Interest rates on saving accounts have been drastically low over the years. For example, the average interest rate quoted by Bankrate is 0.06%. However, in this situation, when you have stashed a significant amount in the savings account with a relatively more nominal interest rate. Stop right here; read carefully; this is your sign of negotiating with your bank and increasing the interest rates. After all, you have invested a massive pile of dollars!
Bang on time
Imagine going to a bank with oh-so-cool attire, sunglasses, a chic handbag, or if you are a guy, then maybe rolling your car keys? Regardless, focus on your entrance. You have entered the bank influentially, but the bank teller or manager is already occupied with other customers.
Bad timing! Let’s rewind and make our way at the time of the day when there is no crowd and the environment is calm. It allows you to have a talk without hindrances and fulfill your purpose. What’s next?
Fill your mind with the best interest rates
Before initiating the negotiation process, ensure you are completely armed with relevant industry knowledge. As you start mentioning the rates, make sure you have a competitive analysis of the current rates, check out the competition, and quote the transparent rates their competitor offers. They surely don’t want to lose customers, set an informed impression, and be vocal about your requirements. Like not an argument, we will explain how to create a win-win situation later in this article.
Ego is the enemy
If you have ego issues, let me warn you that this won’t get you anywhere in this process because we are not preparing you for a battle but a win-win situation:
- Be mindful of your manners; the respective counterparty is the bank teller, manager, or service line wouldn’t like to be talked down or yelled at. Smart people respectably handle the situation and are sharp-witted to lock the deal. So, for this reason, stay calm and friendly while asking for your deal.
- Many types of research have revealed the right attitude for a successful negotiation is a “win-win approach.”
- Don’t panic!
Even if the negotiator has a poker face, continue with your deal, and don’t let the other party dominate over you.
He who is wise listens
If you listen carefully, you can effectively draw out the counterparty’s facts, such as their offers, needs, and requirements. Then, following the steps above, you will be able to comprehend the situation and strike a decent deal that benefits all sides.
Be conscious of your words
There’s always a code of conduct to follow when you’re negotiating. Using insightful words in the right tones might help create a pleasant balance. This method instills confidence and has yielded positive results in 90% of situations.
Furthermore, consider thinking beyond the box. Be open to making concessions on terms that seem reasonable to you and might work to your advantage. Similarly, if the banker has innovative suggestions beneficial to both sides, do not hesitate to adopt them.
Be dramatic
When negotiating, never come out as desperate; some of your offers may be tough to accept, but they aren’t the only ones. Instead, use natural language, such as ‘I’ve been a devoted client for numerous years’ or ‘The present balance is adequate to request higher rates.’ What additional best rates can you provide your devoted customer?
Note: When speaking these terms, be natural. It is an excellent way to promote your idea while creating a dramatic atmosphere.
Since you appreciate their bank terms, inquire about possible solutions.
I’ll set up an account somewhere else
When the preceding strategies have failed, the last option is to threaten moving banks; nevertheless, this is a highly improbable scenario; our approaches will get you your deal, but for a reality check. Regardless, it’s essential to determine what you’ll accept as a minimum and be prepared to walk away if the deal isn’t working; plenty of other fish are in the water. Finally, let the banker know that you can move banks if they don’t have anything better to offer.
Although this is a backup plan, it might offer your deal a strong impression. We’re confident that the bank would prefer not to lose you.
However, some banks offer special interest rates to appeal to customers, including online banks. As a result, they offer relatively higher interest rates than traditional banks. Another advantage of online banking is that it puts your money out of view, allowing you to fight the urge to consume them.
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