Finder Loyalty Tax Report from 2020
Finder launches the 2020 Loyalty Tax Report
Eight million Australians are being hit by a “loyalty tax” – paying more for financial products than necessary by sticking with the same provider - according to a new report released today by Finder.
Many lenders and banks will offer discounts to new customers or reduce the costs of their newer products to attract new clients, but existing customers who stay loyal to one provider often miss out. It seems counterintuitive but consumers who stay loyal to one provider for many years can be the ones who miss out on the good deals and the opportunity to make significant savings – and some
groups are more blinded by loyalty than others.
Only 59% of Australians, on average, feel that they’re getting good value from their financial products. This leaves two in five (41% of the population) who either feel they’re not getting good value for money or – worse – have no idea if they are signed up to a competitive home loan, a good value credit card or a high-earning savings account.
The Finder Loyalty Tax Report estimates Australians could be saving up to $8,496 across four common financial products – mortgage, savings, health insurance and credit cards – if they’d switch providers.
Our report analyses consumer trends within the Australian home loan, savings, credit card and health insurance markets. By tracking customer behaviour, it highlights the need to help Australians regularly compare their options to make sure they are always getting the best deals on their financial products.
For example, the average homeowner could save $6,826 per year if they switched from the average variable home loan rate of 4.55% to the lowest rate on the market. The average credit card holder could save $253 if they transferred their balance to a 0% p.a. balance transfer card and the average household could earn a huge $2,346 in interest over three years if they switched from a traditional online savings account to one of the best rates in the market.
For those who don't have the time to do the hard work themselves in comparing products, the new Finder App provides a solution. Connecting live to all of your bank accounts, the app will identify financial products that you have and can be used to find a better deal. It's available right now on Apple's App Store and the Google Play Store.
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