Loyal Bank Customers Pay More For Their Loans

For a large percentage of individuals in the UK, when they require a new personal loan or other financial services, such as insurance, for example, the first place they go to for advice is the local branch of the bank which holds their current account. In many cases, this is simply a case of apathy. People can often not be bothered to shop around the market place for a cheap loan, when they are sure that their bank will probably offer them exactly the same product that is available elsewhere. In other cases, people choose to deal with their own bank out of a sense of loyalty. The bank has always held their current account and possibly savings account, as well as other services such as a personal loan, or even their mortgage or home owner loan. Surely the bank will provide the best and cheapest service for any new loan, or other products?

But new research has shown that customers who remain loyal to their banks, could actually end up paying significantly more for the products and services they require and not necessarily getting the best products or level of cover. The research from Moneysupermarket.com found that bank customers could be paying up to an additional £2,814 for their loans and other services every year, compared with those consumers who shop around for their loans and insurance products from the whole of the market.

Kevin Mountford of moneysupermarket.com said “Banks rely on this apathy among their customers so they don’t have to work very hard to make sure they provide the best deals to their own base.” “By switching to the best deals in the market, you could potentially give yourself a large pay rise for just a few hours work, which could be used to boost your savings or pay down your debts quicker.”

SOURCE: http://www.bestloans.co.uk/