The Jarrettsville Federal Blog

06

by Nancy Dorn
Consumers have so many choices in banking today.  Most banks have similar product offerings, like free checking accounts, checking with interest, various savings products and a variety of loan types.  It’s common to shop around for the best rates and return on your investment, and the Internet makes this process easier than ever.  There’s no tried and true rule that says all your banking should be at the same place, either.  It’s truly an individual preference, but there are advantages and challenges no matter what you choose.

Advantages of having everything in one place:

  •  Convenience - Having your savings, checking and loan products all at the same bank makes it much easier and quicker to transfer money between accounts, pay bills on line and reconcile your finances.  It simplifies your life.
  • Wealth management - You can more easily evaluate your present financial situation if all your assets are under one roof.
  • Potential Opportunities – Your banker can also provide suggestions for new opportunities if he or she has a total view of your accounts.

Advantages of diversifying among banks:

  • You may be able to shop around and get best rates on a per product basis.  Savings accounts tend to be low interest-bearing accounts, so if you don’t need immediate access to the money, you might shop around for the highest-rate savings product, like a CD.
  • You won’t have all your eggs in one basket if the financial institution runs into trouble.  Always make sure any bank you use is FDIC insured.
  • Separating your accounts may make it easier to save money, because you won’t be tempted to withdraw from your savings or you won’t have easy access to the money each time you use your checking account.

Whatever your banking needs, be sure you feel confident in the bank itself and your banker.  In a world of so many choices, the choice is yours.

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