Most of us, if not all of us have a bank account, a debit card and/or a credit card.
It’s something we all have in common, and it can be a point of contention for a lot of people.
Finding a bank these days that values you as a customer and doesn’t take advantage of you seems to be impossible.
As you can imagine, banks have a lot of ways to keep you under their control and they have a few tricks up their sleeves to make sure you can’t leave without a fight.
Banks also have a number of highly precious secrets that they don’t want you to know.
Here are some of the bank’s best-kept secrets…
1. You don’t always get the rate advertised
Despite what you may think, banks and lenders aren’t actually required to offer the rate advertised to every successful applicant.
Technically speaking, they may only have to offer that rate to a certain percentage of people who have been approved. This means the rest are usually offered a more expensive deal.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
2. Your bank account isn’t worth what you’re paying for it
Some banks will offer a range of extra ‘benefits’ if you pay for it. Like free travel insurance in exchange for a monthly fee.
But unless you make the most out of ALL the extras, the bank account is probably not worth the money you’re paying.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
3. More swiping means more money for them
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Every time you swipe your card, regardless if it’s a debit or a credit, your bank makes money.
They make their money by charging the merchant fees.
For example, promotional credit card offers will often want you to spend a certain amount in order to be rewarded.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
While it’s a great deal for you, they are doing that for their own benefit, not yours. The more you spend by swiping your card, the quicker the banks make their money back.
Banks are also counting on the fact that once you’ve racked up the £1,000, you won’t be able to pay it all off in one month, which means you’re creating interest fees.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
4. No debt history is not a good thing
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
When deciding whether they can give you a loan a bank will look into your financial history and check your credit score.
If you haven’t had a loan or a credit card in the past then they won’t be able to determine how good as a borrower you’ll be.
Having no credit history may be worse than having a less-than-perfect one.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
5. Re-ordering your purchases
Some banks will re-order your purchases in a day, they can do this from the highest amount to the lowest.
This means that if you fall into your overdraft, your bank can charge you a fee for each transaction made while overdrawn. This means you’ll end up paying more fees.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
6. Running deposits last
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
If you pay money into your account on the same day a number of payments are due to come out. The bank may run those payments first, which means you fall into your overdraft and then have to pay overdraft fees.
This will then come out of the money you just deposited into your bank.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
7. They can sit on your check
It can take many days to get your check to clear into your bank account. But banks are actually able to delay the process for a number of reasons while pretending that everything is above board.
This delay can easily see you fall into the red and force you to pay more overdraft fees.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
9. You don’t need insurance
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Whenever you take out some form of credit, the bank will try to sell you a form of insurance to cover your payments just in case something happens to you. This may seem like a good idea at the time, however, the small print of these insurance policies could mean it won’t protect you from debt if you can’t pay it. You may be better off making other plans.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
10. Paying your debt off could cost you more
You may think that paying off your debt ahead of schedule is a good thing. However, this is something many banks and lenders will try to discourage by slapping you with an additional charge if you do pay it all off early.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
11. Closing that unused credit card may not be a good idea
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Banks always look at your ‘credit utilization’ rate when considering any applications you make for further loans. They want to see how much of the credit at your disposal you’re using. If it’s too high, then you may look desperate to banks. Closing an old card could push that rate up, further denting your chances of being approved.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
12. Your mortgage could go up when the rates don’t
Some mortgages are not actually tied to the central bank rate. This means that your lender could actually put up your rates, even if the base rate hasn’t moved.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
13. Be careful of mortgage fees
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Banks actually cash in on the many fees that come with your mortgage. Banks can charge you an ‘administration’ fees to exit fees. All these fees are ridiculous and can cost you a pretty penny!
But be sure that you read the small print so you know what additional fees the bank may make you pay.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
14. Free banking doesn’t exist
Even if your account doesn’t cost you a monthly fee doesn’t mean you’re not paying for it.
Banks can charge you a higher fee for falling into your overdraft or charge you interest on your credit balance.
We’re all paying for our accounts directly or indirectly in the end.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
15. Banks love it when you’re lazy
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
The bank’s best deals are often saved for new customers. This means that banks are relying on you not to go looking around other banks and switching accounts. That way you can miss out on all the best deals.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
16. Your old debt can be valuable
Your credit history could be a clear sign to the banks that you have experience handling debt.
Which means that closing your oldest credit cards might be a bad idea.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
17. Your money could cost you
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
In some countries, it’s possible for you to be charged a fee if you withdraw money from an ATM that’s not run by your bank. Now that’s a naughty trick!
18. Using your card abroad
[dx_custom_adunit mobile_id=”RTK_qw1q”]
If you’re travelling and you don’t have any cash you hand, using your card could be tempting.
