Are you Taking Advantage of the So-called Introductory Credit and Savings Offers?
Interest Rates (Photo credit: 401(K) 2013)
A number of banks beguile their customers by providing several offers with different schemes. Very recently, some financial institutions have been found that offer a brand new deal to the consumers who are supposed to change their current account to the their bank. Having this deal, the customers can easily amend their any two direct debits to come out that financial credit.
Having such scheme is more important for a savings account than that of a current account. If customers have stored their money in an old savings account then they are actually going to lose their money. Banks are adopting a very clever trick here. There is a fair chance that during the first year, they will drop off the rate of interest and it will keep on reducing year after year, compelling the customers to open up a new savings account. Basically, the situation automatically makes you willing to do that expecting the best rate of interest.
But this is not a certain deal all the time. Therefore, before opening up a new savings account one must get all information about the rate of interest and the scheme in detail and if the scheme assures benefit the only then should he go for it. It is not advisable to open up a new savings account when you are in doubt whether or not it will pay more. It will be no less than a gamble where chance of gain is fifty-fifty. If the rate of interest is high only then the customer can go for a new account and they are suggested to take the step on the basis of sure rate of interest rather than expected rate of interest.
When it comes to the introductory rates for both credit and the savings it is most important to be aware of the deal in detail and its functioning. When it comes to open up new savings account with introductory offer, the bank always offers a high rate of interest but that lasts only for a certain period of time and then the rates are same as the flow rate. The same goes for the credit as well.
Not only the savings account but the credit card companies can also play the same game until and unless the card holders have changed it as early as possible. Nowadays, it is found that the financial institutes offer credit cards with 0% introductory rate but within a year the introductory rate goes up to 19.99%. Not only that, the banks provide some other bonus offer as well, like cash back, air miles and, in fact, money of purchases in assured merchants. This, basically, means that the credit card holders should change their card on a yearly basis. But the user must make it sure that they call off their last every time since too many cards may lead him to lower credit rates. A much safer deal is to cancel the credit card at least a month before its expiry date and then get a new one.
Therefore, following the correct method and being aware of all the schemes in detail you can enjoy the advantage of the introductory credit rates, if you want read more visit today short term business finance
Category: Credit Card
