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Interest rates and fees most likely to encourage switch


RateCity Staff

By RateCity Staff

3 min read

In the past year, the amount of people considering switching banks has doubled according to a UBS study reported in The Sydney Morning Herald

Even so, the proportion of people who said they would seriously consider leaving their current bank for a competitor was only at 12 per cent.  

Notoriously stagnant bank customers listed the top reasons for considering a switch to be fees and interest rates followed by poor service. 

Despite banks increasingly investing in their digital platforms as a way of retaining customers, it seems that money is still the big motivator, with customers unwilling to pay a mint in fees even though they may get access to a premium app or website. 

For customers looking to eliminate fees from their everyday banking, and get the best interest rates, there is no shortage of options once you start comparing what’s on the market.

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Savings accounts

If you’re looking to get a great interest rate on your savings, while cutting out fees from the deal, there are plenty of great deals on the market. Depending on your requirements (online facilities, branch access etc.) you can compare and switch to the best rates available without spending a single dollar in fees.  

While comparing accounts, however, keep in mind that often a conditional rate is offered which will revert to a lower rate after a set time period or have certain requirements that must be fulfilled monthly. 

Some accounts to start off your search:

•    ME Bank Online Savings Account – Offers the highest ongoing interest rate at 3.35%
•    RAMS Saver Account – Offers a rate of 3.15% with a minimum $200 deposit a month and no withdrawals 

Transaction accounts

If you’ve had the same transaction account for as long as you can remember, and it charges a monthly fee, chances are doing the math of how much you have paid in total will reveal a scary figure. Looking at the hundreds of dollars that have been paid to your bank that could have been in your own pocket should be enough to motivate you to switch.

Of the transaction accounts on the market, the best feeless ones are those that offer free access to ATMs as well. Switching to one of these accounts will see instant savings added to your funds, even if it is only a few dollars at a time.    

Some accounts to start off your search:

•    ING Direct Orange Everyday – As long as you deposit $1000 or more a month into your account you can enjoy unlimited free ATM access at any ATM in the country
•    ME Bank Everyday Transaction Account – Zero monthly fees and zero ATM fees with no added conditions

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