It would seem that with constant bank mergers, the choice of banks would be limited to a few with very long names. However, there are still quite a number to choose from. While there are many investment options available today, there is still a need for accessible funds in local banks. Therefore, it is worthwhile to review some of the options to look for when selecting your bank.
Perhaps the fastest rising concern among customers are the ever-increasing bank fees. Another growing concern is identity theft, which still limits the number of people who do their banking online. The convenience of ATM machines is also a major concern when selecting a bank.
Below are some of the comparisons to make when bank shopping.
Fees: Banks are starting to charge for more services, such as copies of bank statements, opening and maintaining a checking account, cheque copies, cashier’s checks, overdraft protection, wire transfers, money orders, cancelled cheques, dormant accounts, bounced cheques, customer inquiries and so on. One must compare the most common fees and be aware of any transaction fees.
Interest rates: The reality is that interest rates for most bank accounts are fairly minimal. If one does not need a specific bank service, he might consider getting the same or even higher rates from a credit union.
Minimum balances: Compare minimum balances to open and maintain accounts without paying fees. Corporates are usually given a zero balance salary account which is always beneficial to them. Also inquire about linking accounts or "relationship banking," as it is sometimes called, where one can benefit from having several accounts at one bank, thus eliminating the need to have a specific balance in each individual account.
Direct deposit: All banks offer direct deposit, but some will also offer incentives for signing up for it.
Locations: The convenience of a bank is important unless one is primarily banking online, in which case he can look for a lower rate from a bank that may be located across town.
Bank services: One must see what other special services are offered and at what cost. From broker services to banking software to special accounts for children, one can sometimes find services that may be of benefit to an individual.
Online banking: While most banks offer it, the use of online banking is still limited. Concerns about identity theft, along with the familiarity of in-person banking, have made this new technology slower to catch on than anticipated. If one is interested in online banking, he must inquire about additional fees, security measures taken and customer service. Benefits of online banking include: no lines, after-hours banking and access to an updated statement daily.
Banks today remain very competitive. This means that one as a customer, can benefit by shopping around and asking questions.
Perhaps the fastest rising concern among customers are the ever-increasing bank fees. Another growing concern is identity theft, which still limits the number of people who do their banking online. The convenience of ATM machines is also a major concern when selecting a bank.
Below are some of the comparisons to make when bank shopping.
Fees: Banks are starting to charge for more services, such as copies of bank statements, opening and maintaining a checking account, cheque copies, cashier’s checks, overdraft protection, wire transfers, money orders, cancelled cheques, dormant accounts, bounced cheques, customer inquiries and so on. One must compare the most common fees and be aware of any transaction fees.
Interest rates: The reality is that interest rates for most bank accounts are fairly minimal. If one does not need a specific bank service, he might consider getting the same or even higher rates from a credit union.
Minimum balances: Compare minimum balances to open and maintain accounts without paying fees. Corporates are usually given a zero balance salary account which is always beneficial to them. Also inquire about linking accounts or "relationship banking," as it is sometimes called, where one can benefit from having several accounts at one bank, thus eliminating the need to have a specific balance in each individual account.
Direct deposit: All banks offer direct deposit, but some will also offer incentives for signing up for it.
Locations: The convenience of a bank is important unless one is primarily banking online, in which case he can look for a lower rate from a bank that may be located across town.
Bank services: One must see what other special services are offered and at what cost. From broker services to banking software to special accounts for children, one can sometimes find services that may be of benefit to an individual.
Online banking: While most banks offer it, the use of online banking is still limited. Concerns about identity theft, along with the familiarity of in-person banking, have made this new technology slower to catch on than anticipated. If one is interested in online banking, he must inquire about additional fees, security measures taken and customer service. Benefits of online banking include: no lines, after-hours banking and access to an updated statement daily.
Banks today remain very competitive. This means that one as a customer, can benefit by shopping around and asking questions.
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All the key points are well explained.And presently when the world in facing economic slowdown, the customers be it individual or business executives, need to be extra conscious about selecting their banks as most of the financial fiascos are somewhere directly or indiretly related with the financial institutions or banks..
ReplyDeleteGreat read again..
Cheers
Ya true Jaspreet.
ReplyDeleteThank you.
Cheers
I guess its not only the marketers who are competing with one another to provide better products/goods. The trend has moved on to banking sectors too with so many banks floating now a days and providing more or less the same set of services however what differs them from others are may be the customer services, constant follow ups.
ReplyDeleteNice post Kunal...keep up the good work...!!!
Thank you Nandita. I will definitely try and keep up the good work.
ReplyDeleteThe banks these days want to differentiate themselves when compared to others by giving some extra benefits/services to its customers (CRM, modern technology) and attracting them towards the bank.
Well from a business point of view its very important for the bank to give u adequate support at right time, i would prefer a bank which gives a quick response at time of need and not make us to go in a loop of documentation and all, which makes a customer dissatisfied.
ReplyDeleteNice to see your comments on my blog. Thank you Knowledge point.
ReplyDeleteEach one of them will have their own preferences, what they expect from a bank. Banks have to comply with the RBI norms and cannot reduce the required minimum requirements like the KYC norms for example. Banks can fasten the processing work keeping skillful and efficient persons.