In the early days. it was small radios and toasters, then home equipment and milkshakes, now it’s all about Visa gift cards and Gadgets. Many consumers are attracted by the new perks offered by various banks, and opening a new checking account or savings account has never been more attractive. Banks are competing for tooth and nail for new customers, willing to sacrifice short-term profits in the hope of long-term customers.
Most banks are increasing their incentive packages to lure customers away from their competitors. Bankers know that regular customers will not leave their current banks for some incentives and free checks. However, some are considering changes in the hope of attracting a few customers who may not be too satisfied with the services offered by their current bank.
While the use of traditional gifts such as camping gear, kitchen equipment, and home appliances is still the norm in the banking industry, many banks are realizing that what customers are most excited about is free money. As a result, they offer gift cards, cash, and even free credit cards to new customers opening current and savings accounts with them to sweeten the deal.
The new advertising campaigns of banks have worked wonders for over a century, which allowed them to expand their customer base. Most banks have increased their large advertising budgets to cover new customers’ expenses such as travel and other expenses. They will also increase the minimum balance in their deposit accounts for new customers and the minimum deposit rate.
In the end, the lesson is pretty simple: consumers should review the terms and conditions in account contracts. They should also be careful not to make the extra effort to change their terms and conditions, even if the bank changes its terms and conditions. For example, changing banks means changing locations, opening branches at ATMs, and changing account numbers for each new customer. Additionally, if you have automatic payments set up for your creditors or recurring payments, they will all have to be changed to the new account.
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