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Pros and Cons of opening an account with traditional banks

August 16, 2017

Pros and Cons of opening an account with traditional banks

Traditional banks were the first banks to offer proper checkable deposits. These banks are very old and exist even today. Here are a few pros and cons of opening a bank account in traditional banks:

Pros:

Convenient: These banks usually have a various number of branches in different areas. Some banks even have branches in remote locations. This makes bank visits convenient for customers as they do not have to travel far just to make a deposit. These banks also provide the customers with free ATMs which make withdrawing of money convenient for customers.

Two options: Most banks allow the customer the luxury of either walking into a bank to facilitate transactions or simply using a smart phone. Banks provide the options of net banking and mobile banking.

Cash: Traditional banks still work by money. Any companies or customers who have the majority of their transactions in cash will be attracted to opening an account with a traditional bank. This will be beneficial for the client because the bank can satisfy their needs easily.

A variety of accounts: Traditional banks, being the first kinds of banks, have grown over time. They now provide opportunities to open all types of accounts. A customer can open both his current account and his savings account in one bank. This makes it convenient for the client.

Cons:

Interest rates: The traditional banks usually provide low-interest rates or no interest at all on savings accounts. This often acts as a feature that drives customers away from traditional banks.

Fees: As a matter of fact, all of these traditional banks charge large sums of money as fees for any little default against their policy. These big banks do not worry about customer satisfaction and how to provide personalized service to customers but only worry about how to keep the bank and business going. The majority of these banks charge high fees for not having the minimum balance in the account, for application of loan, for early repayment of the loan, etc.

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