I’m a Banking Expert: 3 Ways To Leverage Bank Services for Better Investment Returns
Written by
Martin Dasko
Edited by
Amber Barkley
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You may not think of your bank as the place to go for managing your investments and maximizing your returns, but many banks do offer investment accounts and services. And even if you can’t invest in the stock market with them, you can use their services to improve your finances overall, which could give you more money to invest through a brokerage or other platform.
With stubborn inflation bringing up the cost of everything, you want to ensure your funds work for you — and you can start by exploring the services offered by your bank or comparing them to another account before you decide on your banking future.
Build Relationships With Banking Staff To Get Customized Advice
“When you have an established relationship with your bank, you know the bank employees, and they know you,” said Jamie Reed, head of affluent and premier banking at Wells Fargo. “The relationship is already established, and the bank understands the customer’s unique needs and current financial situation.”
Personal finance is a topic that doesn’t come with a one-size-fits-all solution, but if you establish a relationship with a bank that offers customized advice, the information you receive will apply to your situation.
Reed continued, “This enables the customer’s banker and the financial advisor to work together and offer the appropriate products and services across banking and investing, which may better prepare the client to achieve even more financial goals.”
Look for Exclusive Banking Perks To Save Money
Reed pointed out that in addition to having a dedicated team, your bank may also offer relationship benefits. “For example, clients can combine their bank and investment balances to qualify for fee waivers and can receive access to more comprehensive planning.”
Many bank account providers will waive account maintenance fees if you meet the required balance. They may also offer access to financial experts and educational resources that will help you determine how to best invest your money.
Other exclusive banking perks that can help you save money include:
- Look out for banks that don’t charge for ATM use. With some banks charging up $5.50 per ATM transaction, you want to find an account that doesn’t have fees, so you can keep more of your money.
- Use automated savings tools. Some banks will analyze your spending to determine how you could save money. Other bank accounts will even round up every purchase to the nearest dollar and automatically set the funds aside. Some accounts will also allow you to create savings buckets so that you can organize your sub-accounts.
- Seek out overdraft protection. A simple budgeting mistake could lead your balance into overdraft, which can come with hefty fees. Take advantage of any overdraft protection your bank offers so that when your transaction exceeds the available balance, you can have funds transferred in from a connected account.
The goal is to find banking perks that make sense for your financial situation. For example, if you know that you have a problem spending area, you can set up automated savings withdrawals and set a budget to help you put money aside consistently.
Any money you save can be funneled into your investment account and set to work.
Ensure Your Bank Knows About Your Financial Goals
“The benefit is more than product offerings and fee waivers, it’s the relationship and experience a dedicated team delivers,” Reed said. He stressed the importance of finding a bank that knows its clients’ financial goals and dreams and being there to provide continuous service, advice and guidance along the way.
If you want to leverage bank services for better investment returns, you must be clear on your short-term and long-term financial goals. It also helps if your bank offers 24/7 customer service and access to financial professionals, so you’re never alone.
Seek out specific information on which financial products work best for you. For example, if you’re saving up for a new vehicle or home down payment, you may want to invest your funds in a high-yield savings account so that your money will remain liquid. If you’re saving up for a long-term goal like quitting your job or a wedding, you may find that a CD would be the right fit.
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