4 Key Tips to Ensure Your Bank is Giving You a Deal
People are often quite loyal to their financial institutions – they usually decide to have all of their credit cards and financial products under the same bank. Initially it seems like the most convenient option, but you may not be acquiring the best deal. Shop around and keep the following in mind:
1. Be Mindful of the Hidden Fees
Banks offer a plethora of information online and in physical documentation regarding their fees. Make yourself aware of those fees. Some banks charge $2 to get a statement by mail. There is a dormant fee (when the account has remained inactive for so long). The idea is to find a bank that doesn’t take on so many fees or offers free services.
For example, a free checking account that includes bill payments, email money transfers, debit purchases, etc. may be something to consider. You can access the bank to withdraw money, cash a check that doesn’t include a long hold, etc.
2. Start looking elsewhere
If you notice your bank consistently raises its fees or your fees, you may want to do some shopping around to find a financial institution that offers a lower rate. If you do find a better rate than what your bank is offering you, bring it to them and see if they can match it. Give them an ultimatum, and if they can’t match it, then leave.
Too often, people go to a bank and accept the offers they are presented with without taking the time to really look at them. People need to do some research about their rewards programs, monthly fees, review customer comments, etc. to ensure their getting the best deal.
3. Look at Your Services
Talk to the bank about your current model. What kinds of accounts do you have? What are they offering? Confirm with them whether or not you’re existing accounts are fulfilling your needs and if you’re getting the best deal.
It’s important to look at your statement and investigate if you’re being charged reasonably. If there are unnecessary charges in your account, talk to your bank and outline to them that you’re being left with no choice but to seek another financial institution.
4. Talk to an Advisor about Your Portfolio
Regular updates and feedback is an important factor in building a good foundation with your advisor. Talk to your investment advisor about your portfolio and set how conservative or aggressive you want your investment strategy. As well as locking in risk tolerance, you should also look at the various other factors that come in to play like income and liquidity needs, time horizon, etc.
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About The Author: Matthew J. McGrath, CFA has been managing investment portfolios for well over 20 years, two of which were spent working directly on Wall Street. His Wall Street experience followed a 10 plus year career at the RBC Financial Group, where as a Vice President and CFA Charter holder, Matthew had managed over $150 Million in assets. Matthew then joined and went on to successfully grow Optimize Wealth Management. During his twenty plus years in the financial industry, Matthew has been recognized for his drive and his vision, has spoken at numerous investment conferences, and now advises individuals and families seeking a long term relationship with their financial advisor. In addition to his passion for the financial industry, Matthew is an avid runner and has run three Boston Marathons.