Banks No Longer Provide Customers With Best Rates

Bank customers in the United Kingdom need to be smart while choosing their bank accounts to make sure that they get the best rates. According to financial experts consumers should shop around for the best deals on loans as banks will no longer provide their customers with the best available rates. This often denies the customer of maximum profit as he/she was used to in the past.

A new report from the Bank of England has revealed that lenders are increasing the margin they charge on unsecured lending. This recent change in trend has resulted in millions of customers losing out of good rates from the banks. This is another ploy by the banks to maximise profits after increasing the lending rates recently.

Mark Bower, managing director of moneymaxim.co.uk, has claimed banks have done so in a bid to claw back funds lost from the financial crisis and the increasing number of personal insolvencies. Recently the rates on the credit cards were also hiked to cover the losses as the lenders had written off record levels of credit card debt to avert the credit crisis.

In such a market scenario the customers need to act smart and choose their accounts carefully so that they can get the best interest rates. Bower also said: "The days of just going to your bank and expecting them to provide you with the best rate because of your relationship with them are definitely gone. The cheapest rates now tend to come from the supermarkets."

Mr Bower added that supermarkets now offer the best deals and that consumers should aim to move their loan to a more competitive rate if they feel they are paying over the odds. Also it is necessary to regularly keep a tab on the account. A majority of Britons do not keep track of their accounts and interest rates.

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