Group Banking; A scheme designed by banks to be used by groups rather than individuals. A common example is a company plan offered to employees. Group banking is a term that is a type of banking scheme offered to groups such as employees in a people’s corporation rather than individuals . These schemes provide incentives and other benefits to the participants, which are not readily available to other customers of the bank.
What is Group Banking? Group banking is offered by some banks to encourage a whole group of people, like employees of a company, to form a relationship with a banking institution. Typically, the bank will offer incentives such as discounts, reduced fees and interest rates. Also, other benefits are not available to individual customers.
Group banking members may also have access to lower interest rates, lower fees, discounts and other perks available to regular account holders.
Group banking can also provide a more personal banking relationship for members if the bank nominates a representative, who is generally more knowledgeable about the needs of the group, as a point of contact for all group members.
How does group banking work?
A bank teams up with a large employer and offers special benefits to its employees if they can 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 also have access to lower interest rates, lower fees, discounts and other perks available to regular account holders. Group banking can also provide a more personal banking relationship for members if the bank nominates a representative, who is generally more knowledgeable about the needs of the group, as a point of contact for all group members.
