NORTH PALM BEACH, Fla. (2/12/15)--When it comes to managing finances, nothing may be more beneficial to a consumer than combining all accounts within one financial institution. For credit union members, nothing may be more lucrative.
A recent article from Bankrate looked into the benefits of consolidating accounts into one financial institution, and received a bevy of advice from Provident CU, Redwood City, Calif., with $1.9 billion in assets.
"(One) good reason for combining your accounts is relationship pricing on other products," Gregory Meyer, branch manager at Provident CU, told Bankrate (Feb. 11). The more money a consumer has with one financial institution, Meyer said, the fewer fees he or she may have to pay for products such as cashier's checks and safe deposit boxes.
Meyer also suggested that combining accounts at one financial institution might earn a consumer higher returns.
That's especially true if the consumer is a member of a credit union that distributes bonus dividends, which are often based on how active members are with a credit union.
Meyer also said that consumers and credit union members can leverage the fact that they solely manage their finances at one institution into perks such as better loan rates.
"Many branch managers are judged on their office's profitability, and losing a big [member] could be the difference between showing profit for a branch and not," Meyer said, adding that a branch manager might beat a competitor's prices to retain such business.
The Bankrate article also argued that consolidation can provide protection from pricey overdraft fees.
If a consumer overspends his or her checking account, a linked savings account can save the day with an automatic transfer.
Consolidation also can lead to healthy financial habits, such as creating automatic deposits into savings accounts.