However, many banks will hit your account with fees and charges for using your card overseas.
You’re actually better off cashing up your spending money in advance.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
19. Savings rates won’t last forever
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Banks are well known for teasing you with a great rate on your savings at the beginning of your account.
But they can quickly and suddenly slash it sharply later on. Keep track of what sort of return you’re getting. If the rate drops then its time to move.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
20. Don’t change your holiday money at the bank
When it’s time to sort out your holiday money, don’t go to the bank.
Banks offer worst exchange rates a lot of the time. Instead, use a currency exchange firm that’s well trusted- like the post office!
[dx_custom_adunit mobile_id=”RTK_qQCt”]
21. Don’t make a mistake
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Mos banks don’t offer interest-free credit cards because they’re counting on you making a mess of your repayments. This way you end up with debt still to pay off when the 0% deal comes to an end.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
22. You Lower Late Fee or High Interest
You can actually lower your late fee or interest by asking the bank to lower or waive the fee or interest rate by being polite. It happens all the time!
[dx_custom_adunit mobile_id=”RTK_qQCt”]
23. You don’t have to pay an annual fee
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
If you’re thinking of closing the credit card because your annual fee is too high, you should simply call your bank and transform your card to one with no annual fee.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
It can be done and has already been done by a lot of people out there who wanted to try and save some money.
Call your bank today and give it a go!
[dx_custom_adunit mobile_id=”RTK_qQCt”]
24. Travel for Free
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
Believe it or not, but people who have a good credit score could actually get more benefits from their bank account.
They’re allowed to avail the best possible sign up miles, which means you could use these miles to visit the holiday destinations you’ve always wanted to visit.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
Some banks reward also include flexible airline and hotel transfer too.
It’s just another big reason to keep your credit score high.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
25. They want you to walk into their branches
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
When you walk into a branch you’re giving banks and their customer assistants the chance to sell you something.
That’s why they’re always delighted to see you.
They always seem to be pushing for you to open new accounts because their jobs depend on it. At the end of the day, they’re salespeople and have quotas that they have to meet. Whenever a new account is opened, they receive a commission.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
Bank assistants are also required to send a certain amount of customers to the personal bankers. The biggest commission bankers receive is on large deposit accounts.
To avoid being upsold on accounts try to do all of your banking online. If you have any questions then call customer service. They might try and upsell you too, but it’s often easier saying no over the phone.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
26. A closed checking account can haunt you
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
When you close a checking account you assume that’s it.
But that’s not always the case. There have been instances in which customers closed their checking account, but forgot to switch over their direct debit transactions, which caused their “closed” account to be charged.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
This means that customers have to pay fees and penalties. In some cases account holders were even turned over to collection agencies.
While some banks have changed their policy due to the complaints, not all banks have done the same.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
27. Avoid checking account fees
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
There are a lot of banks that charge a monthly fee if you don’t maintain a minimum balance.
When you receive money from a company or the government, it is sent through an electronic network.
Some banks will categorize those payments and other bank transfers as “PPD” (also known as prearranged payment and deposits).
[dx_custom_adunit mobile_id=”RTK_qw1q”]
When you check your bank statements check to see if it says “PPD,” next to your deposit. If it does, then your bank will fulfil the requirement for direct deposit, waiving your monthly fee.
But you may have to chase your bank to secure this neat perk!
[dx_custom_adunit mobile_id=”RTK_qQCt”]
28. The Universal Default Clause
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
This clause applies to bank-issued credit cards. Your bank is allowed to browse through all of your open credit accounts to see if you’ve paid any of them late.
If you have then they then have the right to raise the interest rate or cancel it.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
The interest rate can’t be raised on existing balances unless you are 60 days late with your payment.
You should avoid opening a bank-issued card that uses this clause in its small print. There are plenty out there that don’t make use of the Universal Default Clause, you may just have to do some research.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
29. Do your research before you commit to a certain credit card
[dx_custom_adunit mobile_id=”RTK_ZIkz”]
No one wants to be hit with a nasty administrators fee or exit cost when they’re opening or closing a bank account or credit card.
To avoid getting hit with any nasty charges make sure you do your research when opening or closing a new account.
[dx_custom_adunit mobile_id=”RTK_qw1q”]
Make sure you pay attention and ask the bank what it means when you’ve closed your account. They’ll highlight any hidden surprises that you wouldn’t have known about if you didn’t ask.
So there you have it! All the secrets that banks don’t want you to know!
Feel free to SHARE this with your friends and family on Facebook! Who knows? It could save both you and then a pretty penny on your bank accounts.
[dx_custom_adunit mobile_id=”RTK_qQCt”]
