Written by:
Image
Paul Tracy

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 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated August 5, 2020

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.

Ask an Expert about Group Banking
At InvestingAnswers, 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

Read this next

Don't Know a Financial Term?
Search our library of 4,000+ terms
 - profile
Ask an Expert about Group Banking

By submitting this form you agree with our Privacy Policy

Share
close