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Archive for May, 2015

Banks O Banks

May 21st, 2015 at 12:37 pm

So, I went to my local bank branch today. It's a respectable branch, of a reputable bank. I'm a fairly distinguished client of the bank, and have recently added an additional business account (on top of my personal current account and saving account with them).

People there are nice. Polite is maybe a better way to phrase it. Their service, I must mention, is very client-oriented. They try to meet the standard that large retail stores have put in place.

In any case, I came there to test them. I wanted to see what I can help my saving with. Little they know that I don't trust banks to begin with, and being a financial entrepreneur, I'm quite familiar with the alternatives, and pursue my major investments, loans, and activities as far as I can from them.

So I started off with the current account. Reducing the fixed fees relating to activities relating to it. I didn't have to ask much and was offered 12 months w/ 75% discount on all of those. That's nice, I must admit, but if it's so easy for them to offer it, why wouldn't they approach me and tell me "hey fella, your bank account is large enough to offer you A B C", instead of me approaching them.

Then we went on with investments, and I reduced fees there at approximately 40%; my previous fees were far less than half of the initial offer from the bank. That means that with a medium sized account, no debt, good history, and assertive, knowledgeable approach, you can reduce 70% of the fees relating to investments, while most people won't even argue over them.

To top it off I was looking for some Foreign Exchange (NOT! I knew the outcome but had to test them). They offered a 0.2 commission structure, because "we've been working together for a while", plus a fixed fees translating to about 25 Dollar US, plus spreads that were over the 1.5% mark. So in total on my $10,000 transfer, they wanted to take off 195 Dollars in commission, and exchange my $9,805 into Euro. Kind offer gentlemen but with the companies I work with (