Image courtesy of Falcon Photography

In years gone by a person may have started banking with one particular company and then always continued with them. Changing accounts used to be really difficult and they may have felt a loyalty to that place which perhaps had their mortgage, savings, current account and lent them money too. There were times when if you wanted a loan, you would have to dress in your best clothes and convince the bank manager that you were worthy. This is where having lots of accounts with the same place could really work in your favour. However, these days it is much more common for people to change banks or hold their accounts across different banks. You do not need to go and negotiate a loan either, you can just apply online. It may therefore seem that it does not really matter if you are loyal.

Unfortunately companies do not seem to be able to reward loyalty these days. There is so much competition that they need to offer their best deals to new customers and therefore tend to ignore their current customers. When you apply for a loan, for example, whether you go to your bank or another, they will still look at your request and check your credit record and decide whether they want to give it to you, whether your approach your main bank or another lender.

With loyalty you do get ease and peace of mind though. You know what to expect from a place that you have dealt with before and you will know how to deal with them as well which will make things a lot easier. You will know what their customer service is like, whether there are branches and if so where they are and how to use their telephone and internet banking if they have them and you use them.

There is a risk though of putting all your eggs in one basket. There have been cases where financial institutions have got into trouble and had to close down or be rescued. If you have all your money in one place then you may lose some. Although in the UK, you have some protection against this and it would not matter so much with borrowing, it is still something worth considering.

If you are looking for new financial products or wondering whether you can find a better deal it is always wise to compare. Although you may feel loyal to your bank, you could be getting a much better service from another and you may be paying less or gaining more from them as well. If making the most of your money is important to you, then changing your savings account, or borrowing at a lower rate will make a significant difference to you. You may be able to make the difference of a few percent and if that is on the rate of a mortgage then it could really add up over the years, as would a few percentage on a large amount of savings.