You may be surprised to find that banks not offering the great promotional rates are in fact the best ones to deal with, so understanding how promotional rates work and what to look for in a bank account can help deliver the right rewards to you.
Great Deal or Clever Marketing?
Promotions of any kind are specifically tailored to suit a certain type of person or demographic and they can be absolutely categorised as part of a clever marketing plan. Therefore, this ultimately means that most banks offering promotional rates aren’t providing a great deal to new customers out of the kindness of their heart, but merely to gain your ongoing business. In most cases, promotional rates will only last for a few months and then tend to slip back into a rate that is on par with the rest of the big banks, sometimes even even worse.
Additionally, there are often many conditions that go with these deals such as depositing a certain amount of money each month into that account, only being able to use that particular bank’s ATMs and much more. It’s important to look at the fine print of a banking promotion and understand how it will benefit you in the long run. After all, a bank is something that you will always need the use of, regardless of how little or how much you have to put into the account.
Knowing the Good from the Not-so-Good
Now that you have a grasp on the traps and pitfalls of chasing promotional rates when choosing to open a new bank account, knowing what points you need to identify when shopping around is essential. Here are some key things the bank and account should offer:
* No bank fees axis rtgs form
* No minimum deposit or opening balance
* No charges to access phone or internet banking
* Deposit and withdraw anytime without penalty
* Interest calculated daily
* Ongoing competitive rates
Finally, it doesn’t hurt to look for a bank that has won some awards in savings accounts and banking in general. While many people turn up their noses at awards, the banking sector is quite competitive, so to win an award really does highlight true excellence. When opening an account, remember to think about the long term benefits, the accessibility of the account and not to mention, the customer service.
