Your bank will do everything in its power to make money out of you. Here's how to fight back and win!
Your bank will do everything in its power to make money out of you. Here’s how to fight back and win!
We all know the big banks are out to squeeze as much profit out of their customers as they can. But it’s your job to make sure that doesn’t happen. Here are four easy ways you can turn the tables.
1.Bank for free
Packaged current accounts are big business for banks these days costing anything from £5 to £25 a month in return for benefits such as AA breakdown cover and free travel insurance. But I think they offer most people poor value. If you’re offered an upgrade, make sure you always say no. After all, banking should be free.
2. Switch to make money
You can earn an instant cash bonus by switching to certain current accounts. For example, the Alliance & Leicester Premier Current Account will pay £100 to everyone who switches over their direct debits and pays in at least £500 a month. It’s easy money and the A&L account is pretty good too!
3. Apply for a cashback credit card
Whatever you do don’t apply for a credit card from your bank, and then pay them stacks of interest on your balance. To win the credit card game you must pay your bill off in full every month. Better still, instead of choosing from your banks own credit card range, why not go for a cashback credit card and get paid every time you spend.
A good choice here is the American Express Platinum Cashback card which pays 5% cashback on all your purchases in the first three months, up to a maximum of £100 followed by rates of up 1.25% after that.
4. Buy your insurance policies somewhere else
Don’t help your bank to increase its profit margins by allowing them to sell you over-priced insurance policies. For example, you will only get value for money on home contents, travel and life insurance if you shop around. Settle for the plans on offer from your bank and you may end up paying well over the odds.