Unlocking the Benefits of Relationship Banking with O1ne Mortgage
In today’s fast-paced world, managing your finances efficiently is crucial. One way to streamline your financial life is through relationship banking. At O1ne Mortgage, we believe in providing our customers with comprehensive financial solutions that cater to all their needs. In this blog, we’ll explore what relationship banking is, how it can benefit you, and the pros and cons of this approach. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074.
Understanding Relationship Banking
Relationship banking is a strategy employed by banks to attract and retain customers by offering a wide range of products and personalized services. As a relationship banking customer, you work closely with relationship managers to select products that align with your financial goals. In return, you may receive rewards for maintaining high account balances with the bank.
For instance, having a total of $50,000 in your checking and savings accounts could unlock benefits such as one-on-one financial planning, discounted bank fees, higher annual percentage yields (APYs) on savings accounts, and lower annual percentage rates (APRs) on loans.
Banks may offer the following products to promote relationship banking:
- Checking accounts
- Savings accounts
- Investment accounts
- Credit cards
- Mortgages
- Auto loans
- Personal loans
- Life insurance
How Relationship Banking Can Benefit You
Becoming a loyal customer of a bank can be incredibly convenient. With a single desktop or app account dashboard, you can monitor your savings, credit card, and loan balances, autopay schedules, and more. In addition to relationship discounts, maintaining a large balance at a bank could make you eligible for a personalized banking experience with financial advising.
For example, PNC offers a relationship banking service called PNC Choice Banking, which provides customers with relationship managers, lower interest rates on credit cards, and the option to work with the PNC investment team on long-term strategies. This service is free for customers with $50,000 in deposit balances at the bank.
Similarly, Citi offers relationship mortgage rate discounts to current and new customers who maintain a certain deposit account balance. If you have an account with $1 to $50,000, you could get $500 off mortgage closing fees. And if you have $50,000 or more in an account, you could qualify for a percentage off your mortgage interest rate.
Business owners can also benefit from relationship banking, as it allows them to handle all personal and business banking tasks in one place. The bank might even connect you with client services representatives to help you achieve your business goals.
Pros and Cons of Relationship Banking
Not sure if relationship banking is right for you? Here are the pros and cons to consider:
Pros of Relationship Banking
- Exclusive Services: Banks may offer high-net-worth customers benefits like financial advising, concierge services, or access to a wealth manager.
- Convenient Account Management: Having your cash and loans at one bank can make paying bills and managing your bank balance easier.
- Financial Incentives: Banks may offer discounts on bank fees, higher returns on savings, and lower interest rates on loans for loyal customers.
Cons of Relationship Banking
- Limited Options: The bank you’re loyal to might not always offer the best APYs on bank accounts or APRs on loans, so it’s essential to keep your options open and periodically compare what else is available.
- High Balance Requirements: You might need to maintain a large sum in your accounts to qualify for valuable relationship banking incentives.
- Not Universally Offered: Relationship banking isn’t a service provided by all financial institutions, so you’ll need to shop around to find one that offers products and benefits that meet your needs.
The Bottom Line
In a world where self-service has become the norm, relationship banking offers a more personalized experience with one-on-one support and better terms on products. However, even if you’re loyal to a bank, it’s still worthwhile to shop around and compare services periodically. After all, your bank should work for you, and checking out competitors could help ensure your money is in the right place.
At O1ne Mortgage, we are committed to providing you with the best mortgage services tailored to your needs. If you have any questions or need assistance, please call us at 213-732-3074. Let us help you achieve your financial goals with our comprehensive and personalized approach to banking.
