Is it the Product or the Bank that is Most Important?
It can be difficult choosing a financial product and thinking about whether you want to put priority over the product itself or the bank when you are comparing them. It is something that it is important to think about though as it could make the difference between whether you get a good product or not.
What to Look out for in the Product
One of the main things that people will want to look out for in the product is the cost of it. They will want to make sure that they are not paying more than necessary for the item that they are using. If this is a savings account then it will be the interest paid out rather than charges that will be considered. If it is a loan then it will be the interest and any fees. With a current account there may be charges or it might be the overdraft rate that you are looking at. It is a good idea to think about the value for money that you are getting from the product though. Consider other features of it in light of the cost to see whether you think that it is good. Consider whether you are prepared to pay more for an item due to features that it has. For example, you might be prepared to pay more for a loan if the repayments are smaller and easier to manage. You might be happy to receive less interest on your savings if the account allows instant access to the money. So, it is important to look at the cost side in relation to what else you are offered and then you will be able to think about the value for money that you are getting.
What to Look out for in the Bank
Banks will vary in different ways. It is worth thinking about what might be important for you. Firstly, it is good to think about how you want to deal with the bank. Some will have high street branches and you might want a bank that has one but some may only deal over the telephone or online. Think about what you would prefer or whether you want to be able to use all of these if you want to.
Also, you may want to think about the reputation of the bank. You might want to go for a bank that you have used before so that you are happy that you will be able to trust them. You might want to go for a bank that you have heard of or that people you know recommend. You may want to read some reviews to find out more about them. It is a good idea to be cautious and find out as much as you can. However, make sure that your sources are reliable. Reviews can be biased and even people you ask might be. Also think about what they are saying, they might love a bank as it has a high street branch but you like to online bank s that is not relevant. So, think about whether the things that people like and dislike about the bank are relevant to you and what is important to you in a bank.
It is probably the case that it should be both that you consider. However, think about what factors you feel are important to you and prioritise those. We all have different ideas and so it is hard to say whether one is better. It is important though, to be aware of the cost or interest on the item and think about whether it offers good value for money when considering its features as well as what the bank itself is like.