Direct Broking/Jarden Call Account

[blackcap]

I was having a look at my call account this morning and noticed that the on call rate is 3.3%. This surprised me as at ANZ I noticed I only get 1.95% on my "savings" account.

Is this one of the better on call rates around or are there other places that offer a better deal?

It now becomes relevant after years of having no interest on these types of accounts. Money sitting in a cheque account earning zero interest is now something I need to keep an eye on.

I wonder if people who are a bit younger and have never experienced positive interest rates on call accounts will be awake to this new paradigm?

[Perky]

Hi Blackcap, I usually find heartland or rabo to offer best rates from traditional banks

Jarden.. you can get 3.9% > 50k on call
Heartland you can get 4.25% on 32days notice or 3% call
Rabo ..call is 3.1% or I use the prem saver which gets you 3.75% up to 100k with a minor condition of needing to increase balance $50 from balance at month end.

There are other banks or lenders offering more but I find using Jarden, rabo and heartland gives you a good spread…hopefully without taking on too much risk.
I do all transactional banking with Westpac because that’s who I started with 30 years ago and too hard to change now..but I never invest with Westpac…due to poor rates.

Someone will be along shortly to tell us it’s better to own the bank share than put money in their accounts? And point out how much higher bank dividend is to interest rates offered.

[blackcap]

Hi Blackcap, I usually find heartland or rabo to offer best rates from traditional banks

Jarden.. you can get 3.9% > 50k on call
Heartland you can get 4.25% on 32days notice or 3% call
Rabo ..call is 3.1% or I use the prem saver which gets you 3.75% up to 100k with a minor condition of needing to increase balance $50 from balance at month end.

There are other banks or lenders offering more but I find using Jarden, rabo and heartland gives you a good spread…hopefully without taking on too much risk.
I do all transactional banking with Westpac because that’s who I started with 30 years ago and too hard to change now..but I never invest with Westpac…due to poor rates.

Someone will be along shortly to tell us it’s better to own the bank share than put money in their accounts? And point out how much higher bank dividend is to interest rates offered.

Thanks Perky,

I know that Direct Broking used to spread their risk in the call account amoungst the major banks so that your money would be well diversified. If that is still the case, then their offer is superior as the other banks are not diversified. 3.9% over 50k sounds good, I only have 20k in there at the moment and see that it is at 3.3% so that is still quite handy.
I did not realise they tiered it so that is another consideration.
As for bank shares and bank dividends for sure. However I always keep some cash as part of my portfolio and want to optimise that part of it. No use having it sitting in a cheque account like it has been the last 8 or so years.

[Grimy]

Hi Blackcap, I usually find heartland or rabo to offer best rates from traditional banks

Jarden.. you can get 3.9% > 50k on call
Heartland you can get 4.25% on 32days notice or 3% call
Rabo ..call is 3.1% or I use the prem saver which gets you 3.75% up to 100k with a minor condition of needing to increase balance $50 from balance at month end.

There are other banks or lenders offering more but I find using Jarden, rabo and heartland gives you a good spread…hopefully without taking on too much risk.
I do all transactional banking with Westpac because that’s who I started with 30 years ago and too hard to change now..but I never invest with Westpac…due to poor rates.

Someone will be along shortly to tell us it’s better to own the bank share than put money in their accounts? And point out how much higher bank dividend is to interest rates offered.

I also keep my cash component between Heartland, Rabobank and Direct/Jarden's trading account, and my son has independently gone with Heartland and Rabobank for his cash.
At present most of mine is in DB/Jarden as I'm sure there are bargains to be had - just trying to not be too quick at pulling the trigger.....

[777]

When rates went up recently, Jarden's went up immediately while the banks took a week or more.

[warthog]

Little off-topic but has anyone managed to get migrated from Jarden's legacy Direct Broking platform to their newer platform, and if so, how did you manage this as each time the hog has asked them they say "we aim to get this done" but will never provide even an indication of when it might happen…

[blackcap]

When rates went up recently, Jarden's went up immediately while the banks took a week or more.

