Cherry picking on the rise as Aussies search out cheaper bank fees and more competitive interest rates
According to the Australian Bankers’ Association Chief Executive, Anna Bligh almost two-thirds of Australians have accounts at more than one bank, suggesting that people are shopping around to find the best deals and the right products for their needs.
The ABA survey conducted by Galaxy Research made up a part of the ABA’s submission into the Government’s Public Inquiry into Competition in the Australian Financial System and showed that “the notion that customers stay with an institution over their life is false.”
“Australia has a competitive banking system with hundreds of providers of financial products and services, and many comparison websites at customers’ fingertips,” said Ms Bligh.
The survey data also showed that three million Aussies switched banking providers in the past three years and two thirds of those found the process pretty straightforward.
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“It’s great to have so many Aussies out there shopping for the best banking bargains, there are definitely savings to be made when switching financial providers and like the ABA have said, the process is usually pretty easy,” said Mozo Director Kirsty Lamont.
According to the ABA survey the top reasons why bank customers were making the switch was cheaper fees (76%) and more competitive interest rates (75%), followed by the perceived safety of a bank and its level of customer service.
“Finding better deals in financial products and services is set to get even easier as open banking evolves and customers gain access to their data to shop around,” said Bligh.
RELATED: Will everyday Aussies soon be banking with Goldman Sachs?
For Australians looking to cherry pick their financial products to get the best banking deals, here’s the list of market-leading banking products according to Mozo’s Banking Round-up for September.
Home loans
| Provider | Product | Interest Rate | Comparison Rate | Average Big Four Interest Rate |
|---|---|---|---|---|
| Reduce Home Loans (Variable) | Rate Buster Variable | 3.44% | 3.51% | 4.66% |
| Greater Bank | Fixed Rate Home Loan (1 year) | 3.49% | 4.47% | 4.04% |
| BCU (Fixed) | BCU Fixed Rate Special (5 years) | 3.50% | 4.18% | 4.44% |
Personal loans
| Provider | Product | Interest Rate | Comparison Rate | Average Big Four Interest Rate |
|---|---|---|---|---|
| G&C Mutual Bank (Unsecured) | Fair Rate Personal Loan | 5.99% | 6.20% | 13.99% |
| Heritage Bank (Secured) | Low Rate Secured | 5.14% | 7.61% | 8.09% |
Ongoing bonus savings accounts
| Provider | Product | Interest Rate | Average Big Four Interest Rate |
|---|---|---|---|
| RAMS | RAMS Saver Account | 3.00% | 1.97% |
| AMP | Bett3r Pay Account | 3.00% | 1.97% |
Low interest credit cards
| Provider | Product | Interest Rate | Average Big Four Interest Rate |
|---|---|---|---|
| Community First | McGrath Pink Visa | 8.99% | 12.66% |
To find out how much you could save by switching to a better rate on your home loan, check out Mozo’s Switch & Save Calculator or if you want to find out how much a more competitive interest rate on your savings account could mean for you, then check out our Savings Calculator