Anthropic IPO: Should you invest?

Experts give their verdict on the asking price for a slice of Anthropic, savers urged to check they're really getting 6% interest and why households may soon have to spend more on a solar battery. Here are five money stories worth your attention this week.

1. Should you join the Anthropic IPO?

Aussie investors can now apply to buy shares in Anthropic, as the company prepares to debut on the stock market.

The AI giant is planning to start trading shares on New York's Nasdaq exchange next Friday, US time.

Investors in Australia have until 5:00pm Tuesday AEDT to apply through one of the local brokers selling shares to get a slice of the company before it goes public.

These brokers are: Bell Potter, CommSec, LGT Wealth, Macquarie, Morgans, Morgan Stanley Wealth Management, Sharesies and Stake.

Estimates of Anthropic's value have fallen from a high of $2 trillion USD in recent weeks, as the AI boom slows.

The company now expects its shares to cost between $70 and $78 USD when they start trading.

Global X ETFs senior investment strategist Billy Leung says this means the IPO now represents a better opportunity than other recent sharemarket debuts.

"At $1.4 trillion, which is what that $70 USD range implies, it's a much better entry price," he says.

"The valuation is much more reasonable than what we saw during the SpaceX craze."

ECP Asset Management principal Annabelle Miller is more cautious.

"The industry in which Anthropic fits appears to be highly competitive and the barriers [for competitors] to enter are quite low."

But both Miller and Leung agree other companies working with Anthropic stand to benefit from the company's expansion onto the stock market.

2. Savers urged to check they're being paid enough interest

Anyone taking advantage of rising rates on savings accounts should check they're being paid the right amount of interest.

The advice comes from the Australian Securities and Investments Commission (ASIC), which is taking legal action against banks for misleading savers.

ASIC Commissioner Alan Kirkland says customers can get different bonus, introductory and ongoing rates on the same account.

"Consumers should check what conditions apply, whether they are meeting them and whether their bank is paying the interest rate they have been promised," he says.

"And if you have met the conditions for a higher rate but aren't receiving it, raise it with your bank."

Most bank accounts calculate interest daily and pay it monthly, at the end of (or just after) the month in which you earned it.

You can work out how much interest you should be earning each day with the following formula:

Amount of money in your account at the end of the day × interest rate you qualify for ÷ 365

3. Fears for popular home battery scheme

There are concerns the federal government could make cuts to a popular scheme helping households buy a solar battery.

The Australian Financial Review reports the Treasury is considering reducing the discount on batteries provided under the scheme.

The report comes as the government looks for ways to save money in a budget update next month.

The Cheaper Home Batteries Program covers some of the costs of purchasing and installing batteries to store power sourced from home solar panels.

It allows households to save around 25% on a modest-sized battery, according to website Solar Quotes.

The program has proven incredibly popular, helping households save up to thousands of dollars each on the 600,000 batteries installed since it launched.

4. Credit cards continue popularity slide

Consumers are continuing to turn away from credit cards, as the products become more expensive and deliver fewer perks.

The number of personal cards in circulation fell to 14.3 million in September, the lowest level since November 2004.

Personal cards make up the majority of credit cards in Australia and their numbers peaked at more than 22.3 million in July 2016.

Debit cards, meanwhile, have continued to climb in popularity in recent years.

The latest credit card data from the Reserve Bank covers the period when major issuers began cutting the rate at which customers could earn rewards points.

At the same time, they also raised fees and introduced more restrictions on perks, such as free travel insurance.

The changes were a response to the ban on card surcharges, which put limits on ways banks and other card issuers could earn money from customers.

5. Fewer Aussies feeling ready for retirement

Approaching the end of your career, but don't feel like you've saved enough to pay for your retirement? You're not alone.

Just 28% of pre-retirees feel prepared for this next stage of life, down from 38% in 2025, according to new data from superannuation fund Brighter.

The survey of 4000 people aged 40 and over found those with more than $750,000 in super were much more likely to feel confident about retiring.

The figures come after experts previously warned Aussies are overestimating how expensive their retirement will be.

Previous surveys have uncovered people striving to have more than $1 million in their super by retirement.

But the Association of Superannuation Funds of Australia says you probably won't need this much.

The industry group says a single homeowner can enjoy a comfortable retirement with just $630,000 in super by the time they're 67.

Experts say many Aussies end up spending less in retirement than they expect and don't realise they'll be able to draw on the age pension, in addition to their super.

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