Choose the right Credit Card
There are lots of credit card deals around in Australia these days; what with Internet website promotions and application forms plastered across every newspaper and periodical you browse through, there's definitely no shortage of credit card issuers trying to tempt you to sign-up. But let's be clear - all of this competition for your custom is just the best news for the Australian consumer. The arrival in Australia of the big American card issuers (like American Express) has stirred-up the Australian market to come up with some really innovative deals. Whilst on the face of it, you may well start off believing that all credit cards are just the same but you'll quickly learn that choosing the right one for you can bring all sorts of rewards - financial and otherwise.
Interest-Free-Charges (IFC) on balance transfers
If you already carry an outstanding balance, card issuers will just love you! Because, guess what - they make some their profits from the interest you pay them on your outstanding balances. But turn this to your advantage - there's never been a better time for you to 'shuffle-the-deck' and 'pick-a-card' (not just any card) that makes sure that you pay as little as possible for your credit. Why not switch between issuers to take maximum advantage of IFC balance transfers? Typically, the 'holiday-period' for IFC balance transfers can last for up to 6 months from the date of transfer. Make sure that with whatever new card you end up choosing - it also has a competitive annual percentage rate (APR) for ongoing purchases. And after you've done all that - make sure that you close down the OLD account immediately and destroy the old card permanently, so's you won't be tempted to put the kibosh on your new found financial stability.
Interest-free periods
If you're in the habit of always paying off your balance completely every month - then one way to make your money work even harder for you is to opt for a credit card with a really long interest-free period. With most credit cards deals, if you go out shopping on the day after you receive your latest statement, then those purchases will not be billed until the same time the next month - and payment will not be due until maybe 3 to 4 weeks after that. Typically, this can amount to an interest-free period of up to around 55 days with most card issuers - not bad, eh? So, the rule of thumb if you're going to clear your balance off each month is - the longer the interest-free period, the better FOR YOU!
'Not-so-hidden' benefit packages
As an integral part of many marketing product launches, some credit card issuers have come up with some really innovative package deals that are focused around the 'loyalty theme'. You know the kind of thing - "spend your money with us and you can have this, this and this...as well as the credit." Some of the current credit card deals on offer to the Australian market have benefits like:
- the ability to earn Frequent Flyer points
- free travel insurance
- membership or access to rewards programmes
- preferential booking for 'events'
But in every case - do read the small print and don't be seduced by a seemingly attractive benefit package if in reality, the credit card has ruinously high interest charges.
Australian Finance News
Australian Banks Continue To Battle For Deposits By Offering High Introductory Rates
Australia’s largest banks are using high introductory online savings rates to attract retail deposits and expand their deposit bases. Despite the high introductory rates, the lenders later aggressively cut back their deposit rates in order to preserve their profit margins.
The investment bank Macquarie conducted an analysis of the online savings market which found that the big four Australian lenders, as well as some international rivals were offering introductory rates that were as much as 200 basis points higher than the 4.5 per cent official cash rate.
QBE Denies Chief Executive To Step Down
Australian insurance major QBE has moved to end speculation that its chief executive is poised to step down. QBE chief Frank O'Halloran has run the company for the last twelve years, and the insurer says that he would continue in that role "for the foreseeable future".
Rumours of Mr. O’Halloran’s departure ricocheted around the insurance industry this week, when speculation began to emerge that Mr. O’Halloran would hand over the reigns of the company to Peter Harmer, a senior executive at insurance broker AON.
Research Firm Says ANZ Offers Best Value For Small Business
Australian banking major ANZ, has been named by a financial research firm as the lender which provided the best value banking service for small business. Despite the accolade, ANZ has not managed to convince all the decision makers in the business sector, and still lags behind rivals.
Canstar in issuing the award said certain product features that matter a great deal to small business provided by ANZ including credit facilities and loans.
But this has yet to translate into higher customer satisfaction levels with the bank.
JP Morgan To Cease Proprietary Trading
Global banking giant JP Morgan has apparently decided to close down its proprietary trading operations, sources from within the bank say. According to an unnamed source quoted by Dow Jones, JP Morgan has issued notice to approximately 20 proprietary traders that trade commodities.
JP Morgan has never had a huge focus on proprietary trading, and it’s prop trading desks have tended to be small. Nevertheless those desks have been affected by regulatory reform and in particular the Volcker Rule, which forbids banks from proprietary trading, proprietary investments in hedge funds and private equity.
Australians Believe Not Enough Competition In Banking
A survey undertaken by Australian wealth manager AMP suggests that nearly 78 per cent of all Australians believe that acquisitions by banks should be restricted.It is no coincidence that the survey results were released on the eve of the ruling by the competition regulator on National Australia Bank’s proposed acquisition of Axa Asia Pacific Holdings.
According to the AMP survey, an overwhelming majority of 71 per cent of people polled say they believe that there needs to be increased competition within the Australian financial services sector.