Tuesday, 24 February 2009

Australia's Interest Rates too high?

Just been reading this article in SMH about how the RBA governor doesn't think our interest rates will go lower than 2.25%.

Not sure how I feel about that. On the one hand I realise that the strength of our banks is probably what is keeping Australia out of the financial mire that is the rest of the world right now. OTOH, our banks are the most profitable in the world... and you have top ask where they are getting all that money from, and I think the answer is us: their customers.

Which sucks. We're paying higher rates of interest on everything than the USA, the UK, Japan... and just about everywhere else. We're also paying exorbitant fees for everything from monthly account keeping fees (something that doesn't happen in the USA at all), overdrafts ($35 if you accidentally go over by $1... gimme a break!), and ATMs (about to get worse by some accounts in recent weeks).

Anyway, have a read. Tell me what you think...

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