Who Are The Banks Screwing Over The Most On Rates?

The Commonwealth Bank has quietly slashed some of its term deposit rates, just two months after boasting that increases could help millions of savers!

Ahead of a parliamentary grilling of the big banks next week, it has chopped the one-year rate to 2.4 per cent and the two-year rate to 2.45 per cent – now some of the lowest rates in the country. The three-year rate is the same.

David Carvosso, chairman of National Seniors, said the rollback was very disappointing to its members.

"They're still nervous after the global financial crisis, about the uncertainty and fluctuations occurring in other markets, so they look for security, mainly from the big banks," he said.

"The deeming rates for Centrelink are not reviewed frequently enough and cuts like this mean the difference between the deeming rate and what people can earn is very marginal."

CBA has cut its one-year term deposit rate by 0.6 per cent to 2.4 per cent and its two-year rate by 0.65 per cent to 2.45 per cent.

WIth actions like this in place - it is obvious as I covered in last week’s blog post Superannuation Alert - The current return on a $1m super investment is equivalent to the age pension; that we need to look at other ways of putting aside money for our retirement . . .

What is your plan for retirement?

South East Queensland is the place to watch for property!

House prices in Brisbane have lifted to a record high, according to a new REIQ report.

The data showed house prices in the Brisbane LGA rose 1.3 per cent over the June quarter to $635,000.

Domain Group chief economist Andrew Wilson said Brisbane property owners can look forward to about 4 per cent prices growth for the calendar year.

“There’s no doubt that the south-east Queensland housing market is performing solidly at the moment – the Gold Coast in particular but also inner city areas in Brisbane are still finding buyers,” he said.

“The prospects are good for growth in Brisbane for the rest of the year; there’s been continual improvement in the local economy, down to the building boom.”

The strongest market in Queensland was the Gold Coast, with the median house price growing by 3.6 per cent to $580,156

ANZ-ROY Morgan Australian Consumer Confidence Jumps 4.4%!

ANZ-ROY Morgan Australian Consumer Confidence bounced back this week, rising a solid 4.4% to 120.6

• The improvement in confidence was broadly based. Consumers’ views towards their current finances jumped 5.4%, while views towards future finances rose a solid 4.0%. Encouragingly, the indicator on current finances is at a post-GFC high
• Households’ views of the economic outlook were also more upbeat. Views of the 12-month economic outlook rose a sharp 6.0%, while views of the 5-year economic outlook improved by 3.6%
• Household views on whether ‘now is a good time to buy a household item’ bounced a sharp 3.8%

With Interest Rates at the lowest for our generation, the signs are positive for future prosperity, for those who invest successfully in property!

Have a great weekend and catch you next week!

Warm Regards,

Troy Gunasekera