Once upon a time - possibly last century I recollect TD’s would roll over at the best rate available. Assumes one had set that option when opening the TD. All correspondence back then was by mail and banking in person. It was good business to keep customers with larger savings on board rather than upset. Banking has changed, how we communicate has changed. Customers? Change has come slower to some of us.
There’s a good point that banks should have a duty to all customers who have chosen a TD to roll them over - if that is intended at the best possible rate.
Yes you might have to make sure you don’t miss the deadline but exactly same situation develops when you get a discount for prompt payment of a bill, you manage those OK don’t you?
Thanks for the article. On the topic of articles, it would be great if Choice could - as some websites do - provide an icon on each article which when clicked upon will download the article in PDF format.
I have seen some websites that go a step further and allow downloading in PDF as per the original article say with illustrations, photos, graphs etc OR downloading text only (so there are far less pages to print). Just a thought.
No surprise the ACCC green lighted the merger of ANZ and Suncorp. Either the competition laws are too weak, too open to interpretation or someone was leaning on another to get that outcome.
I recall back 15 yrs when the ACCC green lighted the “merger” of Westpac and St George mentioning that a merger “will not substantially weaken competition”.
Obviously branches are closed on Sundays. But so are many banking functions that may be available to be initiated online that are only handled during business hours.
Money transfers are one of those. Until one of my banks switched to Osko recently, any transfer I did to my other bank could be initiated on a weekend but would not happen until the next business day.
Many businesses only do processing during business days. Something to factor in when doing other things like paying bills online on the weekend.
My banks all use the words ‘on or before’ not ‘after or the next following business day’ to arrange a TD roll-over or withdrawal. Some TDs do not automatically roll over and that can sometimes be selected when purchasing one. The explicit words are important in PDS and T&Cs.
At my bank I could transfer the funds from the TD to my transaction a/c or even a high interest saving a/c on a Sunday, but understand that I would get zero interest.
I was told this years ago by staff and recently found it confirmed
As to renewing the TD online on Sunday, I believe I could but would get the lousy “published” interest rate. Usually I speak to branch officers on maturity day and get a half decent (what my bank calls “discretionary” interest rate) on the renewed TD.
Thie “discretionary rate” is only available via direct contact with, in my experience, with branch staff.
The ANZ issues a letter in advance of maturity. It includes a contact phone number. It is possible to agree a new TD over the phone with bank staff. Notable for us since the local branches were closed.
It appears to be the best “discretionary” rate on that day. It can be done on the day (normal bank day) or in advance. One can also do the same in branch. It does not need to be on the day. Waiting until the day of maturity to act - the best rate offered may be the same, higher or lower on that day.
The best account for some of us may be other than a TD. Mortgage offset account being one if your home loan is now a variable rate loan. Few T&C’s with ready access to funds if needed.
It is clear that the ANZ is a better bet than the so-called Happy Dragon… I have been told that one cannot renew in advance of the day at anything but the dud (published) rate and that the discretionary rate is subject to daily change, so cannot be locked in ahead of the TD’s maturity.
As one who regularly uses TD’s I felt compiled to reply. We use them because they provide one of the highest rates if negotiated correctly. The rates can vary significantly on a daily basis. The secret is to have a good relationship with your branch officer and visit the branch personally a day or so before they are due to mature.
In our case the ANZ notifies us prior and we get a personal email from the branch officer so we get time to plan and compare.
Having said that my father-in-law just received a maturity notice from another bank and it clearly stated that his money would be rolled over at 0.15% if he did not respond.
There is so much about banks that is tied into loyalty and personal relationships and I believe if banks would factor in these opportunity costs they would think more about some of their branch closures.
Time and again I have found that a person in a call centre does not have the same interest in you as a branch officer does.
Agreed. If the negotiated rate with the branch is good when compared to other possibilities eg so called “high” interest paying at call a/c, then TDs make sense.
