Personal Finance

Is bank loyalty important these days?

  • Last Updated:
  • Feb 26th, 2010 11:17 pm
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Deal Expert
May 30, 2005
42551 posts
3138 upvotes
Richmond Hill
i6s1 wrote:
Apr 24th, 2009 5:21 pm
It isn't like you can have too many credit cards. I have 7 credit cards. Every few years a better one comes along, and cancelling the old ones lowers your score. What's important is that you use the credit responsibly.
Just wondering, for the cards you guys want to cancel but don't because of credit score, would you cut them up or just leave them as it is?
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Mar 23, 2004
38491 posts
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Markham
tng11 wrote:
Apr 30th, 2009 11:58 pm
The reason I raised this question was because I was a loyal customer to RBC for many years and after more than a decade of a relationship, a new account manager simply collapsed it all. The deals I had negotiated previously were no longer honoured and the new AM simply was not responsive nor helpful for any of my concerns, and yes I'm still bitter from it as it seems after so many years of "loyalty", they just leave me out to dry one day.
if that happened to me, i know i wont even go there again. Maybe not to the level of adamtheman...but still.
Deal Addict
Dec 20, 2004
4745 posts
404 upvotes
Toronto
I think loyalty makes a tremendous difference... at least from my experience.

I'm with BMO and whenever I go into the branch, the branch manager always makes sure to come out and say hi. When I need a certified cheque, I email my AM in advance and they have it waiting for me, and always waive the fees.

When I wanted to open a business account, they prepared all the paperwork in advance, and waived the monthly fees for an entire year... and again, everytime I needed a bank draft or money order, they waive the fees.

When I needed a mortgage, I just read over the mortgage rate thread here on RFD, found the ABSOLUTE lowest rate people were getting, and asked them to match it... they did, no questions asked.

There are tons of other examples when they have gone above and beyond simply because I've been a "loyal" customer. But overall I'm extremely satisfied with the service I've received at my branch, and in return I will do ALL My banking with them.... so it works out for the both of us.

Then again if you're a typical RFD member.... high-school or uni student with little to no banking requirements, then perhaps it's not as important.... but as you get older and your needs get a little more complex, you'll find the relationship pays off.
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Oct 16, 2007
2486 posts
38 upvotes
Toronto
Hell no it's all about the bottom line. I asked a Visa rep from RBC if I could get a possible lower interest rate since I've been banking with them since I was a kid and always paid on time and they wouldn't budge.
Deal Addict
Mar 14, 2005
1793 posts
40 upvotes
I've been with CIBC for years, and so has my family. We are considered "Imperial Service" clients but..... CIBC won't give a competitive mortgage rate to an existing client!
Loyalty means NOTHING
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Feb 17, 2005
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Markham
xstatik wrote:
May 1st, 2009 8:18 am
I've been with CIBC for years, and so has my family. We are considered "Imperial Service" clients but..... CIBC won't give a competitive mortgage rate to an existing client!
Loyalty means NOTHING
When it comes to mortgages, neither banks nor clients have loyalty. I know people who work for banks who get better rates at other banks.

What I do know though, you can be with the bank decades it means nothing. It's what is your worth to their bottom line that matters. Whose rate were you comparing to vs. CIBC
Deal Addict
Feb 24, 2007
1371 posts
55 upvotes
ilusa wrote:
Apr 30th, 2009 10:48 pm
Td is the best bank though
Thalo wrote:
Apr 30th, 2009 11:49 pm
No, it is proven fact. Just ask JD Power and Synovate... :razz:
Actually wrong, PCF is the best bank according to JD Power while TD is best among only the TOP 5.

"TD Canada Trust ranks highest in overall customer satisfaction among Big 5 banks for a third consecutive year, achieving a score of 777"

"President’s Choice Financial ranks highest for a second consecutive year, with a score of 816."

