How to Get the Most from Your Banking Relationship

Presented By: Susan M. Cotton

Money Matters Consulting

April 22, 2010

New Trend in Banking

Lower Rates

(Earnings Credit Rate)

Higher Bank Fees

(Hard Dollar Fees)

How Low Can You Go?!

Before Now

What To Do?! Shop ECR and other

Deposit Rates Manage Bank

Balances Better Control Bank Fees Know Thy Banker!

OR Wait Until Rates Go

Up

Shop ECR and & Other Rates

– ECR is a short-term rate based on 3 month T-Bill.

– It can vary, however, from bank to bank.

– Banks wanting deposits will offer a higher rate.

– ECR is not guaranteed or fixed. Beware!

– Tiered rates based on balances, type of customer.

– Consider different types of bank accounts.

Manage Bank Balances Better

DDA Sweep Balances moved from

checking to sweep fund. Double-check prevailing

rates. Might be low. Sweep balances are not

FDIC-insured. Eliminates chance of

excess balances.

Controlled Disbursement Use a separate bank routing

point. Check presentment totals

presented in the am. Transfer money to DDA if

necessary. Maintenance required! Can use with Positive Pay.

Your Account Analysis Statement is an invoice and should be reviewed carefully.

It All Adds Up!

Look for the following:

Account Analysis Copies of Checks Account Transfers Information Reporting Wire Transfers Key is to reduce bank

manpower time Tel. calls, faxes, paper

copies, snail mail =$$$

Do More Banking On-Line

You Snooze, You Lose!

Identify bank problems within 30 days.

Review Account Analysis statements upon receipt.

Bank surpluses cannot be carried forward to next year.

Problems cannot be corrected from prior year.

Bank client has greater burden to identify problems.

Use Spreadsheet to input Account Analysis data.

Know Thy Banker

Meet with Rel. Mgr. annually (quarterly preferable)

Discuss problems, new services, bank compensation

Negotiate a fee schedule Have pricing fixed for set

period of time Go over Account Analysis

statement in detail Ask for Account Analysis

training session for staff

You’re a Winner If:

You have a contractual fee schedule in place

You can accurately budget for banking expenses

You review Account Analysis right away

You can identify what each line item means

You do not keep excess balances in your accounts

You maintain an Account Analysis spreadsheet