"Complacent transactors" losing out

Personal Finance

Survey suggests half of all New Zealanders are missing out on bonus savings by leaving deposits to idle at low and uncompetitive interest rates

5th Oct 11, 12:26pm by Amanda Morrall

<p> One skinny piggy bank/Flikr/Nieve44/La Luz</p>

By Amanda Morrall

The banking industry is loaded with jargon but here's a term that caught my eye: "complacent transactors.''

Sounds like a white-collar felony or else a hideous computer malfunction with terrible consequences disguised by the banality of the term I thought.

I wasn't too far off.

A complacent transactor isn't some rare and untreatable digital disease but rather a very common species of banking customer in New Zealand.

Their offence?

Leaving billions of dollars in run of the mill savings accounts at the expense of earning much higher interest on more competitively priced options.

A survey carried out by Rabobank found that 56% of New Zealanders aged 18 and over are missing out because they can't be bothered or are blithely unaware of their options.

RaboDirect General Manager Australasia Greg McAweeney says "complacent transactors" are costing themselves dearly.

Reserve Bank figures cited by Rabobank suggest there is more than NZ$29 billion in retail funding parked in standard, low-interest, on-call savings accounts. See more here at RBNZ on household deposits.

Nothing wrong with a rainy day fund (in fact it's a key component of a prudent financial plan), but McAweeney said Rabobank's research has shown half of New Zealanders leave more money in their transaction accounts each month than is necessary to cover their expenses.

“For these ‘complacent transactors’ there is an opportunity to maximise the returns on their money by putting the surplus into a straight forward bonus product that will pay higher interest rates.

“And for ‘passive savers’ – people whose money keeps rolling over in the same account, it’s about regularly checking the market to make sure they are getting the best rate possible for their hard earned savings,” he said.

Naturally, Rabobank used the survey as a plug for their own products, the latest of which boasts an interest rate of 4% - based on bonus interest of 0.6% p.a. on top of its on-call rate of 3.4%, which is the highest on offer on our table of all bank oncall rates.

Sure, the survey, and Rabobank may be accused of being self-promotional but if the figures are anywhere near accurate it should be a wake up call for the legions of complacent Kiwi transactors and passive savers who are missing out.

Don't take my word for it. Shop around.

See all call account rates on Interest.co.nz here. See also credits rates explained, a crucial part of the equation.

Again, don't take my word for it. Do your own research. You'll be back.

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62 Comments

by david_hall | 5th Oct 11, 1:01pm 1317772876

Interesting that you should favourably comment on the .6% "bonus" Rabo are offering new investors and existing customers with new deposits.

This offer is, of course, at the expense of existing customers without new deposits ... they continue to earn only the base rate pf 3.4%.

Not a great way the recognise and reward loyal investors.

by Amanda Morrall | 5th Oct 11, 1:06pm 1317773160

Negotiate with them.

by We Are Stuffed | 5th Oct 11, 1:49pm 1317775775

how to piss off a customer in one easy step.

Rabo have just reduced my on call account interest from 3.6% to 3.4%. Now I see that they are offering 4% to new customers.

What a joke.

They will only pay me 4% on any increase I put in the account from now. Not the existing deposit.

I am going to contact them and see if I can get it on the lot.

If not, I am off and will never return.

What a pack of twits!

by Andrewj | 5th Oct 11, 2:00pm 1317776458

I think money is flowing back to Rabo because of insecurity in the world and no deposit guarantee anymore. AAA means something again.

by hamrod | 5th Oct 11, 2:09pm 1317776988

Sorry who financed the Crafer farms again?

by Andrewj | 5th Oct 11, 2:11pm 1317777112

There have been some 'changes' at head office.

by We Are Stuffed | 5th Oct 11, 2:27pm 1317778067

So if the money is flowing back to Rabo why offer more to new customers and hack off the existing ones?

Pretty bad marketing.

I was fuming when I typed my email to them.

I doubt there will be many existing customers happy with their stupid marketing ploy.

by Amanda Morrall | 5th Oct 11, 2:50pm 1317779412

WAS. Let me know how you go....willing to bet there's some unadvertised give there. They won't want to lose you.

by We Are Stuffed | 5th Oct 11, 2:56pm 1317779804

I have just under a million with them. About a third of it is in the oncall account.

