In a highly competitive industry, banks have become more as a product seller than the provider of routine banking services. The highly aggressive cross-selling tactics have backfired as customers flee to those banks that are addressing the real banking needs. While many banks tout high savings rate to attract customers, there are some pointers to check before one makes a decision to switch to a new bank.
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.
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.
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.
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.