Aussies more likely to break-up with a romantic partner than their bank
23 March 2022
- Almost three quarters (73%) of Australians have never changed banks but have had more than one romantic partner
- Around two thirds (62%) have a savings account with a big four bank
- Almost half (48%) of people like the ease of having all their banking products with a big four bank
- One-in-three people don’t know enough about smaller online-only banks
- Half (50%) would consider a smaller bank if they had better savings rates
- 86400, AMP Bank, ING, MyState Bank and Virgin Money have the top bonus savings account rates
When it comes to break-ups, Mozo has found that Aussies are more likely to break up with a romantic partner than their bank, with the majority of people showing loyalty to the big four banks.
Almost three quarters (73%) of Australians have never changed banks but have had more than one romantic partner.
“There are many reasons people stay in relationships that aren’t good for them but when it comes to banking familiarity, perceived security and convenience are often the things that tie us to the big banks,” says Tom Godfrey, Mozo Spokesperson.
“There’s no doubt that breaking up can be hard to do but when it comes to ditching your bank, staying loyal can cause you a lot of financial pain and loss,”
Is bigger always better?
Mozo surveyed Australians about where they like to keep their cash, finding that although smaller deposit takers tend to have higher savings rates, most people (62%) keep their cash with the big four banks.
When asked why people are staying loyal to the big banks, many stated it was because they’ve always banked with them (55%), all their products with them (48%) and they believe they are more secure (20%).
Getting the most bang for your buck
Analysis for the 2022 Mozo Expert Choice Deposit Awards found that challenger banks continue to outperform larger banks when it comes to offering competitive bonus savings rates. Along with having the top savings rates AMP, ING, 86 400, Virgin Money and Mystate Bank have won Mozo Expert Choice Awards for Best Regular Saver.
“Chasing the most competitive bonus savings rate can pay off. AMP Saver Account and ING Savings Maximiser have a bonus rate of 1.35%, which is 111 basis point higher than the average big four bonus savings rate of 0.24%. If customers switched from the average big four bonus savings rate they would cash in on an extra $112 a year.”
Don’t bank at first sight
Mozo’s research also found that more than one-in-three admit they don’t know enough about smaller and online banks but 50% would consider moving to them if they had a better savings rate.
“It pays to spend a little time researching smaller and online banks to see if you can get a better deal. It’s important to know that small and big banks are authorised deposit-taking institutions, meaning that deposits up to $250,000 will be protected by the Australian Government Guarantee through the Government's Financial Claims Scheme,” says Godfrey.
While many people have never changed banks, many have opened additional accounts with different institutions. One-in-three (34%) people hold accounts with two banks and a further 12% deal with three banks.
“Splitting your finances across multiple banks might seem like a hassle, but you could be missing out on earning money while you sleep, through interest. Opening up a new bank account only takes minutes, it could help grow your savings .”
Notes: Mozo commissioned a nationally representative survey of 1003 Australians conducted by Researcify between 28th January 2022 - 4th February 2022. Mozo sourced top bonus savings rates on 9 March, 2022.