They won't care if I leave.

They would care if you did a story on them.

I will let you know what they say.

by We Are Stuffed | 5th Oct 11, 3:07pm 1317780420

You have just pissed off a customer. Hope you are happy. I am sure I will not be the only one.

From:RaboDirect [mailto:info@rabodirect.co.nz]

Sent: Wednesday, 5 October 2011 2:56 p.m.

To: we are stuffed (name changed)

Subject: RaboDirect enquiry

Dear We are Stuffed (name changed)

Thank you very much for your email.

Thank you for your feedback in regards to our current campaign.

I can confirm that the bonus rate does not apply to existing funds held, including Term Deposits.

However any increases to your On Call balance, that also increases your overall Portfolio balance of $888k compared to the start of the promotion, will be eligible for the 0.6% bonus interest.

For detailed information on how the promotion applies for existing customers and what funds are eligible, please visit the link below.

http://www.rabodirect.co.nz/landing/campaigns/11/newmoney/bonusinterest.html

From time to time we have offered various promotions geared towards either new or existing customers.

Being a campaign with a focus on acquiring new customers, it is difficult at the same time to satisfy all of our customers.

This is the first time we have run this particular promotion and we are certainly eager to gain feedback from our customers.

With this in mind we do appreciate your comments and understand your concerns.

I have forwarded these through to our management team, and please be assured that that your comments will be taken very seriously.

Please don't hesitate to email us back if you have any further enquiries or phone our Customer Contact Centre on 0800 22 44 33 (+64 4 819 2870). Our Customer Contact Centre is open 8am to 7pm, Monday to Friday, except public holidays.

Kind Regards,

---------

Customer Contact Centre

P: 0800 22 44 33 | F: 0800 22 88 66 | www.rabodirect.co.nz

This email is in response to the following email query:

Reference : Subject : Complaint Type answer : Via e-mail I have $888k invested with you. $248k has just had the interest rate dropped to 3.4%. Now I see you promoting 4% in the same account for new customers. This hacks me off.

I see you are offering to pay the bonus .6% on any increase over my $248k.

Why cant you offer a loyal customer the same deal as you are offering new customers?

Are you willing to pay me the same as a new customer?

If not I am taking my $248k elsewhere and will become an ex customer when my term deposits mature.

Not a good way to treat your customers!

by david_hall | 5th Oct 11, 2:20pm 1317777657

"We are stuffed" .. will you let us know how you get on with your negotiation?

Perhaps Amanda will tell you what she had in mind!

by We Are Stuffed | 5th Oct 11, 2:29pm 1317778140

Yes David,

I will post here when I hear back from them.

by We Are Stuffed | 5th Oct 11, 3:10pm 1317780620

Waste of time. Answer is above.

Well better arrange to transfer the call account money out.

What a pack of tossers they are.

by Sqaure | 5th Oct 11, 3:19pm 1317781199

If you aren't too disillusioned with them, you could always do what I plan to do and transfer the money into your partner's Rabo account.

by We Are Stuffed | 5th Oct 11, 3:21pm 1317781298

Joint account.

I only have one partner:)

by Amanda Morrall | 5th Oct 11, 3:37pm 1317782220

A $500K lesson for Rabobank. Their loss. Start shopp'n.

If they had human representation here I expect you'd get a more satisfactory offer. I've had good experience with my foot stomping antics. Actually, I'm always surprised how well they work.

by We Are Stuffed | 5th Oct 11, 3:59pm 1317783550

I threatened to withdraw one and a half million out of a kiwibank on call account if they didn't offer me a better rate than the standard 3.15%.

They didn't give a toss.

I took it out and spread it around the competition.

Didn't hear boo from them.

Then the other day I get a prompt on my logon internet banking "thank you for being a loyal customer for eight years" BIG DEAL

I'm running out of places to go to though:)

by david_hall | 5th Oct 11, 6:10pm 1317791433

Added my two bob's worth to the switch campaign ... waiting for a reply

What we need now is a catchy phrase to remind us all why we're switching from Rabobank.

