Shocking cost of being a loyal customer exposed
The cost of loyalty was recently laid bare by the Sydney Morning Herald, which reported that Australians could be paying up to $134,358 extra over their lifetime by sticking with the big 4 banks instead of switching to the best home loans, credit cards and personal loans in market*.
Loyal customers are getting a raw deal in other areas too, not just banking. Mozo research reveals that Aussies could save up to $1,087 a year on average by shopping around on their car insurance, while switching to a better value electricity plan could save the typical household up to $1,127 a year**.
If it’s been a while since you last compared your banking, insurance and energy deals, it’s quite possible you’re one of the millions of Aussies being stung with the loyalty tax. To help you get started, here is a selection of recent Mozo Experts Choice winners for best value to compare.
Mozo Experts Choice Winners for Best Value
HOME LOAN
loans.com.au - Essentials Variable 90
- Mozo Experts Choice Low Cost Home Loan Winner
- 3.64% variable rate (3.66% comparison rate*)
- $0 ongoing service fees
Want to minimise the impact your mortgage has on your bottom line? Look no further than the loans.com.au Essentials Variable 80. This super competitive offer comes with features like free extra repayments and a redraw facility, plus the option of choosing monthly, fortnightly or weekly repayments.
CREDIT CARD
ME - frank Credit Card
- Mozo Experts Choice No Annual Fee Credit Card Winner
- $0 annual fee
- 11.99% purchase rate
No fuss, no strings attached and no annual fee - the ME Frank credit card is a dream come true for spenders looking for a cost-effective, simple option for their wallet. This card comes with up to 55 interest free days to help you keep your balance under control and Mastercard’s Zero Liability protection.
BANK ACCOUNT
ING - Orange Everyday
- Mozo Experts Choice Exceptional Everyday Account Winner
- $0 account fee
- Free ATMs in Australia and overseas (if you deposit $1000 and make 5 purchases using your linked debit or credit card in the month)
A favourite in the Mozo People’s Choice Awards, the ING Orange Everyday Account is a fee-free transaction account with no minimum balance and no ATM fees as long as you meet the spend and deposit requirements. Great for travellers, this option is online only, with 24 hour phone and internet banking accessibility.
PERSONAL LOAN
Australian Military Bank - Unsecured Personal Loan
- Mozo Experts Choice Excellent Credit Personal Loan Winner
- 7.88% variable rate (8.72% comparison rate^)
- Free extra repayments and redraw facility
If you’re looking for a wallet-friendly way to borrow up to $80,000, here it is. With a competitive rate for creditworthy borrowers and terms of up to 7 years, this loan can help you fund whatever big spending goals you’ve got. Plus, you can choose between weekly, fortnightly and monthly repayments.
CAR INSURANCE
Budget Direct - Comprehensive Car Insurance*
- Mozo Experts Choice Exceptional Value Car Insurance Winner
- 15% discount for buying online
- Free hail warning app
Make sure your wheels are covered against trouble with Budget Direct’s Award winning comprehensive car insurance policy. This policy comes with your choice of repairer, a 24/7 claims service and gives you the option to choose your excess, so you have more control over the cost of your premium.
HOME INSURANCE
Youi - Home & Contents Insurance*
- Mozo Experts Choice Exceptional Value Home Insurance Winner
- Half your premium back in Youi Rewards
- New for old replacement
Your home is probably the biggest asset you’ll ever own - but the home insurance to look after it doesn’t have to cost an arm and a leg. Youi home insurance comes with cover for fire, theft, storms and floods, a 24/7 emergency claims team and it’s a Mozo People’s Choice Highly Trusted Award winner to boot.
ENERGY
GloBird Energy - GloSave
- Mozo Experts Choice Best Energy Plan - Victoria
- 35% total discount when you pay on time
- No lock-in contract
Being stung by high electricity prices? With Globird Energy, you can score affordable energy backed by local customer service teams, and you’re free as a bird, with no lock in contract. There’s also a solar feed-in tariff on offer to help you make the most of your solar panels and shave dollars off your bill.
Not in Victoria? Head over to our Mozo Experts Choice Energy page for more state winners.
*https://www.smh.com.au/money/b...
** Mozo analysed quote data from 58 car insurance policies across 10,000 customer scenarios for its Experts Choice Car Insurance Awards to determine the savings that could be achieved by switching. Energy savings calculations based on a typical three-person household switching from an average priced plan to the best in market.
* 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.
*** WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.
**** 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
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