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Thread: New ASIC inactive bank account rules, dropping from 7 to 3 years!

  1. #1
    Gav
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    New ASIC inactive bank account rules, dropping from 7 to 3 years!

    If you've got a bank account that's been inactive for 3 years ASIC will now take control of the funds this used to be 7 years.

    To stop your rainy day account being taken by the government make sure you either make a withdrawal or a deposit to show your account is still active.

    according to the MoneySmart website at present there's around $677 MILLION sitting in unclaimed bank accounts.

    If you've lost an old bank account or just want to check (I've just done it) then it's very easy to do, so make sure you try and reclaim any bank accounts you may have lost here: https://www.moneysmart.gov.au/tools-...nclaimed-money

    I wonder what all this will mean for 5 year term deposits? As you can't touch or deposit money into them while they're in their term.

    On a brighter note; Bank accounts reclaimed by ASIC will earn interest at a rate based on Consumer Price Index Inflation, however this does not start until July 1st 2013.



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    Administrator fool's Avatar
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    Wow that is some good info but I really don't know what this-"On a brighter note; Bank accounts reclaimed by ASIC will earn interest at a rate based on Consumer Price Index Inflation, however this does not start until July 1st 2013." means.

    What's the Consumer Price Index?

  3. #3
    Gav
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    Australian CPI and will housing and CPI, inflation soon be dropping?

    Okay CPI (consumer price index) is what looks at the cost of things in shops and is a good indication of inflation and technically in Australia between the years of 2006 and 2011 it should have ran at about 300%! As everything got so expensive quickly, but the government seem to think things have only gone up about 2% every year.

    So you can get better earnings in a savings account than you can letting it sit in the ASIC reclaimed accounts, but the fact they're offering interest for the first time is good news for forgetful people and there's no fees so banks can't slowly dwindle your money away.

    Here's the latest CPI figures: 6401.0 - Consumer Price Index, Australia, Dec 2012 you can see that housing has gone up an average of 4.4% and recreation has come down. Health was the shocker at over 7%!

    There will eventually (probably pretty soon) be a correction in prices for housing and everything else, Ireland's just gone through it and prices have dropped by about 75% and much like Australia in recent years they'd built more houses/apartments than there are people, as everyone had to own a second property to show their wealth.

    You'll probably notice the amounts of shops closing due to higher and higher rent but less and less spending a few friends on twitter were commenting that 1 in 3 shops where they are in the Gold Coast have now closed due to rents and increased rates and not being able to charge more for goods.

  4. #4
    Senior Member DealDude's Avatar
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    Gav I think you maybe right about your predictions, can't see why else the government would be trying to give away cheap money, to boost the over inflated house market:

    Reserve Bank surprises market by cutting interest rates to record low 2.75 per cent | News.com.au

    Reserve Bank surprises market by cutting interest rates to record low 2.75 per cent

    RBA cut rates by 25 points to record-low 2.75 per cent
    NAB becomes the first bank to pass on the cut in full
    Decision a win for homeowners if banks follow suit


    THE NATIONAL Australia Bank this afternoon became the first of the big four to pass on the full 25 basis point rate cut to its customers.

    The Reserve Bank earlier today cut the cash rate by a quarter of a percentage point to a record low of 2.75 per cent.
    In a statement NAB said it would now slash its official home loan mortgage to 6.13 per cent per annum. The reduction will save customers $62.50 per month in interest on the average $300,000 home loan.
    "We recognise that certainty is important for our customers, which is why we are pleased to be able to quickly pass on a 25 basis point reduction," Gavin Slater, Group Executive Personal Banking, said.
    The new rate is effective for NAB customer from Monday 13 May.

    Reserve Bank of Australia has surprised many by cutting interest rates. Picture: AFP/ Saeed Khan







