Getty Images
Bank accounts can be an afterthought in wealth management. After all, these vehicles, whether savings or chequing accounts, generally don’t pay a lot of interest, if at all.
Yet, advisors can see value in helping clients determine where to park their money, says Tom Oddie, a VP and head of Retail Products & Portfolio Yield Management at Manulife Bank of Canada.
“For an advisor to offer cash solutions, it just opens the door to the client’s complete financial picture.”
Mr. Oddie says the right bank account can be a boon for clients and advisors alike. That’s true with the Manulife Bank Advantage Account. “This product can give Canadians incredible flexibility and utility.”
Tom Oddie, VP and head of Retail Products & Portfolio Yield Management, Manulife Bank of CanadaSUPPLIED
The Advantage Account, a hybrid in the banking world, is a high-interest savings account (HISA) and a chequing account, all in one. It provides an industry-leading everyday savings rate and can also serve as a daily transaction account, with no monthly account fees¹. Clients can have paycheques and other payments deposited directly into the account and make automatic monthly payments from it for their mortgage, utilities, credit cards and other bills².
This account also combines the liquidity of a traditional chequing account with the interest of a short-term guaranteed investment certificate or money market fund. Manulife Bank notes advisors often find the Advantage Account to be “stickier,” meaning clients are more likely to maintain higher balances and keep their funds deposited longer, leading to reduced client attrition.
Another benefit for advisors is helping to protect their practices from competitors, who will market their core investment and insurance products to savings and chequing account clients.
When clients use the Advantage Account, advisors can see benefits, too. For example, with appropriate client consent, advisors can review balances and see if the client has a surplus of liquid cash. That can trigger an opportunity to discuss how the money may work best for the client’s financial well-being.
That also helps solve a common challenge: a client might have tens of thousands of dollars in a cash account, of which a portion could be invested in goals that build financial longevity, such as retirement. However, when clients have bank accounts with other financial institutions, the advisor’s line of sight into their client’s cash as an investment asset is limited.
“With over $1-trillion reportedly sitting in Canadians’ bank accounts³, advisors who understand their clients’ most liquid sources of wealth gain valuable insights into cash flow, enabling them to guide better short-term decisions for improved long-term outcomes,” Mr. Oddie says.
Advisors can also benefit from a simplified compensation and rewards program. Manulife Bank remains one of the few partners offering ongoing compensation on deposit accounts, reinforcing its commitment to advisor support and competitiveness.
Through its Partner Rewards Program, advisors gain access to enhanced support and valuable benefits. The program is designed to recognize and reward advisors for their partnership, offering advantages that can strengthen both their business and client relationships.
As a partner bank, Manulife Bank provides advisors with opportunities to grow their business through a variety of solutions that complement their core offerings.
Gerald Goertsen, a certified financial planner with De Thomas Wealth Management in Kelowna, B.C., recommends the Advantage Account to his clients. “It’s a great product.”
He says clients may increase their Advantage Account balance periodically, taking advantage of special rates. Many of his clients use it as their only bank account. For those who bank elsewhere, Mr. Goertsen notes the Advantage Account also links easily to their other bank accounts, with no fees for transferring money to accounts at other Canadian banks.
Making the most of your money requires solid financial strategies, and an account supporting that. With the Advantage Account, Mr. Oddie says clients can use cash to its fullest – and advisors can make even more informed and confident recommendations.
1 Fees are subject to change with at least 30 days of prior written notice. If you don’t receive paper statements, you can find all fee information online. All fees are presented on a per item basis, unless otherwise stated. Charges are automatically applied to your account. Additional convenience fees may apply when you make direct-payment purchases with your debit card.
2 Fees may apply.
3 ISS Market Intelligence (MI) Household Balance Sheet Report 2024, Rebased
Disclaimers:
Manulife, Manulife Bank, Stylized M Design, and Manulife Bank & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by Manulife Bank of Canada under license.
Fiserv EFT is the owner of THE EXCHANGE® trademark and its associated rights. Fiserv EFT has granted FICANEX® the exclusive right to use, market and sublicense THE EXCHANGE® trademark and the intellectual property rights associated with the operation of THE EXCHANGE® Network throughout Canada. Manulife Bank of Canada is an authorized user of the mark.
Advertising feature produced by Globe Content Studio with Manulife Bank of Canada. The Globe’s editorial department was not involved.