Friday, May 31, 2013

Consolidating Your Banking May be a good Idea

We understand why consolidated banking is a good idea from the financial institution’s point of view; they maximize the profit from that particular customer and no longer have to expend any effort in trying to capture their other banking/lending/investments. But, why is it a good idea for the client?

Financial institutions concentrate their sales efforts on bringing in a larger share of the customer’s wallet. This can also work to the customer’s advantage. As a customer, you may be able to receive benefits such as better interest rates and reduced or no fees for bringing in their loans, retirement savings and other investments. Free checking accounts, free safe deposit boxes, very low cost overdraft protection, personal document shredding, free coin counters, preferred rates on credit cards and auto loans are some of the advantages of having your finances in one place. Another good reason for combining your accounts is relationship pricing on loans and savings products. This means that, depending on the size of your overall relationship, you may be able to get higher rates on your time deposits and lower rates or reduced rates on your borrowing. With many institutions, you will see increased benefits as their deposits and relationships increase in size. Often these are tiered benefits that kick in at $10K, $25K, and $50K.

If you have a particularly large relationship; one that includes your investments and home and business loans, you may find yourself in a unique position. Your financial institution may make some very significant concessions should you decide to look elsewhere for your banking services. Are you refinancing your mortgage? Your manager will likely do their best to meet or beat any competitor’s quote!

But it’s not just financial savings. There are some real convenience issues here too! Combined statements are very convenient; being able to see all your accounts in one statement saves a lot of time. When you enter your online banking, all of your accounts can be accessed at once for transfers and other business.

You can have a better, often more personal relationship with your financial institution. As a manager myself not too many years ago, I had always assigned my best bankers to my top clients. I have always believed bank managers should treat his or her best and most profitable clients like royalty. They should assign an employee to them as their “Personal Banker.” Now, if the manager is not in, the customer has an assigned representative to support their financial needs.

Finally, when you die, if all your accounts are in one place, you have made things much easier for the executor of your estate. They don’t need to go to multiple financial institutions to settle the estate. This saves your family time and effort. 

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It is Homebuying Weekend June 7th and 8th at the Meriwest Credit Union's Sunnyvale Financial Center on El Camino at Fair Oaks. Friday the 7th is Mortgage Day. Loan Agent Bruno Gonzalez will be present all day to answer your home purchase and refinance questions.  

On Saturday, June 8th, we will be presenting "Homebuying Strategies for the Current Bay Area Housing market."

Presented by Michael Mendenhall of Keller Williams Realty, with Bruno Gonzalez of Meriwest Mortgage. 

You will learn:

  • The truth about foreclosures, short sales and other sources of housing inventory.
  • Purchasing real estate in today's changing housing market
  • Possible problems when purchasing a short sale home, flipped or bank-owned property.
  • Defining your homeownership goals and creating a step-by-step strategy to achieve them.
  • What you need to have in place to start looking for a home.
  • The benefits of homeownership in the bay area.
  • How to view homes and make offers that get accepted, at the best price with the most favorable terms.
  • Understanding your financing choices when purchasing a home.
  • Acquainting yourself with the required real estate documents.

 I hope you can join us June 7th and 8th in Sunnyvale!


  1. I agree. Having a primary banking relationship is ideal to managing your money effectively.

  2. I’ve been visiting your blog for a while now and I always find a gem in your new posts. Thanks for sharing