Changing to a Non-'big 4' Bank. Suggestions ?

Widget on 03/12/2022 - 03:25
Last edited 04/12/2022 - 01:55

Hi all,

Currently with Commonwealth Bank and UBank (NAB) but I'm looking to move to one of those Banks that aren't connected to a Big bank. Not sure what other names there are for them, I think one is a 'Credit Union'.

I'm not savvy when it comes to this sort of thing, was wondering if anyone had experiences or recommendations ? I have heard of the following, so may have to read more into them,

  1. Heritage (which I've read mentioned a few times)
  2. Bendigo
  3. Bank of Us (though I think it might be for Tasmanian residents only)
  4. Macquarie

Is there anything you guys suggest I look into, or recommend from experience ?

[edit] Having access to a branch would be a bonus, but doesn't need to be down the road. I can't recall the last time I went into Commonwealth bank branch. We have a Bendigo nearby and a Heritage an hour away. Doesn't look like Macquarie has branches just some offices near the city.

I try and use cash when I can so having access to cash out is pretty important (which from the comment apparently Macquarie don't do cash-out?).
At minimum, cash out at an atm would be best (no fees though).

Also, having 2FA for transfers or logging in would be super.

Financial

Comments

  • Kyle-K on 03/12/2022 - 04:02
    +4

    First I would take a look at this wiki article and I think you'll find this useful annual poll helpful as well. The OpenComparison Community Leaderboard is also good for reviewing savings rates.

    Like if your soul purpose is to avoid a big bank with all the consolidation and buyouts happening in the industry both from the big four and smaller credit union mutual banks in Australia merging with one another.

    I think long-term you're setting yourself up for disappointment.

    I recommend people consider the utility model get the best product for what you need it for and check in regularly to make sure you're getting the best deal and solution for your needs.

    My personal bank setup has multiple banks in the lineup and I'll often review it and switch it up based on the offerings in the market and features offered.

    • fantombloo on 03/12/2022 - 08:39
      +1

      if your soul purpose is to avoid a big bank

      Love it. This is indeed the case with me, both ways. I have not been with a big4 for over 20 years. I hear people complain about the big4 all the time yet they keep going to them - WtF is with that?

      I am with a credit union for all my accounts - personal, a few business, smsf. Always done me well. I do have an Amex - have had it since before I switched to the credit union and kept it - and Citi (now nab) cc from the free premium deal that was so popular here, so maybe I'm cheating a bit.

      Unless there is a specific banking product / service you need then I can't see what the big4 can offer you better than the alternatives.

      • Widget on 04/12/2022 - 01:54

        That's like me unfortunately lol. I've been meaning to change from Commonwealth Bank for years, for some reason it always slips my mind :/.

        What Credit Union(s) are you with? I don't need anything specific tbh. I just need a better place to park my money that I can access with Debit Card (Eftpos, Cash-out, atm). I don't use apps or apple/google pay at all, not into all that stuff.
        I suppose a bank that supports 2FA for logging in, or transfers would be good.

        • fantombloo on 05/12/2022 - 10:22
          +1

          Right now I'm with Community First. Their cover (with branches) is limited so may not be the right one for you. However if you get cosy with a branch they can help out much remotely - eg. rather than visit a branch (or even a NAB branch / ATM, who would accept on their behalf) to submit cheques (doesn't happen much any more) I just post them in. Also no 2FA for internet banking that I'm aware of.

          Good luck. There are heaps of options out there. The larger the credit union the more impersonal they are, much like the banks, but at least they're not them - so consider that if it's important to you. I was previously with another smaller credit union, unfortunately usurped by a larger one. That was the best - I and the manager were on great terms, it was like traditional bank managers and their customers in the movies, we'd sit and have a drink and chat about things - he helped out in so many ways, especially when I was starting out with my own business and no other bank would look at me - he learnt I was good for the things I requested and a handshake was enough to get the gears moving on things that would normally require reams of paperwork to just get started. Gave me some great advice, not just about banking things. Unfortunately that credit union is now gone and that manager died - I followed him till the end, he was the real deal.

    • Neoika on 03/12/2022 - 09:00

      My personal bank setup has multiple banks in the lineup and I'll often review it and switch it up based on the offerings in the market and features offered.

      Yes, multiple setup is the best way, which is also Scomo's portfolios.

