Aussie Bank - Dormancy Fee..

[khall64au]

I have an Aussie bank account with a "community bank" which I opened about 5 yrs ago - with a deposit of a few thousand dollars. I opened the account as it was touted as a bank for the people who were sick of high fees for nothing.

Actually, I don't touch the account and just leave it for emergency - which has never come up. Just recently, I noticed on a statement that the "community bank" has charged me a $24 "dormancy" fee for not using my account. And they want a 2 % transaction fee for any withdrawal outside the country.

This bank earns interest off my cash and I don't see any difference in my balance over the last 4 yrs (low interest earning). What kinda bank is this? (Bendigo, by the way!) Can any Aussies advise on where to place my emergency cash without the "community benefits"?

[Carmine6]

I have an Aussie bank account with a "community bank" which I opened about 5 yrs ago - with a deposit of a few thousand dollars. I opened the account as it was touted as a bank for the people who were sick of high fees for nothing.

Actually, I don't touch the account and just leave it for emergency - which has never come up. Just recently, I noticed on a statement that the "community bank" has charged me a $24 "dormancy" fee for not using my account. And they want a 2 % transaction fee for any withdrawal outside the country.

This bank earns interest off my cash and I don't see any difference in my balance over the last 4 yrs (low interest earning). What kinda bank is this? (Bendigo, by the way!) Can any Aussies advise on where to place my emergency cash without the "community benefits"?

I don't think there are many banks that don't charge dormant account fees for this long a period, but I have no clue about Australia.

Since you don't intend to touch it, have you considered putting some of that money into CDs or something else with higher rates? While the $24 fee is bad, it's probably not as big as the purchasing power you've lost to inflation over those 4 or 5 years.

For example, if the interest rate is 2% and inflation is 3%, and you have $2,000. You're losing $20 a year in purchasing power. To avoid big fees if you do need the money, you can keep some of it in a regular savings account and some in a CD. Then you'll only touch the CD if you have a really big need. For smaller ones you won't touch the CD.

[khall64au]

Forgive me, but.......... what's a CD?

[Carmine6]

Forgive me, but.......... what's a CD?

Sorry, you never know which terms are common and which are different in other countries. They're those things that you play music on. Or also a Certificate of Deposit in the US.

Probably called something else (time deposit, fixed deposit ??) in Australia or maybe they're not offered. It's a savings account, but the money is locked up for a certain term, like 6 months, or a year, 2 years, etc. They pay much higher interest rates than regular savings accounts. But if you have to withdraw the money early they charge a penalty.

In the US, the practice is to charge something like several months of interest, so if you close it the day after you open it, it costs money. No idea what the penalty is in Australia.

Bangkok bank's policy seems pretty good:

"If you withdraw your money prior to three months, you will get no interest on your deposit. If you withdraw it after that period, and before it matures, you will get the same interest rate as a savings account."

Because of the penalty, you'd ordinarily put only a limited amount of money into CDs so that other money is easily accessible for emergencies. And you can't take only some of it out so instead of having one $2,000 CD, you'd have two $1,000 CDs. Then if you only needed $1,000, the other would stay untouched. Or have them due at different times $1,000 into a 3 month CD and the other in 1 year.

The only thing is, when they mature, you may have to go in and do something with the money. Roll it into a new CD or move it to savings, etc. In the US it's possible to do this online and some renew automatically, but it might be different in Australia.

[bmanly]

Hi Khall64au, it's 6 AM here and I came across your message so I thought I'd follow it up for you. I read the terms and conditions of your Bendigo Bank Account. If you do not use your account they WILL close it down completly after 7 years. The dormant account status is triggered after 3 years with the fee. International withdrawals are way over the top being $5 plus the 2% transaction fee. It is probably just a normal account you have with them so there won't be much interest either.

My suggestion is for you to open Citibank Online Cash Manager Account this account is very good and is perfect for you. You get 5.5% on all your balance and you are entitled to 2 free withdrawals per Month. Any more than 2 withdrawals will cost you $2 per withdrawal. ALL overseas withdrawals are only $4 AUD each and are not included in your free withdrawals, there is no conversion fees either. By that I mean if you make 2 overseas withdrawals in 1 Month that will cost you $8 no more, make 3 then it's $14. I have had this account for 4 years now and I am very happy with it. The exchange rate in Thailand when you withdraw from an ATM is very good, it is the best account I have. The best part about it is the 5.5% interest and ATM card that I use anywhere in the world.

