Who doesn’t like a freebie or a bonus gift offer? Just as shops entice customers to walk into their stores with tempting ‘two for one’ offers, banks offer great deals to attract new customers too. Consider a range of bank offers for new accounts with Savvy and find out what great deals are available in Australia today.
Most banks and financial institutions offer sweeteners to entice customers to open an account with them or to switch banks. These incentives come in many forms, including:
Banks and financial institutions offer such incentives in the hope of gaining a new customer for life. Therefore, customers should also look long-term and judge whether the financial product they’re considering really does offer them tangible advantages. Here are the important points to consider when you’re thinking of switching:
The key words here are accessibility, compatibility and versatility. Make sure the transaction accounts you’re comparing have mobile apps which are compatible with your phone, smart watch, digital wallet and credit card. If you frequently use ATMs, make sure there are plenty near you which won’t charge you for using them.
Make sure the transaction account offers all the payment features you need and consider whether you want advanced account features such as rounding up, automatic transfers (called account sweeping) or budgeting tools. Of course, make sure you minimise the fees you’ll have to pay by choosing accounts which are fee-free or which offer a sufficient number of free transactions to enable you to bank at no cost.
Savings accounts and term deposits
The interest you earn on your savings is the key comparison point for savings accounts. Even a 0.2% p.a. difference in the interest rate can make a huge difference over the long term. If you have savings you feel you won’t need for a while, consider a term deposit instead of parking your money in a high-interest savings account.
Term deposits can offer a higher interest rate in return for locking up your savings for a specified period, ranging from one month up to several years. It’s also worth considering accounts which offer a bonus interest rate if certain deposit conditions are met, such as an additional 1.2% p.a. interest if you deposit $1,000 or more per month.
Some of these bonus offers are conditional on having a linked savings and transaction account, whereas others have no conditions attached. Compare interest rates with Savvy to make sure your money is working the hardest it can for you.
Whether you’re looking for the best business account for a small business or an SME, compare not only the interest rate offered on your savings but the fee structure of the transaction accounts you’re considering. Make sure the account you switch to offers all the functionality you need, is compatible with your accounting or payroll software and has a fee structure which minimises cost to your business.
For example, if you run a retail business and regularly have cash to bank, make sure the bank you choose has a convenient branch nearby and free facilities to deposit your takings. Banking transactions which involve a bank teller can charge up to $2.50 per transaction, so if you’re banking every day the fees can soon mount up. Similarly, if you regularly transfer large sums of money between accounts or internationally, make sure you can do this fee-free or as cheaply as possible to avoid unnecessary expenses which can eat away at your profits.
A honeymoon interest rate offer provides a special interest rate for a set period, which is offered as an incentive to switch accounts. After the set offer period (known as the honeymoon period) is over, the interest rate will revert to the account’s standard rate. Such offers are made on savings accounts, credit cards and home loans in an effort to attract new customers.
For example, the honeymoon interest rate on a savings account may be 1.5% p.a. for the first 12 months, but after a year it reverts to 0.8% p.a. The difference between a honeymoon interest rate and a standard rate on your savings account can make a substantial difference to how quickly your savings grow, which is why it’s worth comparing with Savvy to make sure you always have the best financial offer available.
This will depend entirely on whether you’ll use or take advantage of them. Think carefully about whether you actually want a new gym membership or a particular pay TV subscription. Do you have spare time to visit a gym regularly? Do you need a new TV channel to watch? Will you use and benefit from the incentive being offered? If you don’t end up using this offer, it shouldn’t inform your decision.
On the other hand, if you’re on the lookout for a new pay TV subscription, it’s well worth comparing offers with Savvy so you get the offer that best suits your personal needs. As another example, if you’re struggling to pay your credit card debt, swapping to a card which offers no interest for a year on balance transfers could give you a financial break and help you get back on top of your debt.