“If you have accounts, loans and credit cards with several banks, should you consolidate them with one provider?”

Excellent topic to ask one of Australia’s most senior bankers, Sir Ralph Norris, from the Commonwealth Bank.

Bruce: “Morning Ralphy.”

Ralphy: “Morning Bruce.” (Hey, don’t forget his New Zealand accent.)

Bruce: “Would it be a winning idea to consolidate all of my banking with CBA?”

Ralphy: “Hell, yeah! I’d love you to! I’ll slug you an extra 0.45 per cent on your mortgage. Maybe even more on your credit cards. And I’ll give you nothing extra for your savings. Win-win! That’s a win for the bank and a win for shareholders.”

Bruce: “Not to mention a win for you, Ralphy …”

Ralphy: “Naturally. But I’m always the winner, Brucey-babe. I earn $10 MILLION a year! How can I lose!”

There’s really no point consolidating your banking with one bank unless you have, or will soon have, a stinking big home loan.

Banks hate customers who pay off their credit cards in full, have small loans or have no savings. They even hate those with big savings, but want high interest.

The customers banks want doona-time with those with big home loans, ongoing credit card debt (like my Grandma!), and lazy people with lots of money, who don’t chase high interest.

If you’ve got a home loan, then you’ll get a better deal (such as free credit cards and an offset account) if you combine your banking together.

No home loan? You’ll probably get better deals – on your cash and credit cards –by sleeping around.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.