Banking

Listen and Discuss

We facilitate connections with brokers who gather information in a manner that aligns with your preferences. This could involve a simple phone conversation, a convenient video conference, an in-person meeting at their office, or even the comfort of your own home – they are flexible to accommodate your chosen method.

Analyze & Customize

We link you with brokers who have access to multiple carriers and a wide range of plans. They handle all the legwork and extensive shopping to secure a solution tailored precisely to your specific needs.

Educate

In this crucial phase, the brokers we link you with will present their discoveries and connect all relevant aspects. It’s vital for your complete comprehension of the proposed plan, and they are dedicated to providing a comprehensive explanation to ensure your understanding.

GET STARTED TODAY

Get in touch and let us help you find the right solution.

You no longer need to search and compare banking solutions independently. Receive expert assistance in discovering the finest solutions tailored to your banking requirements.

5 Major Banking Blunders That Are Enriching Others

Blunder No. 1: Paying Avoidable Fees

By paying fees, you’re essentially transferring funds from your family to banking executives or stock shareholders.

Laura Adams, a renowned personal finance expert and host of the “Money Girl” podcast at Finder.com, highlighted that consumers often make expensive banking mistakes, including neglecting fee-free checking accounts. She emphasized that top-notch banks refund ATM fees and avoid monthly maintenance charges. If you regularly incur such fees, you’re needlessly depleting your funds while boosting your bank’s profits.

In a recent study by Stilt, it was revealed that major banks witnessed triple-digit percentage increases in fee collections during the initial months of the COVID-19 pandemic. While a report from the Consumer Financial Protection Bureau indicates that several traditional banks have since reduced or eliminated certain fees due to escalating consumer discontent and competition from fee-free alternatives, it’s important to note that charging customers for access to and management of their finances remains a common industry practice.

The Stilt report demonstrated that the majority of major banks persist in imposing either all or a combination of the four primary fees:

Jaspreet Singh on the 75/15/10 Rule: This Is How the 1% Manage Their Wealth

Blunder No. 2: Trading Service and Cost for Brand Recognition

Large banks leverage and capitalize on brand loyalty, as well as the feelings of security and stability that individuals link to established, renowned financial institutions.

This underscores the significance of not selecting a bank solely based on familiarity. Among well-known household names, several institutions still impose a minimum of the four major fees: overdraft, insufficient funds, maintenance, and ATM withdrawals.

Blunder No. 3: Clinging to the Branch Concept

While renowned names offer reassurance to cautious customers, physical branches often provide peace of mind, albeit typically at an associated expense.

As reported by CNBC, “Traditional banks with physical branches tend to levy higher fees on customers compared to online-only banks, as they need to recover overhead costs associated with maintaining and operating physical branch locations.”

While certain banking services like safe deposit boxes, notary services, instant cashier’s checks, and the personalized experience of in-person banking still require branch visits, virtually all routine banking transactions can now be conveniently executed through mobile apps or ATMs. Embracing online banking allows you to enjoy a truly fee-free experience.

Here are some online banks that offer identical services without any fees or minimum balance prerequisites:

Blunder No. 4: Settling for Low Yields in an Era of High Interest Rates

Large, renowned banks with physical branches often tend to impose fees and offer lower yields on savings deposits. Despite experiencing the highest interest rates in decades, these banks are generating substantial profits from mortgages, auto loans, and personal loans, yet they aren’t passing on these benefits to their customers.

As per data from the St. Louis Federal Reserve, the typical savings yield remains modest at 0.42%, with major banks often offering rates below this average. Let’s examine the “high-yield” savings accounts currently provided by these traditional brick-and-mortar banking giants:

Online Banks Typically Offer Higher Yields — Often Significantly Higher

Similar to fees, prominent institutions leverage brand recognition, familiarity, and the perception of heightened security to profit from savings yields that are seldom competitive.

“Banks thrive on customer inertia,” emphasized Dennis Shirshikov, a finance, economics, and accounting professor at the City University of New York, and the head of growth at the real estate investment platform Awning. “They understand that if they offer a low-interest rate on your savings account, most individuals won’t take the initiative to explore alternatives. However, it’s important to note that high-yield savings accounts and more favorable loan rates do exist. By not transferring your funds where they can yield more, you’re essentially forfeiting additional earnings to your bank.”

Genuine high-yield savings accounts primarily thrive in the same domain where fee avoidance is feasible — online. Let’s explore the potential benefits of going digital:

Blunder No. 5: Complacency and Sloppy Banking Practices

Neglecting to stay informed is the error that is most likely to contribute to the financial gains of others through your banking practices. Regularly monitoring your accounts enables you to detect unexpected fees, concealed expenses, fluctuations in interest rates, or newly implemented policies that might impact your finances negatively. Being vigilant not only holds your bank accountable but also helps you identify overlooked recurring payments or unauthorized charges from third-party sources.

“People frequently establish automatic payments for subscriptions or services and subsequently overlook them,” noted Shirshikov. “These charges are debited from your account every month, essentially channeling your hard-earned funds to companies for services you may not even be utilizing.”

Lastly, adhere to fundamental banking best practices to ensure your funds remain securely in your account.

“Neglecting to link a savings account for covering a checking overdraft could result in costly fees,” noted Adams.

This is just one instance; there are several others, such as not utilizing your debit card to access potential rewards, overlooking bonus opportunities, and selecting an unsuitable account type.