Happy New (Savings) Year
Hi Everyone,
The beginning of a year is a time for optimism, renewal, reflection and ultimately planning.
My prediction for 2010 is that customers will demand more from their financial institutions, and why not.
Towards the end of 2009 the big 4 banks were writing the vast majority of all home loans and holding the vast majority of savings. As always, we’re determined to keep the pressure on the big guys.
That’s why last year we launched Orange Everyday – the transaction account with no ING DIRECT everyday fees. Other banks are now joining us in the fight against fees.
I’m also proud to announce that Orange Everyday was awarded Money magazine’s “2010 Best Innovative Product”.
I hope all your dreams and plans are realised for the coming year. Enjoy all the great stories in this issue of The Juice.
Don Koch
CEO, ING DIRECT
The year that was and the year ahead
Glenn Baker, our Head of Treasury, reviews how the Australian economy performed in 2009 and lends his insight to the year ahead.
“The Australian economy put in a remarkable performance in 2009 by defying recession and producing better growth than any of the major industrialised nations.
A turnaround in expectations
There were significant shifts in expectations in the space of only six months. The following chart compares the economic forecasts made during the Federal Budget in May 2009 with updated forecast made in the Mid-Year Economic and Fiscal Outlook published in November 2009.
| Source: Treasury release, November 2009 | MAY 2009 BUDGET | NOVEMBER 2009 OUTLOOK |
|---|---|---|
Gross Domestic Product (economic growth measure) for 2009/2010 |
-0.5% | +1.5% |
| Unemployment Rate (peak level) | 8.5% | 6.75% |
Inflation rate |
1.75% | 2.25% |
A positive knock-on effect
As the performance of the economy improved, both business and consumer confidence recovered. This in turn is having a positive effect as businesses and individuals increase investment and spending.
On the flipside
The flipside to this positive outlook is that the RBA is likely to continue raising interest rates. The Reserve Bank no longer sees it appropriate to keep the cash rate at ‘emergency’ levels.
The year ahead
2010 is expected to see a continuing tightening of monetary policy with likely progressive 0.25% moves of the cash rate until it reaches around 5.00% - considered to be a neutral or normal level in monetary policy terms.
With the current cash rate at 3.75%, a move up to 5.00% will flow through to higher mortgage and savings rates.”
For our current home loan rates, visit ingdirect.com.au/home
Important Information: This information is of a general nature only and should not be relied on. It does not constitute advice and is not to be construed as an indication or prediction of future outcomes or interest rates.
EASY WAYS TO MAKE THE MOST OF ORANGE EVERYDAY
If you already have an Orange Everyday – congratulations! Your money isn’t being whittled away by everyday transaction fees. Here’s how to make the most of Orange Everyday.
DEPOSIT YOUR SALARY
Orange Everyday has no monthly account keeping fee or other ING DIRECT everyday fees. So why not deposit your salary or other income into your account.
ACTIVATE YOUR VISA DEBIT CARD
You’ll then:
- have access to your money via ATM withdrawals and EFTPOS; and
- be able to use it online, over the phone and when making purchases
To activate your card just ‘Login’ to your account, go to ‘My Account Details’ and click ‘Activate Card’.
Enjoy ATM rebates and EFTPOS credits
Only ING DIRECT will:
- Rebate the ATM owner fee when you withdraw $200 or more at any ATM in Australia (there’s over 26,000!)
- Credit your account with 50c when you make an EFTPOS purchase and get $200 or more cash out.
Set Up your direct debits
Simply supply the ING DIRECT BSB 923-100 and your Orange Everyday account number to companies you have an existing direct debit arrangement with.
Plus, up to $60 in bonuses
For a limited time and if you haven’t already done so, you can receive:
- A $20 bonus for your first salary deposit
- Another $20 bonus for your first Orange Everyday Visa Debit Card purchase
- Plus another $20 bonus when your first Direct Debit is withdrawn
Close your other transaction account
The sooner you do, the sooner you’ll stop those fees whittling away at your balance.
If you haven’t already switched to Orange Everyday, visit orangeeveryday.com.au today.
Important Information: The $20 bonus payments are for a limited time and can be changed or withdrawn at anytime at our discretion
TRANSACTION ACCOUNTS - DON’T BE CAUGHT BY CATCHES
Since we launched our ground breaking Orange Everyday transaction account other banks have joined us in the fight against fees. But don’t be caught out – other everyday transaction accounts still come with a catch or few.
COMMON “CATCHES” TO WATCH OUT FOR
- abolishing one fee while increasing another
- a monthly account keeping fee
- minimum monthly deposits or balances to avoid monthly account keeping fees
- limited number of free online transactions including BPAY® and Pay Anyone
- limited ATM locations where you can withdraw without a fee
- dishonour fees
- fee for bank cheques
COMPARE FOR YOURSELF
Check out Orange Everyday at orangeeveryday.com.au. Then compare it with other everyday transaction accounts – we have nothing to hide!
