philj6969

I know that the interest rates have been on the up recently, could anyone tell me what the rate is, and which company is giving the best? (savings / current accounts, not loans)

Phil.

Megalania

CANNEX Rates and Infomediaries

Bonds, Pref Shares: 8% S&P BBB.

OzTennis

IngDirect and Citibank are frequently mentioned for best I/R's and I/R's are expected to go up another 1/4% soon:

http://finance.news.com.au/common/st...55E462,00.html

Demand pushes retail sales
By NEWS.com.au staff and wires
March 2, 2004

THE local currency rose today after data confirmed robust demand in retail sales and a narrowing current account deficit to $12.01 billion - thanks to a pick up in the farm sector and demand for commodity resource exports - fuelling speculation of an interest rate rise tomorrow.

The Australian Bureau of Statistics data - above economists' predictions of an $11.6-11.8 billion current account deficit - compares to an upwardly revised $12.09 billion deficit in the September quarter.

The local currency rose to $US0.7740-45 at noon after the data was released from the opening price of 0.7710/15 as traders considered the chance that interest rates may rise tomorrow after retail sales figures confirmed strong consumer demand.

"The (retail) report confirms that the consumer is strong, underpinned by a very healthy labour market and confidence," RBC Capital Markets economist Su-Lin Ong said.

Farm exports jumped 7 per cent in the quarter but were not enough to make up for a dip in other exports.

The current account deficit, a snapshot of all Australia's dealings with the outside world, blew out to a record $12.3 billion high in the June quarter last year with the drought, the weak world economy and the SARS epidemic.

Today's figures showed the December quarter deficit was almost $1.4 billion higher than it was a year ago.

Analysts said the currency was the prime factor behind the widening current account, which has hit exports, boosted imports and served to compound the impact of the drought that hurt rural exports.

Net foreign debt rose to $374 billion despite the higher Australian dollar cutting $11 billion from the total.

Analysts say the dollar's approach towards the US80c would continue to boost imports, especially service imports.

But Australia's resource and farm exports were expected to grow 8 per cent to $88 billion during the 2004-2005 financial year, led by rising overseas demand for mining and energy products.

The Australian Bureau of Agricultural and Resource Economics, in its annual forecast for the upcoming year, said mining exports would expand on the back of strong global growth.

Energy exports were tipped to climb 11.7 per cent to $US23 billion ($29 billion) on the back of rises in the demand for coal, LNG and crude oil.

Mineral exports were expected to rise 10.6 per cent to $US35.1 billion as the growing world economy increases demand for alumina, iron ore, copper, iron and steel.

Of the major mineral and energy exports, only the prices for gold and crude oil are expected to fall.

Today's results follow on the heels of the latest ACCI-Westpac survey of industrial trends, which shows the Australian economy continued to expand in the March quarter while business confidence eased.

The survey found business expectations remained positive despite falling in March – the first drop in a year.

Meanwhile, fresh retail sales figures for January show a 0.7 per cent rise to $15.76 billion with buoyant employment numbers and wages spurring shopping particularly in department stores.

Household goods sales led the way, up 3.3 per cent, according to the Bureau, while department store sales rose 2.8 per cent as major retailers held post-Christmas sales.

Clothing and soft goods grew 1.9 per cent, allowing for seasonal influences, but recreational goods fell 4.8 per cent and spending on hospitality and entertainment was down 0.5 per cent.

The strength in housing and consumer spending, along with smaller contributions from business investment and exports, most likely pushed the economy into another quarter of solid growth - although today's current account deficit should subtract slightly from the gross domestic product data, to be released tomorrow.

National Australia Bank economists today revised their Q4 GDP estimates down to 1 per cent from 1.5 per cent.

Analysts said the domestic economy was still strong and sucking in imports, while the global economy improved through the second half and demand for Australia's exports increased.

These factors may force the hand of the Reserve Bank of Australia board, which was meeting today.

HSBC chief economist John Edwards said that while a rate change was "getting close to being a very even bet", he expected the RBA to wait until April before lifting rates by 25 basis points.

"It's the exports numbers, the credit numbers and what we expect from retail sales, so there's a compelling case to tighten," he said.

"It's pretty much a tactical issue and I would still lean a bit towards April, but I don't think anybody would be surprised if they moved."

The central bank lifted the cash rate by a quarter of a percentage point in November and again in December 2003, taking it to the current 5.25 per cent.

St George Bank chief economist Steve Ryan predicted the RBA would hold off on a rate rise until the third quarter.

The chance of an increase was stronger now than in February, he said, but he thought the bank would adopt a conservative approach at this meeting.

"There has been a further moderation in some pockets of housing in Sydney and Melbourne, with the rising Australian dollar also likely to impact on the Reserve Bank's decision," he said.

Domestic credit data and employment statistics remained buoyant but these were lagging indicators and not the primary factors influencing RBA decision-making at this time, he said.

He said the global economic outlook was also likely to act as a constraint on the central bank.

Any change in monetary policy will be announced tomorrow.

OzTennis

TrickyTree

We are looking at INGdirect at the moment.
They seem to have a good interest rate but need to be linked to a current account so you can access your money.

http://www.ingdirect.com.au/

TT

sassie

Hi Tricky. have you actually applied for an ING account yet in OZ. I've been trying for the best part of 2 months to open up an account. Even though you can open the account online, you have to send them in the post a signed form verifying your linked account details. This I have done (twice). The first one I discovered went missing after I phoned them. they said send it to them again, this I did. They said they will send an e-mail when the account is all up and running and 4 weeks later, have still heard nothing.

Hope you have more luck with yours.

TrickyTree

Not actually got around to opening it as of yet.

Will give them my girlfrinds aussie bank account details so I dont forsee any problems.

The first problem will be to get her commonwealth account into both our names instead of just hers. Then I was hoping setting up the ING was going to be straight forward.

Will let you know how it goes when we get round to it.

TT

OzTennis

Megs

Thanks very much for the Cannex link - it has a fantastic amount of information on comparative interest rates, fees, rankings, etc, etc and will prove extremely useful.

OzTennis