Not one other bank in Australia is as good as them. I have never been to any of their branches either I applied and did everything online. I hope that helps.

[simcity]

Hi Khall64au, it's 6 AM here and I came across your message so I thought I'd follow it up for you. I read the terms and conditions of your Bendigo Bank Account. If you do not use your account they WILL close it down completly after 7 years. The dormant account status is triggered after 3 years with the fee. International withdrawals are way over the top being $5 plus the 2% transaction fee. It is probably just a normal account you have with them so there won't be much interest either.

My suggestion is for you to open Citibank Online Cash Manager Account this account is very good and is perfect for you. You get 5.5% on all your balance and you are entitled to 2 free withdrawals per Month. Any more than 2 withdrawals will cost you $2 per withdrawal. ALL overseas withdrawals are only $4 AUD each and are not included in your free withdrawals, there is no conversion fees either. By that I mean if you make 2 overseas withdrawals in 1 Month that will cost you $8 no more, make 3 then it's $14. I have had this account for 4 years now and I am very happy with it. The exchange rate in Thailand when you withdraw from an ATM is very good, it is the best account I have. The best part about it is the 5.5% interest and ATM card that I use anywhere in the world.

Not one other bank in Australia is as good as them. I have never been to any of their branches either I applied and did everything online. I hope that helps.

i can not see new rates , the one showing are : Interest rate effective 16/03/2005

i did go back to mortgage and they send me back to main ??

[bmanly]

i can not see new rates , the one showing are : Interest rate effective 16/03/2005

i did go back to mortgage and they send me back to main ??

If you click on the Citibank link I provided it will show the rate at 5.5%. This is an at call online rate and has been 5.5% for the last 4 years, cheers.

[Chang_paarp]

I have an Aussie bank account with a "community bank" which I opened about 5 yrs ago - with a deposit of a few thousand dollars. I opened the account as it was touted as a bank for the people who were sick of high fees for nothing.

Actually, I don't touch the account and just leave it for emergency - which has never come up. Just recently, I noticed on a statement that the "community bank" has charged me a $24 "dormancy" fee for not using my account. And they want a 2 % transaction fee for any withdrawal outside the country.

This bank earns interest off my cash and I don't see any difference in my balance over the last 4 yrs (low interest earning). What kinda bank is this? (Bendigo, by the way!) Can any Aussies advise on where to place my emergency cash without the "community benefits"?

Khall

All banks in Au will close your account for non use, I have had them closed after on 3 years of non use (not much funds there). It is probably better to use it occasionally and wear the transaction fees. This restarts the "dormancy" clock, or get some one to deposit $5 for you, same net effect.

There are some superanuation accounts that do not have the dormancy closure but they are a pain to get access to if you are under 55.

Otherwise rolling fixed term deposits, but then again a pain to access if you need the money in a hurry.

Hope this helps.

[John 1]

Look at the National Australia Bank You can have internet account and saving account no fee also 5.5% interest, the only problem you will find, it's very difficult to open an account if not in person, as they require passport, drivers license. I would be suprised if you can open the account while living in Thai.

[MishaMagic]

I have an Aussie bank account with a "community bank" which I opened about 5 yrs ago - with a deposit of a few thousand dollars. I opened the account as it was touted as a bank for the people who were sick of high fees for nothing.

Actually, I don't touch the account and just leave it for emergency - which has never come up. Just recently, I noticed on a statement that the "community bank" has charged me a $24 "dormancy" fee for not using my account. And they want a 2 % transaction fee for any withdrawal outside the country.

This bank earns interest off my cash and I don't see any difference in my balance over the last 4 yrs (low interest earning). What kinda bank is this? (Bendigo, by the way!) Can any Aussies advise on where to place my emergency cash without the "community benefits"?

Most of the Australian banks have internet saving accounts now, since Ing Bank started it....they all offer 5-6% interest on amounts over $5,000 and are linked to an Australian savings account, so you earn a good interest, and may only need to transfer your money around a bit to keep the savings account active, which you can do online. I live in Amsterdam and have been keeping my money in a Netbank saver with Commonwealth bank, which is linked to my Streamline account (savings) which doesn't have any account keeping fees.

Its worth trying Ing Bank Online (Australia) as well, I think they will send you out the forms in the mail. Good luck!