Term Deposits as well as loans

Beware of the bank's interest rate trick. It is hard to believe a bank would try to trick it's customers. Like Hogget dressed as lamb really - but worse! Customers are regularly fleeced!

Automatic renewals

The term deposit period that gave you the highest rate last time May just have been changed to give you the lowest rate this time. Clever, isn’t it! The T/D Trap. Perhaps last time, 9 months paid the highest rate 4.5%. This time it offers 2.9%. So those who just say “Renew for same period again”, get 2.9%.

For a better rate, negotiate

The customer who asks “What are all the rates?”, may discover that 8 months pays 3.9%. Fancy that! There is no real logic for the bank paying 2.9% p.a if the money is left for 9 months and 3.9% if left for 8 months. All the major banks have done this for years. Ripping off customers who trust the bank to give them the highest rate. Why would the bank do that? It is trying to earn the maximum profit for itself. It is not a customer-oriented charity, like banks used to be when helping customers was top priority, before the politicians “de-regulated” them. That turned them into multi-billion-dollar money making machines for themselves and their CEOs.

Shop around, like at the saleyards

So if you want value from your term deposit check out all the rates with all of the banks. See if you can talk one of them into giving you a higher rate than the highest you have been offered and check with all the other banks before you decide. You might just earn another 1% for 30 minutes work. On $100,000 that is $1,000. $2,000 an hour is not a bad pay rate.

Applies to loans even more

You can ask around by Loanagram, of all the likely bank lenders for your farm or business loan. Then you can negotiate with all who are interested in making money from your loan by way of interest and charges. Play one off against the other. Or Loanagrams will do it for you. Not only will you get the lowest interest rate going, but you can obtain the very best terms and conditions. That way your loan will be designed to suit you just as much as it is already designed to suit the bank. Banks hide their loan manipulation rates in the terms and conditions that most farmers never even glance at. Every word is intended to give the bank the advantage. Using a skilled farm debt consultant can pay off in many ways. A lawyer too. Remember - every dollar you pay for your loan, is a dollar more for the bank and a dollar less for you.