Aussies! Looks like our banks are gonna force us to take it where the sun dont shine!

Now while i understand that the banks are a business and customers have choice (although that choice can come with some very tight and costly conditions), a precedent now has been set where they are going to start adjusting their rates independent of the RBA.

Only hours after ANZ announced theirs, Westpac have followed through likewise - with a bigger raise. Now those increase might not amount to much, but now that it has been done, greed will prevail unabated.

Lots of 'savers' like to argue that banks are a business and that's fair enough. But I wonder how these customers would feel if they start lowering their interest rates on savings accounts? It's a business after all, right?

How about some increased fees all round, for all customers regardless? Not likely perhaps, but there's no stopping it now. The industry has decided to bleed their customers to maintain their profits, regardless of who it screws over! There's already lots of angry customers. Seems mortgage owners are the ones who are gonna be hardest hit, and businesses if they raise their variable rates as well.

This is gonna get ugly. And I'm all for watching it with a big bag of popcorn (though I don't eat popcorn). As job losses accelerate and our economy deteriorates, the RBA becoming irrelevant, the government ineffective, the banks are likely gonna start hitting some people hard.

I just hope they exercise some restraint, but regardless, I just see this move as one of many that is not going to bode well, not only with bank customers, but the Australian community more broadly as increasing numbers of people have less discretionary spending money, or otherwise, lower confidence to spend due to increased uncertainty of the future.

I have a mortgage with CBA so will be watching. They already put their rates up two or three times over and above the RBA during those increases from 2009 to 2010, and yeah it hurt my pocket. Fortunately I have family to help.

How do others feel?

ANZ lifts variable interest rate by 0.06 per cent after RBA keeps them on hold

* ANZ has raised interest rate by 6 basis points to 7.36pc
* Rate rise will add $6.50 per fortnight to the average home loan
* CEO defends move saying they must delink from the RBA

Westpac raises mortgage rates

WESTPAC Banking Corporation has become the second of the four big banks to raise interest rates in defiance of the Reserve Bank of Australia (RBA).

Westpac announced today that it would raise its standard variable home loan rate by 0.10 percentage points to 7.46 per cent, effective from February 20.

Since the GFC back in 2008 the big 4 banks have actually consolidated their hold around Australias throat thanks to the guarantees the govt gave them ,the whole system is corrupt to the core and needs to be reset.When the commonwealth bank was privatised years ago we were told we would be better off well that didnt work out to well for us

Absolutely disgusting.
Our economic chiefs are toothless whimps..
How many times have they fronted the cameras

'' Banks DO NOT DO THIS, DO NOT DO THAT ''

The banks do it and just walk off.

When are we going to get a leader and party with a backbone.

They justify raising interest rates because of '' pressure on profit margins ''

ANZ's 2011 full-year profit hits $5.36 billion - but they need to raise interest rates because of profit pressure.
Westpacs 2011 full-year profit hits $6.06 billion - but they need to raise interest rates because of profit pressure.

F"#$*!"&$%N DISGUSTING!

The thing is, with the current funding costs they are not making any money on new loans, and they cannot write new loans at a loss for long. They are also having to increase provisions for loan losses as the housing market falls. So either they raise rates, or they stop writing loans.

If they stop writing loans, the housing market is decimated even further and the banks take on massive losses.

So despite those "massive" profits (which actually represents a 1% return on assets), they have little choice but to raise rates. Of course, the Treasurer has no desire to actually explain this issue because he is chasing votes.

Banking executives, in Australia at least, arent just doing this for fun, and they arent evil people.

Well, at least they are managing to keep our banks profitable without all of us to keep them alive with tax dollars.

But I still hate them!

there not stupid. they realise they dont need to pander to the government to put the brakes on the economy. job loses will do that, and boy arn't they coming thick and fast.

in just the last two weeks here are some i can remember being announced.

westpac - anz - comalco - holden - kell & rigby - the mob that make mortein - alcoa - macquarie bank - suncorp - vodaphone.........and thats just a handful.

brace yourself kids.......things are going to turn to mud right before our eyes in the next few months.

reply to post by surrealist


Why not just join a credit union and stop complaining about banks

The 'covered bond legislation' is what we should worry about. They passed it last year,

Right now each bond that they sell, we can add to our national debt. When the world economy is sucked under by Europe those bonds will be payed for by the taxpayer just like whats happened in Greece and other places. We are being sold to investors as a safe haven but we will not be immune this time.

The housing market will collapse this tiime too. Then austerity.

Originally posted by TheCommentator
reply to post by surrealist

 

Why not just join a credit union and stop complaining about banks

you wont hear me bashing the big banks in favour of credit unions. i was with a credit union. i was being charged for every eftpos transaction plus account keeping fees which added up to about $60 a month. because my wage was paid directly into this account i used it every day. i went in one day to complain and told them i would draw out my pay in full every fortnight. there answer was it was dangerous as i may get robbed. they had no answer when i pointed out they rob me every last day of the month.

i walked around the corner to the NAB ....they offered free eftpos and BPAY and only $3 a month in fees. i now save over $700 per year just in fees and couldnt be happier with them.

