Group Banking

Written By
Paul Tracy
Updated June 17, 2021

What is Group Banking?

Group banking is offered by some banks to incentivize a whole group of people, like employees of a company, to have a relationship with the banking institution.

How Does Group Banking Work?

A bank may team up with a large employer and offer its employees special benefits if they open an account with direct deposit. To entice a large number of employees to sign up as new customers, the bank may offer lower rates on CDs, home equity loans, mortgages or other financial products. 

Why Does Group Banking Matter?

Group banking members may have access to lower interest rates, lower fees, discounts and other perks not available to regular account holders. Group banking can also provide a more personalized banking relationship for the members if the bank designates one representative, who is generally more knowledgeable about the group's needs, as the point of contact for all the members of the group.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Group Banking.
Be the first to ask a question

If you have a question about Group Banking, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Group Banking, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Group Banking

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms