There are many people are really loyal to their bank and they will use the same bank for everything – such as their current account, savings, credit card, mortgage and loans. However, there are other people that have accounts with all sorts of different banks. You may wonder whether it is best to stick with the same bank or to use a selection of different banks. There are pros and cons of both and it is worth considering them so that you can decide which will work the best for you.
One thing that a lot of people will check, before opening a new account or borrowing money is the cost of doing so and the interest rates. With savings accounts, the interest rates vary a lot and it might be best to look for an account that pays the rates so that you get a good return on your money. With a current account, there may some banks that offer accounts that pay interest or have other benefits that you are interested in, some that charge and they will also tend to have an overdraft facility and you will need to think about whether this is something that you will use as there will be an interest rate for this and there may be a limit on how much you can borrow. With loans and mortgages you will need to compare the interest rates and any other fees that the have to find one that is cheapest. These will all vary between banks which is why some people choose to save with one and take a loan with another.
Types of Accounts
Not all banks will offer the type of account that you want. For example, if you want to buy some Premium Bonds then there is only one place to get them and no other bank offers something similar. However, there will some accounts that are common across all banks. You will need to think about what you are looking for and then see who is offering that.
IT can be a lot more convenient just having everything with the ne bank. If we need to deal with things in branch, then we will only have to visit one. If we do online banking, then we will only have to log in to one place in order to check everything out. You may even risk forgetting where you money is, if you put it in lots of different places, however you could remedy this by writing it down and keeping the information safe.
It can be the case that you will want to be with the same bank you always have been because you are loyal to them. You might like that particular bank and feel that you want to stick with them. If you have always had a good service from them, then you may see no reason why you should swap to a different one. It can also be a worry, that if you have always been with the same bank, that if you swap then you might find that the one you go to is much worse and that you will regret it.
It is probably better, if you want to better off financially, to not always stick with the same bank. However, you will find that you will forget who you are with then perhaps it is safer to stick with the same one. It is a good idea to compare them though and think about how much of a difference it might make if you do use a different one.