Bundled Banking Services often combine two or more financial products – such as checking accounts, savings account, loans, credit cards, and investment accounts - into one relationship at a bank. The goal of the bank is to increase their revenue per customer and will often offer better perks due to the increased profitability and to build customer loyalty. Some perks can include lower ATM fees, higher interest rates for cash management accounts, or higher credit card rewards.
However, it is important to take a big picture approach and view the total relationship as a whole and compare what you’re receiving to other services offered independently. While the perks, such as slightly higher interest rates on a savings or money market account, or slightly higher rewards on credit card spending may seem attractive, it may come at a cost on the other services received. In addition, each of the “enhanced” benefits offered are often not as attractive as other offerings elsewhere. This is especially true when it comes to comprehensive wealth management/investment management, which typically have limited advice/guidance tailored to individual needs or include the sale of subpar proprietary investments.