Big banks give customers 27 billion reasons to consider alternatives

   

Australia’s four big banks have given customers 27 billion reasons to consider whether they can get better value from customer-owned alternatives, Heritage Bank CEO Mr John Minz said today.

The four big banks have recently announced $27 billion in combined profits for the 2012/13 financial year. That’s almost $1200 for every man, woman and child in Australia.

Mr Minz said the large profits showed the big banks were doing a very good job in generating dividends for their shareholders.

But does that mean they give the best value for someone looking for a home loan or somewhere to invest their savings?

“The big banks are owned by shareholders and their job is to maximise profits so they can pay them the best dividends possible,” Mr Minz said.

“The $27 billion in combined profits indicates that they are doing that very well.

“But customer-owned banks like Heritage don’t have shareholders, so we don’t have to target huge profits and pay out any dividends.

“In fact, we keep all the profits we make and put them back into providing better value for our customers.

“That translates into better interest rates, fewer fees and charges, and better service.

“Analysis by research company Canstar found that in the 2012/13 year, Heritage customers were $40.7 million a year better off banking with Heritage rather than one of the big banks on average. That comprised a $9.6 million benefit in better rates and fees on our lending products, and a $31.1 million benefit because of better rates and fees on our deposit products.

“At the same time, our customer satisfaction ratings are also well above those of the big banks.”

Mr Minz said many customers stuck with the big banks out of habit, or because they did not realise there were viable alternatives available that could give them a better deal.

“With the big banks announcing these huge profits, now is the perfect time to think about switching,” Mr Minz said.

eHeritage offers a full range of banking products and services, can save you money and can give you a more satisfying banking experience.

“It’s time to consider a bank that puts people first, not profits.”

For more information about Heritage, call into a branch, check out the website at heritage.com.au or ring the Contact Centre on 13 14 22.

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

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