When we are taking out a new savings account, we could be tempted to just use our regular bank. There are advantages to doing this but there are also disadvantages as well. It is a good idea to have a think about both of these so that we can decide whether it is a good idea for us to do this or not.
Speed to Arrange
If you take out a product with a bank that you are already with, then you will not have an additional identity check, as they have already done one and they will have all of your personal details as well. This means that it is likely that they will be able to arrange the account really quickly for you, perhaps even opening it for you almost right away. However, if you are using a bank that you have not banked with before then they will need to do an ID check and look at paperwork to prove your address and take all of your details which could mean that it will take a lot longer to open the account.
If you use a bank that you are already familiar with then it can be really convenient. You will already know how to bank with them and it might be that you will be able to deal with queries you have with your other accounts at the same time. You will know where the local branch is, if you use one so that will be useful or you will already have a login for the online banking, a mobile app or have registered with telephone banking and that will mean that you will be already set up and will not have to learn new systems.
Know What to Expect
You will also know what to expect from a bank that you have used before. This means that you will know what service you are likely to get from them and what they will be like to deal with etc. It can be reassuring to know this, even if you are using a bank that you do not think that much of, there is always a risk that you will find another bank that is worse. Of course, there will also be likely to be banks that are better as well. In order to avoid using a bank that is worse, you could read reviews of the bank and find out more about them from their websites. You could even ask people that you know whether they know much about them and see if they can recommend them or not.
The interest that you get on your savings will be really important. Savings accounts do not always have a very high interest rate, but this will vary between banks as well as between different types of accounts. It is therefore a good idea to make sure that you do look at them and see which is offering the best interest rate. You will find that many savings accounts have a variable interest rate and this means that it can change at any time and therefore, even if you pick the bank with the best rate then you could find that it will not always be so competitive. However, there are fixed rate accounts and then you will know the rate, but if interest rates on other accounts go up, this one will stay the same and so you may risk that this will become uncompetitive and you may not be able to change it either as you could be tied in for a year or a number of years. So be sure to compare rates between banks but also consider the features of the account and whether you think that you will be getting good value for money.