Video: Paul Clitheroe on account switching
Video about switching bank accounts
I find the typical Aussie household throws away around four
thousand dollars a year by not having the right mortgage, credit
cards, insurance and of course bank accounts.
Four thousand dollars is a heap of money. Let's take transaction
accounts, the ones we typically pay our salaries into and pay bills
out of. Some banks, credit unions and building societies charge
account keeping fees others don't. Some pay you a little interest
but plenty will pay you none. Some hit you with charges if you make
more than say 10 transactions a month.
The fact is some transaction accounts are simply better for you
than others. So why not switch to the best one. Well up until now
switching accounts was an absolute hassle. You had to individually
contact all the organizations that automatically debit and credit
your account and give them your new account details, making it
really painful to switch to a better account.
But that's changed with Australian government banking reforms in
effect from 1 July. Switching I'm pleased to say, has become a
whole lot simpler.
All you do now is go to the new financial institution you've
chosen. It could be a bank, credit union, or building society and
fill out just one form and they will do all the work contacting the
institutions you have automatic debit and credit arrangements with,
giving them your new transaction account details.
Your new financial institution can also help you to get a list
of your automatic debits and credits from your old institution if
required. So, if you're not happy with your existing bank account,
shop around and once you find a better account sign up and get them
to handle the messy details. Switching accounts has never been
So do yourself a favour and find out more about this reform and
others. The MoneySmart website, which is terrific by the way, has
more information and has great tools to help you make and save
money. Or you can check out more videos on the banking reforms
Last updated: 09 Aug 2016