How often have you changed your bank in your life? From my experience, people just don’t feel comfortable changing their banks. If they don’t have a major issue or conflict with their current bank, they’ll just ride out that relationship for as long as they possibly can. So why is this?
Many people have multiple accounts at their bank, and they just see it as a hassle to transfer everything to another bank and to have the bank truly understand what they want done with their money. And, more importantly, the people want to have a trusting relationship with their bank, and you never quite know if that’s going to happen when you switch over to an entirely new bank.
If you are in the market for a new bank, here are a few things you should look for to insure that you’re getting your full benefits from your bank.
Banks make their money with a variety of methods, but one of those methods is to use your savings money to loan to other individuals at a greater rate than they are paying you. In other words, they might only be paying you .15% interest on your savings account, but they are taking your money and lending it to someone else at a rate of 4.5%. There are quite a few banks out there that are paying a much more fair rate. Take a look at the rate they are offering you prior to moving your money.
Quite a few banks offer a free account, but there are often hidden fees that you don’t discover until you “break one of the rules”. Free banking services come with a cost at times, but they most certainly should not. Be sure to ask your banker about various fees that might be associated with your new account. Is there an account minimum? Does the account have overdraft protection? What are the stipulations of the account?
If you’re like me, you might run a small business on the side, which means that you might be interested in a small business loan from time to time. There are actually some banking institutions that do not often loan to small businesses, or if they do, there is a very large interest rate on the loan. So, if it’s imperative for your bank to offer business loans, then it would be in your best interest to ask prior to switching to a new bank.
The main differentiators between banks is often the customer service. Get as many referrals as you can from your friends and business associates about various banks in the area, because they are the ones that will truly know how good or bad the customer service is. Because it is often difficult to switch to a new banking institution, you want to be certain that you’re making the right choice. If all of the about options are available for your account and the service is excellent, then you may have just found your bank.
Do you have a quality bank?