From 1 July 2012, it will be easier for you to move your everyday transaction account from one financial institution to another.
Video: Paul Clitheroe on account switching
From 1 July 2012, switching your account from one financial institution to another will be a whole lot easier.
In this Australian Banking Reforms video, Paul Clitheroe explains some of the key changes that are designed to make financial institutions do the work for you.
This video is hosted on YouTube.
Here's how the new arrangements will work:
- You contact the financial institution (bank, building society or credit union) you would like to move your everyday transaction account to.
- You can ask your new financial institution to contact your old financial institution to get a list of all your regular direct debits (like your regular gym membership, regular utility payments) or direct credits (like your salary) made from/to your old transaction account in the past 13 months.
- You decide which regular direct debits or direct credits you would like to switch to your new transaction account, with the help of your new financial institution.
- You sign a single form that authorises your new financial institution to provide all of the relevant organisations with your new account details.
This initiative gives consumers the power to easily switch to another bank, building society or credit union if their existing institution isn’t providing good value or service. It will take the headache out of switching transaction accounts, assisting consumers to seek out the best deal.