Are all Banks the Same, or is it Worth Shopping Around?

If you are looking to put your money in a bank account, should you just go with the first bank that you see or it is worth shopping around?

Although bank accounts generally serve the same purpose of giving you a safe place to store your money, they can be very different in the services and features that they offer. No two bank accounts are the same and the right bank account for your needs will be very different than what is well suited for someone else.

When you have the wrong type of bank account, you will be paying fees that you don’t need to, you won’t have the services that you need, and banking will become an annoying hassle. When you find the right bank account you will find that all of your needs are provided for and banking is trouble free.

So what makes bank accounts different from each other and why it is worth shopping around? Here are some of the important differences between bank accounts:

Interest Rates

Each bank account that you consider will offer you a different rate of interest on the money that you have in the account. Interest is important because it can actually help your money grow, especially over long periods of time. Generally, the bank accounts with higher interest are the savings type accounts which might require you to lock your funds away for a certain period of time. Most bank accounts such as chequeing accounts which offer you fast and easy access to your money will not offer as much of an interest rate. It is up to you whether you are looking for convenience or a long term saving option.

Banking Fees

This is another area where bank accounts will differ. Some banks offer no-fee accounts and others will charge you a small amount per transaction or a monthly fee. These fees can really add up after a while, so make sure that you are looking for the bank account that charges you the least fees.

Customer Service

No two banks are the same when it comes to customer service and some banking institutions will offer much better services to their account holders than others. You will want to choose a bank where you feel that you are valued as a customer. If you are opening a business account for your small business, you might want to choose a bank with a dedicated business banking associate who you trust to answer your questions. If you find that you feel frustrated and ignored when it comes to customer service at your current bank, perhaps it’s time to switch to somewhere that you feel your needs are being met.

These are just a few of the many ways that banks can differ, which is why it is worth shopping around to find a bank account that meets your needs.

This article was written by Stephen Harmisson on behalf of Ulster Bank. For more details on current accounts or small business accounts see the Ulster Bank information pages.