In the last 5 years the number of Australians 14+ who hold a High Interest Savings Account (HISA) has increased by an estimated 1.5 million people (44%). Given the state of the current economy and the aftermath of the global financial crisis, more and more Australians are inclined to save their extra money at a competitive interest rate. One of the safest options is to park their funds in a HISA. This also works in favour of the Financial Institutions who are always looks for lower cost and alternative ways of raising funds. These figures are based on the latest findings from the Roy Morgan Consumer Single Source Survey of approximately 50,000 people p.a.
In terms of numbers, the CBA Group (including BankWest) has come out on top with having the highest growth in HISA customers (over 500,000), closely followed by NAB Group with over 450,000 customers, ANZ Group with close to 390,000 and Westpac Group with slightly over 330,000 HISA customers.
Of the non-majors, ING Direct has seen the largest growth of HISA customers by an estimated 63,000 followed by CUA Group gaining 57,000 and Citibank up 38,000 in the same five year period.
When looking at the proportionate increase of HISA customers, the data shows a slightly different story. Citibank leads the pack, increasing its HISA customer base by 290% in last 5 years, followed by Suncorp Group (209%), ANZ (140%) and NAB Group (101%).
Norman Morris, Industry Communications Director Roy Morgan Research says:
“The increase in the popularity of HISAs is not surprising as Australians adapt to changes in the market especially with the rise of online banking. HISAs provide customers with ready access to their money, a competitive interest rate and a government guarantee. Banks however, need to differentiate their HISA products from their competitors by offering more than just the highest interest rate. Customers expect faster and more convenient access to their funds, the ability to transfer to other accounts and more on-call support if any issues arise. Smaller players in the market have the opportunity to increase their customer numbers as consumers use the internet to compare interest rates, features and fees.”
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Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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