    • Widget on 04/12/2022 - 01:44

      Thanks heaps for those links :). I'll have a read through and see what they offer :)

      Not sure what my long-term goals are, just trying to get organised these days lol.

      utility model sounds good, that's partly reason I went with ubank at the time, for their better interest rates. They've changed a little with their web-interface (moved to their app) but I don't like using apps, rather their web-interface.

      So you change bank-to-bank depending on what they offer ?

  • SBOB on 03/12/2022 - 07:04
    +2

    What's your reason for wanting to get away from the larger banks?

    Likely need to work out your must have list, as for example, Macquarie doesn't support EFTPOS.

    I'm currently with old ubank and weighing up whether to look at alternatives beford it transitions to new ubank.

    • holdenmg on 03/12/2022 - 07:14

      Macquarie offer Platinum Debit Mastercard, Apple Pay and Google Pay.

      • soan papdi on 03/12/2022 - 07:32
        +1

        But no eftpos. ATM usage is fine but can’t do cash out at colesworths for example. Maybe irrelevant to some but important to others

    • Widget on 04/12/2022 - 01:47

      Big banks have never really offered much but have account fees. Having the branch access has it's benefits but I haven't entered them in years and cash-out is usually done via EFTPOS or ATM.
      When you say Macquarie doesn't support Eftpos, you mean ash-out of debit card (savings) ? I usually get cash-out at the checkout, but is Macquarie doesn't do that, it may be a killer :/.

  • holdenmg on 03/12/2022 - 07:12
    +1

    The "Bank of Mum and Dad™" is a non-Big 4. lol

    Peoples Choice and Heritage are merging.in March 2023
    https://www.peopleschoice.com.au/media-centre/2022/members-a…

    Look at whether having a Branch network is important to you and if your choice supports that.

    If you travel (Interstate/Overseas) having a Branch from a Big 4 can be helpful.

    In theory, you can use Bank@Post for many Banks:
    https://auspost.com.au/money-insurance/banking-and-paying-bi…

    • Widget on 04/12/2022 - 01:50
      +1

      No bank of mum and dad lol. Is the merge of Peoples Choice and Heritage a good thing or bad? I'll have to have a read of the article.

      Branch network is semi-import (if I need it) but I haven't used a branch in years, though if I do need to access one, it'll be good to have one. Most of the time I do cash-out at the checkouts or ATM, so those 2 would be important.

      I'll check out the Bank@Post, thanks for the suggestion :)

  • boomramada on 03/12/2022 - 07:16
    +1

    I stick to big four bags, they probably have better reputation for security compared to others.

    https://www.news.com.au/finance/money/costs/microsoft-scam-d…

    Their apps are way better. Eg CBA

    • dcep on 03/12/2022 - 16:32

      Do we have a list of banks that offer authentication via app, rather than sms ?

      CBA
      Citibank
      Macquarie
      …..
      ….
      …

    • Widget on 04/12/2022 - 01:58

      Apps I've never really used. When I make new bank transfers with CBA, that send me an SMS. After that, no additional SMS. Understandable about Bank Security, I jsut read a story about an elderly couple losing $250k from Bendigo bank :/

      I'll have to check if these smaller banks offer 2FA for transfers and logging in. :/

  • HamBoi69 on 03/12/2022 - 07:31
    +4

    Having recently switched to Macquarie I am scratching my head as to why I didn't do this sooner. The interest rates are great, and customer support, eeewwhhhh could be better but hey it is a bank. The card arrived within 3 days of opening my account and it was really a quick and simple process to join ~5 minutes. The Macquarie marketplace includes a good selection of discounted gift cards every day, which is a nice add-on. No fees whatsoever and ATM withdrawals are free. As soon as you sign up you can add your card to Apple/Google pay and start using it immediately. Highly recommend.

    • Widget on 04/12/2022 - 02:00

      What ATMs can you use? Could you use a Big4 Bank ATM for cash out or has to be one of those 'supports different banks' type ATM?

      Can you confirm there's no Eftpos cash-out (ir at supermarkets etc..) ?

  • soan papdi on 03/12/2022 - 07:36
    -1

    ING offer a good deal with their transaction account. Deposit $1000 (can be removed immediately) and do five cleared transactions per month with the card (tap or online).

    Their savings offering has too many hoops to jump through IMO

    • Widget on 04/12/2022 - 02:03

      I did look at them originally before I went to Ubank. I don't think I can do $1000 deposits at this stage. In the first comment by Kyle-K, the 3rd link "community leaderboard", it states for ING,

      "Additionally from 1st March 2021, "you must also ensure that the balance of your nominated Savings Maximiser account at the end of the month (excluding interest) is higher than it was at the end of the previous month"."

