It can sometimes be difficult to know whether it is a wise idea to use a bank that you do not know. There are things that you ocudl be concerned about, but there might also be advantages and it is a good idea to consider both so that you can think about whether it will be a good option for you or not.
Concerns with Using an Unknown Bank
If you have not heard of a bank then you may wonder whether they have had much experience. You might think that perhaps they are new, which is why you have not heard of them and that might mean that they will not know much about what they are doing and that perhaps therefore you will not be able to trust them. It is worth checking this out though as you might find that they are actually a lot older than you think and that you may just not have heard of them because they do not advertise or do not have a branch near to you.
You may worry that perhaps, because they are not a well-known bank that it might mean that they will not be very good. This is an interesting idea, but people often seem to think that if a bank is well-known, it will have a reputation to uphold and it will therefore have to provide a good service and good value for money. This is actually not the case. This is because a well-known bank already has lots of customers and can probably afford to lose a few. Therefore, they will tend to not worry quite so much about making sure that they have competitive prices and good customer service. They also tend to advertise and have lots of high street branches which cost money and that cost has to be passed on to the customer which is likely to make them more expensive.
If no one talks about that bank it does not mean that they have not used them and do not bank with them. So, ask people about them and see whether they have heard of them and whether they have used them. They might be able to give you some useful feedback. You might also be able to find out information about them online, perhaps on review sites or personal finance forums etc, but be careful that you are using trusted sources and information that is unlikely to be biased.
Advantages of Using an Unknown Bank
It is always worth comparing all banks when you are looking for a new product. This is because you will find that there are big differences in the amount of interest as well as charges, customer service and things like this. This means that there could be some banks that offer products that are really good and suit your needs really well, but if you have not heard of them, then you may reject them. So, using a different bank could be useful.
Also, you may find that a less well-known bank will rely on good customer service to help them. They will need to do everything they can to keep the customers that they get and therefore they will be more likely to provide a good service and they may also have good interest rates and low costs as well. It is certainly worth checking them out as it could be a real benefit to you if you do. It will take some times and research but if you end up with products that will offer you much better value for money then it will be really worth the effort that you have put in.