Big Four brands’ better deals

CONSUMERS may be dudding themselves of competitive deals by banking with the Big Four banks ahead of smaller brands they own anyway.

Three of the nation’s big four banks – National Australia Bank, the Commonwealth Bank and Westpac – all own subsidiary brands many Australians bank with but may not realise they are offshoots of the largest financial institutions.

Analysis by financial comparison website Mozo found in many cases customers can score cheaper deals on products including home loans and credit cards by going with the smaller brands.

Examples from their database includes:

NAB offers a variable home loan rate at 3.35 per cent, compared to their offshoot UBank that offers a cheaper deal at 3.09 per cent.

The Commonwealth Bank low rate credit card rate is 13.24 per cent compared to their subsidiary institution Bankwest’s Breeze Mastercard with a rate of 12.99 per cent.

Westpac’s basic home loan rate is 3.58 per cent compared to their subsidiary BankSA at 3.29 per cent.

Mozo’s spokeswoman Kirsty Lamont said customers should understand who they bank with and whether they could get cheaper offers by going with a subsidiary brand.

“Many Australians would be unaware there are now a number of smaller very competitive challenger brands out there that offer low rates and competitive products that are actually owned by the big four banks,” she said.

“In most cases you are going to be paying a premium to bank with the big four banks.”

Financial adviser Scott Haywood said the sub-brands could offer cheaper deals but they might not always leave customers better off.

“When you are going with a lower-tier bank they may not have the liquidity and flexibility to pass on full mortgage rate discounts or benefits,” he said.