Happy New Year! We hope to do our part to make it a successful and prosperous year for all our clients. Since our return on Monday, I have been busy emailing our clients to gently remind them to invest excess funds that may have built up over the Xmas-New Year period. Keeping track of bank balances of those clients who have agreed to open Macquarie Cash Management Accounts is easy because our status of adviser to these accounts enables me to sort a list of all our clients from highest balance to lowest balance and work my way down the list. This I do on a daily basis (even when not at work!) and – after eliminating those I know are saving for a property settlement, a term deposit or some other future event – I can remind everyone else that some funds management is required.
Why did I go with Macquarie for this arrangement? I love our Bendigo Bank agency, but they were unable to provide the features that I required such as:
1. A high at-call interest rate. The Macquarie CMA mirrors the Reserve Bank Cash Rate of 2.50% and follows this rate up or down. It has been steady for a long period of time and it means we have certainty and are not seduced by honeymoon rates that are reduced over time.
2. The interest is paid monthly into the account. An important consideration for cash flow purposes.
3. There are no fees, unless a cheque book is required and that costs $4.50 for 50 cheques! For most of our clients, the online banking facility is as sophisticated as all our banks, so cheques would ever only be used on very rare occasions.
4. All commissions are rebated into client’s accounts on a monthly basis. (This only applies to accounts opened in the past 2 years), and we are able to invest funds directly across to Macquarie Term Deposits with no commission being charged (and occasionally achieve an interest rate better than that advertised!)
5. Whilst we are not able to directly access funds from these accounts, our clients have been able to organize through us the automatic payments for share purchases, ASIC fees, ATO payments, trust deed update payments and Macquarie Term Deposits! All of this adds up to a significant saving of time and money, particularly to those “time poor” clients who can see the value in such an arrangement.
6. The size of our portfolio of Macquarie CMA’s means we are a valued customer of Macquarie and meet regularly with representatives to discuss ideas, problems, etc. (We now have a large stable of SMSF’s using this facility).
7. The ability to download and print Macquarie CMA statements also means savings in accounting costs and again increases our value to discerning clients.