banks

Is it fair that we should get upset with the banks when they raise the interest rates?

Absolutely YES! I hear some of you say, because YOU know that the increase in the home loan rates means you have to pay the bank more. So, technically you have the right to be angry because it directly affects your pockets.

But what about those of you that don't have a loan? Should you be also angry? Absolutely NO! You should be happy because an increase in the home loan rates means that eventually the interest on bank deposits will also go up - and this will put more in your pocket. So, technically you have the right to be happy because it will directly affect your pockets.

Who was it that said: "you can only please some of the people some of the time......" As I see it, when it comes to banks there are two arguments:

I HATE THE BANKS ARGUMENT

Last financial year the 4 large banks made over $24 billion dollars profit. Have you ever stopped to think what a billion is? that's 1,000 millions. And you would think with that much profits they can absorb some of their so called increased "borrowing costs". And how can we forget their practises of increasing their rates as soon as the Reserve Bank raises the official rate yet when the Reserve Banks reduces the rates - it takes them more than a week to adjust their rates.

And look what happened now! the Reserve Bank has left the rates unchanged but the banks have decided to increase the rates.

Those grubby, dirty, money making banks - don't you just hate them?

I LOVE THE BANKS ARGUMENT

But don't we want our banks to be solid and safe? I have worked all my life to save few dollars and I don't want to lose it - in fact I want to earn some decent bank interest so I can enjoy my life without having to work so hard. Have you forgotten how during the Global Financial Crisis (GFC) our banks were seen as safe? We all know they remained SOLID AS A ROCK at a time when a number of the larger banks around the world collapsed losing billions of dollars. Surely, this is what we want our banks to do - make enough profit, keep it in reserve to protect us during the "rainy days".

SO, IN WHICH CAMP DO YOU BELONG IN?

THE HATE OR THE LOVE ???

MY ADVICE! luckily today we have a wider selections of lenders. You don't have to stick with the larger banks, as there are many smaller lenders around that can help you with lower rates.

If you are not sure - just call me and I am happy to provide you with "options" that may save you money.

And if you are in the hate camp - DON'T GET ANGRY - JUST GET EVEN! - SHOP AROUND!