When asked about their relationship with their bank, the majority of people would start off as confused and then proceed to give an informal answer that it’s – good, fine or satisfactory. However, not many people would say that they’re friends, let alone best friends with their bank? Why? Well, because, frankly, such a thing never even crossed their mind. Still, there are so many benefits to improving your relationship with your bank on a personal level both by demonstrating loyalty and by getting to know people who are in charge of your accounts. With that in mind and without further ado, here are the top 10 reasons why it pays to be best friends with your bank.
1. Learning about the revolutionary new options
Banks are innovating and digitalizing with each passing day and while they do send notifications about some of these options, people either ignore, don’t see or are too timid to try new things. By developing a great relationship with people working at a local bank, you won’t fall under any of these three categories. Online payments, ATMs and even credit cards were all revolutionary inventions, at one time. Nowadays, however, they’re the essential part of the banking world. Why wait for these things longer than you have to, just because you’re not proactive in your research?
2. Receiving top-notch advice
It’s not that your bank won’t inform you of the optimal course of action if you don’t have a great personal relationship with people working there. It’s the fact that they won’t keep track of what’s going on with your accounts. In order to avoid this, you should go there from time to time and talk to the person in charge. Who knows, maybe there’s a new opportunity out there somewhere that you might have missed out on because you didn’t ask in time.
3. Getting better terms
The next thing you need to understand is the fact that there’s more than just credit score to determine what kind of loan you get approved off. If you’re a client that has been with their bank for years, you stand to get offered a much better interest rate and the best loan term possible. Keep in mind that some of these terms are already available but are reserved for the accounts that are considered to be premium (the highest tier). The size of your investment and your capital don’t have to be the only reasons for the bank to keep you in a high enough regard for you to qualify for this loan.
4. Growing your business
Those who intend to start a business of their own will be surprised at just how often they’ll need banking services. In fact, banks hold the key to success, seeing as how they can provide you with all the financial tools that are necessary for the growth and prosperity of your enterprise. We’re talking about improved transaction options, better exchange rates and options like debtor finance line of credit. Either way, these options can give you a competitive edge over your competitors.
5. Faying fewer fees
You would be surprised to find just how many fees these banks are willing to ignore when it comes to clients that they have a great relationship with. Keep in mind, though, that this is not something that your bank will be willing to do lightly. After all, why would they relinquish some extra profit if they don’t feel like they have to? Well, this is where you need to use your leverage in order to get better terms. Speaking of which…
6. Don’t be afraid to walk away
You see, there are many different banks and financial organization out there who might appreciate you more than your current bank. Just because you’re with them for a long time, this doesn’t mean that you are bound to them for life. After all, you’re in a mutually beneficial relationship and as soon as this relationship stops benefiting you (or starts benefiting the other party far more), it might be time for renegotiation. Keep in mind that you might get surprised by the terms that you’ll get offered by your bank, as soon as you start thinking about transferring your funds elsewhere.
7. Banking has changed
Now one of the main reasons why people are confused by the concept of being friends with your bank is due to the fact that what they have in mind when they say this are the traditional banks. Because they see them as cold and professional, they often make no effort to improve this relationship. Nowadays, however, banks are differently structured, differently organized and even hire a different profile of people. Due to this very reason, becoming best friends with your bank may no longer be as confusing and revolutionary as it was once considered to be.
While some may be shocked by the very topic of this post the truth is that being friends with your bank definitely beats doing business with your friends. Why? Well, because lending money to family members and friends sometimes results in open-ended loans, seeing as how they’re never a priority. Second, you’re just immobilizing your funds and probably not receiving any kind of interest rate for it. Sure, helping a friend in need is a great thing, however, becoming their go-to source when it comes to financing their side-projects should never be your responsibility. So, when it comes to doing business with friends or being friends with the bank, always go for the latter.