5 things to keep check on various banking entities

Being aware of banking policies and changes can help alert you to potential problems.

08:20 19 May 2013

With issues occurring within the banking industry customers may be left wondering whether or not they can trust banking entity. Keep an eye on your financial institution for these signs:

 

• Interest rates—when the economy is tight, it’s common for interest rates to be higher on loans and lower for returns but if there are sudden and drastic changes you may want to diversify your savings and look for other banking entities for your investments.

 

• Poor service—this one is just common sense. If a bank doesn’t care about how customers are treated, they may be more inclined to try and bend the rules or use shady practices to make profits. If you receive consistently poor service when you contact your banking entity, actively search for a new company.

 

• Fees—keep track of fees with your current institution. If these change suddenly and drastically make sure to watch out for tricky loopholes that may end up costing you extra money.

 

• Disclaimers—always pay attention to these. They may be annoying to read, but you’ll be fortified with the knowledge of what to expect from the company right away.

 

• Reputation—feel free to talk to friends, acquaintances, and relatives to find out what they might have heard about the new banking entity you are researching before you make a final decision. If you hear similar negative experiences from multiple people, it’s definitely a red flag.

 

If you keep an eye out for these issues, you might be able to avoid pitfalls within the banking industry and develop a lasting relationship with your financial institution.

 

The ability to have a stress-free banking relationship will help you feel comfortable, even if the bank experiences some difficulty in the future.