This very-short-term credit market fuels two common savings vehicles.
Tougher lending conditions may prompt some property investors to instead become owner occupiers, the central bank boss predicts. Reserve Bank of Australia governor Glenn Stevens says regulatory measures to curb growth in investment home loans are doing their job. "I predict that we will now see a number of people who used to call themselves investors are going to call themselves owner occupiers because the relative pricing has changed," Mr Stevens told a federal parliamentary committee on Friday.
The soaring costs of handling the unprecedented influx of refugees into Europe have opened up new fault lines within the EU in its never-ending debate about the bloc's budget rules. In the past, Germany, as the self-appointed arbiter of fiscal rectitude, has tended to find itself pitted against countries such as France and Italy in the constant tug-of-war over spending targets. "It is not fair if those member states that are particularly humane and take on the task and cost of looking after the asylum-seekers are punished by Brussels for excessive spending," Vienna's finance minister Hans-Joerg Schelling said.
Some property investors may become owner occupiers as regulatory measures to curb growth in investment lending have an impact, the Reserve Bank of Australia says. RBA governor Glenn Stevens says the evidence is that the measures are doing their job, adding that it is not about controlling house prices but rather ensuring there are prudent lending standards. Mr Stevens said the flow of new lending to investors is not continuing to increase the way it was, and the rate of growth will gradually come back to the regulator's 10 per cent `speed limit' on investor lending growth.
The Reserve Bank boss is confident that the US central bank will raise its interest rate before Christmas. The Federal Reserve on Friday kept its interest rate unchanged amid worries about the slowdown in China and its impact on the US economy. RBA governor Glenn Stevens said when the Fed does make its first rate hike in nine years it will be the most anticipated interest rate move he's ever seen.
Reserve Bank governor Glenn Stevens will come to Canberra with a positive slant on the economic outlook when he faces politicians for his six-monthly grilling. The US central bank will have concluded its crucial two-day meeting just hours before Mr Stevens fronts the House of Representatives economics committee for the three-hour hearing on Friday morning.
No matter who you are, here are five things you can do to be more prepared for your current or future retirement. Put together your "written" financial plan. The financial plan is the best place to start.
Treasurer Joe Hockey isn't sitting on his hands waiting for Malcolm Turnbull to decide his future. Amid speculation he will be the highest-profile casualty of a ministerial reshuffle the new prime minister will unveil on Monday, Mr Hockey brought to parliament tax-avoidance measures aimed at multinational corporations.
Home improvements can be expensive, which isn't news to most homeowners. If you plan to stay in your home and don't have cash, how can you pay for home improvements? "It depends on the circumstances," says Casey Fleming, author of "The Loan Guide: How to Get the Best Possible Mortgage" and a mortgage professional in the San Francisco Bay Area.
Credit cards with annual fees often promise big perks and more rewards per dollar -- but if you're not planning on spending thousands on your credit card, you could end up in the red. Among the 2,202 credit cards NerdWallet examined in its 2015 industry study, the average annual fee was $58. Wondering whether your annual fee card is a keeper?
The Reserve Bank appears content to keep its interest rate at a record low for the time being as Australia's non-mining industries begin to show signs of improvement. Minutes from the RBA's September meeting, when the cash rate was kept on hold at 2.0 per cent, noted improvements in hiring intentions in the services sector and that non-mining business investment was expected to pick up.
How would you like to have an extra $155,000 to spend during your retirement years? Yoav Zurel, CEO of cost assessment website FeeX.com, says you could have at least a portion of that if you worked on minimizing your 401(k) fees. "One-hundred and fifty-five thousand dollars are basically evaporating from your retirement savings," Zurel says.
Commonwealth Bank services have returned to normal after a problem with electronic transactions left customers stranded in the midst of the morning rush hour, unable to pay for purchases. The technical problem, which lasted for about three hours on Friday morning, affected credit cards, EFTPOS, net banking and travellers cards. CBA customers struggled to make payments in shops and cafes, and were quick to vent on social media.
