It can often be difficult knowing whether it is better to stick with a bank that you know or change to another one. There are reasons for and against and it can be worth thinking about them all and then you will be able to make your mind up as to which will be best for you in your specific situation.
Advantages
- Know what to expect – with a bank that you know, even if you have not used them before, you will know more about what to expect from them. It could be that you have seen adverts, often walked past the branch, know people that bank with them or even have used them yourself. This is reassuring to some extent because you feel that as you know a bit about them you will not be totally dealing with a company that you know nothing about at all.
- Well known name – some people like the idea of banking with a place with a well-known name. They feel that if it is a brand that a lot of people use, then they are more likely to like it as well. It can be reassuring to know that they are well-known and that could make you feel that they will treat you well as a customer because they will want to keep their good reputation. You may also just feel more comfortable with using them because you know that they have been around for quite a while as well. Normally, it takes a while to build up a reputation and become well-known and so the fact that you know them could make you feel better.
Disadvantages
- Might be better options – by only using banks that you know; you could find that you will end up limited in your choice. There are likely to be lot of banks that you do not know and they could be much better with regards to the items that they are offering. Also, just because you do not know them, does not mean that they are not well-known and not popular, just that there is not a branch on your high street or you have not seen them advertising. It does not means that there is anything wrong with them.
- Unknown banks might work harder– if a bank is not well-known then it will need to make sure that it provides a good service. This is because it does not have the benefit of a brand name to get customers from so will have to rely on recommendations and reviews. This means that they are likely to actually be better than the more well-known banks. You might also find that they will be cheaper. More well-known banks know that people will pay more for their brand and so can get away with charging more but less well-known ones will have to be really competitive with prices as well as other things in order to succeed.
Hopefully, you can see that there are pros and cons to sticking with a bank that you know already. It can be a good idea to think about whether this will be a good idea or not. It is wise to take it into consideration but also carefully compare other features of the banks so that you will know that you will end up with the bank that is likely to offer you the best value for money. You could end up paying a lot less for a loan or getting better savings interest, having better customer service etc if you do go with a bank you do not know and so it could be something well worth considering.