There are many different banks in your area, and they likely offer various benefits. A bank is often thought of as a place to keep your money and one that provides a line of credit. However, you should think of them as a business. They have products they are trying to sell, and they have ways of making money. With that in mind, it will be easier to choose a bank. The product that banks are selling is money itself; they will give you loans and credit when you need it. You have to pay them back with interest. Since their business relies on people paying them back, they offer preferential treatment to customers who have proven that they will pay them back.
Preferential Treatment
If you have been with a bank for a while, you will get benefits that other customers do not get offered. This is typically called priority banking in Malaysia. Your banking needs will be given priority over new customers and customers who have not proven themselves to be trustworthy. There are many different types of banking benefits you can get. One of the things you can receive is a free bank account. Because banks are in the business of selling money, they often charge for their bank accounts. However, if you are a priority customer, they usually offer low or no-cost bank accounts.
Interest Rates
The interest rate is the percentage of money that you are required to pay on top of the amount of money that you owe your bank. The interest rate can be rendered monthly or annually. If you are borrowing money from a bank, you want the lowest possible interest rate. The interest rate serves two purposes for a bank; it helps them make money, and it ensures that they will get their money back. So, if they loan you a certain amount of money and they don’t trust that you’ll pay them back, they will charge you a higher interest rate. That makes it more likely they will get their money back. If you are a priority customer who has been with them for a while, you will be given the benefit of the doubt. They’ll charge you lower interest rates because they trust that you will pay them their money.
Lower interest rates substantially lower the cost of money. That makes it easier for you to make big purchases, invest your money in something, or to start a business. The price of money is one of the most cited reasons for people not starting a business. If you are a priority customer at a bank, you will have better access to low-cost capital. These are just a few of the benefits of being a loyal customer at a bank.