New account switching services are being hailed as the hassle free way for customers to change bank accounts. The new services are being offered by all banks, as well as other lenders, for personal transaction accounts.
Australian Securities and Investments Commission chairman Tony D'Aloisio has praised the service, saying it will now be easier for customers to change accounts by using a better direct debit and automatic payments system.
"The switching services are expected to promote competition by encouraging consumers to shop around for the transaction account that offers the best value for money,'' Mr D'Aloisio said.
Mr D'Aloisio is happy that consumers can make modest savings every month, as they can now shop around to find accounts that have lower, or no fees.
The process involves a customer's existing bank giving them a list of all their automatic payments going back 13 months, and the new bank helps them re-establish these transactions.
But, if you are thinking about switching your home loan, the advice is still to think carefully and check whether exit fees still apply. Exit fees are often high and somtimes cancel out any savings made by switching to a lower rate.
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