Bet you a beer that in 5 months we will be hearing about
the banks record profits...again

Originally posted by bellagirl

Originally posted by TheCommentator
reply to post by surrealist

 

Why not just join a credit union and stop complaining about banks

you wont hear me bashing the big banks in favour of credit unions. i was with a credit union. i was being charged for every eftpos transaction plus account keeping fees which added up to about $60 a month. because my wage was paid directly into this account i used it every day. i went in one day to complain and told them i would draw out my pay in full every fortnight. there answer was it was dangerous as i may get robbed. they had no answer when i pointed out they rob me every last day of the month.

i walked around the corner to the NAB ....they offered free eftpos and BPAY and only $3 a month in fees. i now save over $700 per year just in fees and couldnt be happier with them.

With a bit of research you would be able to find a local credit union that will give you a much better product and rate then the nab.
At the end of the day why would you pay so much money to a big bank to make some fat cat rich when you could be putting it into a credit union where the profits help you and your community.

I'm taking my money elsewhere. Thats it!

Umm how can actually get $1.35 out?

I know, Eftpos!!! leaves me $0.75 cents after the $0.50 cent feel.

BANKS CAN KISS MY SHINY WHITE ASS!!!

reply to post by TheCommentator


it was local.....just down the road. and i challenge anyone who says they would rather pay $60 a month to keep with a credit union as apposed to $3 a month with a big bank. i work to bloody hard to just give it away.

Originally posted by bellagirl
reply to post by TheCommentator

 

it was local.....just down the road. and i challenge anyone who says they would rather pay $60 a month to keep with a credit union as apposed to $3 a month with a big bank. i work to bloody hard to just give it away.

The point of what I said was not that it was local

Debt in Australia is mostly private debt tied up in real-estate,

Aussie banks are holding a large number of mortgage repossessions but are only releasing them slowly so as to not spook the market. The interest rate rises are needed to buffer this real-estate stock holding. If the banks have to release this stock the entire marlet will fall.

So, is it better to wear the interest rate increase or the devaluation of your real-estate?

Australian interest rates are the highest in the world...
...Australian house prices per capita earnings are the highest in the world...
...personally I think there has to be an adjustment and not if but when.

Yeah I realise there is a trade off between higher interest rates and property values. I actually agree with the popular view even though I am a mortgage owner that Australian property prices are way too high and need a correction. I own an older style unit in Canberra, but have it looking nice, so don't own a expensive property compared to most others.

I have also researched other lenders - banks, CUs and others, but I was either not eligible or had personal circumstances / arrangements that didn't allow to transfer over. Or there was just no savings to be had even apart from any release and sign up costs.

But having said that I would still be raising the issue even if I didn't have a mortgage and was renting. It effects renters too in the longer run, which I have been for years previously. The properties just around me, old one bedroom units, rent between $300 and $350 per week. Other factors go into this for sure, especially being in Canberra where the average incomes are higher. But other places around the country are similarly harboring overpriced properties.

The
Commonwealth Bank and regional lender Bendigo and Adelaide Banks have just raised their rates independent of the RBA.

What a coincidence! Five banks in the space of just two business days raise their interest rates. No collusion or industry tip-off here, no!

Now all the big banks lift rates.

In next week's news, all big banks and lenders lift interest rates to combat increasing funding costs. Australian Treasurer Wayne Swan reacts: "Quack quack!"

In the following week's news, all big banks and lenders lift interest rates again citing increasing costs of funds. Three big banks announce thousands of job cuts from their Australian operations. Australian Treasurer Wayne Swan reacts: "Quack quack!"

In the following week's news, all big banks and lenders surge interest rates yet again citing funding pressures from overseas loans and rising costs. The gang of four flag job cuts in the tens of thousands! Australian Treasurer Wayne Swan reacts: "Quack quack....... QUACK!!"

In the following week's news, all big banks and lenders edge up interest rates citing increased funding costs amid record number of deliquent mortgages and defaults nationwide! Banks cut jobs and close branches! Australian Treasurer Wayne Swan reacts: "Quack quack....... QUACK, QUACK, QUAAAAACK, quack, quack, quack, QUACK, QUACK, QUAAAACK, quack, quack, quack!!!"

It doesnt mean collusion...they are all seeing the same rising costs, and in this case they knew that ANZ would move first so as soon as ANZ raised rates it gave them all the excuse to do so without being first to go (typically first gets the most wrath from the media).

As for Swan, he is an idiot. He actually threatens the CEOs of the big banks to try and keep them from raising rates, like a typical union moron. Only it doesnt work.