Your banker's 6 big dirty secrets

[egan123]

I've tried and tried to find flaw in your reasoning, but, ( I CAN'T) this post hits the spot bang on, Banks also weld there power in the press, if your a radio talkback host and bad mouth them on air, say goodbye to your job, just ask Chris Carter, former talkback host on 1ZB, he would put the boot into them on charging fees, in the end Banks spend a lot of cash with Radio, and the powers that BE, decided that was more important than Chris.

[flyernzl]

There was a documentary on TV some years ago about the British Banking industry.

The nub of the discussion was that banks divided their customers int three groups:

The Lemons: People on benefits or low incomes. Whatever income these people have paid into their bank accounts today, they draw the whole lot out tomorrow. They (have to) live from week to week, and have no ability to save.
The Banks don't want them as customers, and just wish they would go away and not come back.

The Oranges: People on middle/high incomes with expensive tastes, large mortgages and high living lifestyles. Banks attract these people in order to hit them with high fees, large interest charges, and swingeing penalty interest on their overdue credit cards. Squeeze as much juice out of these people as you can.

The Peaches: Old-money people, who have so much in terms of (generally inherited) wealth that they don't know what to do with it and can't really be bothered anyway. These people are gem customers who can be fitted into highly profitable (for the bank) investment type products.

Decide which category you fall into!

[muppet]

ANZ chief hints at rate rise, as its profits rise 37pc

ANZ chief Mike Smith says the world's banks need to change their business models to adapt to the "permanently" higher cost of banking.

This prompted renewed speculation that lending rates in Australia will move after today's election.Mr Smith made the comment yesterday as he announced a third-quarter underlying profit result of $1.3 billion, up 37 per cent.
The strong earnings improvement for Australia's third-largest bank by market capitalisation was driven by a slowing in its bad debts, which unexpectedly increased in the second quarter.
For the first nine months of its financial year, ANZ's underlying profit was $3.6bn, up 26 per cent.
However, Mr Smith said higher wholesale funding costs were now a fixed feature of banking as a result of the global financial crisis.
"We have to face up to the fact that banks now have permanently higher costs of doing business," he said.
"These include continuing pressures on wholesale funding costs and at the same time rates for deposits have never been higher compared to short-term wholesale rates.
"We also have to carry significant costs associated with the new international capital and liquidity requirements.
"The result is we simply to have think differently about our business.
"We need to change, we need to streamline our structures and do things in new and different ways."
Mr Smith's outlook on costs immediately sparked speculation Australian banks would move their key lending rates higher after the election.
The warning from ANZ followed similar statements from National Australia Bank and Commonwealth Bank that mature debt about to expire would be replaced with more expensive current funding. Aquasia credit strategist Mark Bayley said the banks would increasingly try to offload higher costs to their customers.
"You can expect further pressure on corporate Australia, as banks try to maintain interest margins," Mr Bayley said.
"ANZ and other domestic and global banks have pointed out that funding costs have permanently increased.
"And who will this impact? You can rest assured that the banks will not suck up all the pain.
"They will share the joy through higher mortgage, consumer and credit card rates, and (with) corporates through higher margins on business loans."
ANZ increased its income to $11.6bn in the first three quarters, up 9 per cent compared with the previous corresponding period.
Provisions were $342m in the third quarter, which was 38 per cent below the average rate in the first half.
Despite the uncertain global outlook, Mr Smith said Australia's economic prospects were brighter. "I'm actually very positive on Australia," he said.
"We are looking for opportunities to grow our retail, commercial and wealth businesses."
The bank was still carrying out due diligence on the 57 per cent stake in the Korean Exchange Bank that was being offloaded by US private equity group Lone Star, Mr Smith said.
The stake is expected to be worth between $4bn and $5bn.
"Some people have questioned whether this fits our super-regional strategy, and I think it unquestionably does," Mr Smith said.
ANZ's were the only major bank shares to rise in a weaker market yesterday. They closed 38c, or 1.7 per cent, higher at $22.78c.
The ANZ strategic focus on Asia is being increasingly embraced by the market in the expectation that analysts will upgrade their full-year earnings forecast from $4.99bn.
Citi banking analyst Craig Williams said ANZ was well placed for growth, especially compared with its three main rivals.

http://www.theaustralian.com.au/business/anz-chief-hints-at-rate-rise-as-its-profits-rise-37pc/story-fn65t1pq-1225907970674

[McDuck]

Yes, it's not easy to keep a kind smile on your face when you simply go in to do a transaction and they try to sell you extra services.

