Personal Finance

Is bank loyalty important these days?

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  • Feb 26th, 2010 11:17 pm
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hungryfordeals wrote:
May 3rd, 2009 10:48 pm
TD is as good as your Avatar!
hey celine dion might buy the team at least :lol:
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Thought I'd bump this thread for an anecdote...

My dad got this certified cheque in a business deal for approx $15K. He went to the nearest RBC with paperwork from the business deal and tried to deposit, and they wanted to put a 5 day hold. The teller went all the way up to the branch manager, who refused to waive the hold because of the large amount of fraudulent cheques out there. (This is with 30+ years of history with RBC.)

So my dad drove back to his home branch near his house and was greeted by name as soon as he walked in. When he asked about the hold on the cheque, they asked "why would we put a hold on this cheque?" It was deposited with instant access to all funds.
What if there were no hypothetical questions?
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Jucius Maximus wrote:
Feb 23rd, 2010 10:17 pm
Thought I'd bump this thread for an anecdote...

My dad got this certified cheque in a business deal for approx $15K. He went to the nearest RBC with paperwork from the business deal and tried to deposit, and they wanted to put a 5 day hold. The teller went all the way up to the branch manager, who refused to waive the hold because of the large amount of fraudulent cheques out there. (This is with 30+ years of history with RBC.)

So my dad drove back to his home branch near his house and was greeted by name as soon as he walked in. When he asked about the hold on the cheque, they asked "why would we put a hold on this cheque?" It was deposited with instant access to all funds.
Not sure if it was a current accont or just a normal personal account but sometimes when you are not at your home branch they will not negotiate the cheque regardless of the amount and type of instrument. Not sure why they wouldn't make an exception since certified cheques are pretty much like cash.

I agree loyalty is important and even more important are the people helping you and providing advice.
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^
It was a VIP Banking Acct, btw.
What if there were no hypothetical questions?
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Phoenix88 wrote:
Feb 23rd, 2010 10:58 pm
Not sure if it was a current accont or just a normal personal account but sometimes when you are not at your home branch they will not negotiate the cheque regardless of the amount and type of instrument. Not sure why they wouldn't make an exception since certified cheques are pretty much like cash.

I agree loyalty is important and even more important are the people helping you and providing advice.
Certified cheques are NOT like cash. There are a large amount of counterfeit bank drafts and certified cheques in circulation, and financial institutions have been burned in the past. If you go to your home branch, they are most likely to know you a lot better than a branch where you're a stranger. These days, a lot of tellers don't do their due diligence in looking at the "whole picture" of you as a client. They are mostly concerned with cutting their losses.

They have every authority to hold a Cdn $ item for 5 days and a US $ item for 15 days, and an International item for 25 days (I think it's in the Canadian Banking Authority or something like that).
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Jucius Maximus wrote:
Feb 23rd, 2010 11:01 pm
^
It was a VIP Banking Acct, btw.
Why would that make a difference? Anyone (including fraudsters) can open a VIP account ... that doesn't mean that they can cash large cheques without them being verified if need be.

Was that the first time that your dad tried to deposit a large amount?
What other products/services does he have with the bank?
What are his consistent account balances?
What was the $$ amount of the certified cheque?
Was it drawn on a RBC account (if so, they can verify this online if it's RBC)?
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P1x44r wrote:
May 2nd, 2009 12:17 pm
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.
+1. It all depends on the people in the branch that you interact with. For me, it's also the products and services that they have. I've had absolutely no problem with TD for credit, accounts, RSPs, etc.

But when it comes time to shopping for a mortgage, I WILL look around (depending on what I'm offered by TD) ... loyalty doesn't mean that I may have to overpay thousands of $$$ by sticking with TD.
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Jun 4, 2007
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I think its more personally knowing someone more than loyalty. Unfortunately theres a lot of turnover in the branches. And there's another pimply faced recruit in the cubicle everytime you go in-branch.


And yep, the promotions seem to be for new customers mainly.