Eat it adamtheman. :)

Citizens bank was not ranked.
Deal Addict
Mar 14, 2005
1793 posts
40 upvotes
evoviii wrote:
May 1st, 2009 12:55 pm
When it comes to mortgages, neither banks nor clients have loyalty. I know people who work for banks who get better rates at other banks.

What I do know though, you can be with the bank decades it means nothing. It's what is your worth to their bottom line that matters. Whose rate were you comparing to vs. CIBC
TD and RBC rates.. CIBC were giving me rates that were 50-60 basis points above TD and RBC.. Far enough out that I didn't want to waste my time with them..
The worst part is, is that the CIBC rates that people are posting in the Rate Thread are many times better than what CIBC told me was their "Best" rate.
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Mar 23, 2004
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halflife150 wrote:
May 1st, 2009 12:56 pm
"TD Canada Trust ranks highest in overall customer satisfaction among Big 5 banks for a third consecutive year, achieving a score of 777"

"President’s Choice Financial ranks highest for a second consecutive year, with a score of 816."

Eat it adamtheman. :)
OWNED! :lol:

i think loyalty to a small bank (small big 5 branch) where u can know almost everyone in person is much more important than say in a big branch because of high to's and high # of employees.
Newbie
Apr 20, 2009
78 posts
Jon Lai wrote:
May 1st, 2009 12:13 am
Just wondering, for the cards you guys want to cancel but don't because of credit score, would you cut them up or just leave them as it is?

Neither. Every few months charge a small amount and pay it off. The account isn't dormant, remains in good standing, and is adding to your score.

At least that's my understanding!
Sr. Member
Dec 4, 2007
694 posts
3 upvotes
Montreal
TD has been so good to me that it's almost unreal. No reason to look anywhere else and I will not unless I have to.
Deal Expert
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Dec 11, 2005
19043 posts
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The reason loyalty is not as important aynmore is because all big rate decisions now come down from HQ. Even bank managers have very little wiggle room when it comes to things like rates you get or free services - it is all pretty much set in stone based on how much business you bring to the bank.

The only leeway branch managers have is the ability to shave off a half a point here and there off of a mortgage and LOC, and they do this for pretty much anyone who asks, just to feel important.

I have no more loyalty to my bank than I do to my grocer - I go where I can get the best product and service for the best price, period.
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Deal Fanatic
Jul 1, 2007
8225 posts
1167 upvotes
mgronqui wrote:
May 1st, 2009 3:55 am
Hell no it's all about the bottom line. I asked a Visa rep from RBC if I could get a possible lower interest rate since I've been banking with them since I was a kid and always paid on time and they wouldn't budge.
On most Visa cards with the major banks the rate is completely inflexible. Each bank has at least one low-rate card though, where the rate is determined by credit history and possibly can be modified for loyal customers.

On lines of credit, loans, mortgages, the banks have far more flexibility.
evoviii wrote:
May 1st, 2009 12:55 pm
I know people who work for banks who get better rates at other banks.
There are tax reasons for a bank staffer to go with a competitor. A "staff mortgage", if it's rate is low enough, can be considered a taxable benefit. If the CRA hadn't lowered their prescribed interest rate I might have ended up with an extra amount on my T4 for my Prime-.5% HELOC. :-0
halflife150 wrote:
May 1st, 2009 12:56 pm
Actually wrong, PCF is the best bank according to JD Power while TD is best among only the TOP 5.

"TD Canada Trust ranks highest in overall customer satisfaction among Big 5 banks for a third consecutive year, achieving a score of 777"

"President
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Jan 4, 2008
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Jucius Maximus wrote:
Apr 19th, 2009 11:58 pm
If you are with a Credit Union it may matter.

In the US if often matters if you are with one of those smaller regional banks where they know their customers as opposed to a megabank.

If you are with a megabank, not so much.

I have as much loyalty to banks as they do to me.
You're right, it may matter, Credit Unions are crooks.

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