How to avoid getting short changed by your bank

Banks often target risk-averse savers with complex derivative-based investment products which can be dressed up to resemble fixed-term savings accounts. So called structured products can offer investors access to the stock market with protection from volatility but these often prove to be overly expensive. 

Any savings product that promises returns above 5% a year in the current low interest rate environment should set alarm bells ringing. Turn to our guide to structured products to get the best deal from guaranteed investments.

Insurance

Bank should be able to use there size to drive down the price of insurance but too often they are focused on maximizing profits by signing exclusive deals with insurance companies. Buying insurance in a bank branch means you will only get the best deal from inside this goldfish bowl.

The single worst example of the expensive, complicated and shoddy products sold by banks is payment protection insurance. This insurance was meant to protect borrowers who could not keep up with loan or mortgage repayments but became tainted by mis-selling.

The problem has become so serious hat PPI policies accounted for around 30% of all complaints made to the Financial Ombudsman Services and now the Competition Commission has stepped in with plans to ban banks from selling this insurance alongside other products like loans or mortgages.