Beware Current Bank Offers!

The banks are at war with each other!

Each major bank is offering some type of incentive for consumers to switch from their current lender. Offers such as cash rebates, discounted interest rates, exit fee payments, iPads, TVs etc. Behind these offers there is always devil in the detail and before making a change it is vigilant to see if you will be better off.

It also surprises me that the offers only apply to new customers looking to switch from their current lender and not to existing customers. I thought it would be better practice to retain customers rather  than try to gain new ones. So for those who are unhappy with their current lender see what they will do for you before considering switching lenders.

Another thing that interests me is that the banks are complaining about the higher cost of lending and have increased interest rates beyond the RBA recommendation. All of a sudden cash give aways and discounted rates seem to be the norm at the moment. I say at the moment because things can change very quickly and the banks will get the money back in some way.

My point here is to be careful. Having been in the industry for 7 years I have seen all the marketing tricks and eventually the customer always seems to get the raw deal. Choose carefully or speak to an industry professional to help you make a decision.