Remember, banks like casinos weren’t built by winners
Banking relationships: There are at least five business people who should know you and you should know on a first name basis: your doctor, your mechanic, your general insurance agent, your financial advisor and your banker.
For many of you a bank or credit union is simply a place for your salary check to be direct deposited and from which you either write checks or pay bills online.
Some never know anybody but the drive-up tellers at their banks/credit unions. That’s a mistake.
Take the time go inside the bank and make an appointment with the most senior officer you can find and interview the bank about the kinds of services they offer, the fee schedules they require, the interest they pay on deposits and checking accounts, and a host of other things.
At a minimum you will want to shop for a bank/credit union like you would for a financial advisor. Ask about at least these services and the associated fees or benefits:
· Applying for a credit card – what kind, fees
· ATM usage – local, remote, foreign, fees
· Buying traveler’s checks – service fees, guarantees
· Cashing a check – fees
· Checking your account balance – online, in person, on the phone
· Depositing money – DDA, night deposit, wire transfers, walk in
· Exchanging money – rates of exchange and fees
· Filling out a withdraw slip – requirements and identification
· Identity theft protection – how robust and fees
· Returned check fees – do they cover them
· Opening a checking account – requirements, fees
· Opening a savings account – minimum requirements, interest rates
· Ordering checks – fees, styles (note: never have checks sent to your home, always pick them up at the bank…always)
· Overdraft protection services – fees
· Paying off a loan – any prepayment penalties, term loans, extensions
· Paying your bills online – security, fees
· Renting a safety deposit box – hours of access, fees
· Reviewing your bank statement – online, in person, by phone, fees
· Taking out a loan – application procedures, qualifications (FICO), collateralization, rates of interest
· Talking with a bank teller – how to do so by phone
· Talking with the bank manager – how to make an appointment
· Transferring money – wire transfer, cashiers’ checks, certified checks
· Using a debit card – fees associated with use
· Withdrawing money – limits, fees
Make the banks compete for your business. Create a spreadsheet and tell banks you are shopping. Then when you need short-term loans or other bank services, you will have an ally in the bank and you will know the rules of engagement.
I’m not kidding…do this.
