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Are There Any Benefits from Bank Loyalty?

coins-1015125_640Everywhere you look today, there are reminders telling you to extensively compare quotes, rates and offers from service providers of all types so you can save money. This advice is used for everything from insurance providers, to cable companies, and even financial companies, like banking institutions.

This is because there is a common sentiment that many of them are more concerned about bringing in new customers through offering special introductory offers. In recent times however, banks have begun to do a lot on their part to dispel this sentiment.

Today, if you have been loyal to your bank for years there are many benefits you stand to enjoy. This is especially the case if you hold a current account with them. Here are some benefits you might qualify for for your loyalty to your bank.

Better Mortgage Rates and Faster Approval

Loyal current account customers in many banks today get better mortgage rates than everyone else. It is tougher than ever to secure a home loan but if you have been a loyal customer for a while, your chances could drastically improve. In some cases you may get up to a 2% discount in the mortgage rates offered to the general public.

This means that if rate on offer to the public is 4.19% you, being a loyal customer of several years, could get 2.19%. Even when you don’t get such massive discounts, you will get preferential treatment which could mean getting approved faster than normal.

Better Loans and Credit Cards Rates and Faster Approval

When you set out to take a personal loan or a credit card, the main focus of the bank would be to ensure you don’t pose a significant risk. If you have been a loyal customer, they can quickly analyse your records to understand if you are qualified for the specific loan asked for or not.  If you are deemed fit for the loan, you could get the lowest loan rate on offer from the bank. In some cases, you can get up to 10% cash back on loans given to you, further reducing the cost of the loan.

The same principles apply with credit cards. Loyal customers are more likely to get cards with their preferred credit limit and more favorable rates than the general public.  This is even more important if you do not have a perfect credit history.

Better Rates on Savings

From time to time, banks offer improved savings rates to their loyal customers. Keep in touch with announcements though as there is usually a rush of applications when such offers are announced which could lead to them being closed faster than originally noted.

 Reduction In Cost of Insurance

Loyalty to your bank can save you money on insurance as some of them offer cell phone insurance, home content cover or travel insurance as incentives to keep loyal customers happy.

Shopping around has its benefits but loyalty to your bank could be even more beneficial depending on your bank’s programs, policies, and benefits.

 

Are you loyal to your bank and other service providers or do you like to compare rates to find a good deal?

 

Photo courtesy of: stevepb

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Kayla is a mid-20s single girl living in the Midwest, USA. She is focused on paying off her consumer and student loans, while simplifying her life and closet. You can join her on her journey at ShoeaholicNoMore or follow her on Twitter.

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