All-in-one bank accounts: Solution or temptation?

You can cut the cost of borrowing and gain flexibility, but it's important to be disciplined.

Deanne Gage 3 July, 2015 | 5:00PM

The "all in one" concept suggests simplification, making one's life easier. But in the case of all-in-one bank accounts, streamlining the process may or may not be a good thing, depending on your circumstances.

Here's how all-in-one accounts work. Your mortgage, banking accounts and consumer debt are rolled into one account. You can then, similar to an everyday bank account, track all your transactions and balances simultaneously. The goal is to better manage cash flow while reducing debt, says Jason Daly, vice-president of product marketing and business development at Manulife Bank.

But this isn't just a matter of merging accounts. It's also about getting a lower interest rate on all your liabilities. Daly uses the example of a savings account earning 1% while you are paying 3.5% interest on your mortgage. Pool those funds together and your money will work harder for you.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Deanne Gage

Deanne Gage  Deanne Gage is a Toronto-based writer who has specialized in personal-finance issues since 1999. A recipient of several journalism awards, including one from the Investment Funds Institute of Canada, she is also a former editor of Advisor's Edge and Advisor.ca. She can be reached at deannegage@gmail.com.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies