| Not long ago, I had three telecommunications providers – one for local calls, one for long distance and yet another for my cell phone. All were basic “economy plans” with no frills – no extended calling circle, rollover minutes, call-waiting I.D., or voice-activated dialing – and all promised to save me money. Just basics for home and on the road. After several months of steadily increasing bills, I did the math and found that these “economy” plans actually were costing me hundreds of dollars every month. With a little research, I found that I could get all the services I needed – plus some extras that made my life easier – from one company.
The same principle can work with financial services. The average consumer has more than a dozen different financial products: mortgages, personal loans, credit cards, debit cards, auto loans, checking and savings accounts, IRAs, investments, insurance. Keeping track of so many services and products can be complicated, time-consuming and expensive, especially with multiple providers. Using a one-stop-shopping approach to financial services can save time and money.
First, make a list of all the services you use now, plus the ones you expect to need in the next one to five years. Next, look for a financial services company that offers the greatest number and variety of services you need. If you plan to buy a home or start your own small business in the future, it may be worthwhile to develop a relationship with a financial services company now that can help you meet today’s needs and tomorrow’s goals.
Here are some basic financial tools:
Checking – A checking account is an essential financial tool. To save time and money, use direct deposit. Avoid fees by selecting an account that links checking, savings, retirement and credit accounts and lets you combine balances to meet minimum requirements.
Overdraft Protection – “Bounced” checks are expensive, embarrassing, and tough on your credit rating. Overdraft protection can be linked to your credit card or savings account and costs nothing until you use it. The fees to use the service for a short-term cash-flow challenge can be far less than the fees for even one bounced check.
Savings – A savings account yields little interest, yet can help you establish the savings habit. A savings account helps you meet your short-term financial goals and gives you access to cash for unexpected financial challenges.
Online Banking and Bill Payment – According to Jupiter Communications, the average American household spends two to four hours every month paying bills. You can decrease that time as much as 60 percent by paying your bills online. With a few keystrokes, you can arrange for recurring payments such as your mortgage and car and be certain they will be paid on time.
Credit Card – Consolidate your credit cards into one and you’ll be less likely to miss a due date or lose track of your spending. And by linking your credit card to your checking or savings account, you easily can transfer funds between accounts at the ATM, by phone and online.
Debit or Check Card – A debit card is a fast and convenient tool for making purchases and accessing cash. Debit cards can be used wherever credit cards are accepted. By using a debit card for most of your day-to-day purchases, you’ll need fewer printed checks. When coupled with online banking, a debit card helps you closely track your expenditures and nearly makes paper checks obsolete!
Once you have your basic financial tools in place, you’ll find that using the same financial services company for all your accounts saves you money and time. Also, if your financial services company really values the relationship it has with you, the more accounts you have with it, the better rates you can expect.
The greatest benefit, however, is that the personal banker who helps you with your basic financial tools also can connect you with other financial professionals to help with your home mortgage, retirement, investment, insurance and even small business needs. By consolidating all of your financial services with one provider, you save time and money – and gain a reliable partner to help you reach all of your financial goals. |
