On Melbourne Cup Day, while everyone was busy betting up a storm, the Reserve Bank quietly met and decided to raise interest rates again.
This is the second time they have increased (by 0.25%) since DF and I decided to fix a portion. Phew! And apparently they will be raised again before Christmas.
In other news, our bank (which is one of the Big 4 banks) has recently decided to cut dishonour fees from $35 to $9. Not that I have ever paid a dishonour fee, but still, it's a step in the right direction, right?
I have noticed sometimes I am looked down on when I mention I am with a Big 4 bank (Westpac, Commonwealth, ANZ or National). People scoff and go, "Oh, well I don't go with the big banks, I am with XXX (a small town bank)". And then they sigh as if to say I am strangling the small businesses because of my banking choice.
Is this the new thing? Instead of judging people on how much they don't recycle and whether or not they have a prius and use their green bags, we're all thinking we can get up on our high horse because the bank we use isn't a Big Bank.
Personally, the little banks didn't have what I wanted in my loan features. So I went with the bank that could offer me what I wanted. I even changed banks for our mortgage. It was not about ethics or morals really; it was about getting the most out of the hundreds of thousands of dollars I will pay in interest. If I'm paying that much to a bnk so I can paint my own walls and plant my own garden, I want Redraw options, DAMMIT!
interest rates, bank rant.
November 5th, 2009 at 07:26 pm
November 5th, 2009 at 10:26 pm 1257460008
How much did Australia suffer in the whole global credit freeze and how did the government respond? If they did anything resembling the US bank bailout, that could be a reason why more people are turning to smaller banks, which tend to take less risks.
November 6th, 2009 at 05:28 am 1257485339
The thing that bothers me though is that a lot of all this started because people were borrowing money that they couldnt afford to pay back, and then suddenly realised it a bit too late. and these are the same people that give me a hard time. Sure, it's the banks fault for not being stricter with lending, but doesn't personal responsiblity come into it at some point? That's like saying a liquor store is responsible for someone drinking too much and getting alcohol poisoning the next day.