westpac, citibank

It seems that one of the best ways institutions have of forcing me to make financial decisions is to annoy me in some way. I opened my Westpac account in 1988 when I won $30 in Grade 7, in the Australian Mathematics Competition. I remember when they actually used to pay decent amounts of interest... maybe that corresponded with high reserve bank cash rates?

In September 2004, I decided to move as much money as possible into Citibank, which was offering 5.4% with their Online Cash Manager account. This was in comparison with Westpac, which was offering nothing. In March 2005, they increased the rate to 5.5%. But then in April, Citibank dropped their rate to 4% for balances under $100,000. So I looked around again and this time I found Raboplus, offering 6.6% in an internet account. I can't understand how Westpac's share price has done so well when they seemingly offer so little. Today I changed my "Classic" account to an "eChoice" one and I will be striving to keep my balance as low as possible there from now on.