Five checks to make before changing to another bank
The highly aggressive cross-selling tactics have backfired as customers flee to those banks that are addressing the real banking needs.
Jan 05, 2016 12:01 IST India Infoline News Service
Service quality: Consider the service quality of the new bank and the cost associated with it. Mostly private banks assure prompt service but require one to commit a high minimum balance. On the other hand, PSU banks might not be prompt in service but have stipulated a lower minimum balance requirement. An individual should decide to switch after considering the frequency of special requests.
Branch Timings: If the branch hours of the existing bank do not align with an individual’s need then it’s time to consider a change of bank. At the same time, the location of a bank should be within easy reach of the customers as well.
Product offerings: Existing bank’s product offerings should be suitable for an individual as if the products truly does not fit the customer profile then it’s high time to switch to a bank that has a line-up of meaningful products. Moreover, an individual should take care that he/she is not being charged or forced to buy products that are unnecessary such as ULIPS or Personal Loans.
Interest rates: A higher rate of interest on savings, even 2% higher than the usual, does not make a real difference on the overall amount of interest. An individual should change bank only if the amount lying in the account is substantial such as in lakhs as a higher rate of interest will only be meaningful then.
Recognition of loyalty: If an individual has long been a customer of a bank and has not been receiving the due recognition such as in terms of upgradation of card or priority services then it can be a good time to change the banking service provider.
