Smes Save On Bank Fees
Newcastle Herald
Monday May 26, 2003
BANKWEST has declared that it has saved Australian small businesseses $3.9million in bank account fees over the last year since launching its Business Express banking package.
The bank says it can save the average small business owner about $1300 in bank fees a year with its Business Express package that includes a cheque account, visa card and business loans.
It quotes Reserve Bank figures showing SMEs (small to medium enterprises) paid an average of $2000 last year and $2.64billion in total. The BankWest package is fee free for those who meet minimum monthly balance criteria on one of three accounts. A $15 surcharge applies if the criteria is not met during the month, but for that month only.
Market research has shown that small business borrowers and account holders are the least happy group of banking consumers.
Up to 70 per cent are dissatisfied with their existing bank, according to a Macquarie Equities study last October.
The survey also found that most SME owners did not bother switching banks because of the amount of paperwork and the perception that ``all banks are the same".
A recent East & Partners survey of 651 SMEs, however, found 15 per cent said they would probably change banks within six months and a further 11 per cent saying they would possibly change.
BankWest says 3500 new businesses have signed up for Business Express since April last year.
The director of Business Express, Gary Johnson, said the greatest demand had come from construction, retail, manufacturing and transport industries in Sydney and Melbourne.
``It was clear from our research that small business owners like to be able to speak to a manager who understands their business, rather than just an anonymous call centre operator," he said.
``We have made sure our business banking managers are industry specialists, easily accessible via a direct phone number."
The bank also announced a reduction in business loan interest rates of 0.5 per cent to new Business Express customers who sign up by June 27.
HIGHER ONLINE RATES
MEMBERS Equity has launched an online savings account for business offering a higher rate of interest at call in return for internet access to funds only.
The Business Direct Savings Account pays 4.55 per cent for every dollar over $3000. There is no minimum balance but balances of $3000 or less earn just 0.25 per cent.
Members Equity says the Business Direct Savings Account targets businesses that want to optimise their surplus cash with no transaction or account-keeping fees.
Internet transaction access requires funds being transferred between the Business Direct Savings Account and any nominated bank account. Funds withdrawn before 4pm on a business day are generally available in the nominated account the next business day. Source: InfoChoice.com.au
© 2003 Newcastle Herald
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