THE WAY WE bank has changed in recent years, thanks to advances like in-app banking, paperless billing and contactless payment. Spending, saving and looking after monthly outgoings have become smoother experiences overall, but many of us are still in the dark when it comes to controlling our finances.
Take switching banks, for example. There are plenty of reasons why changing financial provider for your current account, mortgage or credit card could be a good shout, but if you’ve never looked into the nitty-gritty, then you’re probably unaware of the potential benefits.
Let’s take a look at why it could be time to switch things up, or at the very least, to shop around…
Do you love tapping for contactless payments, or prefer to use your PIN? Every financial provider has a different breakdown of transaction fees and the differences in what you pay out can be significant.
Take a look at your daily spending habits and figure out if you could be making savings – the Competition and Consumer Protection Commission (CCPC) has an impartial comparison calculator on its website.
After the stress of house viewings, putting offers in and finally closing the deal, it’s no surprise that most homeowners balk at the thought of shaking things up again with a mortgage switch, but it could be worth the effort.
According to Central Bank statistics, one in five mortgage holders could save money each month by switching. Even if you don’t end up changing mortgage providers, your current bank may offer to beat or match a deal to convince you to stay.
Some banks even offer cash incentives to cover legal costs up to a set amount, which is handy if you need to get a solicitor on board to look after documentation.
Compare mortgage deals on the CCPC calculator here.
If you haven’t switched credit card providers in a while, it’s always worth shopping around to find out if there’s a more beneficial deal out there for you. Better interest rates are particularly lucrative if you often have an unpaid balance on your card at the end of the month, or if you rarely pay off more than the minimum monthly repayment. The interest rate on credit cards currently ranges from 13.8% to around 23%, so check which rate you’re paying before shopping around.
You can compare credit card interest rates and more here.
If you usually clear your monthly balance and so don’t really think about interest rates, you should still consider shopping around for other credit card benefits like cashback on purchases or rewards points. Remember, if you’re switching cards and have cleared your old one, ensure you close it, so that you’re not charged annual government stamp duty (€30) on two cards.
Irish banks have amped up their customer service massively in recent years, with some financial providers offering off-peak opening and a front of house service in each branch. Customers now also have access to more streamlined banking thanks to phone, online and app banking services. But if you find your needs are not being met or feel you’ve outgrown what your bank can offer, don’t be a martyr. Shop around online or call into some other financial providers to chat about switching and get a feel for what’s on offer.
You’ll find switching advice and a step-by-step guide on switchyourbank.ie, an independent service provided by the Department of Finance.
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