Switch banks and save $4,300

The average customer of a big four bank could save $4,300, or 20 per cent, cutting their annual banking costs from $21,500 to $17,200, by moving their banking to the cheapest competitor.

“While the four major banks offer increasingly less competitive products, they continue to increase their market share," Infochoice chief executive Shaun Cornelius said.

Mr Cornelius said the big banks are more expensive than their smaller rivals when it came to the complete cost of banking, including service and transaction fees, ATM fees and interest rates.

The average mortgage customer with a $300,000 mortgage can save $3,186 a year in interest payments and fees by switching from the major four banks (average rate of 5.78 per cent) to one of the cheapest four competitors (average rate of 4.92 per cent).

Mr Cornelius said switching costs could be high but averaged less than $1,000.

Source: The Australian