Jarden/Direct are pretty good. I know when I used to look after the cash there, we would pretty much give the rate we got minus our commission. (cant off hand remember what it was). The funds were spread amoungst the trading banks, and we used to call for deals etc so got good competitive rates as we had reasonable amounts to invest. 3.9% on call over 50K is pretty good. I just transferred another 50k from ANZ which were giving me 1.95% to Jarden offering 3.9%. An effective 1.95% difference. On $50k that is still $975 gross per annum.

[Grimy]

Little off-topic but has anyone managed to get migrated from Jarden's legacy Direct Broking platform to their newer platform, and if so, how did you manage this as each time the hog has asked them they say "we aim to get this done" but will never provide even an indication of when it might happen…

I had an email from them a couple of weeks ago about it. It said something along the lines of 'It's happening in the new year, we will let you know when and what you have to do, but if you want to try it out sooner, contact us'.
Having been a guinea pig before with various tech I'm happy for them to contact me again when it's ready.......

[SPC]

Little off-topic but has anyone managed to get migrated from Jarden's legacy Direct Broking platform to their newer platform, and if so, how did you manage this as each time the hog has asked them they say "we aim to get this done" but will never provide even an indication of when it might happen…

Well if Jarden are going muck around again with whatever they propose to replace the Direct Broking platform then it better work properly on a mobile phone. The last offering a year or two back was just hopeless. The current DB mobile optimised website works perfectly and does everything I need. Im not looking forward to any degredation in service so they had better get it right if they are closing DB site down.

[Bjauck]

I was having a look at my call account this morning and noticed that the on call rate is 3.3%. This surprised me as at ANZ I noticed I only get 1.95% on my "savings" account.

Is this one of the better on call rates around or are there other places that offer a better deal?

It now becomes relevant after years of having no interest on these types of accounts. Money sitting in a cheque account earning zero interest is now something I need to keep an eye on.

I wonder if people who are a bit younger and have never experienced positive interest rates on call accounts will be awake to this new paradigm?
As you say it is better than earning 0% in a cheque account but:

CPI Inflation at 2% with just about 0% offered for on call deposits has now become
CPI inflation of 7% with 3.3% offered (2.2% after 33% tax.) The negative real return (or holding cost of on call money) has increased from about -2% pre covid to -4.8% pa now.

12 month term deposit rates (ANZ) today are 5.2% (3.48% after 33% tax) which gives an approx negative real return of 3.52% today.

[mondograss]

Well if Jarden are going muck around again with whatever they propose to replace the Direct Broking platform then it better work properly on a mobile phone. The last offering a year or two back was just hopeless. The current DB mobile optimised website works perfectly and does everything I need. Im not looking forward to any degredation in service so they had better get it right if they are closing DB site down.

It's still pretty hopeless. They geo-blocked the DB website not that long ago and as my work computer routes via Aus, I was forced back to using the Jarden site. Yuck, way too much clutter.

[777]

CPI Inflation at 2% with 0% offered for on call deposits has now become
CPI inflation of 7% with 3.3% offered (2.2% after 33% tax.) The negative real return (or holding cost of on call money) has increased from about -2% pre covid to -4.8% pa now.

Investors are going backwards in real terms all over the spectrum.

Nothing new in that. Seldom have bank interest rates covered inflation but cash has to be held somewhere until the decision of the right time to invest elsewhere.

[warthog]

Thanks for the replies about Jarden. We will see what 2023 brings...

[Bjauck]

Nothing new in that. Seldom have bank interest rates covered inflation but cash has to be held somewhere until the decision of the right time to invest elsewhere.
Sure nowt new - except holders of cash and term deposits are going backwards faster.

However maybe other assets returns are dropping even more quickly in real terms, so deposit holders relativity may be improving? All OK unless cash or assets are actually needed for household expenses.

