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Betting on the bank
Posted: Fri Oct 15, 2010 3:38 am
by Gob
A new Bank of Queensland savings account that offers tickets in a monthly lottery rather than a competitive interest rate has been slammed for encouraging gambling.
Consumer and anti-gambling advocates flagged legal action within hours of the product being revealed at the bank's full-year profit announcement in Brisbane yesterday.
Bank of Queensland chief executive David Liddy said the bank had created the unprecedented account because it was unable to offer competitive interest rates.
Advertisement: Story continues below However, Choice spokesman Christopher Zinn said it was "irresponsible" and would incite gambling.
The Win Account, to be launched on November 15, will be the first of its kind in Australia and is based on similar products in New Zealand.
It has few fees and offers an annual interest rate of 1 per cent, compared to most other savings accounts that offer about 4.5 per cent.
Customers will be lured to the Win Account on the chance they can win the $20,000 first prize in a monthly lottery, with an initial total prize pool of $30,000.
http://www.smh.com.au/business/bank-gam ... 16ltl.html
Re: Betting on the bank
Posted: Fri Oct 15, 2010 2:25 pm
by oldr_n_wsr
most other savings accounts that offer about 4.5 per cent.
Gob can you open an account for me? I haven't seen 4.5% interest in 10 years.
Re: Betting on the bank
Posted: Fri Oct 15, 2010 7:59 pm
by Gob
Sure
Just send me all your money, here's what my account is paying now;
Open a new NetBank Saver and you’ll receive a special bonus variable interest rate of currently 6.00% p.a., which includes a fixed bonus margin of 1.50% p.a. above the NetBank Saver standard variable rate of currently 4.50% p.a., until 30/11/10 for balances up to and including $5 million
http://www.commbank.com.au/personal/acc ... fault.aspx
What do US banks pay as an interest rate at present?
Re: Betting on the bank
Posted: Mon Oct 18, 2010 2:16 pm
by oldr_n_wsr
What do US banks pay as an interest rate at present?
On a regular savings account, less than 1%. Although some accounts give you 0% in turn for "free" services like checking and ATM usage.
On a CD (Certificate of Deposit, which ties up your money for some period of time 6months, year, multiple years, etc) your might be able to get 1.5% to 2%.
Re: Betting on the bank
Posted: Mon Oct 18, 2010 2:43 pm
by Crackpot
I've seen better rates on CDs than that but I haven't looked since the recession
Re: Betting on the bank
Posted: Mon Oct 18, 2010 3:14 pm
by Scooter
Gob wrote:Sure
Just send me all your money, here's what my account is paying now;
Open a new NetBank Saver and you’ll receive a special bonus variable interest rate of currently 6.00% p.a., which includes a fixed bonus margin of 1.50% p.a. above the NetBank Saver standard variable rate of currently 4.50% p.a., until 30/11/10 for balances up to and including $5 million
http://www.commbank.com.au/personal/acc ... fault.aspx
Unfortunately you have to be an Australian resident; otherwise, I would have looked at it as a potential place for my mother to park some of her money, which at this point in her life is pretty much all interest-bearing instruments which are paying next to nothing.
eta - except I wasn't thinking about the foreign exchange risk. Even a small shift in the exchange rate could wipe out that interest rate differential; a larger one would take some of the capital along with it. And the Australian dollar is trading at historic highs right now; as the U.S. economy rebounds it could he headed for steep fall.
Re: Betting on the bank
Posted: Mon Oct 18, 2010 8:34 pm
by Gob
oldr_n_wsr wrote:What do US banks pay as an interest rate at present?
On a regular savings account, less than 1%. Although some accounts give you 0% in turn for "free" services like checking and ATM usage.
On a CD (Certificate of Deposit, which ties up your money for some period of time 6months, year, multiple years, etc) your might be able to get 1.5% to 2%.
Dear God, so not only are house values/prices going down over there, but having your money in savings isn't exactly going to have you in clover either.
Scooter wrote:
eta - except I wasn't thinking about the foreign exchange risk. Even a small shift in the exchange rate could wipe out that interest rate differential; a larger one would take some of the capital along with it. And the Australian dollar is trading at historic highs right now; as the U.S. economy rebounds it could he headed for steep fall.
The Aussie $ is over valued at present, but I do not think that the $ US rebounding is going to be a major concern. The "resources boom" would be more affected by China and the emerging nations getting into problems.