Mutual interest beats banks

Credit unions and mutual building societies are hoping to pick up new customers after Westpac increased its standard variable mortgage rate by almost twice the rise in the cash rate. "Australians who are tired of their bank should vote with their feet and switch to a credit union or mutual building society," says Louise Petschler, chief executive of Abacus, the umbrella group for mutuals, which generally have lower rates than the big banks.

Shares outlook

The economic recovery will continue next year and become self-sustaining, says Shane Oliver, chief economist at AMP Capital Investors. However, there will still be uncertainties about the strength of the recovery and, with interest rates continuing to rise, the Australian sharemarket will be more volatile. His prediction for Australian shares is a return of 17 per cent next year, compared with this year's expected return of more than 30 per cent.

Credit insurance

Citigroup has been rapped over the knuckles by the Australian Securities and Investments Commission after recorded sales calls revealed dodgy practices. The sales regarded consumer credit insurance, where those being called were heard to say "no" repeatedly but were still sold the product. Citigroup has been working with the regulator and many policies have been cancelled as a result of the improper practices.

Merry Christmas

Here's wishing you all a happy and prosperous 2010. The Morningstar tables will appear in the main section of the newspaper until we return on January 13 with all your favourite columns and content.