In my last post, I mentioned that with the new financial products & services introduced by banks in Brunei, it's important to ask some interesting questions to the bankers. Here are some questions that I feel is a-must.
1. Can you explain to me that product once again? How does it work?
Although it's tempting to apply a financial product when a banker tells you the high rate of return and that your principal/capital is protected (i.e. they'll return whatever amount you put in), but getting to know the basics of the product will make you aware of some risks that you may have not considered yet (e.g. other costs, ability to withdraw your money etc).
Even if we have asked 1 or 2 times and we still do not understand the product, ask again. Ignorance is not bliss, where money is concerned. Regret can be very, very costly. If the person looks weary or does not explain well, be persistent. My experience has shown that generally, the person will ask a more experienced staff member to explain further. If not, then maybe your money is better off somewhere else.
2. What are the costs that I must be aware of? Can I get a list of fees or charges relating to this product/service?
I have this pessimisstic feeling that some banks will not reveal to me certain hidden costs and one day, I will get an unpleasant surprise on some new, unexpected costs charged to my account. To avoid this, it's good to ask for a listing of charges. Some banks show these listing in their pamphlets and websites but one cannot be sure if the listing is comprehensive. If in doubt, ask again just to be sure.
In some cases, those listing of charges will show you that banking through other avenues (e.g. internet banking etc) may be less costly than banking through counters. You never know where opportunities to save money exists.
3. Can I get a copy of the product's/service's terms & conditions (or other necessary documents) so I can learn & think about it?
Asking for a copy of the 'Term and Conditions' before making a decision, can help tackle the above 2 questions. The 'Terms and Conditions' papers are those documents that are normally given to us after we apply or subscribe to the product. These documents basically indicate (unfortunately, in some cases, using technical & legal terms) what the banks' and the customers' rights are.
I must admit that reading through these bits are not fun at all because of the technical terms & some documents have lengthy pages, but in some paragraphs, it may be interesting. At the very least, some will show you the total types of costs involved and describe your rights as a customer.
It is my opinion & also through some observations, that there are individuals that take their banking lightly and put their hard-earned money in a financial product that they do not know enough about. But once we get a grip on the costs and the flexibility of the product, we may also identify other opportunities to save some money. At the very least, we'll be avoiding that classic phrase, 'A fool and his money are soon parted'.
ps If anyone has any other 'interesting' questions or tips to ask banks, let me know. Thanks.
1. Can you explain to me that product once again? How does it work?
Although it's tempting to apply a financial product when a banker tells you the high rate of return and that your principal/capital is protected (i.e. they'll return whatever amount you put in), but getting to know the basics of the product will make you aware of some risks that you may have not considered yet (e.g. other costs, ability to withdraw your money etc).
Even if we have asked 1 or 2 times and we still do not understand the product, ask again. Ignorance is not bliss, where money is concerned. Regret can be very, very costly. If the person looks weary or does not explain well, be persistent. My experience has shown that generally, the person will ask a more experienced staff member to explain further. If not, then maybe your money is better off somewhere else.
2. What are the costs that I must be aware of? Can I get a list of fees or charges relating to this product/service?
I have this pessimisstic feeling that some banks will not reveal to me certain hidden costs and one day, I will get an unpleasant surprise on some new, unexpected costs charged to my account. To avoid this, it's good to ask for a listing of charges. Some banks show these listing in their pamphlets and websites but one cannot be sure if the listing is comprehensive. If in doubt, ask again just to be sure.
In some cases, those listing of charges will show you that banking through other avenues (e.g. internet banking etc) may be less costly than banking through counters. You never know where opportunities to save money exists.
3. Can I get a copy of the product's/service's terms & conditions (or other necessary documents) so I can learn & think about it?
Asking for a copy of the 'Term and Conditions' before making a decision, can help tackle the above 2 questions. The 'Terms and Conditions' papers are those documents that are normally given to us after we apply or subscribe to the product. These documents basically indicate (unfortunately, in some cases, using technical & legal terms) what the banks' and the customers' rights are.
I must admit that reading through these bits are not fun at all because of the technical terms & some documents have lengthy pages, but in some paragraphs, it may be interesting. At the very least, some will show you the total types of costs involved and describe your rights as a customer.
It is my opinion & also through some observations, that there are individuals that take their banking lightly and put their hard-earned money in a financial product that they do not know enough about. But once we get a grip on the costs and the flexibility of the product, we may also identify other opportunities to save some money. At the very least, we'll be avoiding that classic phrase, 'A fool and his money are soon parted'.
ps If anyone has any other 'interesting' questions or tips to ask banks, let me know. Thanks.
No comments:
Post a Comment