Colin You may wonder whether you should really worry about which bank to choose. It might seem like they are all pretty similar and that it will not matter who you pick. However, there could be some difference that you need to be aware of and they could actually make quite a big difference to your borrowing experience. There are quite a few ways that they might differ and it is good to be aware of some of these and then you will be able to make a good choice when you are thinking about which bank to choose.
Cost of Loans
The cost of taking out a loan can vary a lot between different lenders. If you are taking out a long term loan, such as a mortgage then this difference in cost could be more significant as you will have it for longer and therefore any difference in interest rate or fees will really add up over the years. This can even be the case with something like a credit card if you do not repay the full balance each month you could end up paying interest month after month. It is therefore certainly well worth being aware of the different rates and comparing them in order to work out what looks the best. Of course, cost should not be the only factor in your decision but for most people it will be a big one.
Savings Interest
If you have money to save, then you might just pop it into an account with your bank. It is very convenient to have it with the same bank so you can transfer it to your current account easily when you need to. However, you may pay the price for this convenience in a lack of interest on your money. Therefore, it can be a good idea to see how that interest rate compares. You could keep some money in that account still but consider putting some of it elsewhere, in a higher interest account. If that is also instant access, then it should not take that long for money to transfer over anyway.
Convenience
It is good idea, when choosing a bank to think about how you like to do your banking. So, it might be that you have a local branch that you use, you use the telephone banking, you bank online or any combination of these. You will need to think about whether a different bank will offer what you are looking for. Swapping to a different one might mean discovering a new branch and meeting new staff, learning a new way of online banking or something like this. This can be a bit of a hassle and you will have to decide whether this is something that you think is worth it.
Customer Service
Customer service can be really important to a lot of people. They want to choose a bank that they feel will be friendly and polite when they contact them and will be quick and accurate when helping them out. This is something which you can find out by contacting the customer service department and asking some questions, perhaps about the products you are considering taking out. You will then be able to find out what they are like and this will help you to decide if you think that they will be suitable for you.
This is just a few things that you should consider with regards to choosing a bank. You will find that there are a lot of differences between them and depending on what you are looking for in a bank, you should be able to choose one that really suits you.
