This article will talk about how to get better terms for your financial services by buying them all from the same provider by using the concept of synergies and economies of scale. It seeks to provide tips to people to save money on their financial services needs.

Some countries have laws that separate various financial activities from being run by the same company. Other countries are more open when it comes to this issue. If you live in a country where your Bank also offers credit card services and insurance, then you should take advantage of that and apply to the same place for all your financial needs. That way, you can negotiate premium rates, deductibles, credit limits and bank fees. This gives the consumer leverage in dealing with their financial institutions because if they don’t keep you happy, then stand to not only lost your bank account but all the bundled services as well.

The process of getting cheaper financial services works a little like buying your Cable and Internet from the same company that gives you phone service. You may have noticed that a lot of companies such as Comcast offer a bundles internet, phone and cable package that comes out to be cheaper than buying all three services from different companies. This is because of the concept of economies of costs. It is cheaper for companies to provide you with all three services together because in most cases, all three services require the same infrastructure such as the actual connection.

The same is true for financial institutions. The costs of providing you with more services are incremental. They don’t have to hire more people or invest in server and office space so they can pass the savings on to you. Of course the downside of this is that if the bank fails then so do your insurance, credit card and bank account whereas if you keep your services separate then you are spreading out the risk.

But all in all, if the banks are backed by some kind of government insurance, then you don’t really have much to worry about. So, go ahead and buy your insurance from the bank that provides you all your other services and make sure you negotiate and let them know how you are a loyal customer. Businesses thrive on negotiation and they will respect you more if you settle for a good deal rather than accept just any rate they give to you.