Manage Cash!

What difference does it make where keep our money?

The returns are so low on checking and savings accounts that you certainly won't grow rich on their earnings! It's no wonder that many people tend to overlook the importance of managing their cash and liquid assets. This topic will help us evaluate our cash management needs and the various financial service providers available so that we can select the one best suited to our needs.

Instructions:

First, spend some time making a list of needs and preferences.

Do we like to visit our banking institution in person, or would we rather do banking electronically or by mail?

Is a high yield important to us, or is our typical balance usually pretty low so that any earnings would be minimal?

What other services might we need, such as a safe-deposit box, brokerage account, trust services, or financial and estate planning?

Next, review all the types of financial institutions and the services they provide. Then, besides each need on our list,

write down the institutions that would best meet that need.

Is there one banking institution that would meet all our needs, or do we think we'd require several?

Look beyond our area as well, and consider what services are available over the Internet or from other regions of the country.

Make a list of top choices and find out more information concerning their services, products, and fees charged to help us decide where we'd like to do business.

Please answer each question with a substantive paragraph of 4 5 sentenc in length.

Thank you

Question is from -

Personal Financial Planning (13th Edition)

Chapter 4, Problem 1APF