Have an account at one bank? You can choose a loan or deposit elsewhere

The Bank of Lithuania is reminding citizens that they are not tied to a single financial institution for all their banking needs. Even if you maintain a payment account with one bank, you are free to pursue loans or place deposits with another, according to Evaldas Ruzgys, a member of the Bank of Lithuania's board.

Ruzgys highlighted that the myth of being "tied" to a financial institution for loans or deposits persists. He urged consumers to regularly assess their banking services to ensure they are receiving the best value and prices available. The central bank pointed out that numerous payment service providers offer a wide range of services, making comparison essential.

If a consumer finds better loan terms or higher deposit interest rates at a different institution, they can open a limited-use account at that bank solely for managing the loan or deposit. This account can be used for loan repayments or for depositing and withdrawing funds. Alternatively, consumers can switch their primary payment service provider entirely, with the new provider handling the account transfer.

The Bank of Lithuania also advises consumers to review their payment habits and compare available service packages, known as "baskets." These range from a regulated basic package for 1 Euro to customized options. Reviewing an annual commission report, provided by each payment service provider, can help individuals track their spending on cards, transfers, currency exchange, and withdrawals, aiding in cost optimization and encouraging competition within the financial sector.

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Even today, we encounter the myth that a loan or deposit 'ties' the consumer to one financial institution. This is certainly not the case. Moreover, although we use payment services daily, not everyone makes sure they are actually getting the services that best meet their needs at the best price. Therefore, it is worth exploring the current situation and opportunities.