Consider the mutual option, says ABA
13 April 2010
The Australian Bankers’ Association says banks might not be the best choice for many customers – and that bank clients should look at going to a credit union or building society.
Comments by the ABA as reported in today’s Daily Telegraph are a welcome recognition that Australian consumers do have choice about where they obtain banking services.
“The ABA is telling it like it is,” says Louise Petschler, Abacus – Australian Mutuals CEO. “According to recent independent data from Canstar Cannex, average standard variable mortgage rates at credit unions are 57 basis points cheaper than the major banks’ average. Building societies’ average standard variable rates are 50 basis points cheaper than major banks. And on 3 month term deposit rates, our members, on average, offer 1.58% more interest on your money than the average rates offered by banks,” [1] Petschler says.
“And because they’re mutuals, credit unions and building societies are owned by their customers and are not trying to maximise profits for external shareholders. Instead, you, the member, have an ownership stake and profits go back into providing better products, lower fees and exceptional service,” Petschler says.
“As the ABA says, vote with your their feet and switch if you are not happy with your bank. Building societies and credit unions are subject to exactly the same, strict prudential regulatory regime as banks, and deposits of up to $1 million in all regulated banking institutions are covered by the Government’s Financial Claims Scheme.
“Experience the outstanding customer service and excellent value for money that 4.5 million Australians already know about. Go to www.abacus.org.au to find a credit union or building society near you,” Petschler says.
For more information, please contact:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
02 8299 9024, 0423 843 790,
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
[1] Data from Canstar Cannex on 9/04/10, www.canstarcannex.com.au. Based on 3-month term deposit of $10, 000, Building societies offer, on average, 1.58% more than the average rate of banks and credit unions offer, on average, .81% more than the banks’ average.
