Mozo Awards

17th November 2011

Member owned banking has come out on top claiming interest rate watchdog Mozo’s 2011 People’s Choice Award for highest rated financial institution in customer satisfaction areas.

With a whopping rating of 8.2 against the big banks 6.9, consumers’ opinions of Mutuals versus banks have become even more apparent.

The results showed Mutuals were rated equally to the big four banks for convenience as well as receiving a superior rating in key areas such as trust, pricing and features.

Managing Director of Mozo, Rohan Gamble said, "Customers have spoken and the big banks should sit up and take notice. The challenger banks and Mutuals are delivering competition and winning customers with competitive pricing, great customer service and a customer-first focus that engenders trust."

Mutuals were ahead of the banks, in particular in lending, with the biggest gap being in Home Loans.

Mozo’s awards are designed to allow consumers to have their say on the banking experience. Financial institutions were rated on six criteria by consumers including: overall satisfaction, price, features, customer service, convenience and trust.

Mozo’s 2011 People’s Choice Award – another reason to talk to us about our bank beating home loans.

www.mozo.com.au

Mutuals ahead of banks

15th November 2011

The recent announcement of the RBA rate cut of .25% to 4.5% is welcome news for Australian consumers struggling with the rising cost of living. Consumers that are looking for even more respite from high interest rates on their home loans can look to us for a better deal.

Mutual ADI’s standard variable home loan rates have been, on average, lower than the big four banks' for years, based on financial comparison websites like Canstar Cannex.

Today's Canstar Cannex rates are no exception, showing credit union, building society and mutual banks' average Standard Variable Rate as 7.33%; compared with the big four banks' average of 7.79%. This difference of 0.46% or 46 basis points could save consumers thousands of dollars over the life of a home loan. Even if the big banks pass on the rate cut, they will still be behind the competition.

Borrowers who are dismayed to hear of the billions of dollars of big bank profits and are looking to get the best value home loan they can, should lose no time investigating the great value options of banking with a mutual ADI.

What distinguishes us from the big four banks’ is that their customers always come first and this translates to great value deals for those customers.

Mutual ADIs provide important competition and choice for consumers because of their community focus, excellent customer service and great rates on home loans and deposits. They give back to their customers because they are not under the same pressure as listed banks to pursue large profits for shareholders.

Mutual ADIs are known for their competitive rates, fair and ethical dealings and their outstanding customer service.

Don't put up with a second rate deal from your bank – join the 4.5 million Australians who already get a better deal by banking with a mutual ADI.

Shop Safety

10th November 2011

As we head into the busy Christmas shopping season we are encouraging our members to take some basic safety precautions when spending in stores and online. This article provides some simple tips that you can follow to protect your personal information and your money.

The Problem

There are different risks associated with shopping online and shopping in a store however they all result in the misuse of your personal information with a view to obtaining your money fraudulently.

Assistant Commissioner Neil Gaughan, National Manager of the AFP's High Tech Crime Operations said, "Common sense is the key when it comes to shopping. As a rule, it is recommended you apply common sense to any shopping activity either on or offline. Particularly at this time of the year when people are looking for a bargain, if an offer looks too good to be true, it usually is, and may be a hoax or scam."

How we help

In order to protect cardholders, member accounts are monitored to identify any suspicious or fraudulent transactions. These transactions may be detected even before you notice anything odd on your account.

When there are transactions on your card that differ considerably from any style of shopping which you have done before, we will contact you to check that it’s really you doing the shopping and may need to block your card. This is why it is so important that we have your up-to-date contact details, especially if you are travelling overseas.

However, no financial institution has the power to protect you 100% so we recommend you follow the guidelines below.

When shopping online...

DO maintain up-to-date anti-virus and firewall software that is obtained from a reputable source
Security software will help protect your computer from viruses, worms and trojans. These are malicious programs, often carried in something that looks harmless such as an email or game, but in fact can contain a program that allows an intruder to access your computer without your knowledge.

Do be very suspicious about emails from people you don’t know
Scam emails are often used to trick you into disclosing your bank account details, passwords or credit cards.

Do use secure payment methods
Secure payment methods are BPAY, Credit Card and PayPal. Avoid money transfers and direct debits where possible as these can be open to abuse.

DO guard your Internet banking passwords
Don't tell anyone your Internet banking login or password and don't keep them written down in a place that can be easily accessed by other people. Be aware that there is no reason to provide Internet banking details to anyone under any circumstances and we will never call or email you asking for this information.

