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 The
Money Management Newsletter: Choosing
Financial Services
Ad-hoc adds costs
By IPC's Intelligent Advisor
Money Management Newsletter - May 2007
Almost half of Canadians say they don't have a banking strategy when they open
new accounts or apply for banking services, according to a recent national survey
for Manulife Bank of Canada by Maritz Research. The survey revealed the typical
Canadian uses at least eight different banking products, including chequing
accounts, high interest savings accounts, bank and retail credit cards, mortgages
and lines of credit.
Many people don't realize how expensive a piecemeal banking approach can be,"
says Roman Fedchyshyn, President and CEO of Manulife Bank. "If you add
up all their fees and charges, consumers may find they'd benefit from a banking
strategy focused on reducing costs or consolidating accounts."
One increasingly popular strategy is the all-in-one account. It is designed
to lower debt by combining a client's chequing and short-term savings accounts
with their loans and mortgage, but still allows them to withdraw and deposit
funds when needed. Interest is calculated on the daily balance, and offers clients
the potential of paying less in interest charges than with traditional loans.
"We think Canadians could save a lot of money if they combine their banking
products and explore alternatives to traditional day-to-day banking, such as
all-in-one accounts," added Mr. Fedchyshyn.
In a 2005 study for Manulife Bank, Moshe Milevsky, Associate Professor of Finance
at the Schulich School of Business, York University, found the ad-hoc approach
to handling finances costs Canadian families an average of $1,000 a year by
not effectively managing their debts and short-term savings.
More Reading
Manulife One: Getting your money working
for you
Have you ever given any thought to how hard the money in your bank account
is working for you? Some activities, such as organizing your affairs, tend to
slip through the cracks because people are not sure what exactly they need to
do or they ...
Pay off your mortgage faster and save
thousands of dollars
One other way to manage mortgage debt is to utilize a product such as Manulife
Bank's "Manulife One" account which combines your mortgage debt and
regular ...
More information about all-in-one accounts, is available
online at www.manulifeone.ca
The Maritz Research telephone poll between March 29 and
April 3, 2007 included interviews with 1,003 Canadians. The margin of error
for a sample of that size is +/- three per cent, 19 times out of 20.
Compiled by Fiscal Agents editorial and NC
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, Fiscal Agents Money Management Newsletter
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