Aussies more likely to seek banking alternatives
Aussies are asking – Is my bank relevant to me anymore? Australians are significantly more prepared, when compared with more than 50,000 people in 31 other countries, to shop around and move their money to an alternative banking provider according to a massive new global survey.
2,000 Australians were part of the Ernst & Young survey of retail bank customers, The Relevance Challenge. Australians are “significantly more likely to trust alternative financial service providers” than traditional banks, according to the research.
Even though 86 per cent of Aussies now have a bank account with a traditional bank with branches, more than 30 per cent are also with a non-bank provider.
Ominously for the big banks, more than 40 per cent of Australians would consider alternative providers for their future banking needs. That might mean moving to a new bank or credit union to get a better deal on mobile payment services, credit cards and personal loans.
And why not? All Aussie banks, credit unions and building societies are covered by a Commonwealth government deposit guarantee (up to $250,000).
Choosing an everyday transaction account
Our primary bank is often the bank that we use for our main everyday transaction account. You don’t need to choose a bank with a branch near you. Many banks and credit unions offer online application. There are more than 150 great transaction accounts to choose from in Australia. Infochoice lists accounts from all of Australia’s significant banks, credit unions and building societies.
1) Don’t worry about the interest rate
When choosing a transaction account, don’t look at the rate. It will be low or zero anyway. Keep your savings in a savings account that you link to your transaction account.
2) Look at the fees
You don’t need to pay monthly account keeping fees, transaction fees, annual fees or even ATM fees! That’s right, some accounts provide free ATM withdrawals from any ATM in Australia.
3) Do you want debit with that?
Do you want a Visa/Mastercard Debit Card? For bank account customers over 18, most accounts offer Visa or Mastercard debit cards with PayWave or Tap & Go in addition to Eftpos debit cards.
4) You want a good mobile banking app
Some banks and credit unions offer Android pay and Apple Pay with their banking apps. Commonwealth Bank has a PayTag for iPhone.
Did you know you can earn Qantas points on a transaction account?
To earn Qantas Frequent Flyer points you need a rewards or even platinum credit card don’t you? No, you can earn Qantas Frequent Flyer Points with the balance in your every transaction account and five QFF points for every eligible purchase.
The Bankwest Qantas Transaction Account (sponsored) has a low interest rate (0.01 per cent) but it does come with Qantas points, making it a unique offering in the market