Everyday fees slashed

Is it worth the bother? They all seem to offer low interest rates and a raft of fees. That certainly used to be the case but banks and other financial institutions have been competing more for retail deposits since the global financial crisis. While interest rates on daily deposit accounts are still a joke, many institutions have revamped their products to offer a better deal on fees and services.

Ratings company Canstar Cannex recently rated 470 deposit accounts and concluded NAB offered the best value for everyday banking. But depending on your usage patterns, there is a wide range of accounts available offering better deals than you may currently be receiving.

What was so good about NAB? A financial analyst at Canstar Cannex, Adam Beu, says NAB's decision to take the razor to bank fees last year resulted in NAB's suite of everyday transaction accounts being simplified under the banner of NAB Classic Banking.

"With no monthly account-keeping fees and no conditions attached such as minimum salary deposit, NAB Classic Banking is essentially a good transaction account for regular use and it was head and shoulders above the rest in all user profiles we researched," he says.

The company found the account was outstanding value for both customers using mainly electronic transactions and those wanting full service, though with an interest rate of just 0.01 per cent on $1000, you wouldn't want to keep your savings there.

Beu says St George stood out for its wide range of savings account options, while Victoria Teachers Credit Union was the stand-out in the non-bank sector.

Canstar Cannex rated the 470 accounts for seven different user profiles. Four of these were savings oriented (online savers, bonus savers, cash managers and junior savers) while there were three transaction profiles (mainly electronic transactors, low transactors wanting full service and high transactors wanting full service). It found a wide range of monthly and transaction fees for all three transaction profiles, which emphasises the importance of shopping around. Monthly fees ranged from zero to $35 and there was a wide range of withdrawal, eftpos and ATM fees. In some cases, paying a higher monthly fee resulted in fewer transaction fees while some institutions offer fee rebates. If you're considering changing accounts, the full report is at canstarcannex.com.au.

Hmm. There's still all the hassle involved in switching accounts is that still as hard as it used to be? In 2008, measures were introduced to make it easier to switch bank accounts. It's still not hassle-free but financial institutions are now required to provide information to make the switch easier - within five days of you making the request.

If you want to switch accounts, the Australian Payments Clearing Association says the first step is to open your new account. Don't close your old one yet as you'll need to identify payments coming automatically in and out of the account and have them switched to your new one.

Under the new government measures, your financial institution can be asked to provide a list of direct debits, direct credits and periodical payments made over the past 13 months and must also provide instructions to help identify your internet "pay anyone" payments. There may be a small charge for this service.

Once you have the list, take it to your new financial institution. Under the measures it will help you re-establish those payments on your new account and give your new account details to organisations that you pay or that pay you.

Make sure you leave money in your old account to cover any automatic payments while all this is happening; once it's all up and running, you can simply close your old account. The APCA has information and forms for switching at www.apca.com.au if you want to do it yourself.