Personal deposits with bank as condition of commercial loan

[Monica Kovalsky]

We are working on getting our 4th loan with a bank that we have used for financing some of our multi-family properties.  They are now making a condition of the loan that we move all our personal accounts to their bank.  I don't have any issues with the operations of the bank but there is not a branch convenient to us and it is such a hassle to switch banks.  Do you think its worth trying to negotiate?  What leverage do we have?  Why isn't the interest from our loans good enough?  Any suggestions or insight would be appreciated.  Thanks!!

[Jimmy Moncrief]

A lot of great answers - I would just add that if you were bringing deposits I would ask for a lower rate! :-)

Hope that helps and good luck!