Take an ongoing interest in your accounts - it could pay off

Whether you are deciding on a power plan, health insurance or the best bank account, there is such a baffling array of choices, that it's almost impossible to make a decision.

Then as soon as you take the plunge and sign up, you are bombarded with a terms and conditions in tiny print and incomprehensible language.

Eight years ago my wife decided she wanted a bank account in her own name in case I suddenly dropped off the perch, leaving her destitute.

I was then a St George private bank customer, so I sat down with my relationship manager to work out the best kind of account for her.

He suggested a Special Savings Account, featuring a bonus rate, and we accepted his advice.

It's an account that's rarely been used, and we took little notice of It during those years when interest rates were around zero.

But rates have bounced up again and I decided it was time to audit our personal finances.

The interest rates were clearly marked on the account, and the first thing I noticed was the current interest rate was 1.85 per cent and the bonus rate was 3.3 per cent.

It didn't take long to do a simple calculation which showed that the monthly interest was being credited at 1.85 per cent, but there was no sign of bonus interest.

We all know that phoning a bank can be a long process, so I did it the easy way and submitted a complaint online.

An answer came back quickly saying they would look at my request and get back to me within four working days.

Right on cue, last Monday night around six, I got a call from a nice young bloke from the complaints department.

I pointed out that some years previously I had been 'sacked' as a private bank client, and consequently lost my relationship manager. A few years later, they closed my branch, leaving me with no contact option apart from phoning a call centre. This was the final straw, and I'd had very little contact with St George since that time.

He explained that the account's terms and conditions required a monthly deposit to qualify for the bonus interest.

I said that was news to me, but he took me back to the time when the account was opened, and pointed out that during the first two years of the account there had been a direct debit of $50 a month into the account from my personal account.

After two years the scheduled payments automatically lapsed, as did our bonus interest.

Obviously the monthly deposit requirement had been explained to me at the time and a debit set up to make it happen - but all that had been forgotten as the years passed.

We had a very civilised conversation, and the upshot was that he offered me a payment of $500 to compensate for the misunderstanding. He also pointed out that if I reinstated the periodical payment specifying an email receipt for each transaction, I would automatically be reminded when they expire.

This exercise just proves that inertia is one of our greatest enemies.

Everybody in the financial services industry knows about the "loyalty tax" - the cost of being a loyal customer who accepts the status quo in the mistaken belief that the other side will have your best interests at heart.

My advice today is to do an audit on your own bank accounts.

It may be the most valuable hour you could spend.

Having read your recent piece warning about buying a property in joint names with adult children and incurring capital gains complications, I am confused. If the property is bought as tenants in common, wouldn't it automatically transfer to the child on the death of the parent? I didn't pay capital gains on our home when my husband died. Our home just transferred to me.

A property held as tenants in common does not automatically transfer to the other holder - they are discrete shares and can be bequeathed in terms of the will. If the property is held as joint tenants, as would have been the case with you and your late husband, it would automatically have gone to the survivor. But, irrespective of the name it is held in, if you own a property with your child and it is transferred by you to that child it is a CGT event and you'll be liable for capital gains tax.

I read with interest your recent article about what cards to use when travelling. My husband and I, having recently retired are now travelling through several different countries on our gap year. We have a Wise card and agree with all the points you make in your story, but I do question your remark about charges on Amex. I use Amex for the perceived protection it provides me in case of a dispute. Perhaps I am an idealist? I have looked at the statements I receive and cannot see where a fee is charged. When booking accommodation through Booking.com, translation from euros to Australian dollars is made before my chosen payment method is disclosed, so surely it would be the same for all credit cards?

I have used a range of credit cards overseas and they all show the amount of the fee as a separate debit on the monthly statement. Most of the cards are 3.5% but I noticed Amex charge 4%.

One of the great traps when travelling overseas is that many of the businesses you deal with like to offer you the chance to pay your bill in Australian dollars so they get the benefit of any profit on the conversion. Most hotel reception areas have a sign showing the conversion rates. If you check them out, you will find them extremely expensive.

Whenever overseas I always use the currency of the country and normally get a much better rate and can see what any fees are on my credit card statement.