Aussies reluctant to switch, despite the better deals on offer
Australians are surprisingly reluctant to switch between banks, despite the possibility of securing a better deal.
Around 18% of borrowers would consider switching their credit cards, according to Mozo’s latest index, while 16% are considering switching their mortgage.
But savings account customers are the most reluctant to change, with only one in ten willing to switch between providers.
This is all the more surprising because the best rates are normally achieved through the bonuses available during the first few months of a new account.
Once these adjust to the standard rate, they are barely matching inflation for diligent savers.
Accounts currently listed on Which4U
Account Pre-Bonus Rate Post-Bonus Rate
RaboDirect High Interest
St George Maxi Saver
2.35% WestPac eSaver
2.50% Citibank Online Saver
2.95% Westpac Reward Saver*
* Bonus of 4.00% applies for every month that deposit and withdrawal conditions are met.
“People think that it is too much trouble to switch,” said Norman Morris, research director at Roy Morgan.
“They are likely to consider that there may not be sufficient gain in switching because all the major players are the same.”
The use of comparison sites can make switching much easier, however, and consumers are able to compare their current deals with the best offers available on the market.
With the central cash interest rate falling steadily since late 2011, and standard variable home loan rates plummeting below 6%, there are good opportunities to make additional savings by switching to a better provider.
Check out our listings today and see what you could be saving.
If you enjoyed this article, check out the latest articles on our Finance Blog.
by Gemma Maddock