Failure to shop around 'costs consumers dear'

Seeking out the best deals on credit cards and other financial products could save people more than $6 billion each year, it has been suggested.

A failure to compare accounts is seeing Australians shell out billons of dollars more than is necessary, new research indicates.

Figures from InfoChoice reveal that banking with the country's major four financial services providers instead of getting the most competitive credit cards, saver accounts, mortgages and car loans offered by other firms is seeing people lose out on $6.1 billion.

With the study based on having a typical transaction account, around $2,000 in credit card debt, a $300,000 mortgage and $25,000 car loan, the firm states that switching to the lowest-price products could save the average person $3,800 each year.

"By shopping around for better deals and looking outside the majors, Australians can ensure competition remains in the sector and push the cost of banking down even further," InfoChoice chief executive Shaun Cornelius states.

However, Mr Cornelius claims that the financial crisis has driven many to bank with the big four due to a perception they are more secure than their smaller competitors, although he states there is no real evidence to back this.

Indeed, KPMG banking partner Martin McGrath recently claimed that despite experiencing a number of challenges over the past 18 months, regional banks are in "good shape".

Posted by Joe Letts