Review - AMP First Account
Product launched March 2009. Review published 11 December 2009. Please read our disclaimer.
AMP has released a dynamic account that breaks the mould of traditional savings and transaction accounts. In most cases, an account will either offer high interest or cheap transactions – but not both. The AMP First Account bridges the gap between the two by offering a current variable rate of 4.65%, combined with unlimited free standard transactions for $5 a month. Essentially the account provides the high interest of an online savings account (see graph below), with the full transaction capability of an 'all-you-can-eat' transaction account. AMP is a diverse financial services provider managing over $104 billion in assets and has over 3.4 million customers. AMP's banking arm provides a broad range of home loans, credit cards and deposit accounts, including the new AMP First account. The AMP First account is a simple modern day account and does away with many of the catches and conditions of some accounts. There is no minimum deposit or ongoing minimum balance requirement, a monthly fee replaces regular transaction fees, and the full variable interest rate is paid on every dollar in the account indefinitely – no interest tiers or promotional period. WHO DOES IT SUIT?The AMP First account will suit people looking for an all-in-one account to take care of their everyday banking needs – transacting and saving. Those who value the simplicity of one account will be able to transact as they please, with the knowledge that their money is earning a competitive interest rate yet is ready to access at will. The high interest rate means there is no sacrifice in keeping everyday savings in the account. This will work wonders for those prone to incurring unnecessary overdrawn fees when they have their money in the wrong account on the day too many bills hit.The account will appeal to people who value transparency and simplicity. A single $5 monthly fee takes care of all standard transactions*, there is no limited-time-only promotional rate, and no minimum monthly balance required to receive the full interest rate. Account holders do not need to keep track of how many transactions they have done each month, or work hard to meet balance requirements. The AMP First account will suit irrespective of the size of balance - it pays a high rate for any amount. This will be attractive to people who want the benefits of a fully featured account, but do not have the money needed to make the most of a traditional cash management style account. Many cash management products have tiered interest that only reaches the highest rate for balances over $250,000. *An ATM operator direct charge may apply at non-rediATM network ATMs USEFUL LINKSHOW DOES IT WORK?The two main components of the AMP First account are the high interest rate, and the transaction capability. The current interest rate of 4.65% is the 3rd highest non-promotional online savings rate on offer for a $10k balance, and has three main benefits compared to many other accounts:
The comparative advantage of the AMP First account is even clearer when compared to the average of other accounts with similar transaction capability, or online savings account rates for low balances. Most transaction accounts offer little or no interest, and many online savings accounts do not offer a full interest rate below a certain balance. The other main component of the account, the transaction capability, is offered in return for a $5 monthly fee. Fee structures for deposit accounts come in all shapes and sizes. Some charge no monthly fee, but do charge for each transaction. Others charge a monthly fee, and offer a certain number of free transactions, then charge for the rest. Others, like the AMP First, charge a flat monthly fee and offer unlimited free transactions for everyday transactions. These accounts are often known as ‘all-you-can-eat accounts’, and are a good option for people who like the freedom to transact as they please. The AMP First account offers a range of free transaction types, including: ATM, EFTPOS, Cheque, BPAY, internet and phone transactions and deposits at Australia Post. All standard transactions are free, fees only apply for special services – such as dishonoured cheques or duplicate statements. A full list of special service fees is available on the AMP website. ATM Direct charges can be avoided by using the rediATM network that AMP offers free access to. The rediATM network offers coverage to approximately 88.90% of the population of Australia^. ^CANSTAR CANNEX Banking Distribution Report, August 2009 
FEATURES*
*Additional terms, conditions and qualifications apply **An ATM operator direct charge may apply at non-rediATM network ATMs ^Additional fees apply for special services - see details on AMP’s website. THINGS TO CONSIDERAs a direct bank, AMP Bank do not have branches. Cash deposits can be made at Australia Post but cash withdrawals may only be made at ATMs, up to $1,000 at rediATMs and up to $990 at non-rediATMs. Larger fund transfers can be completed via internet banking.What's New Homepage ... Disclaimer: The information provided in the 'What's New' section is a guide only and may not be complete for your purposes. All information is current at the date of review, and may have changed since then. CANSTAR CANNEX is not providing a recommendation for your individual circumstances. It is recommended that you confirm details of product information with the third party product providers before acting on it. Your use of the information on the 'What's New' pages of this website will be taken as acceptance by you of our website Terms of Use. General Advice Warning: To the extent that any CANSTAR CANNEX data, ratings or commentary constitutes general advice, this advice has been prepared by CANSTAR CANNEX Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided does not constitute financial, taxation or other professional advice. You should seek professional advice from a suitably qualified adviser, as well as carefully considering the Product Disclosure Statement and all relevant product details before making any decision about whether to acquire a product. Reference to any products, services or other information, by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of CANSTAR CANNEX by the respective trademark owner. Please refer to CANSTAR CANNEX’s FSG at www.canstarcannex.com.au for more information. CANSTAR CANNEX Pty Limited ABN 21 053 646 165 AFSL 312804. CANSTAR CANNEX’s website Terms of Use apply to your use of any information on this website. |
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