ARTICLES > Seven Things Your Bank Will Never Tell You.
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Seven Things Your Bank Will Never Tell You.
2. A bank’s review of your account is really a sales pitch. It’s thinking of its bottom line, not yours. If you’re offered a review or get a call from your “personal banker,” then the chances are they’ll try and sell you a new product. Usually it’s insurance they want to sell you. It could be that the product on offer is good value, but you need to ask yourself two questions: Do I need the product at all? Is the bank’s product better than the one I have or can get elsewhere?
3. Banks prefer to keep savings-rate changes under wraps. When they open new accounts with flash savings rates, banks are looking to attract new customers. The banks can’t afford to put all of their customers on these new high-flying rates and they often don't tell you unless you ask.  4. Bouncing cheques are good for your bank’s business as long as you don’t write too many. Providing there’s no fraud involved, your bank earns big bucks every time a cheque bounces. Not only do they sock you with a fee for the bounced cheque, you'll pay a higher rate of interest if you go over your agreed overdraft. 5. You can pay your entire credit card bill by direct debit. Banks don’t actively encourage customers to set up direct debits to pay off their credit card. Why should they? They can’t earn interest on your credit card if you pay it off each month. (Just remember, if you use direct debit, make sure your account is well cashed up on debit day). 6. Bank advice may be self-interested. That is to say, the person giving you the advice may be earning points that go towards bonuses the bank pays them for sales. Karen Skinner, theCampaigns Director for the Finances and Information Union (FINSEC) points out that this flies in the face of the customers’ belief that banks are providing the best advice for them. 7. Fees don’t necessarily match the cost. Bank fees are sometimes designed to channel your behaviour. For example, dishonoured cheques are time-consuming administratively for the bank, and dishonour fees are designed to stop you repeatedly writing cheques that bounce.
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This information is adapted from Consumer Magazine (January/February 2006, Issue455, Page 23) which often has excellent articles comparing prices or services aimed at ensuring the consumer gets the best deal and ultimately saves money.
