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Money news: RBA on lending, job ads and kids savings

Will the RBA act to protect the housing market?, Where are job numbers growing and why parents need to read the fine print with kids' bank accounts.

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In money news that affects your hip pocket this Wednesday; RBA on lending, job ads grow and kids savings accounts.

Will property investors soon be hit by RBA lending actions?

The Reserve Bank of Australia (RBA) is considering tighter bank lending standards amid worries over what might happen to the economy if an oversupply of appartments in Brisbane and Melbourne causes a collapse in prices.

Fairfax Media reports that the RBA’s assistant governor financial system Michele Bullock told a business event in Sydney that the Reserve Bank was particularly uneasy about the “looming oversupply of apartments in Brisbane in particular, and possibly in some parts of Melbourne”.

Lending requirements to investors have been on the regulatory radar for some time.

In late 2014, the Australian Prudential Regulation Authority (APRA), enforced an annual growth cap of 10 per cent on lending to property investors.

Economists and banking analysts believe lending rules could be about to get tougher for property investors to ensure that those who are buying are not stretching beyond their means.

Financy more on this?

SEEK job ads growing in mining and HR

New job advertisements on SEEK rose 8 per cent this February when compared to the same period last year.

Michael Ilczynski, managing director for SEEK Australia and New Zealand, said this February advertising on SEEK was fuelled by continued job ad uplift in South Australia and Victoria as well as the recovery of advertising in Queensland and Western Australia.

At a national level, the mining, resources and energy industry enjoyed the greatest job ad growth of all industries across Australia, up 66 per cent year-on-year this February.

Job ads on SEEK for human resources and recruitment industry grew 5 per cent this February when compared to 12 months earlier.

Across Australia, the most in-demand HR and recruitment professionals on SEEK and their average advertised salaries on SEEK were:

  • Generalist HR professionals, $87,358
  • Agency Recruitment Consultants, $71,663
  • In-house Recruitment Consultants, $79,192
  • Occupational Health & Safety Specialists, $95,445

The national average advertised annual salary on SEEK for HR and Recruitment professionals is $83,784.

Kids savings accounts catching out parents

Parents are being urged to check the interest rate and deposit conditions of their kids’ savings accounts as new analysis by financial comparison site reveals that there is not a one size fits all approach when it comes to kids savings returns.

Mozo’s banking experts compared 35 kids savings accounts for its annual Experts Choice Deposit Awards to find the best value savings accounts for kids pocket money.

“What many parents may not realise is that some kids savings accounts deliver zero or next to no interest if you are not meeting the deposit or withdrawal requirements,” said Mozo Director Kirsty Lamont.

Of all the savings accounts compared, the kids accounts earning the highest amount of interest had at least one condition attached.

For instance, a child earning $20 a month could earn up to 3.50 per cent per annum with the BCU Scoots Super Saver but if they fail to make a deposit will only earn 0.75 per cent, whereas an account with no conditions like the Bendigo Bank Junior Savers Club Account has a standard interest rate of 1.80 per cent.

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