Our transaction account is the key to our banking

The key product in a banking relationship is the transaction account. The transaction account is where salaries are paid into and where most activity occurs. However increasingly, the mortgage account is seen as vital as it will usually have some form of interest offset account.

However Virgin Money’s chief executive, Brian Bissaker said higher rates of mortgage switching meant many people did not regard their mortgage as the key to their main bank relationship.

“My view is that the everyday account is still number one given the high level of interaction the customer has with it,” he says. “They access it more than once per week and it is the critical fulcrum, or hub, for their cash flows.”

Source: Australian Financial Review