Clearly, if you want to live and work in the UK, then having a personal bank account is essential. With the rise of new ways of banking, many financial providers are bundling in extras including retail discounts or even cashback rewards, in order to attract temporary foreign workers as customers. Some of these benefits could be very useful, depending on your personal circumstances. While you may have to pay a little extra in fees with these accounts, compared to a standard banking bank, over the long term it could be much cheaper than buying these financial products separately.
If you’re looking for an alternative bank account to suit your needs, here are some of the benefits currently available:
Some personal bank accounts come with free travel insurance. Of course, it’s worth making sure you travel sufficiently to make savings compared to standalone products. It’s also important to read the small print on these policies. Make sure you know exactly what you’re covered for and what, if any, excesses apply. Some financial service providers require that you deposit a certain amount each month to access the benefits. If you don’t, then you could discover that you aren’t covered right when you need it most.
Many financial services providers will offer preferential rates on their other products if you choose to do your personal banking with them. These include discounted mortgage rates, higher savings APRs, credit cards and personal loans.
Some accounts can offer really useful benefits. Suits Me®, for example, offers cashback on your spending in major high street stores and with online retailers. So if you like bargain hunting, our alternative account could be right up your street.
Some banks will give you a cash reward in your account when you switch from another bank. Again, it’s a good idea to weigh up how much that reward is worth to you when it comes to the hassle of switching. Most of these bonuses are small and soon gone.
While an overdraft facility sounds like a good idea, many customers forget that while you’re overdrawn, you’re paying interest, usually at quite a high APR. In fact, it can be a big temptation to use that overdraft facility as part of your normal monthly budget, instead of as an emergency fund, which means your bank account could end up costing you much more in the long term.
How much could you save?
In the end up, when it comes to choosing an alternative account with added benefits, it’s important to weigh up the pros and cons against your actual needs and lifestyle. For example, in the case of insurance, you might already be covered. Or, if you’re offered other products at a discount, they may not be appropriate for your needs, or even cost less to buy separately. It really will come down to your personal circumstances.
In the meantime, at Suits Me®, we’re always looking at new ways to add value to our service and give our members benefits that really do meet your needs. So keep checking in at our blog to see what’s new.