      So if you put in $1000 then remove it, your account would be $0, which means you wouldn't get the bonus interest, right?

      • soan papdi on 04/12/2022 - 07:57

        Yes that removal won’t work for the savings account. I only have their transaction account and am happy with it.

  • apple2016 on 03/12/2022 - 08:59

    I am with bank australia just to avoid the big 4. But their customer care is shit!

    • Neoika on 03/12/2022 - 09:01

      It can be shitter in case you don't know.

    • dcep on 03/12/2022 - 16:37

      i thought they have physical branch across major states in main cities.

      • Widget on 04/12/2022 - 02:08

        Looks like they have 1 in each State (QLD, NSW, ACT, VIC, SA). No love for Perth or Darwin though.

      • apple2016 on 09/12/2022 - 15:06
        +1

        The branch is hopeless as well!

    • Widget on 04/12/2022 - 02:06

      Thanks for the suggestion, I'll look into them further :).

  • Switchblade88 on 03/12/2022 - 12:29
    +3

    Bendigo password policy:

    Your new Password must be exactly eight characters long, containing at least one number and one alphabetic character

    So take this (lack of) security into account.

    • Neoika on 03/12/2022 - 12:34

      It only helps hackers to narrow down the scope of password.

    • SBOB on 03/12/2022 - 13:54

      How anyone working in any form of backend it/security can't see the stupidness of such password policies is beyond me

      Its not like the hashed password ends up as 8 characters anyway (you would hope)

      • Switchblade88 on 03/12/2022 - 14:04
        +1

        I believe it comes back to the old COBOL backend systems they were (are??) using. The story goes that even caplitalising made NO DIFFERENCE when entering the password - everything was converted to lower case anyway. And anything longer than 8 characters would be truncated.

        Unfortunately banks have no viable way to do major upgrades - you can't afford to take the old system offline for any time period at all, you can't make any mistakes or roll back transactions that are wrong, you can't change UX for staff or customers without alienating someone who WILL complain.

        • SBOB on 03/12/2022 - 15:16

          Crazy, though you would think that the hashing of the password could be performed client side to allow for password rules to be changed while still maintaining any backend limitations.

          Guess it's one of those too hard basket ones until it's breached and then everyone wonders why it was so poorly setup :)

    • Widget on 04/12/2022 - 02:09

      If that's the case, do you know they (or other smaller banks/credit unions) offer 2FA ?

  • payless69 on 03/12/2022 - 12:51

    MyState in Hobart
    no BS, just real nice banking

    avoid Suncorp, and ALL foreign banks incl Ing, one miss means 2 months no interest well the base they even failed at calculating 0.55%!

    • Widget on 04/12/2022 - 02:22

      Thanks for the suggestion, I'll check them out :).

  • Leanne59 on 03/12/2022 - 14:09
    -1

    I've been with Suncorp since before it was Suncorp and have never paid fees and their bonus interest on their savings account is comparable. You don't have to do "Simple to earn – just deposit $20 & make 5 eligible transactions" like with MyState and a lot of other banks. I don't want to HAVE to do eligible transactions in order to get bonus or high interest on my savings.

  • Widget on 04/12/2022 - 01:35

    Oh thanks for all the feedback guys. Sorry for the lack of details in the original description, I'll update it now.

    Having access to a branch would be a bonus, but doesn't need to be down the road. I can't recall the last time I went into Commonwealth bank branch. We have a Bendigo nearby and a Heritage an hour away. Doesn't look like Macquarie has branches just some offices near the city.

    I try and use cash when I can so having access to cash out is pretty important (which from the comment apparently Macquarie don't do cash-out?). At minimum, cash out at an atm would be best (no fees though).

    I'll read through the comments and reply to them. Thanks :)

    • Widget on 05/12/2022 - 19:41

      Thanks for the suggestion :). Do you bank with them yourself ?

      • the Unforgiven on 05/12/2022 - 20:20

        Blood oath. I moved to them from bankWest a year ago & I couldn't be more happy.
        They are the biggest credit union in Oz for the people of Oz
        The bank is not in the 19th century like bankWest, it is in the 21st century; thank f*%k,
        bankWest was starting to get on my nerves in the end with thier archaic ways
        At GSBank I am a happy customer

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