Adelaide residents are fiercely loyal to their banks and claim to be satisfied with the financial arrangements they're getting. This is despite the fact that most are not aware of what they've signed up to and are more than likely to be getting second rate deals.
The research commissioned by BankWest - which opens its doors in Rundle Mall today - reveals three in four Adelaide residents have been with their main bank for more than ten years and a staggering 94 percent claim to be satisfied with their provider.
Yet according to the research, this allegiance is unsubstantiated. Fifty nine percent of residents admit they don't know or are unsure of the interest rate of their main savings account and not knowing interest rates for credit cards and transaction accounts is similarly high at 49 percent and 41 percent respectively.
Equally concerning:
- Confusion exists about the type of account Adelaide residents are actually using. 29 percent of residents confidently claim their transaction account has an interest rate of between one and six percent, when most transaction accounts actually have a rate of well below one percent.
- People aren't saving as effectively as they could be. 36 percent claim they use a savings account with an interest rate of 3 percent or less for their day-to-day banking needs, instead of considering two separate accounts, one transactional and one savings. In doing so they are missing out on accounts like the BankWest TeleNet Saver which offer a 12 month introductory high rate of 6.80 percent to new TeleNet customers
According to BankWest head of retail sales, Mark Reid, "Our research shows that Adelaide residents aren't as savvy with their finances as they could be and are potentially losing money as a consequence. You can be very confident that an offer made by a bank ten years ago is really uncompetitive now. We're encouraging people to check their savings and credit card statements and if you're not getting good rates from your bank then switch to a bank that delivers on your expectations. There's no point in remaining loyal when this loyalty isn't reciprocated!
"We've opened a branch in the heart of the city in Rundle Mall and we're looking to shake banking up and give Adelaide residents a great deal for their money, exactly like we've done in a number of other states. Plus with the New Year just around the corner, there's no better time to make a fresh start with your finances."
BankWest's Market-Leading Products:
| Product | Description | Rate |
Adult's online saving account | 6.80% p.a. - variable intro. rate for 12 months (available to new TeleNet customers) | |
Children's saving account | Bonus interest rate of 10% p.a. for children under the age of 15 years | |
Credit card | 8.99% p.a. interest rate (excludes cash advances) |
BankWest Adelaide is located at Shop 8 Rundle Mall. Or people can call 13 17 20 or visit www.bankwest.com.au
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For further information or to arrange an interview please contact:
Jane Gregory, Pulse Communications Scott Gillespie, Pulse Communications
02 8281 3859/ 0416 137 335 02 8281 3839/ 0417 233 670
jane@pulsecom.com.au scott@pulsecom.com.au
Notes to editors:
- The survey was conducted by Synovate in November 2006.
- The Product Disclosure Statement for these products should be read by customers prior to opening an account. The Product Disclosure Statements are available from the website www.bankwest.com.au
BankWest TeleNet Saver Product Overview
- Available via the Internet (www.abetterdeal.com.au) or telephone (13 17 20).
- There are no bank fees and no interest tiers.
- Joint accounts are available.
- TeleNet Saver has an opening variable rate of 6.80 per cent p.a. for the first 12 months; the interest rate reverts to variable rate, currently 6.25 per cent p.a. thereafter.
- Interest is paid monthly.
- There is no minimum opening deposit, and there is a maximum investment limit of $1 million.
- A regular savings plan can be set up on the account.
About BankWest's Kids' Bonus Saver
- The BankWest Kids' Bonus Saver is a simple high interest savings account that parents/guardians can open for children under the age of 15 years. Each child may only have one Kids' Bonus Saver Account.
- To receive the [10 per cent p.a.] bonus interest rate the child must also have a BankWest Children's Savings account.
- Maximum allowable deposit of $250 per month.
- Monthly deposits of between $25 and $250 are required along with no account withdrawals during the same month.
- If the stipulated deposit amount isn't made or a withdrawal occurs, the rate reverts to a standard rate of 0.01%p.a. for that month only.
- On the anniversary of the account opening, savings and interest from the Kids' Bonus Saver account is swept into the Children's Savings Account and the annual savings process starts again.
- For more information about opening an account, customers can visit a BankWest branch, phone 13 17 20 or visit bankwest.com.au
- Rates are subject to change
About BankWest
BankWest is a full service bank which originated in Western Australia in 1895 and services more than 660,000 customers. Nationally, BankWest promotes a range of products using cost-effective direct and third party distribution channels, including 24-hour telephone and internet services and mortgage brokers.
In WA, BankWest is a market leader with about one quarter of all bank advances and deposits and an extensive network of branches.
BankWest is a wholly owned subsidiary of HBOS plc, one of the world's largest financial services groups, with assets of about AUD$1,250 billion (£540 billion). Standard & Poors short-term credit rating for BankWest is "A-1+" and "AA-" for the long term, providing customers with investment grade security.
