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.