How about ...

At Rabobank we value loyalty. Yeah right!

by We Are Stuffed | 5th Oct 11, 6:22pm 1317792137

Rabo bank.....the bank that will do anything to get you but not to keep you.

by JD | 6th Oct 11, 6:59am 1317837562

Hubby put 20k in the day before the promo. I asked could they backdate the promo a day for us. Got what I expected, a no. I like the idea of swapping it into partner's account!

by Amanda Morrall | 5th Oct 11, 8:15pm 1317798900

Looks like I might owe you a coffee. Bernard is starting to look weak on his 30-free caffeine free pledge, maybe I'll get my $20 off him in advance and you can enjoy a coffee complements of him instead. Just kidd'n. You should come to our interactive this Friday, pick Martin Hawes brains for some alternatives to the banks. He can't give personalised advice but some general discussion of interest.

by We Are Stuffed | 5th Oct 11, 9:46pm 1317804360

:) I have braved the coffee withdrawal headaches and only drink the poofy teas now thanks Amanda.

It all depends how many customers complain to Rabo.

One voice doesn't get listened to but if enough customers threaten to leave the bank will listen.

by Amanda Morrall | 6th Oct 11, 9:08am 1317845330

WAS: This probably isn't going to improve your mood or sentiment towards Rabo...really is greener is OZ I guess.

http://www.rabodirect.com.au/landing/hisa-bonus/index.html?utm_source=M…

by We Are Stuffed | 6th Oct 11, 1:18pm 1317860316

pity the exchange rate is so bad. I tried to put some money in Rabo AUD a couple of years back and they told me that I had to be an Aussie resident.

by Justice | 5th Oct 11, 2:38pm 1317778680

Who was ever called by their NZ bank to be informed "hey we could give you a better deal if you do this?"

NEVER! The NZ banks are the most unproductive lazy marketing sods out, and the NZ public are' in general' useless at any kind of shopping around or financial savviness regarding their bank.

GET THEM WORKING FOR YOU!

Hope you like the tunes: ;-)

http://www.youtube.com/user/teganandsaramusic#p/u/4/vyTe49e9i0Y

by Amanda Morrall | 5th Oct 11, 2:55pm 1317779741

Haha, great vid. She actually manages to make the mullet look good too....well sorta.

by We Are Stuffed | 5th Oct 11, 3:18pm 1317781080

Amanda,

can you change your article to show that the rate is only for new and not existing customers?

It is a bloody stupid promotion.

by Justice | 5th Oct 11, 4:01pm 1317783709

I believe they are Canadian too! gotta be a plus

by We Are Stuffed | 5th Oct 11, 4:06pm 1317783974

No they are Dutch.

by Justice | 5th Oct 11, 6:19pm 1317791962

ah no, Canadian. where did you get that idea? Go visit their website WRS. The accents are a giveaway. they did a track with a dutch trance music artist once

by MiniMe | 5th Oct 11, 2:37pm 1317778659

I've been a Rabo customer since they first arrived here. I always send them feedback when I see the $50 when you open a new account (if you're a new customer that is), or the free cycling gear/ membership (if you're a new customer that is). They don't care. Good luck with the negotiations.

by Boatman | 5th Oct 11, 2:59pm 1317779941

I understand there are better rates elsewhere , but I threatened to draw $300k from ANZ and they sharpened up smartly , and they even sent a personal banker from their wealth mangement team to see me . I have no need to be shaken - down right now, particularly by someone who is too clever for me and dresses much smarter than me , so I politely declined the fancy products he offered.

The real issue is ... What else do you do wih the money ?

1) The stock market is facing an abyss in the Eurozone debt crisis. The NZX is nothing but a legalised criminal casino ( with Companies run by Directors such as those at Feltex, who should be in Jail ) The stockmarktet is for fools only right now.

