Have a relationship with the bank! - Page 2 What a good relationship with the bank can earn you By Mo2 on February 24th, 2008

So what’s in it for you?
I know it seems like a lot of work to do all that just to build a relationship with the bank. But honestly, did any of the above things really do you any harm? Not really, if anything it means you are financially responsible and are investing for the future, hardly a bad thing. The stronger you become financially the more the bank will like you and it actually is a win-win situation.

Lending Needs
When you go to the bank to lend for anything whether if it’s to buy a car or to start a business beyond credit, your lending rate (if they lend money to you at all) depends on your relationship with the bank. If you can prove to them that you are worthy of a loan and a loan at a great rate then you will get one but it all goes back to making sure that you have a strong relationship with the bank.

Mo2 Thinks…
Having a strong relationship with the bank is important for anyone unless you like relying on a piggy bank to take care of your finances. You have to deal with the bank either way so why not be friendly with them? Instead of complaining about their monthly fees, which at first glance might seem high, try and take advantage of what they have to offer. Although many bankers don’t know what they are talking about, there are handfuls that do. You need to sift out those that have no clue and find those that can help you out in terms of your financial wealth.

It’s pretty easy to do actually. What you first need to do is educate yourself in terms of financing and investment. Easy to do because you’re reading my website *grins* and I’m sure you do other reading. Even in the banks there are salespeople that have no idea if what they are selling is any good and this is when you should be asking quality questions to see if they really know what they are talking about.

For example, if a banker is suggesting to you to buy a certain mutual fund, ask them if it fits your risk profile, your long terms goals, and what the MER for the fund is. That’s just a start, keep frying them with questions until you are satisfied that the person you are talking to knows what they are talking about and they should because they are getting paid to know what they know. If the person doesn’t you should be reporting them to their manager, it’s actually kind of embarrassing if you know more than the person that is trying to sell you something.

I know I’m making a pretty bad case for the banks there. But trust me there are some exceptional people in the banks that just make you go, “Wow!” And these are the people that you should look for because if you can build a strong relationship with these people they will go above and beyond and help you with more than just your banking needs. These sorts of people are so knowledgeable and sometimes have great connections that they can help you with other things outside of the bank.
You don’t need a million dollars to build a relationship. Just start small. Invest in some mutual funds and start a small RRSP for yourself and just keep adding to it. Show some commitment to the bank like you would with a relationship. It takes small steps in the right direction to make yourself financially healthy and by building your relationship with the bank; you’re definitely helping yourself and well them too.

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If you would like to comment on this article or anything on this website, please feel free to e-mail Mo2. He can be reached at Mo2@Mo2Thinks.com. Thank you for visiting!