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.
62 Comments
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.
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!
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!
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:)
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.
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…
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
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.
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.
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..
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.
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.
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..
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;
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.
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