It can often be the case that some people will always shave all of their finances with the same bank They may have a current account, mortgage, savings account, credit card and loans always form the same bank. Other people though, might have them with lots of different banks. It is a good idea to think about the pros and cons of each so that you can decide which might be the best approach for you.
Advantages of Sticking with the Same Bank
If you take out a new product, say a savings account, with a bank that you are already with, then it will be easier. They will not need to carry out a credit check and so you will be able to get the product more quickly. As you are already a customer, they will have all of the information that they need already. They will also know your credit history and things like that and so if you want a loan, for example, it is possible that they may be more likely to give you one. However, this may still depend on your credit record and borrowing history.
If you like to go in to the local branch, then you will only need to go to one place if all of your items are with the same place. You will not need to visit lots of different buildings, which might even be in different towns. You may prefer to bank online and this will also be more convenient if you have everything with the same place. You will be able to set up one login and then use it to access all of the information about all of your accounts. This will be more convenient than having lots of accounts with different websites to go to and different passwords and having to check all of them.
You will also know what the bank is like. It is likely that you like them or else you would not still be sticking with them and therefore you will be happy to use them and know that you will be getting a good service from them.
Advantages of Having More than One
By sticking with the same bank, it is very likely that you are missing out. It is likely that there will be accounts that offer better value for money than the ones that you have. You will find that there are probably places that offer cheaper loans, savings accounts with more interest and things like this. This means that you could be spending less and getting more money back than you are at the moment.
Just because you are happy with the service that you bank provides, it does not mean that there is not a bank that will offer even better. Without trying anyone else you have nothing to compare your experience with and so you could find that you are actually missing out and there are much better options available for you.
There is also some protection for your savings, but only up to a certain level. If you are with a bank that goes bankrupt, then you will get some money repaid form any savings that you have with them. However, this is only up to a certain level and so if your spread your savings across different banks then this will lower the risk that you will lose so much of it. The level is quite high at £85,000 but if you have a lot of money saved, then this could impact you and so it is worth bearing in mind as you may want to spread it out.