When you think of your monthly bank & finance fees, do you think of saving hundreds (100s) or thousands (1000s) per year?
Most people, individuals and business owners alike, don’t often think about banking fees. It might take a news story about a bank going viral, or an onerous overdraft fee, to stir someone up to review their situation.
Here’s one of my favorite stories to talk about in this regard. A client of ours (let’s call them X Corp., or XC) was paying nearly $500/month for their banking fees. XC had an open line of credit which was setup for automatic sweeps, received monthly analysis statements, and a “premium elite” account setup.
- The line of credit was not being used at the time, requiring 0 sweeps.
- XC kept copies of the account analysis statements, but did not actually use the data.
- The features offered at the “premium elite” level were those that XC did not need, such as international/foreign currency transactions, access to a brokerage, and premium 1-800 help desk access.
- We eliminated the automatic sweep. We explained to XC how to manually move money as needed.
- We cancelled the account analysis statements. XC would not miss them, and would save time & space by not storing unused documents.
- We right-sized the account to a “business checking” account, with far lower monthly fees.
The results? XC saved about $400/month, or $4,800/year! We offered other recommendations involving different banks, which were declined due to an existing relationship. If XC used all of our recommendations, their bank fees and increased interest yields would have jumped to a savings of $500/month, or $6,000 annually!
Make no mistake, some businesses pay their banks fees like this, but actively use the services and receive equivalent value. For larger businesses with high transaction counts, international operations, or a complex hierarchy of offices and access requirements, high fees for services may be money well spent.
Either way, I strongly advocate for business owners and clients alike to periodically evaluate their banking fees and structure. Particularly, given the ease of access and availability of internet-only banks, you might be surprised how many fantastic options are available to you regardless of geographic location!
Want some help with your particular banking scenario? By leveraging technology (from a simple phone call to a Skype call or Join.me meeting) we can help you regardless of your location! We offer free consultations up to 60 minutes, and we’re available during non-traditional business hours. Contact us today!