!!!January 25, 2024
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The Northern Rivers Times
SENIORS & HEALTH NEWS 45
Maximizing Returns on Savings: Insights from the Retail Deposits Inquiry Challenges and Consumer Impact: • Bonus and introductory interest rates are frequently used to attract customers, but consumers often do not receive bonus interest, and alternative products might be more beneficial. • The report reveals that an average of 71% of bonus interest accounts did not receive bonus interest in any given month during the first half of 2023. • Consumers may find the complexity overwhelming, and comparison websites, while informative, can be influenced by commercial arrangements, necessitating clearer communication from banks and comparison websites. The ACCC underscores the importance of supporting consumers with transparent information to extract the full value from the products they use.
By Jeff Gibbs Despite the potential benefits of high interest rates on savings and term deposits for retirees, an inquiry conducted by the Australian Competition and Consumer Commission (ACCC) reveals that some individuals are missing out due to complexities in product comparisons. The Retail Deposits Inquiry Final Report identifies strategic pricing by banks, encompassing introductory and bonus interest rates, along with various fees and charges, leading to a lack of transparency for consumers. This complexity makes it challenging not only to compare products between different banks but also within the same bank. Key Findings and Recommendations: 1. Communication of Interest Rate Changes:
o Banks should be mandated to inform customers when there are changes to their interest rates. Customers should also be prompted to consider switching to better rates. 2. Alerts for Bonus Interest Entitlements: o Banks should notify customers when they are at risk of losing entitlements to bonus interest, for instance, by making excessive withdrawals within a given month.
3. Consideration of Bank Account Portability: o The federal government is encouraged to explore the feasibility of bank account portability. This could significantly simplify the process of switching between products and banks, enhancing consumer flexibility. The ACCC Chair, Gina Cass-Gottlieb, emphasizes the need for clarity, stating, “While
Pet Ownership Benefits Cognitive Health in Singles Over-50s Owning pets has been identified as a beneficial factor in mitigating cognitive decline for individuals aged 50 and above who reside independently, according to a recent study encompassing nearly 8,000 participants. Researchers discovered a noteworthy connection between pet ownership and decelerated rates of decline in both verbal memory and verbal fluency among older adults living in solitary conditions. The study cohort consisted of 7,945 predominantly white British participants, with an average age of 66, drawn from the English Longitudinal Study of Ageing. Over an eightyear period, it was observed that 35.1 percent of the group possessed pets, while approximately 30% of the participants lived alone. Contrary to previous studies indicating that living alone poses a risk for dementia and cognitive decline, this research uncovered
those individuals in such circumstances who cared for dogs or cats experienced a reduction in feelings of loneliness. Although some studies have suggested a positive correlation between pet ownership and enhanced verbal memory and executive function, others have failed to provide supporting evidence. This new study aims to delve deeper into the relationship between aging independently, a trend on the rise in recent decades, and pet ownership. The results of the research were unequivocal, with study corresponding author Professor Ciyong Lu from Sun Yat-sen University in Guangzhou, China, stating, “Pet ownership offset the associations
between living alone and declining rates in verbal memory and verbal fluency.” This effect was identified as a significant modifier across three key associations: composite verbal cognition, verbal memory, and verbal fluency. The findings indicate that pet ownership is specifically linked to slower cognitive decline in older adults living in solitary conditions. Notably, the positive impact of owning a cat or dog did not extend to older individuals who cohabitated with others. In summary, these results suggest that pet ownership may play a vital role in alleviating cognitive decline among older adults who live independently.
high headline interest rates may seem attractive to customers, they can come attached with conditions that are hard for customers to meet and keep track of.” Bank Funding and Interest Rates: • Banks rely on retail deposits for almost 30% of their funding needs, with interest paid on deposits being a significant cost that banks aim to minimize. • While the Reserve Bank of Australia’s
cash rate target influences interest rates, banks also consider broader factors like funding requirements, profitability, economic and regulatory conditions, customer responses, and competition when setting deposit interest rates. • Interest rates for the same retail deposit product can vary within and between banks due to strategic pricing, making rates opaque and complex for consumers.
Embarking on a Financial Restart: Navigating Solo Management After Relationship Breakdown Embarking on financial independence post a relationship breakdown can pose significant challenges. Experts offer valuable insights on overcoming the hurdles. When Jenny ended her 20-year marriage, securing the house for herself and her teenage children was a top priority. Celebrating what seemed like a triumph, little did she know that the property
harboured substantial issues. Months later, the harsh reality hit – the house required costly repairs, and Jenny found herself financially strained. Financial Experts, often encounter such scenarios. Attempting to retain the family home in a separation settlement can provide a semblance of stability but may lead to significant financial strain. Placing all
wealth into a single asset can have both emotional and financial repercussions. This situation becomes even more challenging when one partner historically handled budgeting, savings, and spending. However, with strategic advice, individuals with less financial experience can navigate this transition and work toward a more financially secure future.
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