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.

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.