Banks kicking pensioners

Money
1

CBA had already anticipated the extra tax they have to pay, as announced in the budget.A few weeks ago I received an email from them to say that they have changed (read "reduced’) their interest rates on pensioner deeming accounts and will no longer be following centrelink guidelines!
Are other banks stooping to this too?
I have not seen or heard anything about this in the media,which astonishes me.
Why hasn’t there been an outcry about this?

5 Likes
2

Thanks for raising the issue @hayre, I’ll pass it on to the relevant departments.

1 Like
3

Your post @hayre reminded me of another question: why is Centrelink’s deeming rate for pensioners significantly higher than any interest rate that can be earnt?

2 Likes
4

I have noticed that interest rates for all savings accounts have all gone down recently (not limited to pensioner deeming accounts)…whilst at the same time interest rates on some mortgage/loan accounts have also gone up slightly (outside the time that the Reserve Bank of Australia lifts rates).

From reading bits and pieces, I understand that this is part of (result of?) implementation of the banking basel regulatory requirements.

5

I think that governments don’t realize that we vote! And I am in the process of voting with my feet away from CBA now that they are arragant enough to be ignoring the long held custom of paying deeming rates on concession accounts.I know that all interest rates on savings have dropped significantly but this is a first hit on concession accounts that I know about

2 Likes
6

They do, but they also understand what issues will actually change how (enough) people vote to make a difference at an election, and they go with whatever, eyes wide open.

It would appear the problem is not necessarily with the banks but with the government deeming practice. If all interest rates (rightly or wrongly in one’s view) go down across the board, why would a for-profit business (making $billions p.a.and wanting more) lose profit by giving pensioners a break?

The customer gets less interest but the government defines deeming rates as it will, and can thus keep people off or put people on concessions, and tax or not tax them according to their whim of the day or because of their ideology.

1 Like