DO use strong passwords and limit the amount of personal information you put online
Don't make it easy for criminals to guess your password and do not provide information to people that you don't know or don't trust.

The Australian government has created a great interactive website which we would recommend you read to obtain more important information. Visit www.staysmartonline.gov.au.

When shopping in a store...

DO make sure your card is returned by the salesperson
Make it a priority to get your card back after completing a purchase. Sometimes cards are intentionally retained by salespeople in order to later commit fraud.

DO guard your PIN
Don't tell anyone your PIN number or keep a record near your card(s). Be aware that there is no reason to provide your PIN to anyone under any circumstances. Only use the PIN for electronic transactions, don't use it for other purposes such as your video store password, which you repeat aloud to the salesperson.

DO secure your card
Make sure you know where your card is located at all times. Make sure it's secure to minimise the risk of theft. If you are expecting a card to be delivered in the mail, ensure your letterbox can be locked and that you check your letterbox regularly for the card's arrival. If your card does not arrive within a reasonable time of you ordering the card or being advised by us that a card is being sent to you, please get in touch.

DO review your card limit
You may wish to lower your credit card limit which would prevent a criminal spending more than the determined amount if the card was ever lost or stolen. You need to balance this decision with ensuring your card limit is appropriate to your spending needs.

DO be alert for suspicious activity around ATMs or EFTPOS
When entering your PIN at the ATM or EFTPOS machine, look around to see that no-one is watching. 'Shoulder Surfing' usually happens at ATMs or public phones. Criminals may watch you from a nearby location or behind you in a queue, as you key in your PIN. They may also listen in on your conversation if you give your credit card number over the phone, for example, when making a hotel reservation or booking a rental car.

Be aware if there is a group of individuals around the ATM acting suspiciously. If you see a device that doesn't look part of the normal ATM operation do not remove it. Keep a reasonable distance and telephone police. If you are suspicious for any reason, please contact us or the police and await further instruction. Do not put yourself at risk.

DON'T ever let your card out of your sight
Card skimming occurs when a fraudster skims your card through a device that records the information stored on that card. The fraudster then downloads that information onto a fake card, and will start using it as a counterfeit card. The safest way to avoid card fraud is to never let your card leave your sight.

Remember

DO always check your statements promptly
Always check your card statements promptly and reconcile them to your purchase slips. It is important that you advise us immediately of any unauthorised activity.

DO provide us with telephone contacts and travel plans
It's important we have up-to-date phone numbers on our system in case we need to contact you to discuss fraudulent activity on your account. Inform us of changes to your mobile, work or home phone numbers. Provide us with details of your travel plans before you go overseas as well as a contact phone number where our staff can reach you overseas.

DO keep a record of your credit and debit card information in a safe place
If your card is lost or stolen, the faster you are able to provide us with details of the card, the better. Emergency phone numbers to call to report the loss of a card can be found on our Contact page – keep these numbers handy.

If you would like further information concerning any of the points raised in this article, please don’t hesitate to get in touch.

Choosing the right card

8th November 2011

Last year the Reserve Bank of Australia reported that in 2010 Australia was the world leader in personal debt, even overtaking the usual credit-hungry U.S. Not surprisingly, next to mortgages and various personal loans, credit card debt comprises a large part of our collective $1.2 trillion debt, averaging at $56,000 per adult.

Credit card debt has risen 42% in the past five years, currently coming to an average of $3,321. Today there are more than 14 million credit cards in circulation in Australia, with almost every adult owning at least one.

With so many types of cards on the market, which type is right for you?

There are many types of cards out there in the market and if you do not have the right card, you could end up paying far more interest than you need. This article is designed to help you make the right choice.

Reward Cards

A lot of people are attracted to the rewards and benefits that many credit cards offer. From rewards points for every dollar spent, to free flights, gifts and even cash-back. It is obvious that the temptation is hard to resist. However, did you know that these rewards and benefits nearly always attract a much higher interest rate and substantial annual fees?

Reward cards are appropriate for those people who are able to spend enough on their card to earn a sufficient quantity of reward points to enable them to exchange the reward points for goods and services that they value (the number of reward points needed can be substantial).

More importantly, as these cards often charge high interest rates and encourage spending, it is important that reward card holders can budget well, so that they can ensure they pay off their balance in full each month and not incur high interest charges (which often will be applied from the date of purchase).

