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Commonwealth Bank term deposit rip off
kura
post Posted: Feb 12 2008, 02:14 PM
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QUOTE (balance @ Tuesday 12/02/08 11:22am)

Ha, I could relate to this story, as I'm in NZ, and bank with ASB (Yep, a subsidiary of Commonwealth) and have suffered similar treatment here.

To be honest, I've given up with term deposits, I simply have an online savings account with Rabobank, current rate for call is 8.2% and for shorter dated (ie 3 months) ASB term deposits, you don't even get this rate. Also, for all the mucking round for a couple of extra dollars, I figure why bother, when you can have the convenience of your funds at call.

I know Rabobank has started operating in Oz recently, but check out their rates, I'd be very surprised if they wern't competative.

A friend put me on to Rabobank a couple of years ago, and the first thing I said to myself was "Some new guys in town, I bet their credit rating is crap" To my surprise they had a higher credit rating than the NZ government.

 
balance
post Posted: Feb 12 2008, 11:22 AM
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In reply to: bigernie on Tuesday 12/02/08 11:33am

concur on bankwest,they've offered good rates for some time.
can you join a credit union?
I use one for general banking , no fees for nearly all transactions is a good thing and rates are competitive.



--------------------
Day Trader: Lowest form of life in the known universe.
Shorter: Can limbo under a day trader.
Investor: Salt of the Earth.Sits to the right of God (Warren Buffet)
Share prices are only ever manipulated down.
Paper losses are not really losses.
Chat site posters always know better & know more than anyone about anything.
I'm 29.
The cheque is in the mail.
 
bigernie
post Posted: Feb 12 2008, 10:33 AM
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Thanks for your comments folks. I wasn't aware of the Bank west savings acount rate Thresher. Yes I will look into ING and Bankwest MissAdventure.

Interesting that the letter you get from the Commonwealth bank provides for a dispute resolution process...hahahaha. I rang them and they hastened to say that they would refund the interest lost. Too easy Why!

I made the point that there must be a lot of people who go into the bank to get advice on their money...get a term deposit and are told "You can renew it yourself or we will do it automatically" ...... "What a relief dearie I wont have to worry about it then at the end of the period." Yes Henrietta...no favours from the mongrels.





 
gjh
post Posted: Feb 12 2008, 10:28 AM
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I concur with MissAdventure. The CBA told me that while you are supposed to notify them on the day the TD expires, you unofficially have a week to do so.

 
MissAdventure
post Posted: Feb 12 2008, 10:20 AM
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In reply to: bigernie on Tuesday 12/02/08 09:54am

bigernie
There should be a window of a few days where you can change your mind regarding that term deposit which has been automatically rolled over. I am sure they would be willing to move it to another tem deposit at a rate/term you would like. If this is not the case, then at 3.15% it sounds like you would be better off terminating and going with ING or BankWest internet savings accounts - they both have far superior rates and the cash is available when you need it. I have used BankWest for several years now and find them excellent.
Regards

 
thresher
post Posted: Feb 12 2008, 10:09 AM
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why would u go for a term deposit for 7% when bankwest has a savings account for 7.5%?? wink.gif

 


henrietta
post Posted: Feb 12 2008, 10:08 AM
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In reply to: bigernie on Tuesday 12/02/08 09:54am

G'day Bigernie

There's usually the option of having the funds going back to your regular account automatically ....... at my bank anyway. And then they usually contact you and ask what you want to do.
There's no way any bank is automatically going to do what's best for YOU. They'll all do what's best for them, and fair enough I suppose.

I have a couple of term deposits at the moment, and just make a note on the calendar when they will mature.
Have the funds automatically going back into the main account.
With interest rates on the rise I am at a maximum of 3 months.

No favours from banks, and don't expect any. You've got to look after yourself.

Cheers
J

 
balance
post Posted: Feb 12 2008, 09:57 AM
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you are such a muppet. wink.gif

yes mate gotta read the fineprint.cheeky buggars.



--------------------
Day Trader: Lowest form of life in the known universe.
Shorter: Can limbo under a day trader.
Investor: Salt of the Earth.Sits to the right of God (Warren Buffet)
Share prices are only ever manipulated down.
Paper losses are not really losses.
Chat site posters always know better & know more than anyone about anything.
I'm 29.
The cheque is in the mail.
 
bigernie
post Posted: Feb 12 2008, 09:54 AM
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Posts: 120
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What a scam this is! Going to cash in these troubled times y'move ya cash into a Commonwealth Bank term deposit at the good rate of 7% for 4 months.

They tell you at the bank that you can renew it in 4 months yourself or they will simply roll it over into a new term deposit.

So at the end of the time you get a letter saying you can renew it or they will automatically roll it over. In your haste you don't look closely ...just assume you will continue to get the high interest rate? OH NO! The rate they automatically roll it over to is 3.15%! Ha Ha Gotcha stupid....look closer next time dummy!

How many idiots like me have they caught the mongrels!



 
 



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