For those in Perth always looking for a better, faster, cheaper way

Tuesday, May 7, 2013

Wait.. You're still paying monthly bank fees??

I used to pay $5 per month for a bank account that did nothing more than temporarily hold my money before my online saver account or my home loan got it. Then I found out about Bankwest's Hero and Zero accounts. I made the switch and posted about it here. Two years on, looking at the big bank profits, I think people still haven't switched. Even though they do the same, one account charges you interest, and the other pays you interest. Since switching, I would have earned about $120 with the Hero account. With the Lite Transaction Account, I would have instead paid $120 of monthly fees. That's $240 for the switch.

Like most transaction accounts, the Hero allows you to get free unlimited number of over the counter and ATM withdrawals. It also pays you 3.5% interest on any balance you have in the account (up to $5000) calculated daily.

The Bankwest Lite Transaction account still charges people $5 / month and pays virtually no interest (well, 0.01% to be exact). So why do they have this account? Because not everyone researches their options.

I noticed that Bankwest has been pushing their Zero account quite a bit lately. The Zero acount allows you to withdraw cash without fees from any ATM amongst the big four banks - ANZ, CBA, Westpac and NAB. Perhaps you didn't realise, Bankwest customers can already use any Comm Bank ATM for free? Unless you live in a place where there are no Bankwest and Commonwealth Bank ATMs (and where would that be), why would you choose the Zero account? Even if you do, just don't be on the Bankwest Lite Transaction account.

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