2) NZ Government Bonds yield a piss- poor 2 to 3 % and there is downside risk becuase NZ is running such a large deficit . Inflation exceeds the yield , so its for fools onyl

3) Property is so out of favour its not true . Also property yields are negative, and the prospect of capital growth is slim for the forseeable future. Fools will run here where angels fear to tread

4) At least with cash in the bank you have little risk of losing money or wiping out your capital. Yields are poor , but you are relatively safe .... unless the Bank collapses .

Cash is King , and its your war-chest for when the time is right to invest or speculate .

Even Warren Buffet is retaining his proifts and dividends in cash ..... go figure.

by Rob | 5th Oct 11, 3:09pm 1317780549

Yes rabobank are like that. they offer incentives to 'new' cusomters, but the existing ones can't get those deals. As a result I withdrew a substantial amount from them, and have now only got a small amount in it. However they have actually rewarded me for doing this, as I can now deposit that money again and will get the bonus interest, but only on that extra money I put in..

by We Are Stuffed | 5th Oct 11, 3:14pm 1317780852

Yeah,

If I had withdrawn the call account money on Monday and re banked it yesterday I would get .6% more interest on the lot.

Rabo bank.....the bank that will do anything to get you but not to keep you.

by Amanda Morrall | 5th Oct 11, 3:40pm 1317782450

$5 bucks says they come back to you....give it 48 hours.

I'll buy you a coffee Friday in Herne Bay if you're in Auckland. (see our Martin Hawes web interactive promo).

Maybe Mr Hawes has some good pointers with what to with your savings...

by andyh | 5th Oct 11, 3:44pm 1317782640

Hey come on lets start a campaign! I have e-mailed Rabobank to say if they dont offer the 4% to all or reconstitute the 3.6% rate our $300K is coming out to find another home.

Come on folks follow the example of we are stuffed!!

by Nicholas Arrand | 5th Oct 11, 3:54pm 1317783253

Got an email address there , andy, for us lazy ones, and to make sure we all head to the same inbox.

by We Are Stuffed | 5th Oct 11, 4:03pm 1317783811

my reply came from info@rabodirect.co.nz Nick.

It is better to log on to their site and send the email from their secure facility. Then they can see that you do have funds with them.

Good luck with the email.

I am holding off for 48 hours before I withdraw my money.

If enough of you guys show your anger at the way they are treating us they may do a U turn.

by Nicholas Arrand | 5th Oct 11, 4:13pm 1317784421

Oki doki, WAS. I'll get my little silver what-ever-its-called out and punch in the PIN. Cheers.

by We Are Stuffed | 5th Oct 11, 4:20pm 1317784800

Good on you.

The batteries last a long time in that little digipass thingi don't they?

I am emailing a few mates who I know have investments at Rabo to get them to do the same thing.

by andyh | 5th Oct 11, 4:56pm 1317786994

Yes, just log on and go to contact us - I filed it under a complaint and asked them for one good reason why I should not now take up BNZ's offer of 3.55% as Rabo seems to think so little of their customers.

Another potential home is Kiwibanks 32day notice account. Despite its lower rating than Rabo, I tend to think that Kiwibank, with its backing of the Post Office (which is after all a SOE) is at least as safe as Rabo. The govt would feel compelled to dig Kiwibank out of a hole,whereas I am not sure that is the case with Rabo.

Anyway you get 4.25% of Kiwibanks 32d notice account. What we have done is split a lump sum into tranches which was invested into seperate accounts within the 32 d notice wrapper over a few weeks - a day or so after each was opened we gave 32 days notice so we get a series of tranches maturing over a staggered period. We then renew them as each comes up, re-invest and so on. This way you get the 4.25% rate but with the advantage that you have a rolling treadmill of maturities (constantly renewed). That way if things deteriorate suddenly most of your cash is going to be available within that 32 day period.

by Rob | 5th Oct 11, 4:59pm 1317787154

I don't think the government could let kiwibank go under. If people actually lost money in a government owned bank, that would be bigger news than Dan Carter.

by Nicholas Arrand | 5th Oct 11, 4:54pm 1317786877

So far:

" Thank you for your email enquiry, which we value.