Low Balance Transfer Rate Cards

Most credit cards have a minimum repayment of 2% each month and unlike most other types of loans, there is no time period to pay it off. This becomes dangerous for some people as they can get caught with a never-ending debt. Cards that offer a low rate for balance transfers are therefore attractive, but did you know that with many of these cards, if you make a purchase during the balance transfer period you often end up paying the full interest rate? Low balance transfer rate cards can also attract a high interest rate at the end of the balance transfer period.

Low balance transfer rate cards are appropriate for those people who do not need to use their credit card going forward and who are comfortable that they can make regular payments to eliminate the balance before the end of the balance transfer period.

Low Rate Credit Cards
Low rate credit cards tend to come without a rewards program and therefore a lower interest rate and lower annual fee.

Low rate credit cards are appropriate for those people who actively use their credit card and value interest free days but do not want or will not benefit from a rewards program.

For those individuals who carry a balance each month, the lower interest rate obviously attracts a lower interest charge, however for those struggling to reduce their balance each month, a personal loan may be more appropriate.

VISA/MasterCard Debit Cards

VISA or MasterCard Debit Cards provide you with the ability to shop online using your own savings. However, many debit cards can be attached to an overdraft facility providing the benefits of a credit facility. Interest is charged only on the amount of overdraft used but will often not attract the interest-free period associated with the other card type.

Debit cards are appropriate for those individuals who wish to access their own savings and do not need the extra features such as interest free days or reward programs.

So how do you keep your card costs to a minimum?

Firstly, establish your spending and repayment patterns. This will help you understand the type of card you need.

Ask yourself these questions:

• Do I need my card to transact online or do I also need the credit?
• Do I repay my balance each month?
• Do I have savings?
• Do I spend enough each month to justify a rewards program?
• Am I disciplined? Do I only spend what I know I can afford to repay?

Secondly, ensure you are looking at the big picture.

If you can't pay off your full card balance each month and have savings in the form of a savings account, term deposit or equity in your home, you can use this to reduce your debt.

Thirdly, choose the card(s) that suits your spending and payment patterns.

If you only use your card for irregular convenience purchases of petrol, take-aways or the occasional small purchases and do not need the added benefits such as reward programs, it is probably not worth paying a fee for a rewards card. Stick to a low interest card or a debit card.

If you want the benefits of a higher interest rate rewards card, and you aim to pay in full by the due date, choose the one which offers the lowest annual fees or best benefits to suit your lifestyle such as travel rewards etc.

If you have found yourself struggling to pay off your credit card debts, consider a balance transfer to a low balance transfer card or personal loan.

Rates still on hold

4th May 2011

While there has been a lot of noise in the media recently about an interest rate shift, the Reserve Bank of Australia (RBA) decided to keep official rates on hold at 4.75 per cent at its May meeting.

Experts seemed to be in disagreement prior to the announcement about which way the RBA would move rates. Some claimed that higher than expected inflation would push rates up while others claimed, perhaps hopefully, that the high Australian dollar could push rates down. In the end neither group was right as the RBA continued with its ‘wait and see’ policy and kept rates steady.

In the official statement, RBA Governor Glenn Stevens explains the complex range of factors that lead the RBA to reach the decision to leave the cash rate unchanged:

"The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products further afield. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty remains over the prospects for resolution of the banking and sovereign debt issues in Europe.

Australia's terms of trade are reaching higher levels than assumed a few months ago, and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income.

The natural disasters over the summer have reduced output in some key sectors and the resumption of coal production in flooded mines is taking longer than initially expected. It is likely this caused a decline in real GDP in the March quarter. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.

Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.

Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has resumed growth after a period of contraction. Growth in credit to households, on the other hand, has softened recently, as have housing prices in several cities. The exchange rate has risen further and, in real effective terms, is at its highest level in several decades. This, if sustained, could be expected to exert additional restraint on the traded sector.

Recent data on inflation show the effects of production losses due to the floods and Cyclone Yasi. The affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the year ahead.

Looking through these short-term movements, however, the recent information suggests that the marked decline in underlying inflation from the peak in 2008 has now run its course. While the rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters, over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected."

PlayStation accounts hacked

29th April 2011

If you have an account with PlayStation Network, your financial information may be at risk. We advise you get in touch with us immediately to arrange for your credit card to be cancelled and reissued.

Sometime between 17th to 19th April, the data security defences of Sony’s PlayStation Network were breached by hackers. The attack penetrated Sony’s global gaming and sales network and potentially netted the cyber criminals millions of account holders’ confidential information. The compromised information stored on the company’s servers included user’s names, addresses, birthdates, e-mail addresses and possibly even credit card data.

