Financial loyalty proves fruitless
Close to half (47 per cent) of Australians are using just one bank for all financial needs, missing out on the potential benefits of shopping around for the best deal, according to finder.com.au.
A survey of 2005 Australians found many have paid the price for customer loyalty, when their money would be better off held between two or three banks or financial institutions.
Commenting on the findings, finder.com.au money expert, Bessie Hassan said consumers should plan better and diversify away from their home bank.
“You can’t have a ‘one size fits all’ approach…staying loyal to one bank could mean you forgo savings that you'd enjoy from a product with an alternate provider,” she said.
“You could be paying too much interest or you may be paying for features you don’t use, so it’s important to ‘cherry pick’ your products to suit your needs.
“It’s unlikely that one lender will have the best products for all your banking needs.”
Hassan said customers could play on the competitiveness between banks to pick up on discounted features.
“Mix and match your financial products based on your specific needs, compare interest rates and prices - don’t pay the ‘lazy tax’,” she said.
“There’s strong competition among lenders and they’re often competing for your business by waiving annual fees or offering rate discounts, so make sure you actively look for better deals.”
Finder.com.au found West Australians were the most loyal to one bank (56 per cent) compared with 44 per cent of Victorians and Queeslanders.
Recommended for you
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
Sequoia Financial Group has seen a top-level reshuffle as the chair of the board, John Larsen, steps down after five years in the position.
As statements of advice move into the rear-view mirror, Vital Business Partners explores how financial advisers are adopting innovative documentation strategies.
