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www.insideHALTON.com | OAKVILLE BEAVER | Thursday, March 13, 2014 | 20 B Look for good value when shopping for banking services Dollars & Sense Peter Watson Guest Contributor anks can be both good and bad, depending on your perspective. To some, the banks are both good and bad. Over the years, my impression about how Canadians perceive banks is that they have a love/hate relationship with these institutions. People complain about ongoing bank charges but respect and admire their nancial strength and reputation. People dislike the fees but they enjoy the feeling of security. Banks are very pro table. Canadian banks have reported their earnings for the rst quarter of their scal year. Four of the six big banks reported record earnings. The Toronto-Dominion Bank reported a quarterly pro t of more than $2 billion, which is a rst for them. If banks do anything well, they know how to charge their customers. In my opinion, the banks do a better job at running their business and maximizing pro t than the consumers do at controlling their own costs. Consider normal banking activity and see Review your banking needs and then make sure you properly shop for those services that meet your needs... Look for good value. Manage your banking services as you would any other goods or services you may purchase. Certi ed Financial Planner Peter Watson how a little more consumer planning would be bene t. Customers leave higher than needed cash balances in their checking accounts, which generally pay little to no interest to the consumer. The interest on a savings account is also very low. By contrast, if your credit card has an outstanding unpaid amount that is past due, you pay an interest rate of close to 20 per cent. The same person paying exuberant credit card interest is likely carrying a cash balance in their checking or savings account. This does not make nancial sense. In a perfect world, all banks would allow your funds to ow freely between your various bank accounts and credit cards so as to maximize your interest earned while minimizing your costs. This is the way the banks pro tably move their funds around to maximize their earnings. For example, their cash balances are invested overnight just to earn additional income. Our recommendation is that you review your banking needs and then make sure you properly shop for those services that meet your needs. If bank charges are of concern to you, then ask around to see if there are better options. Look for good value. Manage your banking services as you would any other goods or services you may purchase. As for outstanding high card interest, consider having the credit card balance paid automatically when it is due. If you need access to cash, consider not keeping large cash balances in your bank account. Perhaps you should have a line of credit. The line of credit can accommodate shortterm cash ow needs while the large cash amount is invested more wisely. Consumers are encouraged to manage their personal banking to get the best value possible. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner Give Them An Experience That Lasts A Lifetime! Performing and Visual Arts School Follow Oakville Beaver staff on Twitter @OakvilleBeaver or @NewsHooked @DavidLea6 @JuliaLeReporter @Beaversports @Halton_Photog Explore Art, Music, Drama & Dance Register Now Day, Evening and Weekend Classes Beginner to Advanced · Ages 3 yrs to Adult · Art In Mixed Media, Oils and Watercolours · MusIc in All Instruments · Voice, RcM Music Exams · DRAMA · Musical Theatre · DANcE · Ballet · Pointe · contemporary · Modern · Irish · Lyrical · Jazz · Hip Hop · Tap · Latin · Acro · stretch and strength · cardio · Fitness Training STUDIO PAVAS 905-403-9435 1-2301 Royal Windsor Dr., Mississauga www.studiopavas.com studiopavas@sympatico.ca Small Class Sizes · Camera Viewing of All Studios · Family-Focused Scheduling · Annual Musicals · Specialty Workshops MARCH BREAK & SUMMER CAMPS on any REACH® Toothbrush SAVE $1.00 On Now at The Brick! For more details go instore or online @thebrick.com.