Sony issued the following update as part of a post on the PlayStation blog:

“While all credit card information stored in our systems is encrypted and there is no evidence at this time that credit card data was taken, we cannot rule out the possibility. If you have provided your credit card data through PlayStation Network or Qriocity, out of an abundance of caution we are advising you that your credit card number (excluding security code) and expiration date may have been obtained.”

The breach, which affects some 70 million plus users worldwide, was considered serious enough for the head of the NSW Police Fraud Squad to publicly warn Australian PlayStation Network account holders that they may need to cancel their current credit cards.

We strongly agreed with the following advice posted on the Sony blog for anyone who could be affected by this incident:

“For your security, we encourage you to be especially aware of email, telephone, and postal mail scams that ask for personal or sensitive information. Sony will not contact you in any way, including by email, asking for your credit card number, social security number or other personally identifiable information. If you are asked for this information, you can be confident Sony is not the entity asking. When the PlayStation Network and Qriocity services are fully restored, we strongly recommend that you log on and change your password. Additionally, if you use your PlayStation Network or Qriocity user name or password for other unrelated services or accounts, we strongly recommend that you change them, as well.”

We recommend that if you receive an unsolicited call from any organisation, that you call them back using publically listed information, to verify the caller is legitimate.

If you think you may have been affected by this incident please get in touch immediately so that we may cancel and reissue your credit card.

Visit the Sony PlayStation blog for further updates.

Swan opens credit union account

13th December 2010

Federal Treasurer Wayne Swan has put his money where his mouth is on the big four banks - opening an account with a credit union. The symbolic switch came just days before his government released major plans to ‘promote a competitive and sustainable banking system to give every Australian a fairer go.’

Mr Swan said the ‘four major banks need to understand Australians will shop around if they feel they can get a better deal’ and backed up this belief by becoming a member of a credit union in his Brisbane electorate of Toombul.

It’s a very welcome sign to see one of the leaders of our federal government becoming a member of the credit union and building society community. Swan’s public show of support for the mutual sector has become more vocal over recent months with the Treasurer commenting recently:

‘I want to say credit unions generally, our regional banks generally and our building societies generally are safe and they are competitive. There are alternatives in our system and if you’re not happy with your financial institution then shop around’

If you would like more information on how the Treasurer and his government are attempting to bring competition to the mutual market you can take a look at his recent press release here.

RBA keeps rates on hold for Christmas

7th December 2010

Last month the Reserve Bank of Australia (RBA) surprised many by lifting the official cash rate on Melbourne Cup day. This month the RBA keep rates unchanged in a move that most industry players and watchers expected.

The decision comes on the back of some soft economic data over the past couple of weeks. The Australian economy only expanded by a disappointing 0.2 per cent in the third quarter of 2010. Retail sales dropped 1.1 per cent for the month of October which is a surprising result given the lead into Christmas and the strong economic position of Australia.

The big 4 banks decision to raise interest rates by additional amounts after the official November rate rise is said to have influenced the RBA in its December decision. The additional rate move by the big banks sparked public outrage and has prompted the government to propose reforms to increase competition amongst the banks. Treasurer Wayne Swan, who has publicly backed the credit union and building society movement, is expected to release details of his competition proposal later in the week.

The following is an extract from RBA Governor Glen Steven’s press release explaining the rate decision:

‘At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

Since the previous Board meeting, concerns about the creditworthiness of a number of European governments have again become the main focus of financial markets, with a marked rise in sovereign bond spreads for some euro-area countries and an increase in volatility. At the same time, recent data suggest that the Chinese and Indian economies have continued to grow strongly and price pressures, particularly for food, have picked up in China as well as a number of other economies in Asia. Modest growth is continuing in the United States.

For Australia, the terms of trade are at their highest level since the early 1950s, and national income is growing strongly as a result. Recent information indicates that, as had been expected, private investment is beginning to pick up in response to high levels of commodity prices. In the household sector thus far, there continues to be a degree of caution in spending and borrowing, which has led to a noticeable increase in the saving rate. Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend.

Employment growth has been very strong over the past year, though some leading indicators suggest a more moderate pace of expansion in the period ahead. After the significant decline last year, growth in wages has picked up somewhat, as had been expected. Some further increase is likely over the coming year.

