Great value to be found in everyday banking

1 August 2013

Great value to be found in everyday banking

CANSTAR releases their best value everyday banking New Zealand award today, collating research of 51 credit cards and 35 transaction accounts across 13 institutions.

Technological progress continues to change the way that New Zealanders access and transact with their money. According to Statistics New Zealand data, the number of electronic card transactions continues to rise, from 85 million transactions in June 2009 to 106 million transactions in June 2013. This high volume of activity means that convenience and cost-effectiveness should be top of mind when consumers are shopping for everyday banking products.

“The two most important aspects of everyday banking accounts are the cost of transacting and the ease of use,” says CANSTAR General Manager – New Zealand, Derek Bonnar. “The interest earned on transaction accounts is negligible or none, so reducing or eliminating fees should be the focus for customers. Thanks to increasing competition, it is quite easy nowadays for savvy consumers to minimise the bank fees they pay.”

The CANSTAR Best Value New Zealand Everyday Banking award gives recognition to the institution that provides the best value combination of transactional products, including both deposit accounts and credit cards, as well as providing online banking and close access to branches and ATMs. This year, the overall award for the institution offering the best value everyday banking across the country goes to Kiwibank.

“In terms of deposit accounts, Kiwibank have great-value transaction accounts for both online-only customers and those who prefer face-to-face interaction,” says Mr Bonnar.

“They also have credit cards to suit all shopping profiles – from a rewards card for those who spend enough to reap the benefits to a low-rate card for those who find themselves owing money. Also importantly, Kiwibank has excellent coverage, with availability at 275+ post branches and 295+ free ATMs across New Zealand.”

Please see the attached report for details of the Kiwibank product and service features assessed for this award.

CANSTAR has provided the following tips to help consumers choose great value everyday banking products.

EVERYDAY BANKING: WHAT TO LOOK FOR

1. Low or no fees. The interest earned on transaction accounts is negligible or none, so the biggest cost consideration should be fees. Some potential fees that consumers may incur include monthly account fees, over-the-counter transaction fees, EFTPOS and electronic transaction fees. Along with this, consumers should investigate for any free transaction offers and any fee rebate conditions.

2. Wide access. Not all consumers need multiple banking touchpoints, however it’s good to know that money can be accessed quickly and cheaply when needed and that personal assistance is easily available. For the purposes of this award CANSTAR looked for a ratio of one free ATM per 10,000 people and one branch per 25,000 people across New Zealand.

3. Great online banking functionality. Great online banking needs to encompass both website and mobile, with recent Statistics New Zealand data indicating that approximately one-quarter of recent internet users access the www via their mobile phone. That percentage jumps to 40% of 25 – 34 year olds.

4. Other features. Features such as the credit rating of a specific institution, the online security offered, account conditions such as minimum/maximum opening balance and other account design features can make a significant difference to the overall usability of an everyday banking product. Personal financial management tools such as calculators are also an added bonus.

“Overall the product offering, coverage, online banking usability and additional financial management services made Kiwibank a standout competitor,” says Mr Bonnar. “We congratulate them for adding the best value everyday banking New Zealand award to their already-impressive achievements.”

More information can be found here.

www.canstar.co.nz.

ENDS

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