It is a well-known case that banks make good on loyal customers and many promise benefits if you gather all the banking services in one place. However, this may not necessarily benefit the customer or result in better terms. We look more closely at the benefit of using more than one bank.
Good and bad sides
A bank usually has its good and bad sides. Some are good at daily banking services while others have better terms on car loans without security or savings. Therefore, even if you are promised a collector discount, there is every reason to be skeptical of benefit packages and customer programs.
These benefits can come in many varieties including lower interest rates, free credit cards, free online giro, higher deposit rates, discount on non-life or travel insurance, discount on commission when buying funds, benefits on buying and selling a home or discount on car hire, to name a few some examples.
However, such offers often sound best on paper and often include services and products that the customer does not necessarily need, including access to credit card discounts and consumer loans. When it comes down to it, the benefit programs make it difficult to compare prices on the market, and collecting discounts is often a trick to prevent you from doing just that.
Is benefit program cheaper?
Even banks recognize that benefit programs do not necessarily make it cheaper for customers. Instead, they defend the programs by claiming that it will be easier for people to gather everything in one place. But there is every reason to be skeptical about this claim as well. Few people are in frequent dialogue with their bank, and it is not at all obvious why choosing more service providers should result in a significantly more complicated financial day. The most important thing from the customer’s point of view is simply that you get the best terms and can save money.
It is also conceivable that you want more bank accounts: one to service loans, one savings account that you can use for major expenses such as renovation projects, a utility account and perhaps a company account. The advantage of spreading these around is that you thus establish good customer relations with several banks. Thus, one can expect better terms when later on looking for loans. You then have the opportunity to seek out more suppliers and thus secure the best deals.
The same rule applies to insurance companies that also have the habit of luring with collectors discounts. Instead, consider making your own package. You will almost always find it cheaper to have single insurance with several companies than to collect them all in one place.