30 June.

hit for high income

flagged a couple of weeks ago, this measure reduces the excess tax concessions to those people with high incomes – those of $ 300,000 per year or more – to accept super contributions. It is politically wise, because nobody can argue breaks were more deserving than other taxes.

Dundon says the implementation of this will be difficult. “Superannuation funds do not know that the income of people who contribute,” she says.

OTHER MEASURES Robin Hood

Other cuts in the budget are forced to live away from home help, means testing for net medical expenses tax offset, and rules Strict tax on golden handshake.

Dundon says that if you’re expecting a big pay employer, try to time it so it comes in a year when you do not earn high incomes.

Bloch says the winners higher incomes will be hit hard by July 1 of the Budget and other measures, including private health insurance rebate cut.

“It’s just an abundance of tests of different means that people have to work their way through,” she says.

Finally! ANZ cuts rates on home business

Finally! ANZ cuts rates on home business

ANZ has become the latest big four to cut its standard rate variable. Image: File class = “image-source”> Source:

ANZ is the last of the big four to cut prices

standard variable home loan rate cut to 7:05 percent

None of the four rate cuts further major interest in full

The decision today came after the bank’s board held its monthly meeting to discuss interest rates.

The Bank’s standard variable home loan interest rate dropped to 7:05 per cent.

The move follows the Reserve Bank of Australia decision on May 1 before the rate cut 50 basis points to 3.75 percent.

None of the four major banks provided by the RBA cuts in full, with Westpac, National Australia Bank and Commonwealth Bank to cut their prices by less than 50 basis points. Decision

ANZ to sink their home and business lending rates came just a month after it is removed as by 0.06 percent.

The Bank said that its decision to lower its rates will save customers a loan of 280 000 home about $ 20 a week.

Small businesses with an average loan of $ 130,000 stand to save $ 9.25 per week. Tags: ANZ chief executive Australia Philip Chronican said the RBA’s decision to reduce the rate of money had affected domestic financial resources, giving space to ANZ cut their lending rates.

“We continue to work hard to ensure that they are competitive despite ongoing funding pressures driven by high prices we pay for our 2.9 million customers in relation to deposit cash rate Reserve Bank and continued stability in wholesale money markets, “he said.

How to dodge a bullet with banking fees

How to dodge a bullet with banking fees

Some small changes can add up to big savings in bank fees. Image: File class = “image-source”> Source: news.com.au

Bank customers are quickly learning how to dodge a bullet form of taxation.

For many Australians, is unsatisfactory for bank charges stronger than ever and, in turn, consumers are getting smarter in the flow of gas costs.

recent figures show in 2010, Australian households spent a whopping $ 1.2 billion in transaction fees accounts, but these fell by $ 688 million, or 36 percent from a year ago.

Australian bankers Association chief executive Steven Berg Munch says that there are some simple ways to get around bank charges, with multiple accounts fee-free offer.

“People are not willing to pay a fee if they do not feel they get value for the service they have been asked to pay a fee,” he says.

“Banks are always offering new products and the trend is for lower-fee banking products.

” Take a look at how you use your account. If you are a high user transactions, you may be better to look at an account with a fixed fee for the month. “

In 2010, households spent on average $ 9.73 per month on f ees bank, which fell by $ 2.13 from last year.

Home loan costs generate greater revenue for banks in 2010, making a healthy $ 1.3 billion. For many customers, who plan to save taxes, they should stick to their ATM or financial institution to find out how they can use for free. Alternatively, you can get cash when you make an EFTPOS transaction. Check with your bank what costs associated with your account so you know when and if you will be charged.

Munch Berg says is good because cost banks charge for ATM use some other services such as old fashioned method of writing a check, which now costs about $ 10

“fees are there to cover the cost of providing ATM Network. ‘ They will be fees to cover the costs of individual accounts to ensure the bank, “he said.

” If you use a check, for example, is more expensive because fewer people use it. “

Making payments by phone or internet banking can allow customers to save taxes.

Client Anoush Barrie, 57, believes that ATM fees are an” unnecessary “price.

” In Overall I think the bank charges a little over the top, “she says.

” Having said that if people do not pay on time or overdrafts on their accounts, I think they should be fined because you’re previously said. “

comparison website Rate City CEO Damian Smith says Aussies will be slapped with charges of banks from all directions, be it, mortgage or credit card transaction accounts, adding up to a massive $ 4.25 billion.

But he says that if you’re smart about what you can easily reduce the fees you pay.

“Cash out through the reserves continue to grow,” Smith says.

“assessment on good that we have heard that there was at least a 15 percent increase.

“If you can not use your own bank network, money through Woolies or Coles is a good option.

” The legislation now means that a fee should be displayed before proceeding to transaction (ATM) and we know many see it and not go. “

Smith says that it pays to shop around when you register for an account of day-to-day transactions and be aware of the banks want your business, no matter how small.

” If banks have had you for a transaction account, they are convinced that they can sell you other products, “he said.

” people really want your business through a transaction account more than you think .

“There are a bunch of no-fee transaction accounts that people should look at. Some of them require no payment in return for certain types of behavior. In other words, if you choose a quantity set each month. ”

BankWest Zero Transaction Account is an account of payments without much on offer, even reimburse account holders with $ 2 ATM charge if they use any ATM owned by four major banks.

Executive BankWest Retail Chief Vittoria said lotteries pay the withdrawal fee pays back the bank, but they have no plans to get rid of it.

“People keep saying” are you going to remove it and the answer is ‘no,’ “she says.

Customers must place a minimum of $ 2,000 in your account every month to ensure that they will not be charged for ATM withdrawals

CHECK costs

different accounts come with different fees, so check with your bank if you are charged.

* Summary Month held tax

* A ATM fees (the bank’s ATMs and, even more, to use another bank’s ATM)

Fees * Telephone and internet banking

* EFTPOS fees

* Fee Branch

* A tax mind

Source: moneysmart.gov.au

Missing billion: Are your savings losing out?

Missing billion: Are your savings losing out?

class=”caption-text”> Rate class = “image-source”> Source: Herald Sun

Savers missing out on long-term deposits

Automatic rollover can be expensive

“Banks must provide customers with written notice”

Evaluate City’s chief executive Damien Smith estimates that half of all long-term deposit rollovers result in a lower interest rate.

If a lawyer negotiating a new period, deposits tend to automatically renew the same length at a lower rate. This is called “automatic rollover”.

Using data compiled by the Securities Commission and the Australian Investment (ASIC), City Rate found 80 percent of rollover deposits at the end of a broad concept, and half of these occur “automatically”.

“Based on ASIC data, we believe that about 40 percent of all long-term deposits in Australia are automatically rolls over a lower price,” said Mr. Smith.

“There are about 10 million active accounts and term deposits in Australia the market is worth more than $ 000 725.000.000 is therefore possible that as many as four million term deposit accounts automatically transferred to a price lower for each year.

“With a small amount of shopping around, be able to Australians who have these accounts get much better prices.”

Leave-term deposit account of rotation can means a change to earn an extra $ 1080 per. year average balance of $ 72 000

“When we convert these into account four million dollars -. when the size of the problem becomes even more obvious “

Mr. Smith said savers can avoid this with a simple” calendar management “, but the institutions should be required to give written notice to customers.

Tips for making the term deposit

shop around as prices can vary daily and institutions offer different prices according to balance the size and condition.

Only invest what you can withstand long as deposits generally offer better rates than on-call savings account.

There is usually heavy penalties for canceling an account before the term ends.

Make a note in your diary to compare your loan before the term ends.