Member services online Members Not registered Pensioners For employers

Can banking be cheaper? The latest news from Members Equity.

Electronic banking was introduced to make banking cheaper … so why isn't banking cheaper?

Remember when your bank told you that electronic and phone banking was going to make banking cheaper? Well it is – for the bank.

While you're banking over the phone, Internet or via EFTPOS machines, your bank is saving money by having fewer branches and fewer staff.

If your hard-earned cash is earning little or no interest, you might well be asking, why am I being charged for just about everything, when the cost to banks has reduced?

The truth about fees

Imagine for a moment what one thousand million dollars might look like. It’s easy to throw around terms like ‘a billion dollars’ without thinking just how many hard-earned Aussie dollars is needed to make a billion. And the truth is that Australians paid bank fees to the tune of $7.8 billion dollars in 2002.

Household accounts were charged 2.7 billion of those dollars, and one third of that figure, or around nine hundred million dollars, came from the fees ordinary Australians paid on their deposit accounts. Overall, fees to households increased by 17% from just the year before.

The major banks charged an average of $5.25 per month as an ‘account keeping’ fee in 2002. On top of that the major banks charged an average of 45 cents for each phone banking transaction and 25 cents for each internet transaction in excess of those included in their account keeping fee.

How can you get a fair go for your money?

If reading so far has caused your blood pressure to rise, we hope to give you some comfort. There is a way to get a fair go for your money with low-cost accounts such as the Members Equity InterestME Savings Account.

Consider comparing your existing transaction or savings account, with what the InterestME Savings Account offers you, such as:

  • FREE direct debit
  • FREE phone banking
  • FREE Internet banking
  • NO ongoing account-keeping fees
  • Access to your funds whenever you wish
  • Competitive interest – 4.25%p.a. for every dollar over $3,000 and 0.25% p.a. on every dollar up to $3,000.
  • No minimum balance required
  • 15 free EFTPOS transactions a month - each ATM, EFTPOS (after the first 15), cheque and giroPost transaction attracts just a $1 fee

To find out more about an InterestME Savings Account

Call Members Equity on 1300 654 990 between 8am and 8pm Monday to Friday, or 9am and 5pm (AEST) on Saturdays. Or visit our website at www.membersequity.com.au/interestME

Win $1,000 credited to your ME account

You may have already seen that Members Equity is running a competition for members – the good news is that it’s still not too late to enter.

If you already have an InterestME account, all you have to do is make sure your balance on August 29 is at least $500 more than your balance on July 1 and you could be one of 10 people to win $1,000 credited to your account. It’s that easy.

If you don’t have an InterestME account, simply open one and have a balance of at least $500 by Friday, 29 August 2003. Opening an InterestME Savings Account is easy. Just log on to www.membersequity.com.au/interestME and download an application or call us now on 1300 367 990 and we’ll send you information so you can avoid paying bank fees now.

IT'S IMPORTANT YOU KNOW

Fees and charges apply. Terms and conditions for InterestME Savings Account available on request.

This article does not consider your specific needs and should not be regarded as advice. Please ensure you look at your own financial position, objectives and requirements before making any decisions,and consider the appropriateness of the information, having regard to your objectives, financial situation and needs. You may wish to consult a licensed financial planner to do this. All care is taken to ensure this information is accurate, however, neither the PSS/CSS Boards nor the Commonwealth Government take any responsibility for the services, or guarantee the performance of any product provided by Members Equity.

Source for 2002 fee information: Banking Fees in Australia, The Reserve Bank of Australia Bulletin, 3 April 2003. Interest rates correct at 1 July 2003 and are subject to change. Fees and charges apply. Terms and conditions for InterestME Savings Account available on request.

The competition is conducted by Members Equity Pty Limited, 23/360 Collins Street, Melbourne. The competition commences at 9:00am on 01/07/03 and closes at 5:00 pm Melbourne time 29/08/03. For a complete copy of competition terms and conditions visit www.membersequity.com.au or call 1300 367 990. The electronic competition draw will be held at 3:00pm 12/09/03 at Level 11, Tower B, Zenith Centre, 821 Pacific Highway, Chatswood, NSW. The winners' names will be published in The Australian on 24/09/03. Permit numbers: ACT TP03/2130, NSW TPL03/05263, VIC 03/1398, NT NT03/1928, SA T03/2092.