Shopping around makes cents for more Australians

Australians are one and half times more likely to shop around for a better deal on clothes than they are on their home loan, according to new Roy Morgan research commissioned by National Australia Bank.

The survey of 1092 Australians revealed that clothes were the main item that brought out the bargain hunter in people, with 77% of respondents saying they would shop around to save money on clothes.

Australians said they would also shop around for better prices on:

  • Groceries: 72.8%
  • Phone and Internet: 71.7%
  • Petrol: 67.0%
  • Electricity: 60.1%
  • Home loan: 50.1%
  • Credit card: 45.2%

The research also found that women are more likely than men to manage household budgets. Across the household surveyed, women managed the budget in 52.5% of households and men in 47.5%.

More than half (53.7%) of all Australians surveyed said they thought they could save between $50 and $100 on their monthly bills by shopping around.

More than 9 in 10 Australians said they would shop around to save money and more than 8 in 10 Australians said it was now more important than ever to save money.

NAB General Manager Mortgages Sally Bruce encouraged more Australians to shop around and come to NAB for a better deal on their mortgage.

"NAB has maintained the lowest SVR of the major banks for three years, and we have committed to remain the lowest of the majors for the rest of 2012.

"In this time, NAB customers have saved up to $1718 in interest on the average $300,000 home loan compared to being with another major bank. And we have also cut more than $300 million in the most complained about fees in the industry.

"I encourage Australians to shop around on their mortgage deals as much as they shop around for cheaper groceries and better-priced clothes."

The survey found Australians are willing to put in the time to get a good deal: 31.7% said they would spend one hour shopping around; 20.8% said they would spend 30 minutes; 19.2% said they would spend half a day and 9.1% said they would spend 10 minutes.

"As part of celebrating NAB having the lowest standard variable home loan rate of the major banks, we’re inviting people to come to any NAB store for a 10-minute home loan health check – to see if they can save money on their current home loan," Sally said.

"That’s just 10 minutes to see whether you can make a difference to your monthly budget."

The most popular destinations for any savings from shopping around were:

  • Putting any savings towards other expenses to balance monthly budgets (47.7%)
  • Saving for a rainy day (42.7%);
  • Paying off debts (37.4%);
  • A holiday (20.5%);
  • More clothes (5.5%); and
  • A new car (3.8%).

"At NAB we are proud of the commitment we have made to our customers to offer fairer banking and to be highly competitive. We believe that what's good for our customers is good for our business.

"We have led the sector, and abolished the most disliked fees. In September 2009, NAB removed overdrawn account fees. In January 2010, NAB removed account keeping fees, and in December 2010 we removed home loan early exit fees for all of our customers.

"People are voting with their feet. Since we broke up with the other banks last year, 875,000 new customers have joined NAB."

Media contact

George Svigos
M: +61 (0) 459 841 579