    Bankwest is reducing its standard variable rate home loan by 25 basis points to 6.14 per cent.
    Bank of Queensland has also cut its variable home loan rate by a quarter of a percentage point, to 6.26 per cent.
    "Regional banks have not benefited from easing funding costs to anywhere near the same extent as the major banks," BoQ chief executive Stuart Grimshaw said in a statement.
    "But we're working hard to offer competitive products that cater for our diverse customer base and deliver real everyday savings so were happy to pass on the cut in full."
    The Commonwealth Bank has also said it will pass on the full 0.25 per cent rate cut to its customers. Westpac will also pass on the savings to customers.
    ING also passed on the savings in full to its customers, effective from Friday 17 May.
    ANZ has yet to announce any move in home loan rates, though it deliberates on its rates on the second Friday of each month.
    Treasurer Wayne Swan has praised the NAB and the Bank of Queensland for passing on the savings to customers and said the RBA's decision will help families struggling with the cost of living.
    "There will be and continue to be savings flowing through to families and small businesses," he said.
    The RBA said it hopes its decision will aid growth in areas of the economy not effected by the mining boom.
    "With the peak in the level of resources sector investment likely to occur this year, there is scope for other areas of demand to grow more strongly over the next couple of years," said RBA governor Glenn Stevens.
    "(The bank) judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target."
    Stevens said inflation was currently running "lower than expected", with the exchange rate, on the other hand, "little changed at a historically high level over the past 18 months".
    "(That) is unusual given the decline in export prices and interest rates during that time," he said.
    "Moreover, the demand for credit remains, at this point, relatively subdued."
    Analysts say the move is part of a "whatever it takes" approach to supporting the economy.
    The rate cut comes as the Gillard government downgraded its annual revenue forecasts, warning income had plunged Aus$17 billion due to a China-driven commodity slowdown and pressures from the dollar.
    The decision had an immediate impact on the Australian dollar which fell below 102 US cents just after the announcement.

    At 1434 AEST, the dollar was worth 101.88 US cents, down from 102.37 US cents shortly before the bank's decision was announced. The currency ended Monday's local session at 102.72 US cents.
    Commonwealth Bank chief economist Michael Blythe said it appeared recent consumer price index (CPI) figures, which showed inflation remained benign, had prompted the RBA's decision to cut.
    "It's hard to see much in the statement that suggests a change in views (on the economy) compared with last month," he said.
    "It seems that confirmed low inflation has just allowed them to act on an easing bias and give the non-mining economy a further nudge along."
    The decision will be welcomed by homeowners if all of the retail banks follow suit as mortgage rates should also fall. This would mean repayments on a $300,000 mortgage would drop by about $46 a month on average, if retail banks fully pass on the reduction.
    If your mortgage is:
    $100,000, the repayment will be $656.58, a decrease of $15.50
    $150,000, the repayment will be $984.87, a decrease of $23.26
    $200,000, the repayment will be $1313.16, a decrease of $31.01
    $250,000, the repayment will be $1641.46, a decrease of $38.76
    $300,000, the repayment will be $1969.75, a decrease of $46.51
    $350,000, the repayment will be $2298.04, a decrease of $54.26
    $400,000, the repayment will be $2626.33, a decrease of $62.02
    $450,000, the repayment will be $2954.62, a decrease of $69.77
    $500,000, the repayment will be $3282.91, a decrease of $77.52
    This assumes 25-year standard variable rate loan at an average new interest rate of 6.2 per cent.
    Last year the RBA cut the cash rate four times, but this is the first reduction this year.
    RAMS CEO Melos Sulicich was tight-lipped ahead of today's announcement, but did predict rates would fall before the end of the year.
    "The view of our economic advisors [is] there will be rate reductions," he said.

  5. #5
    Gav
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    yep I've noticed the interest rate drops, they obviously feel the economy isn't moving the way they want it to, over the boom years they didn't invest heavily enough in infrastructure, fast trains, high-speed internet and better FREE hospitals, free schooling and free further education.

    IF you keep the work force fit and healthy it ends up costing less, the expensive medical covers are going to ruin Australia the same way it has the US.

  6. #6
    Gav
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    Remember this is happening very soon, so if you've not used your bank account between 3 and 7 years make sure you make a deposit or withdrawal to keep in live!

    On the plus side it'll be easier to find out in a few weeks if you have forgotten any bank accounts over the last 3 years and you may get a bit of cash back.

    To find your unclaimed money head to: https://www.moneysmart.gov.au/tools-...nclaimed-money

    I've checked for 7 years, but I know I will be checking for 3 years on the 1st of July

  7. #7
    Administrator fool's Avatar
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    Good info, had a quick look on the moneysmart site, I was hoping to see some money from Lotto but there was nothing
    DealDude likes this.

  8. #8
    Senior Member DealDude's Avatar
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    I'll be joining you guys on 1st of July to see if I've got a win! I can't think of any be great to have a bit of extra cash. What is the current interest rate for Consumer Price Index Inflation that ASIC will pay me if I do?


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