How to choose the right bank?

The recent controversy surrounding Britain’s banks seems to have made people a bit pickier when it comes to choosing their banks.

Recent research has shown a huge increase in the amount of Brits hoping to change banks, whilst the reputation of some major high-street lenders has certainly been called into question.

Banking customers who have had PPI mis-sold to them in recent years might certainly be amongst the droves of Brits looking for a new bank, whilst other scandals surrounding the manipulation of Libor and the mis-selling of interest-rate derivatives could also have had an effect.

However, when it comes to finding a new bank, a lot of consumers have no idea what to look for. This article suggests some of the attributes to hunt for when searching for a new bank.

Trust

A lack of trust appears to be the main reason why a lot of consumers want to switch their bank account so it would make sense to move money to a bank that is more trustworthy. That could be easier said than done when you consider that all of Britain’s major banks were involved in the PPI scandal and many will be investigated for their role in the Libor scandal.

It may come as no surprise to hear that enquiries to building societies shot up in the weeks immediately following the Libor scandal going public. Shortly after the scandal came to light, Labour leader Ed Miliband called for more funding to be made available for Britain’s smaller banks in order to increase competition. Perhaps either of these two options are the way to go for those looking for a trustworthy bank.

Banks

Rates

Many of those involves in the PPI scandal were upset to discover they were being charged for services they did not ask for or require. Those looking for a new bank should certainly be interested in how much certain services cost and whether they are any offers available. Make sure to ask plenty of questions read the small print when it comes to discovering how much a bank account will cost.

Convenience

When looking for a new bank, it’s important to consider what the bank account will be used for and how often. Those who need constant access to banking staff and ATMs may need to use a major national bank rather than a small local or internet-only bank.

Customers are advised to have a long and frank talk with staff at any bank they are hoping to join. It is also worth asking friends, family and work colleagues about their experiences with their bank in order to get an unbiased opinion. These tips should help people avoid feeling any resentment towards their bank.