Great time to switch transaction accounts

Twenty nine per cent of transaction accounts don't pay interest on balances below $1000. Even at $5000 some 15 per cent of accounts still don't pay interest.

Of those accounts that do pay interest, half pay less than 2 per cent. Fees can be another killer on transaction accounts. A monthly account-keeping fee of $5 is equivalent to 3 per cent a year on a $2000 balance.

The new “tick and flick” rules, making switching easier, mean it's a good time to shop around. Teachers Mutual Bank chief executive Steve James says TMB has signed up about 600 people a month so far this year – significantly up on last year – suggesting people are looking for a better deal and better service.

Source: Sydney Morning Herald