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  1. #11451
    ShareTrader Legend Beagle's Avatar
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    However with Heartland now committed to raising a lot more wholesale funding in Australia post restructure and with 'cash' balances an expected source of long term funding (sounds ironic but it is true!) I wouldn't be surprised if Heartland call interest rates in New Zealand are reduced significantly over the next twelve months, back to the level of their peers. I doubt you shareholders who voted for the restructure realised you were voting for the end of your generous call account terms in New Zealand going forwards, but I am calling it. Remember you read it here first!
    Some canny investors entered into a special (I forget the exact name of it now) deal where they locked in their money for 4 months on term deposit then the deal was it rolled over into a special call account at the agreed rate of 3%. Once this new call sub account was up and running I then asked them if they minded if I transferred over my other funds in the 2.75% call account and they said fine, (I have 18 cents left in the 2.75% call account to keep it active, although they didn't mind if it went to 0). I expect they will be locked into that agreement to pay 3% because a deal is a deal but time will tell and anyway I'm losing "interest" in earning 3%. This bull market still has legs in my opinion.

    On another topic, isn't it nice to be allocated shares in lieu of dividend at $1.625 when the shares are now trading at $1.72. This will be an even more rewarding proposition when the shares trade up to my fair assessed value of mid $1.80's within 6 months or so, maybe earlier.

    P.S. Just got this e.mail. Well picked Snoopy, (although to be fair there was some google driven advertising popping up on my screen yesterday pushing their call account rate at 2.50%).
    Hi there,
    As a Direct Call Account holder we'd like to let you know about a rate change. We have reduced the rate from 2.75% p.a to 2.50% p.a effective 21 September 2018.

    You will still enjoy the great features that our Direct Call Account provides:
    No fees
    Interest earned on every dollar
    Unlimited withdrawals to your one nominated account

    Regards

    Mel Cadman
    Head of Retail
    Last edited by Beagle; 21-09-2018 at 09:37 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  2. #11452
    Junior Member
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    Snoopy - Just received this email from Heartland "As a Direct Call Account holder we'd like to let you know about a rate change. We have reduced the rate from 2.75% p.a to 2.50% p.a effective 21 September 2018."

  3. #11453
    Outside thinking.
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    Good on you Snoopy - well spotted.

    I've recently added HBL to my portfolio at an av of 1.70 as I like the Australian moves and think it is due for an upwards correction. I'm looking to increase the dividend yield side of my portfolio (which has been overly biased to cap gains.)

  4. #11454
    percy
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    Dividend is in my bank.

  5. #11455
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    Quote Originally Posted by percy View Post
    Dividend is in my bank.
    Same

  6. #11456
    ShareTrader Legend Beagle's Avatar
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    Nice, extra shares allocated to my name on the register at $1.625, thank you Heartland.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  7. #11457
    Legend peat's Avatar
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    Quote Originally Posted by Beagle View Post
    Nice, extra shares allocated to my name on the register at $1.625, thank you Heartland.
    i find it weird how my CFD account got the credit on the 7th September (the day after it went ex) but I'm not complaining.

    imo the price has to get through to 1.80 before it could be considered bullish. at this point it may just be filling the (somewhat disputed) gap
    For clarity, nothing I say is advice....

  8. #11458
    Junior Member
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    Quote Originally Posted by Beagle View Post
    Nice, extra shares allocated to my name on the register at $1.625, thank you Heartland.
    Likewise - very pleasant indeed. Now just to make up the ground on the March 2018 DRP @ $1.77.

  9. #11459
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    Quote Originally Posted by Beagle View Post
    Nice, extra shares allocated to my name on the register at $1.625, thank you Heartland.
    And me

    Although, I don't understand why HBL doesn't carry forward the residual balance. Not overly bothered by it as the amount I lose is trifling, but still ... how hard would it be?

  10. #11460
    On the doghouse
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    Quote Originally Posted by Beagle View Post
    P.S. Just got this e.mail. Well picked Snoopy, (although to be fair there was some google driven advertising popping up on my screen yesterday pushing their call account rate at 2.50%).
    Nice to see that Google was informed of the rate cut before 'the punters'. I didn't see the ad though, honest! Nevertheless it is interesting to see how studying something as esoteric as the current year cashflow can pay off.

    Quote Originally Posted by Frostyb0y View Post
    Snoopy - Just received this email from Heartland "As a Direct Call Account holder we'd like to let you know about a rate change. We have reduced the rate from 2.75% p.a to 2.50% p.a effective 21 September 2018."
    Funnily enough you may still be better off earning 2.5% from the new Heartland Bank (with the Oz reverse mortgage assets carved off) than 2.75% from the old 'Heartland Bank'. That is because a large potential downside cashflow risk has been removed with the carve out of those Australian REL assets.

    I reckon the 0.25% reduction in interest rate announced today is only the appetiser though. A new 2.25% rate to be introduced on December 21st just before Christmas? Sounds like a recipe for the main course, although it is unclear on which end of the knife you will find the turkey!

    SNOOPY
    Last edited by Snoopy; 21-09-2018 at 09:05 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

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