Is Your Bank Ripping You Off? Perhaps It’s Time To Switch Banks
Compare & Switch Banks to Save Money on Credit Card Interest Repayments, and Earn Higher Interest on your Savings
Is your bank ripping you off? Switch banks today for one that treats your fairly. When you look at the interest rate cuts made by the Reserve Bank of Australia in recent years you discover that credit card rates have not kept up with these cuts. In fact, some recent studies show that the banks have kept more then 80% of the net profits of these cuts for themselves. The Reserve Bank of Australia’s net impact of these cash interest rate changes actually declined from just over 7% to only 3.5% in the last couple of years.
Switch to a low interest credit card
The ANZ Low Rate credit card is a credit card that has only the features you really need: a low interest rate on purchases, a low on-going annual fee, and a balance transfer option if you are wanting to change banks.
- $58 p.a. annual fee
- 13.14% p.a. on purchases
- 0% p.a. for 9 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
It seems that while most banks are passing these cuts on to borrowers of home loans they have not done the same for their credit card customers. This is when consumers have to ask, is your bank ripping you off? You should consider switching banks even if it is not easy, to one that will pass these cuts on to you. It can be time consuming to switch accounts because you have to fill out lots of paperwork and start from scratch, learning how to deal with a new bank. But, in the long run it will be worth the savings, not to mention the trust you will have knowing your new bank is willing to share the wealth with its customers.
Is Your Bank Ripping You Off?
If you have decided to switch banks you should be aware of how certain banks have stacked up against the Reserve Bank’s interest rates. For example, NAB actually showed a rise in credit card rates of 14% on standard credit cards. Their customers are now paying an average of 18.74% interest rate as opposed to the 18.6% rate they paid just two years ago. For some other banks, like Westpac, ANZ and Commonwealth the story is similar, although they did not have increases, they only listed small decreases of less then 1% even though the Reserve Bank of Australia’s rate declined averaged 3.5%
Switch Banks to Save Money
When you review your credit card statements, look at the interest rate over the last few months and see if it has risen. If it has, it is probably time for you to switch banks. You might consider some of the promotional deals currently offered by credit card companies to ease your transition.
Balance Transfer – A balance transfer deal will let you move your current debt to your new card for a low rate for a given period of time. Just make sure the deal gives you enough time to pay off that debt before the low rate expires.
- Short term Balance Transfers – These cards have very low interest rates, even 0% for a short period of time usually no more then three months.
- Lifetime Balance Transfers – A life of balance transfer charges a low interest rate for as long as it takes you to pay off the transfer.
- Low rate balance transfers – These rates are usually under 5% that lasts up to twelve months.
If you think your bank is ripping you off you should switch banks. Find a bank that you can trust and that passes on interest rate reduction to their customers.