Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fees and rates: savvy shoppers can get bang for their buck

media release


Fees and rates: savvy shoppers can get bang for their buck

CANSTAR releases its 2014 deposit accounts star ratings report today, researching and rating 59 products from 12 institutions across six transaction profiles to determine which deposit accounts offer outstanding value for consumers

Significant difference in interest rates on offer

With the official cash rate rising three times already this year - and deposit account interest rates not keeping pace, on average, with those changes – CANSTAR analysis finds that it is more important than ever for savers to shop around for a good rate on their cash.

“Looking at online saver accounts as an example, our analysis has found that the average increase in interest rate being paid has been just 0.23% this year,” said CANSTAR General Manager – New Zealand, Derek Bonnar. “That’s against a rise in the official cash rate of 0.75%. While on the face of it that news is discouraging to savers, it’s important to note that there is a significant variation in the rates on offer. Of the online saver accounts researched by CANSTAR, the top-quartile rates average 4.15%, compared to the bottom quartile at 2.33%. So when it comes to at-call accounts, savers absolutely must shop around.”

Then there are the bonus rates on offer, with CANSTAR advising that a selection of well-rated bonus offers currently available include:

Significant difference in fees as well

When it comes to transaction accounts, CANSTAR has found that setting aside time to research their transaction account options could potentially save shoppers some handy cash each year.

“There are a wide range of transaction accounts available in the market and there will be an account to suit the needs of all types of shoppers,” said Mr Bonnar. “Unfortunately though it’s easy to have a set-and-forget mentality when it comes to bank accounts. We don’t tend to change our bank account structure as often as we change our spending habits. This can lead to us paying out a lot of money in fees that we could otherwise avoid.”

When it comes to transaction accounts, CANSTAR have calculated the minimum, maximum and average fees that consumers could attract, based on the products researched, as follows:

Low Transactors (around 10 transactions per month) could pay –

• A minimum of $0 per month

• A maximum of $27 per month

• An average of $7 per month

High Transactors (around 40 transaction per month) could pay –

• A minimum of $1 per month

• A maximum of $126 per month

• An average of $20 per month

Electronic Transactors (around 25 transactionms per month, mainly online) could pay –

• A minimum of $0 per month

• A maximum of $84 per month

• An average of $13 per month

Mr Bonnar encourages consumers not to be put off by the hassle of changing financial institutions. “Switching institutions isn’t that difficult,” he said. “Generally speaking, you can give your new banking institution a written authority to contact your old bank and get hold of all your details. Your new bank will be able to open your new account, switch over any automatic debits and credits and close your old account for you. There may be a crossover period of a week or two where both accounts are running, but it shouldn’t cause too many headaches.”

Where to start the search for a great-value product? CANSTAR has taken the hard work out of it with their deposit account star ratings report. In total CANSTAR has found:

• 4 accounts that offer outstanding value for Electronic Transactors

• 3 accounts that offer outstanding value for High Transactors

• 3 accounts that offer outstanding value for Low Transactors

• 2 accounts that offer outstanding value for Online Savers

• 3 accounts that offer outstanding value for Full Access Savers

• 4 accounts that offer outstanding value for Regular Savers

Consumers can download the deposit account star ratings report at www.canstar.co.nz


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news