A new report by financial services consultancy firm Common Cause outlines some tips for getting into the financial services industry, such as finding a bank that is as low-cost as possible and that can be relied on to do the job you want.
The firm compiled a list of about 1,200 financial institutions that offer a wide range of services and have been reviewed by the US Government Office of Information and Regulatory Affairs (OIRA).
The list, called the Federal Financial Market Information Service (FFMIES), was compiled by a team of Common Cause lawyers, including the lead counsel for the group, Daniel Schafer.
It was compiled using data from Fidelity, the world’s biggest mutual fund company, and the Financial Services Roundtable, a network of private equity funds that has become an important conduit for small businesses seeking to get into the banking sector.
“The FFIEMS team looked at the firms that offer the lowest cost of doing business in the financial service industry, and found that banks have been among the most reliable and responsive to requests for service, with fewer than 20 of the 200 companies on the list offering less than $10,000 per year in annual fees,” Common Cause wrote in a press release.
The report found that only seven banks offered lower rates to small businesses than the average for all financial institutions.
The average rate is $1,065 per year, while many of the low-price banks offer a much higher rate.
The banks that are on the lowest of the lows are the ones that have had their own problems in recent years.
Fidelity had its biggest meltdown in 2009 when it lost $1.2 trillion, but it was still able to attract new clients.
The company was later acquired by Credit Suisse.
The other low-rated banks are the three largest banks in the US and are all based in New York City.
The firms are:American Bankers Association, BB&T, Bank of America, Barclays, Citigroup, JPMorgan Chase, Citibank, Morgan Stanley, PNC Bank, UBS, Wells Fargo, and Wells Fargo Financial Services Group.
The bank that has the lowest rate is the Bank of New York Mellon, which charges $5.65 per $1 trillion, about $500 lower than the next lowest-rated bank.
The bank that offers the highest rate is Deutsche Bank, which offers $3,547 per $100 billion.
While the Federal Reserve does not have an exact cost of money for the services provided by banks, it has said that low rates will reduce the cost of borrowing.
The Federal Reserve also says that banks can lower the cost to borrow by cutting out some of the middlemen who charge a premium.
“These services can lower borrowing costs significantly,” Fed Chairman Ben Bernanke said in March.
“These services could include fees on loans or credit cards, lower interest rates, or other additional costs that can reduce the amount of money that banks must borrow.”
But, Common Cause’s research found that many of these low-priced banks are also high risk.
The companies that offer low-fee banks are typically located in the same financial markets as the most expensive financial institutions, such a Europe, the US, Japan, or Australia.
That makes them easy targets for large financial institutions and banks that may be under pressure to cut costs, Common Cure said.
For example, the BB&t bank in the report had the second highest rate in the country.
The lowest-cost, non-U.S. bank is the Federal Bank of Dallas, which has an average rate of $2,876 per $200 billion.
The two banks that offer higher rates in the study are the Federal Deposit Insurance Corporation (FDIC) and the Federal Home Loan Bank.