Thousands set to farewell the big four banks and save

CHOICE calls on Australians to join the global Move Your Money campaign

Today CHOICE is marking World Consumer Rights Day by delivering a giant farewell card on behalf of thousands of Australians to the big four banks.

The farewell message comes as CHOICE releases new analysis from Mozo showing potential savings of over $3,500 per year for consumers who switch to smaller institutions.

“Today is World Consumer Rights Day, and here in Australia we are calling it Move Your Money Day, with a giant farewell message from thousands of consumers to the big four banks,” says CHOICE director of campaigns and communications, Christopher Zinn.

“Over the last three weeks, more than 4,000 Australians have signed up to the CHOICE Move Your Money campaign, pledging to look for a better deal beyond the big four banks, and if they find one, switch and save.

“The figures released today show that there are genuine savings for those prepared to look past the major banks and find a better deal, whether it be on home loans, savings accounts or credit cards,” says Mr Zinn.

The figures from Mozo, who power CHOICE’s Compare, Ditch and Switch comparison tool, reveal that despite the big four having an 80 per cent share of the market in home loans and household deposits, there are big savings for those prepared to ‘think small’:

  • With savings accounts, a smaller institution would pay $328 a year more on a $5,000 deposit than the worst offering from a Big 4;
  • With credit cards, a consumer could save $449 a year by switching their $3,000 debt from the worst of the Big 4 products to a smaller player; and
  • With a home loan, consumers can save an average of $2,773 by switching a $300,000 mortgage from the Big 4 to a smaller lender.

These examples alone add up to $3,550 over one year. Over five years, these savings total $17,750, and over the 25-30 years of most home loans the savings are significant.

“The CHOICE Move Your Money campaign challenges the notion that switching is too difficult or that there are no better deals out there,” says Mr Zinn.

“While some barriers remain, switching is easier than ever before, and as today’s figures show, there are plenty of competitive deals out there for those prepared to shop around.”

Everyone who has signed CHOICE's Move Your Money petition has, in effect, sent a message to the big four banks that ‘enough is enough’. Every person who signed the petition has received unbiased tips on how to look for a better banking deal, including a CHOICE Switching Kit.

Extra information:

  • 15 March is the 50th anniversary of World Consumer Rights Day, marking the day in 1962 when US President John F Kennedy first outlined a definition of consumer rights.
  • This year, the theme of World Consumer Rights Day is ‘Our Money, our rights – campaigning for real choice in financial services’, and the CHOICE Move Your Money campaign is part of this global effort to improve competition in financial services.
  • Savings figures compiled by Mozo:
  • An online survey of around 2,500 CHOICE members has shown a substantial proportion of those who had recently switched their home loan said that it was easy or very easy, while a few noted their old bank had been slow in finalising paperwork.
  • Overwhelmingly, the main reasons members gave for wanting to switch were uncompetitive interest rates and their loyalty not being acknowledged.

Media contacts:

  • Christopher Zinn, CHOICE director of campaigns and communications – 0425 296 442
  • Matt Levey, CHOICE head of campaigns – 0488 214 066
  • Ingrid Just, CHOICE head of media – 0430 172 669

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