Direct Broking/Jarden Call Account

[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.