We aim to reply to you with an answer to your query within one business day, however on occasion this may take longer due to high demand".

by We Are Stuffed | 5th Oct 11, 5:00pm 1317787200

When I sent the first email after logging onto their site I got a pretty quick reply from a real person.

I replied to the address on that reply and got the standard one business day email as you did.

by We Are Stuffed | 5th Oct 11, 3:53pm 1317783180

Good on you.

Give them 48 hours to do it.

If enough people send them an email (just cut and paste the one I wrote and change the amounts if you want) threatening to leave they will sit up and notice.

by Nicholas Arrand | 5th Oct 11, 4:17pm 1317784653

amended.

by Alter Ego | 5th Oct 11, 4:25pm 1317785150

How stupid can they be...and how stupid do they THINK all existing customers are.

Likewise.................I do luv a good cause....and this is GOOD CAUSE.

Never piss off a good customer....RABO....you are just one of many idiot BANKS that may just be heading for withdrawl....symptoms.

WE will all become RABID if you do not..

by Kate | 5th Oct 11, 4:31pm 1317785460

IMO, if you have alot of cash holdings you need a transaction record with a variety of banks that keeps them each individually aware that you move your money around.

by We Are Stuffed | 5th Oct 11, 4:53pm 1317786780

I do that already Kate but the banks don't really care.

Go into any of the banks. The posters are all about borrowing. I very rarely see a poster for saving.

by Kate | 5th Oct 11, 5:16pm 1317788160

The problem there is fractional banking.

But, that's another day, eh?

Nice talkin to ya - best get to work! :-)

by Elley | 5th Oct 11, 5:16pm 1317788173

They probably don't care but the only year we got a Xmas card from one of our banks is the year when we had several 100K's in cash invested in various term deposits with them :)

by We Are Stuffed | 5th Oct 11, 6:33pm 1317792780

Campaign to leave Rabobank if they do not offer existing customers the same deposit rates as they are offering new customers.

Add your name and amount you will withdraw below this post. If you are an existing Rabo customer make an effort to send them an email. If you do nothing they will continue to treat you badly.

Amanda. Please amend your article to show the Rabo offer is only for new customers.

_______________________________________________________

So far we have:

Andyh $300,000;

We are Stuffed $248,000 immediately and $640,000 when term deposits mature;

Nicholas Arrand;

David_Hall;

by andyh | 6th Oct 11, 9:39am 1317847193

Well Rabo have even replied to my e-mail from yesterday yet...........

by speckles | 6th Oct 11, 9:56am 1317848197

I applaud the passion so will withdraw my 150k as well :-)

by We Are Stuffed | 6th Oct 11, 1:23pm 1317860616

Good on you.

by 2 Tooth Bora | 6th Oct 11, 10:24am 1317849883

Ok then wheres the higher earning safe returns?

Open ended comments like this with no options, are the same ones that put the finance industry in the situation it is now.

Wise/burnt Investors are steering clear of the damage that the finance industry caused. Just like the share market it may never recover to its former glory.

Be very carefull of what one advises Amanda as there may be no "morrall" substance behined the article.

by andyh | 6th Oct 11, 10:33am 1317850383

errrr - read the comments above about Kiwibank.

You could also use the fag end of the govt guarantee with either Marac or PGGWrightson current accounts (the latter giving 3.85%) until Dec 31st.

by JT | 6th Oct 11, 10:27am 1317850020

Is there a run on at Rabo bank?

by Nicholas Arrand | 6th Oct 11, 11:04am 1317852242

Still no further reply, andyh/WAS. So I've reduced our two call accounts to the obligitory $100 each. The T/D's still have a while to go; so I'll see what happens. Cheers.

by We Are Stuffed | 6th Oct 11, 1:22pm 1317860549

No reply from the "management" at Rabo yet.

Only the initial one which I posted here and a computer generated one.

by andyh | 6th Oct 11, 1:31pm 1317861067

WAS - I just got a reply - a variation on the verbiage that you received, telling me that any new money would get the extra rate blah blah.........

by Nicholas Arrand | 6th Oct 11, 1:38pm 1317861489

Ditto. My response has just hit the inbox; same format as yours. My call money is already winging it's way back to BNZ Private Bank.......