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  1. #1
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    Default Direct Broking/Jarden Call Account

    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?

  2. #2
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    Default

    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.

  3. #3
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    Quote Originally Posted by Perky View Post
    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.

  4. #4
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    Quote Originally Posted by Perky View Post
    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.....

  5. #5
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    Default

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

  6. #6
    Senior Member warthog's Avatar
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    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…
    warthog ... muddy and smelly

  7. #7
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    Quote Originally Posted by 777 View Post
    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.

  8. #8
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    Quote Originally Posted by warthog View Post
    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.......

  9. #9
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    Quote Originally Posted by warthog View Post
    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.

  10. #10
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    Quote Originally Posted by blackcap View Post
    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.
    Last edited by Bjauck; 05-01-2023 at 09:14 AM.

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