Is It Worth It for Me to Change Banks?

Eevee on 23/04/2018 - 09:05
Last edited 23/04/2018 - 10:16 by 1 other user

I've had Commonwealth Bank accounts since I was a teen due to my parents setting it up for me. Since I've started working for a couple of years, I wanted to take my finances in my own hands now.

The accounts I have with Commonwealth Bank are the Goal Saver and Smart access accounts. The Goal Saver is a savings account which realistically would give around 1.65% - 2% of interest (based on how much I'll have in there realistically) and has no other fees. I just need to deposit $200 a month and have to not withdraw more than once a month. This has been fine to upkeep the bonus interest for me.

The Smart Access account is a transaction account which has no fees if you deposit $2000 a month. This is alright for me as well since I just put my salary in there so no fees for me.

I also have a Citibank Plus account for any transactions overseas or in different currencies so I don't get any extra fees for those purposes as well.

Is it worth for me to consider changing my accounts around? The only thing I can see here is I could go to a bank which as higher interest rates (around 2.85% - 3%) but I don't know if that increase is worth while. There may also be other bank accounts which have lower restrictions (eg depositing $2000 a month for the transaction account or $200 a month for the savings account can be hard for some).

Would you recommend me to make the switch for some extra benefit? Or just stay with Commonwealth. Personally, I'm a bit afraid of switching to someone say ING where perhaps a year or two ago they were great and now it's more of a hassle to get the bonus interest with them so I'd have to change banks again. Commonwealth to me is likely to stay the same and be more stress free.

Financial

Comments

  • [Deactivated] on 23/04/2018 - 09:09
    +7

    Do what you want

  • Fergy1987 on 23/04/2018 - 09:30
    +1

    CBA are crooks - get an ING account……..In saying that - I'm with CBA and cant be bothered to change banks :P

  • Clear on 23/04/2018 - 09:52
    +3

    I ditched my CBA Goalsaver for ING Savings Maximiser and haven't looked back. Even though I now have to deposit $1000 and make 5 transactions, the amount earned with interest is significantly more than what CBA ever gave me.

    • Godric on 23/04/2018 - 09:55
      +1

      Not to difficult or tedious to process x5 split transactions to qualify for the bonus, in the end still worth it

      • Clear on 23/04/2018 - 10:07

        Not at all. I just use it to make fuel purchases.

  • Godric on 23/04/2018 - 09:54

    Yes, I was in the same boat and switched banks… make the money you have work for you at maximum interest, don't sit because of loyalty

  • dazweeja on 23/04/2018 - 10:45

    I don't see it as a hassle at all to get the bonus interest from ING. I just use that card for any transaction that's less than $10 and my credit card for the rest.

  • bozbargain on 23/04/2018 - 10:52

    OP, from how you worded this topic, you seem like someone who doesn't really get excited about getting the best possible interest rates and prefers to keep their banking as is. You also seem to have a bit of a bond with CBA, perhaps because you feel they've been good to you or maybe you just like their brand. You mention the word 'stress' as well. I would compare the interest you're getting today compared to the 2.85%-3% you quoted earlier. Would the annual saving be $5, $50 or $500? If the thought of swapping banks and the process involved to save a $5/$50/$500 annually is stressing you out, then don't do it.

  • AdamFury on 23/04/2018 - 11:10

    Hi mate. Very similar situation to you. Stayed with Commonwealth Bank since I was 16 and recently swapped everything over to Ubank. 2.87% IR. No fees. Sweep function is fantastic.

  • pantsparty on 23/04/2018 - 11:45

    Macquarie Bank for your transaction account. No monthly deposit requirements, you can use any ATM in Australia for free (including ones which charges a hefty fee like at RSL clubs and the casino - Macq Bank refunds the fee you pay instantly) and there are no foreign currency transaction fees for online shopping you do from overseas.

  • argonide on 23/04/2018 - 11:55

    If you're not comfortable moving both your transaction and saving account, consider making smaller moves.

    For example you could move your CBA Goal Saver (1.65%-2%) to a NAB Reward Saver (2.5%), it has the same requirements except it has no minimum deposit (just make any deposit), it has no fees, doesn't require a linked transaction account, you're still with a Big 4 bank, they're both on the NPP so transfers between them are instant.

  • Some Human on 23/04/2018 - 12:24
    +1

    You don’t have to change banks, just open accounts with new banks and move the money around. I prefer to have a few different banks so all my eggs are in a few different baskets.

    • T-man on 23/04/2018 - 23:25

      Unless you have the fee free bank accounts and don’t have a homeloan. Personally, I put all the money in my homeloan account to reduce the interest on the homeloan.

      • Some Human on 24/04/2018 - 10:45

        If OP had a homeloan, I imagine the title of the thread would be different, "Should I put my savings in a different bank or throw it all on my home loan?"

  • Oofy Doofy on 23/04/2018 - 15:34

    Citibank as my Bank@Post deposit account, Macquarie as my normal transaction account.

  • Gandalf the Thrifty on 23/04/2018 - 16:53
    +1

    Just open more accounts and see what you think of other banks (just make sure you avoid account fees) then when you realise you have too many tiny accounts close down the ones you don't need/like.

  • realfancyman on 23/04/2018 - 18:22

    I have accounts with many banks including my Commonwealth which I've had since I was 3 (opened by parents). I'm now 14 so the account (Smart Access) is fee-free for me so I might as well keep it open. I don't keep much money in there and mostly use it just for Cardless Cash.

    My savings account is constantly being switched around but right now it is with Commonwealth Bank. I signed up for their Netbank Saver which was offering 2.5% interest for 3 months which I took up, then after that expired I called them and got 2.05% for another 3 months. I'll stay with them as long as they keep offering me over 2%, or until another bank offers over 3%.

    Before that it was with ANZ in their Online Saver, the products are pretty similar and you can keep calling them every 3 months and they'll usually offer you over 2%.

    • Oofy Doofy on 23/04/2018 - 18:33
      +1

      14 and already interested in this stuff? Colour me impressed.

  • Geekomatic on 24/04/2018 - 14:05

    What about this one?

    https://www.mebank.com.au/lps/osa/high-online-savings-accoun…

    You only have to "tap-to-pay" once a week to get 2.85%.

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