When it comes to financial products, many of us are happy to just set and forget.
If it’s not broke, don’t fix it, goes the mantra. Plus who wants to be stuck on the phone for half an hour on their lunch break switching bank accounts when they could be doing, well, anything else?
But this apathy is expensive.
New research from Monetise, a platform that calculates the savings consumers can make across their personal banking products, shows that sticking with the same super funds, bank accounts, credit cards and home loans can cost the average consumer up to $2,089 per year.
The largest potential savings can be found on home loans, where indifference costs on average $4,179 in extra interest payments every year, representing a 17 per cent premium to the cheapest alternative in the market.
“It’s clear that while market home loan rates are continuing to drop, consumers are yet to take up the savings on offer,” said Monetise CEO Taichi Hoshino.
“The Reserve Bank’s recent rate cuts are now flowing through to the market but consumers aren’t taking advantage of these savings. Those who aren’t could be paying far more than they should be on their mortgage.”
Ninety-two per cent of Monetise users with a home loan would save at least $1,000 per year by refinancing or switching to a better product, he said.
But it’s not just home loans. Switching your super to a more competitive offer, kicking off a balance transfer to reduce your interest bill, or moving your money to a market leading high interest savings accounts can save you big dollars.
So what are you waiting for? Review your financial products today and save.