Similar to a fast food outlet trying to "upgrade" your order.

I don't know, it just seems pushy and rude to me.

I'm pretty sure many of the staff don't like to do it.
I even think their union was fighting it.
Many tellers hated being forced to sell by their upper management.

When you have had a long day and are busy..that smile starts to flatten out a bit when the same old selling questions come up.

They should refund my transction fee if I am there at their pleasure to listen to a vocal ad.

[Choc]

High fees

the climbing fees are starting to annoy me greatly

to move money recently i found there was a limit of $20k on electronic banking

to move a $100k it had to be broken up into 5 lumps

each attracting a $20 fee

I don't know who you are banking with but you certainly want to talk to them about those fees. Electronic transfers are generally free. I recently did some manual transfers at a branch and I incurred some fees but that was to be expected - but nothing like you are talking.

[mortgage broker]

Your banker's 6 big dirty secrets

1. You probably don't need the insurance.Banks offer insurance, sometimes marketed as "balance protection," on every debt instrument they offer. You can get insurance on a credit card, line of credit, plain vanilla loan and so on. In return, your payments are covered in certain cases and a death benefit is paid if you still owe when you die.
Going through the contract can be interesting and enlightening for consumers. Often many conditions have to be met to receive the "hardship" qualifications to cover payments. Even the death benefit can be capped at a maximum that may be much less than the value of the loan.
Your banker isn't to blame for that; the
bank is. The banker's omission comes in when it doesn't advise clients that their life insurance policy may already be enough to cover the new debt -- and if not, adding life insurance coverage for the amount of the debt will be much cheaper in the long run than paying an extra percentage of the balance on top of interest.http://articles.moneycentral.msn.com....aspx?page=all

The problem is when you really need insurance, you may not be able to get it.

[NovInvestor]

the climbing fees are starting to annoy me greatly

to move money recently i found there was a limit of $20k on electronic banking

to move a $100k it had to be broken up into 5 lumps

each attracting a $20 fee

so $100 charged to do something that not long ago would have cost only $20

how's that for inflation!

of course it's all in the name of increased security

but it has resulted in my taking funds out

and placing them elsewhere

How about transfer by check? much cheaper in that case.

[NovInvestor]

Wait till you get fees like what the US banks charges in the US. Wire transfer $20USD on average per transaction, no matter how big the transaction is! (more than $10k may incur additional cost). In NZ, online transfer is free (most accounts), so it makes collecting rent much easier!

[ENP]

Um... I do

I can see how you got into property investment!!

That's what I call working to learn not to earn. Nice!

[Tan]

All you need to do now is work as a property manager and you will get hit the triple!

Um... I do

[speights boy]

to move money recently i found there was a limit of $20k on electronic banking

to move a $100k it had to be broken up into 5 lumps

each attracting a $20 fee

so $100 charged to do something that not long ago would have cost only $20

What !! I agree that's a shocker. $ 20 to do your own internet transfer.

I also have the 20k per day limit but there is no charge to do a transfer to another bank.

I found out that if it is a joint acct, you can both have a separate login in and so transfer 20k EACH per day...so 40k per day can be useful...but only if it's fee free.

SB

[ENP]

If you can't beat them, join them. I used to work in one and the knowledge of how it works has been very useful.

I also used to be a real estate agent. Ditto.

All you need to do now is work as a property manager and you will get hit the triple!

[eri]

the climbing fees are starting to annoy me greatly

to move money recently i found there was a limit of $20k on electronic banking

to move a $100k it had to be broken up into 5 lumps

each attracting a $20 fee

so $100 charged to do something that not long ago would have cost only $20

how's that for inflation!

of course it's all in the name of increased security

but it has resulted in my taking funds out

and placing them elsewhere

[Tan]

I'm considering a career in banking/finance and you make them sound evil !!

If you can't beat them, join them. I used to work in one and the knowledge of how it works has been very useful.

I also used to be a real estate agent. Ditto.

[graemeh]

Your banker's 6 big dirty secrets
..............
2. Even if I like you, the system decides.[/B]

I had this happen to me once. When trying to get my credit card limit increased they kept saying "oh, you can only have $x if you don't have a home loan with us". After pushing hard enough I got put through to a supervisor who said the same thing but then "let's see what the computer decides". She put my numbers into the computer and it came up with 2 times the limit they said it would!

Sometimes it is best to let the computer decide, you just have to get past the humans trying to second guess it