Separate accounts 'keep banks on their toes'

Mozo

Friday 05 November 2010

Consumers and small business owners can secure better deals from the banks by holding multiple accounts across different providers, it has been suggested.

Separate accounts keep banks on their toes content

Oliver Milman of StartUpSmart.com.au argued that while Australian start-up businesses may feel that "unsympathetic banks" will always get the better of them, there are a range of measures for ensuring a good deal.

"Having separate accounts at different banks will help keep each provider on their toes and give you bargaining power," he said.

"Shaun Bonett, founder of the successful property firm Precision Group, used to maintain accounts with three different banks. He could then play them off each other to secure himself the best deal. Try doing the same thing."

Aussies looking for better returns can also choose to compare savings accounts in search of the best interest rates. Mr Milman also suggested looking at smaller institutions as worthy alternatives to the "big four" banks, particularly as the government is currently talking tough over more competition in the banking sector.

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