The exchange rate has risen significantly this year, reflecting the high level of commodity prices and the respective outlooks for monetary policy in Australia and the major countries. This will assist, at the margin, in containing pressure on inflation over the period ahead. Over the next few quarters, inflation is expected to be little changed, though it is likely to increase somewhat over the medium term if the economy grows as expected.

Following the Board's decision last month to lift the cash rate, and the subsequent increases by financial institutions, lending rates in the economy are now a little above average. The Board views this setting of monetary policy as appropriate for the economic outlook.’

Stay smart online this festive season

1st December 2010

The online environment is incredibly convenient for things like shopping and booking holidays. It’s also fun and a great way to communicate, but people do need to ensure they have the right protection in place and are conscious of how much personal information they divulge online.

As you know we are committed to raising the awareness of the risks involved with using the internet. So leading into the festive season we thought it was a good idea to remind you about some simple things you can do to ensure your online fun stays safe and secure:

• have up-to-date security and anti-virus software on your computer;
• when shopping online, be smart about purchasing practices. Know who you are dealing with, know what you are buying, be confident you will get what you have paid for, and ensure that your account and credit card details are being dealt with safely;
• protect your identity and privacy. Stop and think before you share any personal or financial information about you or family. Don’t disclose identity information (driver’s license, Medicare no., birth date, address) through email or online unless you have initiated the contact and you know the other person involved. And if you use social networking sites, adjust your privacy settings to control the amount and type of information you want to share;
• know what your children are doing online. Protecting your children from harm is just as important online as it is in the real world, so make sure they know how to stay safe and encourage them to tell you if they come across anything suspicious or if anybody says or does something that makes them feel uncomfortable or threatened;
• be aware of scams. Scam and hoax websites and emails are designed to trick you into disclosing personal information such as bank account details, passwords or credit card numbers. Be very suspicious of emails from people or businesses you don’t know, particularly ones that promise you money or good fortune. Be suspicious of unexpected emails from your financial institution. Remember we will never ask for your confidential information via email.

To find out more about online security, visit the security section of our website or go to the Australian government’s stay smart online website.

National Security Awareness Week

National Security Awareness Week June 6-11 2010

The Internet is an incredibly useful tool for many businesses, and ours is no exception. In this information age the technologies that we depend on every day present us with both great opportunity and great risk. That is why every day we continue to monitor and upgrade our security systems. We strive to always be up to date with the latest online scams and ensure that you, our members are informed of any dangerous developments.

While it is our job to ensure our systems and processes are guarded against cyber criminals, it is everybody’s responsibility to be smart while using the Internet. That is why we enthusiastically support the Australian Government’s National Security Awareness Week initiative. The Week aims to help Australians understand cyber security risks and educate home and small business users on the simple steps they can take to protect their personal and financial information.

National Cyber Security Awareness Week 2010 is from 6 to 11 June and will promote six easy tips for better online security:

1. Install security software and update it regularly.
2. Turn on automatic updates so that all your software receives the latest fixes.
3. Get a stronger password and change it at least twice a year.
4. Stop and think before you click on links or attachments.
5. Stop and think before you share any personal or financial information—about yourself or your friends and family.
6. Know what your children are doing online. Make sure they know to stay safe and encourage them to report anything suspicious.

For more information on National Cyber Security Awareness Week visit the website at: www.staysmartonline.gov.au/news/news_articles/feature/national_cyber_security_awareness_week

Worried about Europe's debt trouble?

17th June 2010

With the European debt situation getting worse by the day many of us here in Australia are wondering how serious the situation is, and what it means for us. According to the Bank for International Settlements (BIS), the official banker to the world's central banks, the European debt crisis is beginning to look remarkably similar to the subprime mortgage meltdown. That financial fiasco came out of the United States in 2007 and spread like a virus through the global economy.

The head of Australia's central bank, Glenn Stevens, has warned that Europe's financial problems could spread to the global economy, if conditions continue to worsen. While we are getting used to predictions of economic doom and gloom it is worth remembering that Australia was the only developed nation in the world to avoid recession during the global financial crisis. Australia's strong trade links with Asian countries also provides us with some insulation from debt problems coming out of Europe.

In some ways Europe's debt problems are advantageous to Australians. In May 2009, one Aussie dollar bought around 56 Euro cents; in May 2010 that same Aussie dollar now buys around 69 Euro cents. Meaning your trip to Paris, Berlin or Rome is cheaper now than it was 12 months ago. For home owners too, a volatile world economy may make the Reserve Bank of Australia (RBA) think twice about raising official interest rates.

