Ever look at your monthly bank fee spend and wonder if you are paying too much? Thinking you’d like to negotiate better terms but don’t know where to start?
The first step is to gather the past history of your accounts in terms of fees, rates, errors and balance levels. Knowledge is power when you come to the negotiating table. If you don’t receive statements in an electronic format or you are not a current Montauk Hawkeye client, you shouldn’t underestimate the level of effort required to consolidate this information across all accounts – especially from paper or PDFs.
The next step is to gain competitive data from other banks, from peer companies and from other accounts in your own banks. What are other banks, and my own, charging for my major services? What earnings credit rates are they using? Do they bleed off a reserve requirement? What are their FDIC charges? This information, believe it or not, is available.
The final step, hopefully armed with the truth from the first two steps, is to negotiate. You may have thought certain things like earnings credit rates, reserve rates and FDIC charges were non-negotiable. Think again. Everything about your analysis statements is negotiable: service fee rates, service charging formulae, hard charge versus compensable, earnings credit rates, reserve requirements, FDIC charges/rates, compensation cycles, calendar math, error corrections – all are negotiable.
So if you’re suspicious that you’re not getting the best deal from your banks, you’re probably not. The best negotiations are armed with research, competitive data, and expertise. If you don’t have those in-house or the time to perfect them, I know a company who would be happy to talk to you. Their number is somewhere on this website.
The Montauk Group, LLC.
390 Plandome Road, Suite 209, Manhasset, NY 11030