Who Is Gateway Bank?
Gateway Bank is an Australian-based financial institution serving more than 30,000 members across the country. They take pride in putting their customers first by providing friendly customer service and offering a wide range of financial products and solutions. Some of their lending products include home loans, personal loans, credit cards and overdrafts, which essentially acts like a line of credit.
Gateway Bank was established in 1955 by one employee and a suitcase. Their heritage is rooted in Australia’s history as the credit union for Commonwealth Bank employees. The bank no longer holds a bond of association and has since expanded their reach to all Australians.
Why should you bank with Gateway? Because Gateway has loan products to fit the needs of all their banking members, no matter what stage of life they’re in. Paul Thomas, Chief Executive Officer of Gateway Bank, agreed to talk with us over here at RewardExpert, and we want to share why we think Gateway Bank is a great financial institution for people of all ages living in Australia.
Overdraft Protection Is Often Cheaper Than Credit Cards
Earlier this year Gateway released a study revealing that two-thirds of Australians weren’t aware that personal overdraft accounts are typically cheaper than the interest paid on a credit card. In the official press release, Thomas said Australians are simply unaware of this option, and it’s just a matter of shifting their mindset. The study also found that Baby Boomers are more informed on overdraft accounts (45%), compare to 29% of Gen X and 18% of Gen Y.
So how does overdraft protection work?
Gateway Bank’s Edge Overdraft accounts essentially act as a personal line of credit, which gives you a safety net for your finances. Gateway members can opt-in to apply for credit limits of up to $20,000. This line of credit sits in your transaction account and the best part is, you won’t accrue interest unless you drawdown on the line of credit. Additionally, if you don’t drawdown on your overdraft, you continue to earn interest on the balance in your bank account, which is great for those who are also looking to save.
Edge Overdraft Features:
- No monthly fees
- Funds can be accessed with a debit card, online banking or the Gateway 2go app
- No overdraft penalties
- 3% of the outstanding balance is required when account is in overdraft and the full outstanding balance is repayable on demand
“There are a range of benefits to a personal overdraft account that many people might not be aware of. Unlike many credit cards, our Edge Overdraft accounts have no establishment fees, monthly account keeping fees or annual fees,” said Thomas. Second, he added, the interest rates for an overdraft account are typically lower than the market average for credit cards.
Granny Flat Loans
A Granny Flat is typically a small structure, like a tiny house, that can be built from scratch, or created by renovating a garage, attic space or shed/storage space. Changes in Australia’s legislation has made it easier and more affordable to build granny flats on an existing property.
Gateway Bank launched their Granny Flat loan program in 2016 due to increased demand for multi-generational living options. “With prices in capital cities soaring, families around Australia are benefiting from housing adult children, or elderly parents in functional Granny Flats,” he said.
Features of Gateway Bank Granny Flat Loans:
- No ongoing fees
- No penalties for extra payments
- Loan Redraw facility available
- 100% offset account available, including during construction
Be sure to visit Gateway’s website, as there are many fees to consider when building a Granny Flat, such as establishment and valuation fees.
If you’re looking for a new bank, interested in switching banks or just loan shopping, be sure to check out all the financial products available with Gateway Bank. Their rates are competitive, and their full suite of financial services will suit any age group, from juveniles to septuagenarians.