Commonwealth Bank's shortfall in raising $5 billion in capital from its shareholders highlights a lukewarm response from investors towards the sector, analysts say. Shares in Australia's biggest bank were halted from trade on Friday as the lender said it would offer around $1.5 billion in shares in a retail bookbuild. Only about half of the shares from an expected $3 billion rights entitlement offer were taken up by CBA's retail shareholders, despite the stock being offered at a discounted rate.
The Reserve Bank of New Zealand has cut its official cash rate, as expected, and says a further easing seems likely. Governor Graeme Wheeler cut the OCR a quarter point to 2.75 per cent, saying the reduction was warranted because of the softening New Zealand economy. "Headline inflation is expected to return well within the target range by early 2016, as the earlier petrol price decline drops out of the annual inflation calculation, and as the exchange rate depreciation passes through into higher tradables prices," Mr Wheeler said.
College freshmen are striking out on their own for the first time in their lives. It only takes a few missteps to generate four or five digit credit card debt or pay hundreds of dollars in senseless bank fees. Here are four checking account options for students -- and parents -- that can help avoid fees and negate bad money decisions.
Australians who aren't actively using their bank accounts will have an extra four years before having to retrieve their cash from the government. Legislation to reverse the Labor-imposed three-year deadline ...
Failing to read a credit card's terms and conditions before you apply can cost you money. Sure, reading that document is about as exciting as watching paint dry, but the fact is that it contains information you need to know before you use the card. A recent CreditCards.com survey of 100 popular credit cards showed that the average credit card comes with six different possible fees.
Some of Wall Street's newest investment advisers don't have a degree in business or a corner office in Manhattan. Dubbed robo advisers, they are automated investing services that rely on computer models to manage investor portfolios. While investment advisers have relied for years on computer models to fine tune their clients' portfolios of mutual funds, for example, the advent of fully automated investing services emerged just in the past five years.
Rewards credit cards have fast become a popular form of plastic, making up nearly 80 percent of new card accounts in the first quarter of 2014, according to the American Bankers Association. Here are three signs that your rewards credit card is unrewarding. About half of consumers don't want to pay credit card annual fees, but the NerdWallet survey of over 2,000 adults found 31 percent of consumers who own rewards credit cards don't even know what they cost.
The head of a parliamentary committee investigating credit card fees fears Australian children are being groomed by banks hoping to cash in on their spending later in life. Labor's Sam Dastyari says while children should have bank accounts, they should not be taught about finances by banking institutions. The senator said his committee has been shown evidence that banks are sending credit card offers to people as soon as they turn 18.
It's conventional wisdom that using credit cards responsibly is the fastest and best way to build credit. It's also conventional wisdom that using credit cards can be the fastest, best way to destroy credit. In fact, recent evidence suggests that millennials are bucking the conventional wisdom.
Could be soon, in Europe's shaky economy. Analysts are already talking about when and how the European Central Bank might extend its 1.1 trillion euros ($A1.77 trillion) stimulus program that has been running for the past six months in an attempt to boost the modest recovery in the 19 countries that use the euro. The stimulus program is slated to run until September 2016, in monthly purchases of 60 billion euros of government and corporate bonds.
Liana Moran's secured credit card story is becoming more common. After graduating from Georgia Southern University in May of 2014, she landed a paid internship and decided it was time to get a credit card. For starters, the apartment she wanted to rent required a credit check before she could sign a lease.
Future Fund chair Peter Costello says returns won't be as strong as recent years as global central banks move to unwind low interest rates settings. "Prudent, patient investing has been key to navigating markets since the fund was created in 2006," Mr Costello, the former Liberal treasurer who was architect of the fund, said on Wednesday. "It seems likely that generally returns in the future will be lower than in recent years," Mr Costello said.
The administrators of Tasmania's failed Gunns forestry company have promised to go easy on local businesses as they work to collect more than $2 billion owed to creditors. There are fears that contractors will be pursued to recoup funds and Tasmanian Resources Minister Paul Harriss said liquidators PPB Advisory have explained there are obligations to ASIC and the courts to ensure creditors are treated fairly. "They will have regard to the financial circumstances of Tasmanian businesses including contractors and the need to avoid further insolvencies," he said.