The four major bank sub-brands are the most cost-effective
Three of the four largest banks in Australia – National Bank (NAB), Commonwealth Bank (CBA) and Westpac (Westpac) have many subsidiaries, but people may not realize that these small brands are owned by the four major banks. .
The financial comparison website Mozo analysis found that in many cases, customers can get cheaper deals on products including home loans and credit cards by working with smaller brands.
Examples in its database include: NAB offers a 3.35% floating mortgage rate, compared to 3.09% of its affiliates UBank offering cheaper deals. CBA’s low-interest credit card rate is 13.24%, while its affiliate, Bankwest’s Breeze Mastercard, is only 12.99%. Westpac’s basic home loan interest rate is 3.58%, while its subsidiary BankSA is 3.29%. Mozo spokesperson Kirsty Lamont said customers should understand their banking business and whether they can get cheaper deals by working with affiliate brands.
“Many Australians don’t realize that there are now some smaller Challenger brands offering low-interest and competitive products, which are actually owned by the Big Four.” She said, “In most In this case, choosing the top four banks will be more expensive. But 80% of Australians still work with the four major banks, and many of us know that this may not necessarily lead to the most cost-effective products, and may have to pay more. CBA’s subsidiary is Bankwest, Westpac has Bank of Melbourne, BankSA and St George, and NAB has UBank.
ANZ has no sub-brands in Australia. But financial adviser Scott Haywood said that while sub-brands can offer cheaper deals, they may not always be better for customers. “When you work with lower-level banks, they may not have the liquidity and flexibility to pass the full rate cut or provide benefits.” He said, “In the honeymoon period, second-tier banks may offer more than big companies. Preferential transactions, but for mortgages over 5 or 10 years, it may be better to work with large companies because their services are more consistent.”