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Sophia Rodrigues
Sophia Rodrigues
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DR - Rate Changes

Rates Update: Rabo’s leadership remains unchallenged

Monday 28th of February 2011

Prior to the Tuesday's earthquake, RaboDirect hiked rates in the six, nine and 12-month terms taking leadership position in almost all the terms up to a year.

(Use the links in this story to see each providers current rates)

One would have expected its closest competitors to retaliate with some increases. Instead we saw Kiwibank and HSBC lower their one year rates while other banks remained unchanged.

Kiwibank cut its one-year deposit rate by 15 basis points to now offer 5.05% and HSBC lowered its one-year rate by 10 basis points to offer 5.15%. Following such cuts, the gap between Kiwibank and Rabobank's one-year rate has widened to as much as 50 basis points and with HSBC it is 40 basis points.

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Latest Comments
FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
1 hour ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
3 hours ago Backstage
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All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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