People used to have personal relationships with their bank managers but over the past decades, investors have been left on their own in terms of financial interests.
However, it makes sense that banks want to make money out of investors and it does not mean they are not honest or trustworthy. What you should know is that bankers may offer you products which may not necessarily the best financial solution for you.
Bankers may offer you limited options and not inform you of loan products from other banks even if the latter may suit you better. They are sales people, who receive incentives to sell their products and services, including credit cards and insurance.
There are three different bank accounts: for family, business or larger accounts and the institutional branch. Remember that mortgage rates are negotiable and bankers can often give you a good deal because they would rather give a bit of discount than lose your business.
Note that an offset account may be better than a term deposit. If you put money in an offset account, it will effectively earn you the interest rate on your mortgage and make more money than a term deposit or savings account.
Your banker may also not inform you about their fees as these are their biggest money maker. If you are not informed, they may not even tell you that some fees can be waived.
Remember that bank employees are not trained to make financial decisions and usually can’t provide financial advice. There is a system, which will assess and decide on your loan application. Your information is not assessed by a bank manager or loan officer, but instead, will be fed into a computer.
Don’t forget to shop around for the best financial products and loans. Even if you have been a loyal customer, you may still not get a good deal from your banker.
What can you do?
If you would like to know more about finance and bankers, you can click here to know more about Chan & Naylor services. You can leave your details here and we can schedule you for a free consultation. We’ll contact you to explain more.
Whether you are a beginner, seasoned investor or business owner, we can give you guidance to maximise the financial areas of your life. We can give you an integrated and tailored solution of your superannuation, taxation, property investment, asset protection, estate planning and more.
Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.
To view the original content, click here