Flirt with your cash

Sticking loyally to the one bank might actually be costing you money, writes Sophie Elsworth

spokeswoman Abigail Koch said the confusion made it hard for many consumers to better understand their usage and choose the most suitable provider. Instead, they were tempted by introductory offers and advertised discounts.

“Typically, an energy bill is a raft of numbers …and it’s hard to keep track of what means what,” Ms Koch said.

“If you want to compare, look at the kilowatts per hour rate and compare that to your own usage, which will be on your bill,” she said.

“You also need to understand the service charge, which is the cost of actually getting power to your home in the first place. Discounts usually apply to usage charges but the service charge is always the same.”

Ms Koch said steer clear of one-off offers, unless they are suitable long term.

“You have your meter read every three months and providers require an up-to-date reading, which means switching could take up to three months depending where you are in the cycle,” she warned. “You also want to check there are no termination fees (in your current agreement).” LOYAL banking customers sticking with the one financial institution for all their products could be doing themselves more financial harm than good.

About half of the population (47 per cent) admit to sticking to what they know and keeping all their banking in the one place, while 34 per cent of people have a least two banks, new figures from financial comparison website Finder.com.au has shown.

But the old adage, “don’t put all your eggs in one basket” rings true with financial experts and Finder.com.au spokeswoman Bessie Hassan said “loyalty doesn’t always pay off in the financial world.”

“Being loyal to a single provider may be convenient but more often than not it won’t get you the best deal,’’ she said.

“Generally it’s more costeffective to cherry pick your financial products.

“Whether it’s your home loan, a car loan, broadband, or even a mobile phone plan – shopping around and comparing products based on price and features will ensure you wind up with a product that actually suits your needs.” Banks often work hard to lure customers in to signing up to multiple products. They may offer package deals to potential home loan customers, for instance, which usually include an everyday banking account and a credit card.

Sometimes customers are given heavier discounts on signing up to package deals for “bundling” multiple products together, but Rising Tide Financial Services’ Chris Browne urges consumers to “hand-pick” their banking products.

“Make sure you shop around because there are some fantastic deals out there at the moment; it’s such a competitive marketplace,’’ he said.

“It’s highly unlikely that a single bank would have the best product in every area.”