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However with Heartland now committed to raising a lot more wholesale funding in Australia post restructure and with 'cash' balances an expected source of long term funding (sounds ironic but it is true!) I wouldn't be surprised if Heartland call interest rates in New Zealand are reduced significantly over the next twelve months, back to the level of their peers. I doubt you shareholders who voted for the restructure realised you were voting for the end of your generous call account terms in New Zealand going forwards, but I am calling it. Remember you read it here first!
Some canny investors entered into a special (I forget the exact name of it now) deal where they locked in their money for 4 months on term deposit then the deal was it rolled over into a special call account at the agreed rate of 3%. Once this new call sub account was up and running I then asked them if they minded if I transferred over my other funds in the 2.75% call account and they said fine, (I have 18 cents left in the 2.75% call account to keep it active, although they didn't mind if it went to 0). I expect they will be locked into that agreement to pay 3% because a deal is a deal but time will tell and anyway I'm losing "interest" in earning 3%. This bull market still has legs in my opinion.
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Hi there,
As a Direct Call Account holder we'd like to let you know about a rate change. We have reduced the rate from 2.75% p.a to 2.50% p.a effective 21 September 2018.
You will still enjoy the great features that our Direct Call Account provides:
No fees
Interest earned on every dollar
Unlimited withdrawals to your one nominated account
Regards
Mel Cadman
Head of Retail