Bank customers 'should switch to a better deal'

Those customers unhappy with their current bank should consider switching to a building society or credit union, it has been suggested.

Research carried out by InfoChoice on the behalf of the Herald Sun reveals that despite the dominance of the country's big four banks, it is often mutuals and building societies which offer more competitive deals on saver accounts, credit cards and other personal finance products.

However, some unions were shown to charge transaction account customers using their network of ATMs.

But Sean Cornelius, of InfoChoice, points out such fees could be reduced depending on what other products a consumer holds with that organisation.

"Many people think it's only the banks that enjoy the government guarantee on savers' deposits," states Louise Petschler, of mutual representative group Abacus, although she claims credit unions and building societies have the exact same backing, so depositors' cash will be completely safe, wherever they place their money.

Earlier this month, prime minister Kevin Rudd called on people to shop around for competitive credit card deals as the rates they offer can "vary enormously".

Written by Ashley King