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Hello.  I have multiple bank accounts due to higher interest rates offered and other perks.  I am wondering if it pays to combine or keep a significant portion into one specific institution due to more lucrative risk free investment opportunities?

Premium accounts seem to want you to store more money at very low interest rates to waive fees which is good for the bank and not the depositor. 

Mortgages are bad deals as well as loans and I have no interest in those products.  My goal with banking is to maintain the highest possible accumulation of wealth and a relationship which is meaningful between me and the banker.  In terms or relationship I am referring to meaningful bonuses or interest rates to keep me as a depositor and customer service that will support me when I need it.  

All accounts I have now are fee free with no minimum balance requirements.  

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So, you want lots of benefits, but not to do any of the things that make you valuable as a customer? Yeah, good luck with that.

deeder said:   I am wondering if it pays to combine or keep a significant portion into one specific institution due to more lucrative risk free investment opportunities?

 

  Bank of Rufflesinc. 20% returns guarantees. wire transfer only. thx.

cestmoi123 said:   So, you want lots of benefits, but not to do any of the things that make you valuable as a customer? Yeah, good luck with that.
You miss the point.  There needs to be a mutual benefit for the consumer for one to take a premium checking account.  Those benefits cost less than interest you can accrue if you paid for expenses out of pocket.  

   

deeder said:   I am wondering if it pays to combine or keep a significant portion into one specific institution due to more lucrative risk free investment opportunities?Not really. Free safety deposit box and cashier's checks are about it.

deeder said:   My goal with banking is to maintain the highest possible accumulation of wealth and a relationship which is meaningful between me and the banker.You cant just stick money into a premium account and let it sit there. Meaningful to the bank means that you do something with that money that makes the bank money.

Relationship banking pretty much died in the last Century (unless you are really, really loaded and don't care about getting the best deals overall).

Today, the average (and even above average) income person is just a profit center to the bank.  Look around for the best deal on each individual service you need and forget relationships.

The best financial institution is yourself. Lend yourself any amount you want with only a 10% deposit. The loan amount is now an asset which you use to pay back the loan to yourself. Basically, you created the loan out of thin air and the rest is all profit!

You already tossed out loans and mortgages which are probably the only useful benefits of relationship banking. DCU for example gives an interest rate discount on loans with a relationship checking account. On the other hand, their savings interest rates are terrible.
A bank can either offer a higher savings interest rate or a lower loan interest rate, but not both so it'll generally work out best to choose the institution for the product you want. In your case, find an internet bank with a high savings interest rate and stick your money in it.

MrKlick said:   Relationship banking pretty much died in the last Century (unless you are really, really loaded and don't care about getting the best deals overall).

Today, the average (and even above average) income person is just a profit center to the bank.  Look around for the best deal on each individual service you need and forget relationships.

  The perks of a relationship account is little more than a consolation prize.  It'll never equal, let alone exceed, the opportunity cost of not choosing the best option for each individual service.

The reason relationship accounts still work is economies of scale - with $50k I can use Rewards checking accounts to get higher interest rates, but with $5-million that's simply not feasible, so you settle for whatever perks you can get for the simplicity of keeping everything under one roof.

Wells Fargo of course. They take such good care of you that they open accounts before you need them.

xoneinax said:   
deeder said:   I am wondering if it pays to combine or keep a significant portion into one specific institution due to more lucrative risk free investment opportunities?
Not really. Free safety deposit box and cashier's checks are about it.

Not true... free certified/cashier/bank checks is just one perk.  I look for reimbursed ATM fees, free checks, free wires, free stop payment, free paper statements, etc.  Having one person at the bank who knows you and can help you get things done over the phone so you don't have to waste an hour or more sitting at a busy branch waiting with a dozen people or more with their kids running around speaking a different language... that's worth something too.  Yeah, I'm racist.

Chase Private Client waives any bank fee and reimburses ATM fees (technically only 5 a month); yes, you need $250K in assets to qualify, but those can be held in whatever form you want (you don't have to let JPM manage them.)

Of course, as great as that sounds, the checking account doesn't pay interest, savings interest is a joke -- but their mobile app is world-class, the limits on deposits/withdrawals/remote deposits are extremely generous, and physical branches are quite valuable. I've found the CPC bankers extremely hit-or-miss, but the 24/7 CPC service hotline number is really good.

I'll keep my existing banks as of now. Guess I already have best I can personally get.  

gergles said:   Chase Private Client waives any bank fee and reimburses ATM fees (technically only 5 a month); yes, you need $250K in assets to qualify, but those can be held in whatever form you want (you don't have to let JPM manage them.)

Of course, as great as that sounds, the checking account doesn't pay interest, savings interest is a joke -- but their mobile app is world-class, the limits on deposits/withdrawals/remote deposits are extremely generous, and physical branches are quite valuable. I've found the CPC bankers extremely hit-or-miss, but the 24/7 CPC service hotline number is really good.


I forget whether it's confirmed or not, but I heard CPC is able to override 5/24 denials on Chase Cards. A really valuable perk if that's true.

BofA seems like a good benefit.  Merrill Edge gives free trades.  You can get up to 75% bonus on CC rewards, and some other benefits.  

I've had "top shelf retail" (that's a joke, elite banking starts with much higher assets, i.e. 5M+) accounts at Wells Fargo, Chase, HSBC.

Wells Fargo:
>250K assets, get free premium accounts (free checks, $5/yr safety deposit), 3rd party ATM fees reversed, "relationship" +50% base points on certain credit card. In theory, higher interest savings and reduced mortgage rates, but in practice they are worse than you can get from other institutions. A few other fees get waived. You might also have a better chance of getting certain fees waived (I don't incur bank fees, so not sure how this works).
HSBC: >100K assets. Get their premier account product (free checks, lower fees, waived ATM), dedicated relationship manager. On paper HSBC offers a competitive product, but in practice they are a highly bureaucratic and highly annoying bank to deal with. However, if you need to move money around internationally a lot, they offer some compelling options.
Chase: >250K assets, though there is some flexibility depending on the banker. Similar to Wells Fargo. They do a slightly better job of pretending you are valued customer, though it's such a joke. You get some cheaper products, waived fees. The relationship manager may be able to pull certain strings (supposedly they can waive Chase's 5/24 rule).

Generally, it's hard to get a decent enough return at these banks to justify the trivial benefits bestowed.

Bank of west deal

If you have 50K in an ira or stock account with bank west investments then one can open a premium checking account with waiver of fee. the premium account holder gets 15 stocks trades free each month.
Perks include free safety deposit box, free wire , cashier checks and slight improvement in interest rates.
Occasionally there is a $300 bonus for opening the premium checking account. Also a cash bonus for opening stock account of various amounts.

Available only on certain states.



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