TomorrowMakers

Banks offer a range of financial products and when you visit the branch, the executives might force you into buying one without assessing whether you need it or not. This is mis-selling and you should stay away from it. Here are 7 ways to do so.

Banks Mis-Selling Product

How many times have you bought something not because you wanted to but because the salesperson forced you to?

If you have, you have been a victim of mis-selling. Mis-selling is an activity wherein a sales executive persuades a customer to buy something without assessing whether the customer needs it or not. It is very common in banks which offer different types of financial products. When you visit the branch, the sales executives might persuade you to buy a product which you might not need. This not only involves an unnecessary expense, but it might also derail your financial plan. So, you should avoid falling into the mis-selling trap.

7 Tips to Avoid Becoming a Victim of Mis-Selling 

1. Understand the product

Whenever you are being sold a product, understand it thoroughly. Know the rules, terms and conditions and the product benefits. The bank executives might not tell you everything so, do your research.

2. See if it aligns with your goals

Do not buy the product on a whim. Check if it matches your financial goals and buy only if it does.

3. Shop around

Shop around for the best product offering, whether it is a loan, a fixed deposit scheme or even a savings account.

4. Don’t make a hasty decision

When you are putting your hard-earned money into a product, don’t be in a rush. Look for any information that the executive is hiding. Ask questions and find out whether the product is suitable or not.

5. Avoid pressured selling

If you are being pressured into buying any product, stay away from it. Chances are that the product will do you more harm than good.

6. Extra emphasis on profits is a red flag

If the bank’s executive is stressing how profitable the product will be for you, beware of the claim as it might be false and misleading.

7. Learn to say ‘No’

Lastly, learn to say ‘No’ to something that you don’t need, no matter how persuasive your bank is in selling it.

Also Read – Protect important documents from cybercrime. Here’s how.

Click here to read the latest articles on Safety 

The Bottom Line 

Sales executives aim to maximise their profits and can resort to mis-selling. You should be aware to avoid becoming a victim. Use these tips for effective banking practices.

Also Read – 6 Money mistakes to avoid

How many times have you bought something not because you wanted to but because the salesperson forced you to?

If you have, you have been a victim of mis-selling. Mis-selling is an activity wherein a sales executive persuades a customer to buy something without assessing whether the customer needs it or not. It is very common in banks which offer different types of financial products. When you visit the branch, the sales executives might persuade you to buy a product which you might not need. This not only involves an unnecessary expense, but it might also derail your financial plan. So, you should avoid falling into the mis-selling trap.

7 Tips to Avoid Becoming a Victim of Mis-Selling 

1. Understand the product

Whenever you are being sold a product, understand it thoroughly. Know the rules, terms and conditions and the product benefits. The bank executives might not tell you everything so, do your research.

2. See if it aligns with your goals

Do not buy the product on a whim. Check if it matches your financial goals and buy only if it does.

3. Shop around

Shop around for the best product offering, whether it is a loan, a fixed deposit scheme or even a savings account.

4. Don’t make a hasty decision

When you are putting your hard-earned money into a product, don’t be in a rush. Look for any information that the executive is hiding. Ask questions and find out whether the product is suitable or not.

5. Avoid pressured selling

If you are being pressured into buying any product, stay away from it. Chances are that the product will do you more harm than good.

6. Extra emphasis on profits is a red flag

If the bank’s executive is stressing how profitable the product will be for you, beware of the claim as it might be false and misleading.

7. Learn to say ‘No’

Lastly, learn to say ‘No’ to something that you don’t need, no matter how persuasive your bank is in selling it.

Also Read – Protect important documents from cybercrime. Here’s how.

Click here to read the latest articles on Safety 

The Bottom Line 

Sales executives aim to maximise their profits and can resort to mis-selling. You should be aware to avoid becoming a victim. Use these tips for effective banking practices.

Also Read – 6 Money mistakes to avoid