Competition Between Banks Is Good For Consumers

It seems that a bit of healthy competition between high street banks is good for us the consumer.

Customers looking for good value for money bank accounts get better deals when there is competition, it is advised.

Which?, the well known unbiased review magazine, comments that the best interest rates and offers occur when providers "up their game" – this can happen as a consequence of more financial players entering the fray.

The watchdog says that the introduction or development of well-delivered "good value products" can spur other providers to improve their own services. When there is a "wide disparity" in the quality of customer service, this can be a bad thing for those looking for places to deposit their money, it suggests.

Traditionally we would put our money with one of the well known high street banks or building societies such as Barclays, Nationwide and HSBC. However, in more recent years other providers have sprung up offering similar deals for our money. Very often these companies can offer additional benefits along with the bank account.

For example many supermarkets now offer credit cards and insurance as well as bank accounts. One of the biggest benefits of banking with a supermarket is that very often you will get a discount on your food shopping either directly or through a points system.

If you have more than one product with a certain provider they may give you a better deal; like a lower premium on your house insurance if you already have car insurance with them.

It is a widely held belief that competition usually delivers better outcomes for consumers.

Doing some research on the internet can reveal the huge number of types of bank accounts that are out there. Also there are many providers all with different interest rates and charges. It may be worth talking to an independent financial adviser to make sure you get the best deal for your circumstances.

If you would like to know more about bank accounts why not ask AnswerBank Business and Finance.