Have You Considered A Switch To Save Money With Your Bank Accounts?

It is often mentioned that we live in the ‘disposable age’ and it usually refers to manufactured products like CD players, mobiles, cars, etc.

But did you know that it could almost be linked to credit cards and other bank products?  It has become quite a common practice to switch to save money.

The fact remains that thanks to the finance companies and the Government it has now become quite feasible to change your accounts and end up with a much better deal than you had in the last instance.  We always have so much to do in our busy lives, but it really does make a lot of sense to change your financial institution if you find one that is much more suited to your needs.  All you have to do to start is go online and make the initial enquiries.

Once you know your spending pattern you can then evaluate the opportunities.   When searching for the right bank for your use, start with these points:

1. Know what type of product you need.
2. Do some research and see what is on offer.
3. Do your sums and work out which is going to be best for you in the long run.
4. Talk to the financial institution you have chosen and get the best deal

What you are aiming to do is get a financial set up that is going to be cheaper for you to manage and easier for you to manage. That is usually the purpose of changing your accounts.

Know what type of product you need

It is time to start your research.  Look at old statements and assess what you have been paying in fees.  Are they same as when you opened your account?  Sometimes they change if we have had the accounts for a number of years and sometimes new ones are added in.  What does their current Product Disclosure Statement say about fees?

If there have been changes you may not have utilised them and saved yourself some money with the way you do your banking.  If you are still considering changing banks see if there are exit fees if you close these particular accounts.

Are you on any special deals which include several accounts or services?  If you are, check how this will affect you if you want to change a particular account or service.  If you only want to change your transaction account but keep your loan account you may break a deal that you have where all your accounts are included.

Have you always been satisfied with the service you get with the bank you are with?  Have your needs changed in any way since you opened your current accounts?  If so, does your current provider have any better accounts that suit your current requirements?

Do some research and see what is on offer

Now that you understand your current banking needs it is time to search around and see if there is a better deal out there for you that is going to save you money.

This is not something you want to be doing every few months, so it pays not to jump into the first deal you see.   Check out various options online and keep abreast of offers via the newspaper and from pamphlets you pick up at the banks.

Once you have a short list look at all their services more in depth, check out application fees, entry and exit fees, and any other set up costs that may be applicable.

By understanding your financial requirements and knowing the areas that you are not happy with, you will be able to research those areas in particular.

Do your sums

Before making a move, ensure that you are going to make a switch to save money not cost you money. In saying that, it is not always ‘all about the money’, sometimes it is the whole deal that will make the decision for you and that could include the various products and the services offered as well.

To compare the difference between your current situation and the proposed change, consider these factors:

• Features – look at these in depth as they could just be an initial offer, or a particular feature could be cheap, but other services that are more expensive by comparison.  Understand exactly what features you need and what you will benefit from if you change
• Interest, fees and charges – this will probably be where you will get the biggest differences and again, it will depend on how you will use the products as to what will benefit you most.  Take into account: annual interest rates, application fees, all penalty fees, counter-service fees, statement fees, online fees, basic account fees, overdrawn fees and any others that you come across
• Conditions of service – various institutions will charge for some services where others do not.  Check out any possible charges that you may incur
• Service Guarantee – are there service guarantees or have you heard from friends about the particular provider that you are assessing

There may reach a point when you feel quite confused about what is being offered to you but refer back to your notes about how you will use the services of any financial provider and cross out any providers that do not offer the best services for what you currently need.  That will help you make a short list.

From that point you can look at the $ value in any switch to save money or you can look at the services that may be better than you receive now.

As part of the services of any new bank that you may switch to, see if they help you make the switch.  They are experienced in these matters and should be able to make the switch as painless as possible for you.

If you decide not to make the switch, then at least you have experienced the exercise because it is something that should be done every 18 – 24 months.  Keep the information you have gathered and it will help you next time around.

Talk to the financial institution and get the best deal

Now is the time to do something about that short list.  You have read what is being offered, but did you realise that when you go and sit down with a financial representative they may be able to offer you an even better deal than what you have been looking at?

Banks want your business.

Before you go and visit a financial institution, have a list of questions made up that relate to your banking needs, so that you can ask the same questions to the different ones and thereby compare on an equal basis.

Take with you, or at least know what the offers are at the particular provider you   are visiting.

Once you have visited a few, go back to your own bank if you like them and tell them that you have compared their services but that you would like to stay with them and can they improve their products and services to make you stay.  It is amazing what you may get offered if you ask.

Finally, if you do make the switch make sure that all your automatic payments in and out of your accounts are organised to continue under your new account system.  If you forget to do this you could be up for some severe penalty rates.