What Can YOUR Bank Do for You?
Growing up, my little piggy bank was used for one thing – holding money until I had enough to spend!
As I grew my little piggy bank became a bank account and later, when I went off to college, a checkbook was added to the mix.
Still later, saving for a home, we added Certificate of Deposits and finally a home loan. Of course, we also make use of the bank vault with our safety deposit box.
Banks can do so much more now – has yours grown up with the times?
With regulator changes in the US and similar laws in other countries, banks can now offer investments such as stocks and bonds and mutual funds. They may sell annuities, or insurance as well.
Most banks offer online accounts, bill paying, automatic investment options, automatic deposit of checks (like payroll or social security), debit cards, credit cards and loans of different types (like lines of credit and home equity loans) and many offer a variety of online tools and calculators.
Some even offer assistance for travelers! My own bank provides many of these services – and also still provides fresh popped corn, lollypops for the kiddes and gifts for new checking accounts – as well as a once a year customer appreciation day complete with a BBQ meal!
From childhood on, a good banking relationship helps pave the way for financial success in life. Open a savings account for your child and watch it grow together as you teach your child to save their chore money or allowance. Show her how the interest is added to the account when you look at it online or get a statement. Explain how a loan works and let her know she can start looking at her very own bank. Use a bank prepaid credit card to help her learn the ropes on charging items and paying off the bill. Show her that you built a relationship with your bank and why it is important to maintain a rock solid financial foundation. I took my grandchildren to a bank near their home as part of one year’s money camp. Next year I plan to show them how my safety deposit works and why we use one, how much it costs and etc.
Also make sure you and your children or grandchildren know how banks make money. Clue them in that loan interest is part of the bank’s profits and that fees are charged for various services to cover bank expenses.
Private banks, used by the very wealthy provide a whole other level of services – from alternative investments to concierge service. As we say on in our article Three Tools of the Mega Rich:
Private banking (or wealth management) services are used by wealthy families who can’t afford or don’t want to use a multi family office.
Check out the article for what levels of service are offered!
Does your bank provide services not mentioned above? What are they?