Record Details

Consumer Choice on Savings Accounts: Bounded rationality

Deakin Papers on International Business Economics

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Field Value
 
Title Consumer Choice on Savings Accounts: Bounded rationality
 
Creator Vinayak, Saumya
 
Description Given the falling returns in share markets and the comparative safety of savings accounts protected by the deposit insurance provided by the Australian Government, there was a significant surge in deposits made in savings ac counts. According to an article published in The Australian , Australian households deposited an estimated $38 billion into savings accounts over a period of six months ending on the 31 st of March, 2009. Among the various deposit-taking institutions, Westpac received the largest part of this growth. (Jimenez, 2009). Interestingly, there have been no major changes in the interest rates offered on savings accounts by the major banks recently. If the savings account market is examined , the first thing that one notices is the large number of options available to a prospective customer. There are more than fifty savings accounts on offer by various banks, building societies and credit unions. These include regular savings accounts, high interest savings accounts with more stringent conditions on deposits, withdrawals and usage and exclusively online savings accounts. Any given savings account product can have different combinations of attributes apart from the interest rate offered such as the minimum balance requirements, the minimum lock-in period, etc. For an average consumer who wants to open a savings account, there is a plethora of choices available. This paper considers how a typical consumer might make a choice among so many options and whether this choice is “right”.
 
Publisher Deakin University
 
Contributor —
 
Date 2009-07-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier https://ojs.deakin.edu.au/index.php/dpibe/article/view/200
10.21153/dpibe2009vol2no1art200
 
Source Deakin Papers on International Business Economics; Vol 2, No 1 (2009); 23-29
2206-4060
 
Language eng
 
Relation https://ojs.deakin.edu.au/index.php/dpibe/article/view/200/204