| BNZ out to woo personal business
The cut-throat consumer banking sector moves into a new phase tonight, with the BNZ's launch of a new personal banking system it claims as a world first. Seeking to move away from an image as more of a bank for businesses, the BNZ hopes its new TotalMoney creation will help push its share of the home loan market from 16.1 per cent to 20 per cent. TotalMoney allows family groups and couples to pool accounts, so all can earn a higher interest rate. All will be able to see each other's balances, but will not have access to the funds or be able to see transaction details. It will also, for the first time, allow savings in one account to be "offset" against another person's floating home loan, forgoing interest, but making it quicker to repay the mortgage.
That slow killer in your wallet
Do your bit for society. Use plastic, reads a very cleverly worded advertisement of a credit card, where the card issuer promises to contribute a sum to a well-known charity, if you spend money through its cards.
The bank also makes it very convenient to pay off the money thus spent in easy installments by allowing you to pay only 5% of the total amount due.
The only fly in the ointment is the interest that the bank charges if you do not pay off the full amount on the due date. The average interest rate charged on the amount revolved (bankerspeak for the amount allowed to be rolled over and paid later) is around 34% per annum.
I am sure you have wondered why the average rate of interest on credit cards is around 34% per annum when the average rate on a home loan and personal loan is around 10% and 18%, respectively? There are several reasons for this.
Consumers feel the heat as interest rates rise
NEW DELHI: For most, the interest rate increase has been a bolt from the blue. If you've taken the plunge and splurged recently on that luxe 4,000-sq ft penthouse apartment, you've been hit really hard. And if you've been window-shopping to upgrade your car or for expensive gizmos, chances are you've put your plans on hold. ET commissioned a survey to global market research company Synovate immediately after Monday's interest rate hikes were announced by housing finance companies and banks to take a peek into the mood of the nation. And you may have guessed it right, the results are definitely a dampner on the urge to splurge. In fact, such has been the reaction to the latest round of hike that 71% of those surveyed feel that it will hit their household expenses, while another sizeable chunk (71%) feels that they would not opt for a housing or personal loan now.
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