How to Get the Most from Your Banking Relationship Presented By: Susan M. Cotton Money Matters...
-
Upload
audrey-davidson -
Category
Documents
-
view
224 -
download
0
Transcript of How to Get the Most from Your Banking Relationship Presented By: Susan M. Cotton Money Matters...
How to Get the Most from Your Banking Relationship
Presented By: Susan M. Cotton
Money Matters Consulting
April 22, 2010
New Trend in Banking
Lower Rates
(Earnings Credit Rate)
Higher Bank Fees
(Hard Dollar Fees)
How Low Can You Go?!
Before Now
What To Do?! Shop ECR and other
Deposit Rates Manage Bank
Balances Better Control Bank Fees Know Thy Banker!
OR Wait Until Rates Go
Up
Shop ECR and & Other Rates
– ECR is a short-term rate based on 3 month T-Bill.
– It can vary, however, from bank to bank.
– Banks wanting deposits will offer a higher rate.
– ECR is not guaranteed or fixed. Beware!
– Tiered rates based on balances, type of customer.
– Consider different types of bank accounts.
Manage Bank Balances Better
DDA Sweep Balances moved from
checking to sweep fund. Double-check prevailing
rates. Might be low. Sweep balances are not
FDIC-insured. Eliminates chance of
excess balances.
Controlled Disbursement Use a separate bank routing
point. Check presentment totals
presented in the am. Transfer money to DDA if
necessary. Maintenance required! Can use with Positive Pay.
Your Account Analysis Statement is an invoice and should be reviewed carefully.
It All Adds Up!
Look for the following:
Account Analysis Copies of Checks Account Transfers Information Reporting Wire Transfers Key is to reduce bank
manpower time Tel. calls, faxes, paper
copies, snail mail =$$$
Do More Banking On-Line
You Snooze, You Lose!
Identify bank problems within 30 days.
Review Account Analysis statements upon receipt.
Bank surpluses cannot be carried forward to next year.
Problems cannot be corrected from prior year.
Bank client has greater burden to identify problems.
Use Spreadsheet to input Account Analysis data.
Know Thy Banker
Meet with Rel. Mgr. annually (quarterly preferable)
Discuss problems, new services, bank compensation
Negotiate a fee schedule Have pricing fixed for set
period of time Go over Account Analysis
statement in detail Ask for Account Analysis
training session for staff
You’re a Winner If:
You have a contractual fee schedule in place
You can accurately budget for banking expenses
You review Account Analysis right away
You can identify what each line item means
You do not keep excess balances in your accounts
You maintain an Account Analysis spreadsheet