July 30, 2008, 6:00 am

Saving Money with Financial Institutions

by: The Financial Blogger    Category: Frugal,Investment, Market and Risk,Personal Finance
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Since there is not much to make on the stock market these days (it is time to invest but you will surely not see the result right away) and the global economy is slowing down, we need to turn on different ways to keep more money in our pockets. One of them is by saving fees with your bank, broker and insurance agent. Today, I am giving some tips on how to save money with them.


Regardless if you deal with a broker or you leave your financial advisor managing your money (like they do with wealth management), they are all after new money in these difficult time. Therefore, if you have assets held in more than one institution, it is the perfect time to put the pressure back on your different financial consultants to see what they can offer if you transfer everything at the same institutions.

Most of them will negotiate and several mutual funds (as well as most wealth management program) have a depreciation rate grid. For example, most of them will charge about 1.75% if you have 150k-250K with them. However, you can hit below the 1% if you reach a million. You might not be there yet (I wish I was!) but even if you can transfer 25K – 50K, they might try to lower their management fees.

You would probably save a lot if you look at different mutual funds and their MER’s. If you have mutual funds that can’t beat their index, you might also want to switch strategy and get ETF’s. They will get a similar result for only a portion of the fees.

Money Management

Give a call to your banker in order to review your credit facilities along with your bank account package. You might be paying extra bank fees for nothing. You should bring a special attention to accounts that are not charging fees if you maintain a minimum balance (usually $2,500 to $5,000).

Then, if you have credit cards, why don’t you just pay them with a personal loan? Variable rates are pretty low and you will be forced to pay it back. Outstanding balance on credit cards cost a fortune in interest since we take forever to pay them back. Transferring your balance to a 0% credit card for 6 months? That is simply postponing the problem later on in the same year. If you don’t expect a money entry that will pay it off (a bonus or a job settlement for example), don’t bother and go with the personal loan.


I know two easy tricks to save on insurance premium: keeping a high credit score and consolidating all my insurance with one company. When I combined my house and car insurance with the same insurance company, I saved a few hundred bucks right away. You are usually able to save between 10% and 15% by doing so.

Remember that saving 1$ worth actually more than making an extra buck. Especially if you have a high marginal tax rate (as it is the case with most Canadian!), you will probably end up saving almost 2$ while making an extra buck will leave you about 55 cents in your pocket once the government got its due 😉

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