Thousands join truth in banking campaign
Nearly 7,000 Australians have joined the Seven News campaign demanding a better deal on interest rates.
They're hoping strength in numbers will force the big banks to give struggling families a fair go.
One of them is Jo Bryant, a mum of three kids who has had a $300,000 plus mortgage for the past three years.
She wanted to know the difference it would have made had her bank passed on the Reserve Bank's full interest rate cuts.
The truth in banking calculator showed she was paying an extra $274 a month because her bank hadn’t passed on the full interest rate cut.
She said: “we could pay for swimming lessons for three small boys coming up to summer which I don't have the money for at the moment we could be paying for an extra day of childcare so I can go back to work.”
Thousands of people have now signed up to OneBigSwitch's rate gap calculator which shows among the big 4 banks Westpac as most out of step with the Reserve followed by the Commonwealth.
And among these regional banks, the biggest gap is with B-O-Q and Bankwest.
Financial Services Minister Bill Shorten says customers deserve the best deal.
He said today: “I'll certainly be joining this campaign information is power.
“It is important that these banks understand they owe part of their success to the backing of the Australian people.”
But the banks still insist their money doesn't come cheap.
They've got a dim view of the Truth in Banking comparison.
Tony Burke from the Australian Bankers Association says: “We think its misleading because it doesn't take into account bank funding costs.”
But even they encourage customers to shop around for the best rates.
Anthony Bell from Bell Partners says: “Today you should be looking for something that starts with a 5 in front of it and heading down from there.”
Actually finding information, knowing where you stand that's the first step to change.
Concerns about economic growth has some predicting another rate cut next month - the question again will be how much the banks will pass on and how much wider the rate gap will get.
