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Don’t Expect Your Bank Or Credit Union To Offer No-Load Mutual Funds

Thursday, March 29, 2012 - 8:51 PM
Whether we are talking about credit unions or banks, unless you are making a deposit or withdrawal you are probably engaging in a sales process that involves a commission. This is not a sin. The operations that sell mutual funds and annuities were set up to generate income and make a profit for the institution. That's why they don't sell no-load mutual funds.

http://assetbuilder.com/blogs/scott_burns/archive/2012/03/28/don-t-expect-your-bank-or-credit-union-to-offer-no-load-mutual-funds.aspx
3
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,205
1. Friday, March 30, 2012 - 1:47 PM
Shorebreak:  I read the article and cannot figure out where they think we have to pay commissions to banks or credit unions unless we purchase items like Annuities etc.  I have never paid a commission to any of my institutions for purchase of CDs or any other business I do with them.  I also have never had any bank I do business with offer to sell me Mutual Funds of any type.  It is usually Annuities.  Just wondering why anyone is paying commissions for just CDs or doing regular business with any bank or CU.  Thanks!
1
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565
2. Friday, March 30, 2012 - 8:57 PM
Re: Apache @ 1. Friday, March 30, 2012 - 1:47 PM

You posted: "I have never paid a commission to any of my institutions for purchase of CDs or any other business I do with them."

Now, how do you know that? Customer service representatives in banking institutions regularly receive commissions for getting customers to open CD accounts with the bank or credit union.  You have been lucky you weren't steered to some financial representive sitting in the back of the bank offering you a better deal than the miniscule rate on a CD. That's where the big commissions are at.

 
1
ShorebreakShorebreak2,621 posts since
Apr 6, 2010
Rep Points: 14,205
3. Friday, March 30, 2012 - 9:18 PM
Shorebreak:  I know that because I don't usually get my CDs from my local bank and I have made it quite known to them they are to keep their "financial" kiddies away from me!  I have a special method for how and where I get my CDs and most of the places don't know who I am until I show up.  It's like going to the store to buy vegetables.  I get  what carrots I need and then get in my car and head home.  No fuss no bother.  The only institutions I would say I may have had to pay a tiny bit for CDs would be those like Vanguard or Fidelity but they don't bug me about other things like mutual funds etc so I don't mind. 
1
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565
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