5 Reasons to Switch your Current Bank Account

If you are as most people then your current bank account is properly the most used financial service you use. Do you know what the current rates are on your savings account?Again if you are as most people then you don’t know the current rates on your savings account. But if you took some time to find (simple phone call) it out, you will see that the interest rates of your current accounts are low or even worse, very low!

If you were opening a new account, would you accept a savings account that paid less than 1% interest? I bed you don’t. Why are you accepting low interest rate on your current accounts? Your money should work for you not for the bank. So why not switch to a different account or bank?

If you’re still not convinced then take a look at five good reasons to switch your bank account:

1. Earning more interest

One reason for switching your account or switching to another bank is to get a higher interest rate on your accounts.

The longer you have your current account the more likely that the interest rate is low (or sometimes very low.) With some simple research or inquiries you can find a bank or savings account that has a higher interest rate then your current account. The interest rates are even higher on saving accounts where you lock the account for a certain period.

Do some research or ask your current bank for advice (sometimes it is possible to switch to a different account at the same bank and still get a higher rate, just ask!) Just make some calculations and you will see that you will save a lot!

2. Overdraft is cheaper

Most people have an overdraft facility on their current account. Some banks charge very high interest rates for overdrafts (there are banks that charge 18% rate.) Try to find one with a cheaper overdraft interest rate.

The overdraft interest rate is one thing you need to check if you switch to another account.

3. Incentives

The number of bank accounts a bank has is very important.

If you need a new savings account then the most likely place you will look for a new account is your current bank. But it might be wise to also look elsewhere.

There are banks that are offering an incentive if you open an account. They are not only offering higher interest rates but some are also offering money.

4. Switching is easier

Just a few years ago, switching accounts was a massive undertaking. The result was that most people wanted to take the time to switch accounts.

These days it is becoming much easier. Just by filling out a form and the bank takes care of almost every aspect.

Also the language used in the forms is getting much easier then in the past. (A few years ago you almost needed a law degree to understand the question.)

5. Shoddy service

Everyone knows that the service of most helpdesks is no good. The helpdesks are not the only one, the online customer service of most banks are not better. A recent survey by IBM found that over half (53%) of UK banks are failing to answer online customer queries, either by providing a wrong answer or even worse, no answer at all.

Don’t put up with shoddy service. If a business (like a bank) doesn’t offer an exemplary service, then you should find business who will deliver the expected service. If every body does this, the service will go up.

Last note: always read the fine print before signing or contact a financial professional (CPA for instance) to ask for advice.

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