Shocking cost of being a loyal customer exposed

Mozo

09 Oct 2018

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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

Promoted

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

Promoted

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

Promoted

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

Promoted

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

Promoted

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

Promoted

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

Promoted

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.

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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.

^ 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 for the amounts and terms below, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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. ^ Based on $10,000 over 3 years ^^ Based on $30,000 over 5 years

*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.

Mozo may receive advertising fees from the financial institutions, issuers of financial or credit products and third party advice providers that are shown on this page. These fees are based on a cost per click, cost per acquisition, or a fixed fee.