267 Chapter 11 Selling the Bank an existing relationship formed by selling a bank product or service to a customer. Therefore, it is sometimes known as relationship-based selling. For example, conversations between a teller and a customer might reveal that a customer with a savings account is saving for a down payment on a house. Tellers are trained to ask a checking customer if they would like to open a savings account. If they have a checking and savings account, the teller asks if they would like to have direct deposit or automatic bill pay. The more services a bank provides to a customer, the more likely the customer is to stay with that bank. Cross-selling requires interaction between bank employees. Passing a customer’s needs and wants along to a loan offi cer might result in making a mortgage loan to a savings account customer. Friendly interest from a bank teller reveals the customer’s needs, and good communication among bank employees and bank departments could lead to a cross- selling opportunity. Customers who have several relationships with the same bank, such as a savings account and a mortgage loan, are more likely to be loyal to the bank. Another form of personal selling is event-based selling. Event-based selling is when a bank employee contacts a customer because of an event that has recently happened with that customer. For example, a BIZ TIPS The Bank Holdin The Bank Holding Com- a Bank B B B a e h k Holdin k o o o o H o H H The T T T B B i i H e B o o e T n d T k he pany Act, as pany Act, as amended in y pany p y p s y a a n n p , p a p 1970, bans 1970, bans banks from n 19 9 1 b b n n 9 s 0 making customers buy one making customers buy one g m m m cus i product or service for them to be eligible for another product. For example, a d F l bank cannot require that a customer buy homeowners insurance from a company owned by the bank to be eligible for a mortgage from the bank. 30-Year Fixed Rate Mortgage 3.87% Annual Percentage Rate 24 Month CD 1.00% Annual Percentage Rate Rates available to new deposits only. Minimum to open a CD is $2,500. Penalty may apply to CD for early withdrawal. APR stated accurate as of 1/3/XX. Requires a 70% loan-to-value ratio and 1.25 points due at closing. Taxes and insurance premiums are additional. GREAT RATES North Creek Bank and Trust Denotes that North Creek Bank and Trust is an equal housing lender Requirement for getting advertised rates Required on all advertisements related to deposit accounts Annual percentage rate must be stated Figure 11-5. Sample Advertisement