DEFINITION of 'Group Banking'

A plan offered by banks that generally provides incentives for groups, such as employees at a company, if the group establishes a banking relationship with the institution. Potential incentives for group banking can include lower interest rates, lower fees and discounts.




BREAKING DOWN 'Group Banking'

Some other benefits of group-banking plans include a single point of contact for the group, and a bank contact which is generally more knowledgeable with the group's plan and needs. Also, many banks may offer group seminars.

RELATED TERMS
  1. Incentive Fee

    A fee paid to a fund manager by investors. Incentive fees are ...
  2. Industry Group

    A classification method for individual stocks or companies, usually ...
  3. Bank

    A financial institution licensed as a receiver of deposits. There ...
  4. Bankers' Bank

    A special type of bank that is created by a group of banks. Bankers' ...
  5. Market Average

    A measure of the overall price level of a given market, as defined ...
  6. Bank Rate

    The interest rate at which a nation's central bank lends money ...
Related Articles
  1. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  2. Small Business

    Companies That Offer Unique Employee Discounts

    These companies offer employees great discounts and unique incentives you don't find with your average employer.
  3. Financial Advisor

    Group Term Life Insurance: What You Need to Know

    Is group term life insurance really a good deal? What you need to know about employer-sponsored group term life insurance coverage.
  4. Personal Finance

    Banking Has Changed: What Does It Mean For Consumers?

    Banks have long been leading spenders on technological innovations. Learn the key changes in the banking industry and what institution is right for you.
  5. Tech

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  6. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  7. Personal Finance

    Online Banks: Lower Costs And Little Sacrifice

    For many, online banking has become a day-to-day routine. Still, there are some holdouts who refuse to accept the method.
RELATED FAQS
  1. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  2. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
  3. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  4. How do central banks impact interest rates in the economy?

    Learn how central banks such as the Federal Reserve influence monetary policy in the economy by increasing or decreasing ... Read Answer >>
  5. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
Trading Center