Switching Banks: How good an idea is it?

If there were statistics available, they would probably show that people generally stay with the same bank all their lives, although not necessarily the same branch.

After all, man is a creature of habit and feels comfortable in familiar surroundings. The majority of people have a personal bank account, running a current account and usually a savings account. Unless something really dramatic happens then these people will be content to visit their banks as little as possible, manage their accounts as they should, come to terms with the banks charges that are levied on them, and keep themselves busy with more important aspects of life. However, people who have managed their account at the same branch for years, no matter how satisfied they are, should never allow themselves or the bank to become complacent. Every now and again, they should check out what the competition has to offer. If they find that it is much the same as their existing bank, and it usually will be, then they should leave well alone. If however, there is a significant par and the competitor bank is pulling out a few stops to win the account, then it very legitimate to approach your existing bank armed with that information. Banks don’t like to lose customers, especially good ones, and you will usually find that they will at least match the terms of their competitor and throw in a digital calendar to boot.

You usually find that people who switch banks are those who have been managing their account erratically, running in and out of overdrafts and incurring bank charges along the way. Small businesses are also inclined to switch banks fairly regularly, usually in the search for better terms and increased overdraft facilities.
Again all is fair in love and war, and in this case personal issues carry a lot less weight. In many cases the existing bank will be happy to see the account going elsewhere, although they will never admit it. Accounts that carry a lot of loans and overdrafts and incur a lot of charges are where the banks earn a lot of their profits. A good bank manager will be able to assess how long a rope an account can carry before they begin to stretch it too tight. If a “difficult” customer approaches their account manager threatening to leave and quoting that they can get such and such terms at Bank xxx, they should make sure that they are telling the truth, as they might find themselves getting their bluff called and having to eat some serious humble pie.

Many bank account holders live with the paranoia that the banks are earning a fortune, and mostly from their account. Banks can make a lot of profit as they have done over the years, and can also make some horrendous losses as they have done in the last few months, weeks and days.
Anyone should take these facts into account when they consider switching banks. Banks are run according to sets of rules, check and balances. Very rarely do personal issues come into play, especially from the side of the bank. So if all is well, you should stay put. It is always better the devil that you know.

• How Many Hours Do You Work Per Week? How many hours per week do you put in trying...
• Gold Coins Coins and Paper Money -> Coins: US -> Gold Before...
• Generation X ... I mean P ... I mean ... P doesn't stand for Pool ... it stands for Plastic....

Tags: Accounts, Bank, Banking, Current Account, Money Management, Savings