Loyalty doesn’t pay: is it time to break up with your bank?
Although love is in the air this Valentine’s Day, a break up might be in your future - not with your date, but with your provider. Because staying loyal to your bank, insurer or energy provider doesn’t often pay off, and could mean missing out on big savings, Mozo data shows.
“Unfortunately in Australia, being loyal to your bank simply isn’t worth it,” says Mozo Director Kirsty Lamont.
“The best deals in the market are often reserved for enticing new customers, which means existing customers often don’t get access to a lot of bonus points, bumper interest rates or special discount offers.”
The good news is, if you find that you’re no longer feeling the love from your home loan, energy plan or insurance, there are plenty of other fish in the sea. To get you started on the path to more fulfilling finances, check out some of our Editors’ top product picks below.
HOME LOANS
loans.com.au - Essentials Variable 90
- Super low 3.52% variable rate (3.54% comparison rate*)
- No application fee
- Best Value Low Cost and Best Value Split Home Loan Mozo Experts Choice Awards Winner 2017
With the lowest variable rate around at the moment, this loans.com.au home loan offer is bound to give your budget a boost. Along with the rock bottom interest rate, the Essentials 80 will romance you with money-saving features including free extra repayments, a redraw facility and the option to split your loan between fixed and variable rates.
CAR INSURANCE
Important information on terms, conditions and sub-limits.
Budget Direct - Comprehensive Car Insurance*
- 15% online discount
- $50 gift card when you refer a friend
- 2017 Mozo Experts Choice Exceptional Value Winner
If you love your wheels, it won’t be hard to fall in love with this budget friendly, comprehensive car insurance policy from Budget Direct. It comes with features like windscreen cover, protection for your personal property, your choice of repairer and a 24/7 claims service, plus the option to add extras like roadside assistance.
CREDIT CARDS
American Express - Explorer® Credit Card
- 100,000 bonus points when you spend $3,000 in the first 3 months
- 2 points per $1 spent, uncapped
- $395 annual fee
If a stack of credit card rewards points will make your heart skip a beat, then the American Express Explorer could be the perfect plastic for you. With a bumper bonus points offer, plus a generous regular points earn rate, you’ll have a pile of points built up in no time. You’ll also get perks like a $400 annual travel credit and a range of free insurance cover.
Powershop - Auto Pay with Power Saver
- 14% online saver discount when you pay via the online shop
- 4% guaranteed discount off usage and supply charges
- 100% carbon neutral at no extra cost
NSW residents**, love your wallet and the environment this Valentine’s Day by switching to Powershop’s Online Saver energy plan. Not only does this low cost plan have a bunch of discounts on offer, but you can also opt for 100% carbon neutral Greenpower without paying an extra cent! There’s also a solar feed-in tariff on offer for solar panel users.
There are heaps of potential savings on offer for Aussies who take the time to compare and switch their banking.
For example, depending on where you live, you could save up to $543 on your energy bill by switching from the average electricity plan to the cheapest in market***. And home loan borrowers switching from the average variable rate could save up to $1,764 each year by switching to the low rate loans.com.au option above^.
“One thing many people might be surprised by is just how uncompetitive their current deal is,” Lamont added.
“When you signed up, an offer may have been the best around, but two or three years later it might not look so good. Your car insurance discount might have ended, a special rate offer might have expired or an introductory offer might be over - or maybe better products have been launched since you first signed up.”
So how can you combat being stuck in a loveless commitment to your banking products? Lamont says it’s as simple as regularly reviewing your financial situation.
“Ideally, Aussies should be checking in on their banking set up every two or three years, and using a comparison site like Mozo to check if they’re still getting the best deal possible. If not, it’s time to switch.”
*The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years, and applies only to this example. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
**This plan is available to NSW residents. Please use our Energy Cost Cruncher to find deals available in your state.
***Energy savings calculated for a household in Victoria with 4,993kWh usage, average bill of $1,800. Correct as of 14/2/18.
^Average variable rate is 4.37%. Savings calculated for an owner-occupier principal and interest home loan of $30,000, LVR 80%. Correct as of 14/2/18.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
*** Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.