Loyalty to your bank will hurt your pocket - Money - News - Moneyfacts

News

Loyalty to your bank will hurt your pocket

Loyalty to your bank will hurt your pocket

Category: Money

Updated: 31/10/2008
First Published: 11/08/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Many people are loyal to their bank and go to them for everything from their current account to their mortgage and credit card. However, by doing so you could find yourself seriously out of pocket as the big named banks do not tend to have the best rates.

By shopping around and opting for the best buys, you could save yourself substantial amounts of money.

InstitutionTotal increased cost/lost interest
Barclays
£2,575.99
Lloyds TSB
£3,096.61
HSBC
£1,929.34
Royal Bank of Scotland
£3,442.89
Halifax
£5,024.10
Abbey
£3,110.60
Source: Moneyfacts.co.uk 11.8.08

Consumers who are loyal to Halifax are the hardest hit, finding themselves over £5K worse off, with Royal Bank of Scotland customers not far behind at nearly £3.5K. HSBC customers come out best by being just under £2K worse off, but that is still a large amount, particularly in the current economic climate where every penny counts.

The big banks trade on their names and it is disappointing that they do not offer more competitive deals to their customers.

Particularly when shopping for a mortgage, customers need to make sure they do their homework in order to secure the best deal possible. Mortgage brokers do not have access to 100% of deals, so borrowers should make sure they are aware of what deals are available direct from lenders.

The institutions are keen to tempt savings and current account customers through their doors and as a result have made switching as easy as possible. Current account institutions have switcher services which transfer your existing regular payments for you.

The banks are not loyal to you, so why should you be loyal to them?

Related links:

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

A quarter of Brits have fallen victim to a scam

Think you know how to spot a scam? It may not be as easy as you’d think, with 25% of Brits admitting that they’ve been the victim of one in the past, and a further 73% are concerned about being scammed in the future.

Brits’ bad spending habits revealed

Many of us like to think that we’re good with money, yet there are often things that get in the way of regular saving and financial security. Solution Loans has taken a look, and has identified the bad spending habits that leave us in the red.

Growing fears that inflation could impact wallets

We’ve all heard reports that the cost of food and petrol could increase in the next few months, together with the threat of rising inflation, and it seems that these concerns are beginning to take their toll on the nation’s consumers.
 
Close