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Understanding Relationship Banking with O1ne Mortgage

Choosing a single bank to manage all your financial needs can offer unique advantages, especially if your bank practices relationship banking. At O1ne Mortgage, we aim to provide comprehensive solutions to meet your financial goals. In this article, we will explain what relationship banking is, how it can benefit you, and its pros and cons.

What Is Relationship Banking?

Relationship banking involves a bank offering a wide range of products and personalized services to loyal customers who maintain multiple accounts. As a relationship banking customer, you collaborate with relationship managers to select products that align with your goals. You may also 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 highly convenient. With a single desktop or app account dashboard, you can check your savings, credit card, and loan balances, as well as manage autopay schedules and amounts. 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 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. With $50,000 or more in an account, you could qualify for a percentage off your mortgage interest rate.

Business owners may also benefit from relationship banking, as it allows you to handle all personal and business banking tasks in one visit. 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:

Pros of Relationship Banking

• Exclusive services: High-net-worth customers may receive benefits like financial advising, concierge services, or access to a wealth manager.
• Easy account management: Having your cash and loans at one bank can make paying bills and managing your bank balance convenient.
• Financial incentives: Banks may offer discounts on 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 accounts or APRs on loans, so it’s wise to periodically compare other options.
• High balance requirements: You might need a large sum in your accounts to qualify for valuable relationship banking incentives.
• Not universally offered: Relationship banking isn’t available at all financial institutions, so you’ll need to find one that meets your needs.

The Bottom Line

In a world where self-service is becoming 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. Your bank should work for you, and exploring competitors can ensure your money is in the right place.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you achieve your financial goals with confidence and ease.

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