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Flexing Your Financial Muscles: Introducing a New Short-Term Way To Save

CWB is offering an innovative new banking product to help individuals and businesses with short-term savings. 

When looking at the best options for your banking — whether for personal or business purposes — the numbers, rates, benefits and differences can start to blur. Knowing which banking products give the best return on your dollars is key to proactively managing and investing your money and making it work as hard as you do to earn it.

To this end, Canadian Western Bank (CWB) has introduced the Flex Notice Account offering a unique combination of high interest rates with flexible access to funds when needed. “It’s a product that compares to the interest rates of longer term GICs, such as 24 to 36 months, but you only need to lock it away for 93 days,” says Byron Eberle, Assistant Vice President and Manager of Commercial Relationships for the Saskatoon District.

“It’s a fantastic addition to a client’s overall financial plan, based on the interest rate, flexibility and access the account provides,”
adds Brooke Rutherford, Manager of Retail Banking at the Saskatoon North Landing branch. “It’s a great option to preserve capital.”

Strengthening your financial picture

To truly maximize the benefits provided by this account, it’s important to see the whole picture. “The product isn’t for everyone,” explains Byron. “And it’s not a stand-alone product, as it really should be used in conjunction with other cash management products.”

Brooke further notes, “The account is not meant to hold all of your extra cash; it’s important for clients to have access to liquid savings in case of emergencies. But the account is a fantastic addition to someone’s overall financial plan.”

The right decision when you haven’t made one

One case in point comes from a client in her early 30s Brooke recently met with. While the client earns a modest income, she had recently received an inheritance and was interested in purchasing a house. However, she needed extra time to save more money before she would be able to move forward on a down payment.

“This was the perfect opportunity for her to put some money away into an account like this,” says Brooke. “And this is true for any client who already has money sitting in a savings account or is expecting to come into some money, as in the case of an inheritance or the sale of a home. A client might have sold their house, and they are not sure what they’re going to do yet — whether they’ll buy another house or rent. As for our clients who are retiring, they might decide to travel rather than purchase another home.”

“A person or business would truly benefit when they have surplus cash flow and don’t have an immediate need for it,” Byron agrees. “It gives you a better rate of return than having it sit in your bank account.”

This was certainly true of Brooke’s client. At another financial institution, that client had been receiving 0.5% interest on her inheritance, which has been increased to 2.2% now that she’s moved her money to CWB’s Flex Notice Account.

A recent financial review with the CFO of a business client has also served to highlight the value of the CWB Flex Notice Account for SMEs and enterprise organizations alike, regardless of industry.  Working closely with this particular client, a cash-flow strategy was developed that took into account the business' unique cash requirements over the next five years. The accessibility of the CWB Flex Notice Account accounted for a large part of the discussion, particularly when compared against alternative investment vehicles such as a 12-month GIC. 

Better savings for all

This account offers slightly different terms and conditions depending on whether you’re using it for business or personal funds, but regardless of your banking requirements it provides a better rate of return on your money,” says Brooke.

Specifically, business owners need to have a minimum balance of $100,000 to open this account and must provide 93 days notice for retrieving funds out of it once opened, while personal banking clients only need a minimum balance of $25,000 and they have two account options that either require a 31-day notice or 93-day notice for withdrawing money.

The difference between the two accounts is the interest paid. The 93-day notice account pays prime less 1.50%, which works out to 2.45% as prime is currently 3.95%. The 31-day notice account pays prime less 1.75%, or 2.20%.

“You need to understand your cash flow needs and requirements,” Byron adds. “That’s a great benefit we provide in our customer service offering.
We can sit down with you and assess your cash flow planning. We’re a relationship-focused bank, and we act as your business partner.”

If you’re looking for a great account that comes with a great account manager, contact your local CWB branch today to discuss your future cash flow planning and whether this particular account may be right for you.