Finance

SWITCH BANK ACCOUNTS IN JUST A TICK

Mortgage One - Sunday, August 21, 2011

SWITCHING to a new bank will be made easier from next July under new rules to make banks - and not their customers - transfer all automatic debits and credits into a new account.

The policy shift, recommended by former Reserve Bank governor Bernie Fraser, is designed to take more of the hassle out of switching financial institutions.

Under new arrangements, customers will be required to sign just one form that authorises the previous bank, credit union or building society to transfer the details of all automatic transactions linked to the customer’s savings account to the new institution.

The new bank would then have the power to contact creditors and debtors to give them account details. This would include informing an employer of the new account number to deposit salary.

The move follows early signs that the governments ban on mortgage exit fees has sparked a slight increase in refinancing of home loans, although most customers were still choosing to switch between the big banks than move to a small lender.

From July 1 2012, all you'll have to do is sign one form and the new financial institution you want to move to will do all the heavy lifting for you.

Comments (0) | Trackbacks (0) | Permalink

Comments

Post has no comments.

---

Post a Comment

Was this helpful?
No Very

Name (optional)

Website (optional)

Email Address (optional)

Enter Word Verification in box below

Your comment