Orange Everyday continues to break new ground – it’s just been judged Money magazine’s 2010 Best of the Best award for “Best Innovative Product”.
WE NOW HAVE A 100% INTEREST OFFSET HOME LOAN - ORANGE ADVANTAGE
Orange Advantage offers all the benefits of a simplified offset home loan, without the added complications and with a low annual fee. It can reduce the interest charged, helping you save money and pay off your home loan sooner.
How it works
Your Orange Advantage home loan is linked to your Orange Everyday transaction account, which becomes your offset account. The balance in your Orange Everyday is offset against the outstanding balance on your Orange Advantage before interest is calculated.
in a nutshell
Orange Advantage offers you:
- a competitive variable interest rate
- 100% interest offset with an Orange Everyday transaction account
- a low annual fee of $199
- no application or ongoing monthly fees
- no fee to split your home loan during application
- unlimited additional payments and free redraw facility
- the ability to pay bills via BPAY® using either your Orange Advantage or your linked Orange Everyday
For more details, visit ingdirect.com.au/home
or call 1800 335 592.
Is Self Managed Super right for me?
A Self Managed Super Fund (SMSF) is a big responsibility, but for some it may be a better way to manage their financial affairs. If you’re considering a SMSF, the Australian Tax Office (ATO) website is a great starting point. It gives you all the rules and regulations governing SMSFs, plus valuable tips on how to get started and manage your fund, including:
- ensuring you have sufficient assets, time and skills to manage your own fund
- following the super and tax laws and understand the risks
- tailoring your trust deed and investment strategy to suit your fund members
- be sure you can meet your record keeping and reporting obligations
- make sure you understand your annual auditing obligations
For more help, visit the ATO
website at www.ato.gov.au
If you find a SMSF is right for you, then check out the ING DIRECT Business Optimiser. It can be a smart and simple way to maximise the cash component of your SMSF, with a highly competitive interest rate and no ING DIRECT fees. Or, if you’d like a simple solution and a guaranteed great rate for the term of your investment, our Business Term Deposits might be the answer. For more information, visit ingdirect.com.au/business today.
Important Information: This information is general information only. It does not take into account your personal needs and financial circumstances and you should seek independent legal, taxation or financial advice where appropriate. The ATO does not endorse any ING DIRECT products.
Meet young emerging leaders - Nicole & Zoe
Emerge is a nine month coaching experience developed by the ING Foundation in association with one of its charity partners – The Spastic Centre.
Nicole Curran, Internal Communications Manager at ING DIRECT was matched with Zoe Brissett, a 20 year old university student with cerebral palsy.
With Nicole’s help, Zoe developed a blog called ‘Enable: Taking the ‘dis’ out of able’. It enables young adults with cerebral palsy to socialise, share information and educate one another about living with a disability as they move to adulthood.
Check out Zoe’s blog at http://etda.wordpress.com
What else is new?
BANKING ON THE GO
Like to do your online banking on the run? ING DIRECT’s mobile banking lets you manage your money anywhere, any time – safely and securely. All you need is a Smartphone or iPhone and you can:
- check your account balance and view the last 10 transactions for each account
- make transfers to your linked accounts or anyone in your address book
- pay bills, view the latest interest rates and more!
Like more details? Go to ingdirect.com.au/mobilebanking today.
I've Got One - Kev's got the winning smile!
During our recent 'I’ve Got One' campaign, we visited shopping centres and festivals, giving our existing Savings Maximiser customers the chance to win a fabulous $10,000 holiday!
All they had to do was smile and, say “cheese” for the camera. Our lucky winner was Kevin from Umina Beach in NSW. Congratulations Kev and keep smiling!
BE PREPARED WHEN BUDGETING FOR A NEW HOME
Thinking of buying a home? There are a number of extra costs you may not have budgeted for. Here’s a mini checklist of things to consider ahead of time. That way you can be prepared and find the best possible prices. To keep track, try using our online calculator (click on ‘Other costs’).
| WHAT TO BUDGET FOR |  |
|---|---|
| Stamp duties (state government taxes) | |
| Conveyancing fees & disbursements (to transfer property ownership) | |
| Lender’s mortgage insurance/reduced equity fee (when borrowing more than 80% of the property value) |
|
| Building and home & contents insurance (required at settlement) | |
| Searches and building/pest inspection costs (it can save money in the long run) |
|
Moving costs & Others
|
HERE’S ANOTHER JUICY SAVINGS TIP
Congratulations to Suzie in New South Wales for your winning savings tip.
“Our grandkids are gorgeous but they have enough toys to fill a toy shop. So we decided – no more toys. Instead of presents we now ‘invest’ time with them. They come for sleepovers, we do activities together like baking and helping Gramps in the veggie garden. At Christmas we wrapped a big empty box and called it ‘The magic imagination box’. The money we would have spent on toys now goes towards their education. And yes, there are small ‘store bought’ treats every now and then!”
