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.

* Based on a $150,000 loan over 25 years. 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.