The European debt crisis however still has the possibility to get significantly worse and may cause problems for Australia. Governor Stevens recently cautioned that 'the issues will continue to need careful handling by all concerned and close monitoring by the rest of us. It cannot be denied that the potential for the further financial turmoil exists.'

National Security Awareness Week

National Security Awareness Week June 6-11 2010

The Internet is an incredibly useful tool for many businesses, and ours is no exception. In this information age the technologies that we depend on every day present us with both great opportunity and great risk. That is why every day we continue to monitor and upgrade our security systems. We strive to always be up to date with the latest online scams and ensure that you, our members are informed of any dangerous developments.

While it is our job to ensure our systems and processes are guarded against cyber criminals, it is everybody’s responsibility to be smart while using the Internet. That is why we enthusiastically support the Australian Government’s National Security Awareness Week initiative. The Week aims to help Australians understand cyber security risks and educate home and small business users on the simple steps they can take to protect their personal and financial information.

National Cyber Security Awareness Week 2010 is from 6 to 11 June and will promote six easy tips for better online security:

1. Install security software and update it regularly.
2. Turn on automatic updates so that all your software receives the latest fixes.
3. Get a stronger password and change it at least twice a year.
4. Stop and think before you click on links or attachments.
5. Stop and think before you share any personal or financial information—about yourself or your friends and family.
6. Know what your children are doing online. Make sure they know to stay safe and encourage them to report anything suspicious.

For more information on National Cyber Security Awareness Week visit the website at: www.staysmartonline.gov.au/news/news_articles/feature/national_cyber_security_awareness_week

RBA keeps rates the same

2nd June 2010

The Reserve Bank of Australia (RBA) announced on 1st June that it would be keeping its official interest rate level at 4.5%. This was welcome news for many borrowers who have endured three interest rate increases in the past three months, and six since October 2009.

The rate rise hold was not unexpected after Greece and its debt problems sent European and then world financial markets into turmoil. Australia’s housing sector also looks to be cooling with research showing that house prices remained flat through the month of April. This is the first time in the past year that house prices didn’t rise. The number of new building approvals has also dropped significantly over recent months, further proof of a housing sector slowdown.

The following is a statement from Glenn Stevens, Governor of the RBA, explaining in further detail the interest rate decision:

‘At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.

‘Since the Board last met, concerns about sovereign creditworthiness in several European countries have been a focus of financial markets. Investors have generally displayed a good deal more caution. As a result, equity prices have fallen and long-term government bond rates have declined outside of the countries most affected by the sovereign concerns. The Australian dollar fell sharply as part of this adjustment. Commodity prices have also softened, though those important for Australia remain at very high levels.

‘European policymakers have responded by assembling a large package to provide financing for the relevant countries for a period of time, stabilise bond markets and provide liquidity. They have also committed to action to bring budget deficits down and stabilise debt over time.

‘The effects of these various factors on the world economy will need to remain under review. At this stage, global growth is still expected to be at about trend pace in 2010. Conditions in Europe overall have been relatively weak, and the foreshadowed budgetary tightening will probably mean that this will continue, but growth is becoming more established in North America. In Asia, growth has continued to be quite strong and may need to moderate in the year ahead.

‘In Australia, with the high level of the terms of trade expected to add to incomes and demand, output growth over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing. Inflation appears likely to be in the upper half of the target zone over the next year.

‘Consistent with that outlook, and as a result of actions at previous meetings, interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago. Taking all the available information into account, the Board views this setting of monetary policy as appropriate for the near term.’

It all comes back to you

19th May 2010

We understand that we have a responsibility to our members and community to be the best we can be. As our 2010 TV commercial suggests that is why '4.5 million Australians choose to bank at a place that isn’t a bank at all. A place with the products of a major bank but where profits go back into making better products. When you bank with a credit union or building society, it all comes back to you.'

Our new mini-site has been designed as a place where members and non-members can find out about who we are and what we are all about. We hope you can take a look at the site and forward the link onto anybody you think would benefit from joining our organisation.

Respected industry analyst InfoChoice has estimated that Australians cost themselves $2.7 billion in excess mortgage payments because they stick with the big banks and don’t seek out other players. However, 90% of home loans are still provided by the big four banks because people are unaware of the benefits of credit unions and building societies.

Our mini-site and participation in the 2010 credit union and building society TV commercial are aimed at informing Australians that they have a real alternative to banks.

Questions?

If you have any questions, please contact us