[nztx]

Sure nowt new - except holders of cash and term deposits are going backwards faster.

However maybe other assets returns are dropping even more quickly in real terms, so deposit holders relativity may be improving? All OK unless cash or assets are actually needed for household expenses.


the depositors may not realise it but at the time of the Covid free cash avalanche, interest rates were near zero and the large volumes of funny money effectively devalued what cash or deposits they held by around 50% in reduced spending power.

Hidden wealth destruction it was on a large officially orchestrated scale :)

[Lola]

Sure nowt new - except holders of cash and term deposits are going backwards faster.

However maybe other assets returns are dropping even more quickly in real terms, so deposit holders relativity may be improving? All OK unless cash or assets are actually needed for household expenses.

Hopefully this new service will turn out better than their Australian Adventure has thus far. The Australian Newspaper carried (another) article this week saying that Jardens have thrown another $30 million (presumably AUD) into the so far, frighteningly loss-making operation.

[Dassets]

Jarden/Direct are pretty good. I know when I used to look after the cash there, we would pretty much give the rate we got minus our commission. (cant off hand remember what it was). The funds were spread amoungst the trading banks, and we used to call for deals etc so got good competitive rates as we had reasonable amounts to invest. 3.9% on call over 50K is pretty good. I just transferred another 50k from ANZ which were giving me 1.95% to Jarden offering 3.9%. An effective 1.95% difference. On $50k that is still $975 gross per annum.

The new deposit insurance scheme is in front of select comittee now. I wonder whether a broker aggregating client funds and pooling it means if the money misses on on cover. I will mention it to Jarden tomorrow.

[bobestm]

Hi folks, I am now unclear reading this thread regarding funds in my Direct Broking OMCA account NZD.
Is it safe from a bail-in? Aren't the funds held in a trust account and therefore cannot be used by the broker for their funding purposes?

Thanks in advance.

[blackcap]

Hi folks, I am now unclear reading this thread regarding funds in my Direct Broking OMCA account NZD.
Is it safe from a bail-in? Aren't the funds held in a trust account and therefore cannot be used by the broker for their funding purposes?

Thanks in advance.

Funds are safe, ie broker cannot touch. But if you really want to be sure, you might want to read the prospectus and or call Jarden for clarification.

[777]

First to move again

Currency Daily Balance Interest Rate
NZD
up to 14,999.99 3.50% p.a.
15,000.00 to 49,999.99 3.80% p.a.
50,000.00 to 199,999.99 4.40% p.a.
200,000.00 to 999,999.99 4.40% p.a.
1,000,000.00 to 2,999,999.99 4.40% p.a.
3,000,000.00+ 4.40% p.a.

[blackcap]

First to move again

Currency Daily Balance Interest Rate
NZD
up to 14,999.99 3.50% p.a.
15,000.00 to 49,999.99 3.80% p.a.
50,000.00 to 199,999.99 4.40% p.a.
200,000.00 to 999,999.99 4.40% p.a.
1,000,000.00 to 2,999,999.99 4.40% p.a.
3,000,000.00+ 4.40% p.a.

They are some juicy rates. Went to put a TD on with ANZ a few days ago and their 4 month rate was 3.8%. When I can get 4.4% on call at Jarden, (or the same 3.8% for smaller amounts) there is no comparison.

[peat]

They are some juicy rates. Went to put a TD on with ANZ a few days ago and their 4 month rate was 3.8%. When I can get 4.4% on call at Jarden, (or the same 3.8% for smaller amounts) there is no comparison.
well there is a comparison, just look at the organisations you are entrusting your funds with.
One , second largest bank in Australasia I would think second to CBA,
the other , some broking service lucky to be in the top 100 of Australasia, correct me if I am wrong

one needs to consider what the investment purposes are, to make money from liquid investments, and accept some risk
or whether the intent is to have absolute security with that investment.

