Cost of Doing Business through ANZ Securities is going up !

[Beagle]

As we discussed the other day Roger, it can indeed be swings and roundabouts eg I transferred a large sum to my Heartland call account from my ANZ securities account on Monday this week and another large sum over early Tuesday. Headed off for a rare days fishing to spot X which has no mobile coverage. On the way back in, once coverage was available I noticed the Spark share price had dropped by 10c for no logical reason. I frantically bought as many as I could with what I had left in my account plus sold a couple of other stocks to boost funds. The share price went up 10c the next day, and it would take at least a years worth of interest on the Heartland account to equal the lost opportunity by not having my funds available. ANZ are cutting their nose off to spite their face IMO, they lost a large sum of potential brokerage because of my funds not being available due to their dropping interest rates. I only stated using the Heartland account when I noticed they had dropped their rate yet again, surely they would be better off paying a higher interest rate and gaining a lot more in brokerage fees?

Yes mate you deserve the credit for pointing out this change to me (the rest is based on a discussion I had with one of the directors quite some time back).
If they follow suit eventually to what ASB securities have done and don't pay any interest this will indeed cost them money, both in funds under management and lower trade level's.
If Spark had dropped another 10 cents the following day you would have been happy though
As we discussed the other day mate, May - July inclusive aren't generally considered the best of months to be fully invested in the market, (The famous sell in May and go away based on the northern hemisphere summer and anecdotal evidence of market underperformance in those months has some credibility to it in my opinion) and I'm about 40% in cash at the moment anyway and will probably stay around there for the next few months and those significant funds certainly won't be staying in my ANZ securities account at that pitiful rate that's for sure !

[Leftfield]

No interest on ANZ 'on call' account doesn't worry me.

I keep my 'cash' funds with TSB (earning interest) and simply transfer from savings account to payment account and on through to ANZ on settlement day.

[Snoopy]

Astute observers will have noticed that with no chance in the OCR and in a generally rising interest rate environment that ANZ Securities has lowered their call account interest rate from 1.5% to 1.25% for no other reason than to boost their profit.

There is a solution to this problem which causes far less aggro and angst. Make the transition from 'poacher' to 'gamekeeper' and simply buy some ANZ shares!

SNOOPY

[777]

No interest on ANZ 'on call' account doesn't worry me.

I keep my 'cash' funds with TSB (earning interest) and simply transfer from savings account to payment account and on through to ANZ on settlement day.

But what rate of brokerage are you paying?

Copied from their site.

OMCA Internet Rates
Brokerage
OMCA internet rates are only available to Online Multi-Currency Account holders with sufficient cleared funds available to fully cover the purchase of securities prior to submission of the order.
For trades for New Zealand listed securities (other than debt securities) with a trade value of up to NZ$15,000 NZ$29.90
For trades for New Zealand listed securities (other than debt securities) with a trade value exceeding NZ$15,000:
(i) for the first NZ$15,000; plus NZ$29.90
(ii) for the portion of the trade value exceeding NZ$15,000 0.20%
Trades for Australian listed securities with a trade value of up to AU$30,000 AU$29.00
For trades for Australian listed securities with a trade value exceeding AU$30,000:
(i) for the first AU$30,000; plus AU$29.00
(ii) for the portion of the trade value exceeding AU$30,000 0.30%

Standard Internet Rates
Brokerage
Trades for New Zealand listed securities (other than debt securities) NZ$29.90 plus 0.40%
Trades for Australian listed securities 0.70% or AU$40.00
(whichever is greater)

[Beagle]

There is a solution to this problem which causes far less aggro and angst. Make the transition from 'poacher' to 'gamekeeper' and simply buy some ANZ shares!

SNOOPY

LOL This hound hates paying tax twice, (hence his love of full imputation credits). The correct solution is in post #5 above, (what I intend to do about it) thereby supporting one's own higher growth Heartland N.Z. Bank at the same time This solution involves a more disciplined approach to setting a daily maximum trade limit. The extra discipline won't do me any harm but might hurt ANZ securities brokerage !

[Zaphod]

But what rate of brokerage are you paying?

Transfers from my bank to the ANZ OMCA show up within an hour or two, so having the funds vested in a higher interest bearing account outside of the ANZ sphere is certainly possible now without incurring the higher brokerage rates for same day purchases.

[thestg]

Transfers from my bank to the ANZ OMCA show up within an hour or two, so having the funds vested in a higher interest bearing account outside of the ANZ sphere is certainly possible now without incurring the higher brokerage rates for same day purchases.

What bank are you with? I'm with BNZ & transfers to my OMCA NEVER got through in the same day.

[Food4Thought]

Exited ASB also. Not impressed with what banks are up to dropping interest.

Heartland and Rabo it is.

[bull....]

anz playing catchup with asb in a rising interest rate environment lol

[Beagle]

I am happy with my portfolio and cash allocation at present so I now have a "whopping" $100 in my ANZ securities cash management account. This costs them funds under management and brokerage as far as I am concerned.