Online Briefing Major Online Banking Service Warns: Lack of Understanding Leaves Australian Investors at Risk
Nearly one in two retail banking customers believe that Australia's major banks have AAA (triple A) credit ratings when they don't, and 15 per cent don't know what a AAA credit rating means, a new survey shows.
Sydney, Australia (PRWEB) November 6, 2007 -- The TNS/RaboPlus online banking survey of 1,043 retail banking customers across Australia, found that when choosing an investment product, 61 per cent consider interest rates and return over the reputation and security of the financial institution.
Only 11 per cent consider the level of risk involved in an investment and 33 per cent of customers consider fees and charges. However, only three per cent look at the terms and conditions and whether the institution is a well-established provider.
Rabobank Australia and New Zealand head of financial services, Bryan Inch said: "Investors are not doing their due diligence on financial services products and in many cases are being seduced by higher yields. They should be doing their homework on both the offer and the institution, especially with the growing number of online investment opportunities".
"Too many investors are driven by return, leaving them exposed to poorly managed and highly leveraged institutions," he said.
Mr Inch said there is much confusion regarding what a AAA rating means.
"Credit ratings are the result of an extensive independent assessment of the financial institution's business and operations. These assessments are carried out by international credit rating agencies such as Standard and Poor's and Moody's," he said.
RaboPlus is the DIY online banking division of AAA credit rated Rabobank. Rabobank has had a AAA rating from Standard and Poor's for more than 25 years and has been ranked the world's safest private bank every year since 2005, by Global Finance Magazine.
AAA is the highest credit rating available however, according to the survey, only 23 per cent of respondents are aware of this. A total of 17 per cent of respondents believe a AAA rating means the institution is financially secure while 16 per cent think it means a good credit rating.
RaboPlus offers a high interest, no fees, on-call savings account as well as term deposits and access to managed funds.
RaboPlus is a division of Rabobank Australia Limited, part of the international Rabobank Group - the world's leading specialist in food and agribusiness banking. Rabobank has more than 100 years' experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank has the highest possible credit ratings from both Standard & Poor's (AAA) and Moody's Investor Service (Aaa), and has held these Triple A ratings for over 25 years. Rabobank is also ranked one of the world's safest banks by Global Finance magazine. Rabobank operates in 42 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1500 offices and branches. Rabobank has 78 branches throughout Australasia. Rabobank is among the 20 largest banks in the world based on tier one capital.
Media contact:
Tony Rasman
Fleishman-Hillard Australia
02 99568000/0418208770
tony.rasman(@)fleishman.com
The issuer of RaboPlus and its related products is Rabobank Australia Ltd ABN 50 001 621 129 AFSL no. 234700. The PDS, IDPS Guide, and full Terms and Conditions relating to RaboPlus products are available on application or at www.raboplus.com.au. Consider relevant disclosure documents when deciding whether to acquire, or continue to hold, RaboPlus products.
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