It has never been easier to switch banks. The Australian Government’s new tick and flick reforms came in on July 1, 2012 which means to switch bank accounts all you have to do is sign a simple form and just like that your old bank gets the flick. You no longer have to worry about transferring over direct deposit payments, your new bank will have the authority to do this on your behalf.
There is absolutely no reason whatsoever you should be paying fees for your everyday bank transaction account and if you are, it is definitely time to switch banks. But how do you choose a new bank?
We thought a great way for you to see what other banks, building societies and credit unions are offering, was to get two leading alternative banking providers, Greater Building Society and ING Direct to outline their case for switching here on the Mozo blog.
First up, David Bryde, Product Manager from Greater Building Society puts the case for switching to a building society or credit union.
Bank reforms: should you tick and flick? – Guest blog by David Bryde
Are you sick of bank fees eating into your hard earned savings while you hear about the massive profits that your bank is making? Do you feel you should really be getting better service from your bank?
You know you should move your account somewhere else but you figure it’s too hard or that all banks are the same. I have some good news for you on two fronts. There are safe, full-service, alternatives to the banks and recent Federal Government reforms are making it even easier for you to switch financial institutions.
Under the Government’s tick and flick reforms you can now simply sign one form and your new financial institution has the authority to get a list of all the automatic payments in and out your old account such as your salary, health insurance, credit card payments or utility bills. They’ll then help you move them to your new account before you close down the old one. You don’t have to mess around with your current financial institution.
A pain point in switching is now a gain point. There are many customer-owned building societies and credit unions that are renowned for providing better service, lower fees, competitive rates and all-round better value than the major banks.
By not having to meet the demands of shareholders we’re less focussed on profit and more focussed on the needs of customers. You’ve only got to check out the Mozo ratings to see how we stack up.
Building societies and credit unions are subject to the same regulatory requirements as banks and deposits have the same government guarantee, making them a very secure place to have your money.
You still have easy access to your money. Most of us are part of a national ATM network and larger ones like The Greater have all the free phone, mobile and internet banking services you need. In most cases our branches are open longer hours than the banks and we have mobile lenders that can come to you.
It’s no fun being in an unhappy relationship and sometimes we stay in them because we can’t see a way out. If that applies to your banking, now that it’s easier than ever before to switch bank accounts, you really owe it to yourself to do something about it.