I'm happy to have some funds sitting in Jarden Direct Broking for quick funding of equity investment but I use Rabobank for top rates and pretty good security 5.85 for one year at the moment , a minimum of 3.45 for cash but can easly get 4.5 for 60 days notice.

Its not always all about the rate

[blackcap]

well there is a comparison, just look at the organisations you are entrusting your funds with.
One , second largest bank in Australasia I would think second to CBA,
the other , some broking service lucky to be in the top 100 of Australasia, correct me if I am wrong

one needs to consider what the investment purposes are, to make money from liquid investments, and accept some risk
or whether the intent is to have absolute security with that investment.

I'm happy to have some funds sitting in Jarden Direct Broking for quick funding of equity investment but I use Rabobank for top rates and pretty good security 5.85 for one year at the moment , a minimum of 3.45 for cash but can easly get 4.5 for 60 days notice.

Its not always all about the rate

The thing is, the money that Jarden look after on behalf of clients is spread amongst the 4 big banks. (well it used to be) so it was/ios even safer than putting your money with one bank.

Thanks for the Rabo tip, had not thought of them...

[peat]

The thing is, the money that Jarden look after on behalf of clients is spread amongst the 4 big banks. (well it used to be) so it was/ios even safer than putting your money with one bank.

probably, usually,mostly, yeh , nah... not when it all goes kaput. Trust Deeds, yeh , sure. ;+)

[Snoopy]

Went to put a TD on with ANZ a few days ago and their 4 month rate was 3.8%. When I can get 4.4% on call at Jarden, (or the same 3.8% for smaller amounts) there is no comparison.


You are doing it wrong blackcap. Went to set up an ANZ PIE term deposit myself the other day. Actually made an appointment with an advisor to do so. This was after I waited in line to talk to a regular bank teller, only to be told that although she could set up a regular term deposit for me, she was not 'qualified' to set up a PIE term deposit.

I arrived for my appointment, all prim and proper, and got shown into the special open plan cubicle. After inquiring about my prospective investment term, my 'special advisor' put a hurried call through to the ANZ wholesale bankers, the really sharp shirts on the trading floor (even if I'll bet they're are really slobbing around on their computers at home in their pyjamas these days). I had to wait, nervously, as some ID details were updated.

Then some minutes later, there was a call back. An implacably timed 'nod of acknowledgment' on my advisors end of the phone, and that look of satisfaction. I realised - at that point - I had just closed 'a very special deal'.

I am going to interrupt my story to give it a bit more context. The amount of money I am talking about was more than I have stuffed under my mattress, and down the back of my sofa. It was $10k. That is a lot more than I would be comfortable losing, but would equate to little more than a long well lubricated lunch for banking management. So not really 'big bucks' in terms of Orr post Covid deflated dollars. But I felt like I was being treated as though I had 'hundreds of thousands of dollars' to invest, and so felt special.

My 'special adviser' had managed to wangle a whole extra quarter percent for me above the advertised rate, and I hadn't even put my demanding fist on the desk with anger. It was all so civilized, and I left feeling like a 'corporate big boy'. For my efforts, I had manged to negotiate a term rate with the ANZ that was exactly the same as the term blackboard rate offered by the other big three Ozzie banks. When I found that out, I nearly choked on my ineptitude. But is sure felt good at the time.

SNOOPY

P,S. Moral of the story: The whole thing was a lesson in marketing hype. But you can get the big banks to match each other if you try hard enough.

[sb9]

Got an email from Kiwibank this morning, their online cal a/c rate going up from 3.35% to 3.85% eff today.

[Onemootpoint]

Got an email from Kiwibank this morning, their online cal a/c rate going up from 3.35% to 3.85% eff today.

and Kiwibank’s 90 day notice saver now at 4.75%. This is a Pie Investment

https://www.kiwibank.co.nz/personal-banking/investments/savings-accounts/notice-saver/