CANNEX releases first package banking star ratings report. There are plenty of surprises in store for consumers who opt for popular packaged banking products which roll home loan, transaction account and credit card into one convenient and cost-effective product.
Though the package fee can be steep between $300 and $400 the benefits are also large in the form of discounted interest rates on the home loan, transaction fee banking, and reduced credit card annual fees.
Financial services research group CANNEX has evaluated 20 packaged banking products to award two companies namely, Suncorp and Westpac, five stars rating in the first-ever CANNEX package banking star ratings report.
According to CANNEX, they found consumers can save over $1300 a year by using a package of mortgage, transaction account and credit card, compared to stand-alone products within the same institution. The key to overall savings lies in the discounted interest rate on your mortgage, whether it is variable or fixed, and not all packages are the same.
Packaged banking offers good value for money for those consumers who choose to use the packaged products on offer and take advantage of further discounts on things like home and contents insurance or financial planning services, says CANNEX. But some consumers may not even use packaged credit cards so packages are not for everyone.
According to CANNEX, before being seduced by a home loan discount in a package deal, do your homework and price some stand-alone products. With stand-alone products, you pay for what you use and with packaged banking, you pay for the products, regardless of whether you use them or not.
Advantages of package banking:
View all | RSS Feed 
Access over 2000 Financial and Investment jobs online!
