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Switch banks and save
Posted Thu, 12 Mar 2009
When times are tough and money’s too tight to mention, it makes sense to reassess the way you spend and save. One area where most people could benefit from a financial make-over is the way they bank. But did you know that 34 percent of people stay with the same bank for over 20 years? This is because it’s assumed that moving banks is complicated, time-consuming and will cost you money. In fact, changing your bank can be quick and easy. And it can save you money.
Here’s how to go about switching and saving…
What to look for?
Choosing the ideal bank should be based on comparative decision-making — similar to when buying a TV set or a car. The first step is to find out what options are available. Visit a bank’s website, pop into a branch to chat to a consultant, take a brochure home for reading at your leisure or call the client care centre for information.
Be sure to find out all you can about the products, services and relevant banking fees.
- Charges: Compare monthly administration and typical transaction fees such as cash withdrawals and stop and debit orders.
- Personal Funding: What loans are on offer — what are payment options and what is the interest charged?
- Location and opening times: Is there a branch located close to your home or work? Is the bank connected to other banks, retailers or the Post Office that will allow you to draw cash at their ATM, pay-point or teller when you are out on the road — and most importantly, what will it cost you?
- Telephone and internet banking: Some people hardly ever set foot in a bank. If this is how you would prefer to bank, ensure that the service is secure — it should be if the bank is a reputable institution — and offers you the functionality that you need.
- Benefits: Does the bank have agreements with other institutions that will offer you consumer benefits such as free travel insurance or air miles?
- Accreditation: Is the bank a reputable institution and is it regulated by the financial ombudsman to assist you if you have a complaint?
- Support: Are the service and staff supportive and do they give you options based on your needs?
Opening an account
Once you have researched your options, switching banks or opening another account at another bank — it’s possible to have different accounts with different banks — is simple. To apply for an account you will need your identity document and a proof of residence.
When your application is accepted, your current bank will need your authorisation to provide your new bank with details of debit orders and any other transfers. You will also be asked to authorise your debit orders and inform those organisations of your new banking details. Often the bank to which you’re moving will assist with the transfer of debit orders — just ask a customer consultant where you need help. To avoid returned debit orders, it’s important that you do this before closing your old account. Also, don’t forget to inform your employer that you are changing banks so that they can arrange for your salary to be paid into the new account.
Every consumer has the right to feel that they’re in control of their finances. In these fast-paced, cash-strapped times, consumers are looking for simplified, straight-forward solutions that are affordable and suit their needs.
