Switching banks is getting a lot easier
Are you unhappy with your bank but the idea of switching your everyday transaction bank account seems a bit too difficult?
Everybody has direct debits and direct credits, like their wages or salary, going in or coming out of their account. Changing all those arrangements to a new bank account may seem daunting. But government rules, called Tick and Flick, mean your new bank can look after all the direct debits and credits without you needing to worry about any of that.
What is Tick and Flick?
Thousands of Australians each month use "tick and flick" bank account switching to dump their existing transaction account and move to a new bank. Tick and Flick allows the customer's new financial institution to do all the work to move all their direct credits and debits across from their former bank.
How does Tick and Flick account switching work?
Tick and Flick account switching makes everything easy. Tick and Flick works like this:
1) First, you need to choose a great new transaction account that is just right for you. Infochoice lists transaction accounts from all of Australia’s significant banks and credit unions.
2) Open the new account, either by clicking through from Infochoice and applying online or by visiting a branch.
3) Your new bank will ask you if you want to sign a Tick and Flick form that authorises them to contact the old bank and get a list of all your direct debits and credits from the last 13 months.
4) You then review the list and tick which direct debits and credits you want transferred across and this then happens automatically.
5) When everything is set up in your new account, you can flick the old account completely – close it down to avoid being hit by fees and charges each month.
And new rules are about to make switching even easier …
New recommendations from a government inquiry into the big four banks have been released. The House of Representatives Economics Committee has finished its inquiry that featured testimony from all four big bank chiefs and their recommendations include:
1) Create a new Banking Tribunal to help customers with complaints.
2) Publicly name and shame bank executives who oversee banking license breaches.
3) Force banks to release your customer data to you to help you switch banks.
4) A new competition watchdog for the banking industry.
5) Allow new banks to set up in Australia.
6) Improve dispute resolution processes.
You can hold your own banking inquiry
You can research and compare bank accounts from all the major banks and credit unions in Australia using Infochoice.
All the best savings accounts are listed here.
All the best everyday transaction accounts are listed here.
All the best children’s bank accounts are listed here.