Basically the model is that they pay to acquire a customer. Once they have you they give you nothing because it can be very time consuming to switch banks after you have your payments, cards, statements etc set-up the way you want them.

Its like mobile phones before you could port numbers over to a new carrier. To switch you'd need to call all your friends to tell them the new number, move your contact list to your new phone, print up new business cards... High customer switching costs, lead to high customer acquisition spending by the providers, but nothing spent on retention.
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tigger03 wrote:
Feb 23rd, 2010 11:11 pm
Why would that make a difference? Anyone (including fraudsters) can open a VIP account ... that doesn't mean that they can cash large cheques without them being verified if need be.

Was that the first time that your dad tried to deposit a large amount?
What other products/services does he have with the bank?
What are his consistent account balances?
What was the $$ amount of the certified cheque?
Was it drawn on a RBC account (if so, they can verify this online if it's RBC)?
I only mention it was a VIP Acct because another poster asked about it.
My dad has deposited and withdrawn many large amounts over the years, sometimes over $100K.
He has RRSP, VISA, Mortgages, other investments with the bank, some for over 20 years.
Don't know what his consistent account balances are, but he's been either fully employed or receiving pension since the 70s.
Approx amount of the cheque was given in an earlier post.
Not sure which bank issued the cheque.
What if there were no hypothetical questions?
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Jucius Maximus wrote:
Feb 23rd, 2010 11:01 pm
^
It was a VIP Banking Acct, btw.
Why would someone with enough income and cashflow to waste on VIP banking give two hoots if he could cash a cheque today or a week from now?

People on this board are always going on about deposit hold times for various banks, and I have to say, I have never, ever, ever cared about if a deposit was held over 20+ years of banking. It is not like the deposit is not earning the interest. What are you going to to do with the 5K in cash that you can't do with a CC, go to the racetrack?
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brunes wrote:
Feb 24th, 2010 7:02 am
Why would someone with enough income and cashflow to waste on VIP banking give two hoots if he could cash a cheque today or a week from now?

People on this board are always going on about deposit hold times for various banks, and I have to say, I have never, ever, ever cared about if a deposit was held over 20+ years of banking. It is not like the deposit is not earning the interest. What are you going to to do with the 5K in cash that you can't do with a CC, go to the racetrack?
lol that's kinda true. I just assume all personal cheques will come with a hold of 5 days. Though for bank drafts, they could call the institution issuing it to verify.

Though this type of issue is more of customer recognition than loyalty. I run into this all the time at my home branch getting signature guarantees. I get them far easier at older branches as they are familiar with the process and don't ask questions.
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Jucius Maximus wrote:
Feb 23rd, 2010 10:17 pm
Thought I'd bump this thread for an anecdote...

My dad got this certified cheque in a business deal for approx $15K. He went to the nearest RBC with paperwork from the business deal and tried to deposit, and they wanted to put a 5 day hold. The teller went all the way up to the branch manager, who refused to waive the hold because of the large amount of fraudulent cheques out there. (This is with 30+ years of history with RBC.)

So my dad drove back to his home branch near his house and was greeted by name as soon as he walked in. When he asked about the hold on the cheque, they asked "why would we put a hold on this cheque?" It was deposited with instant access to all funds.
If your dad went to a branch that wasn't his home branch, where they don't know him personally, then the branch has to not only worry about the potential that his cheque is no good (NSF or fraud by the payer) but also that someone could potentially be defrauding your father (with the intention of depositing the cheque and withdrawing the cash right away).
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I try to consolidate all of my banking for ease of use/accountability...but it certainly has little to do with loyalty.

I remember being quite irked when my bank wouldn't give me a $500 corporate credit card...despite having a mortgage through them...all of my chequing/savings accounts (times two) and investments...that really proved to me they don't want to take even a minimal risk on me...so I wouldn't on them and would jump ship if appropriate.
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I find it more a case of who you know, than loyalty. Loyalty has only worked for me once when I returned from living overseas as a non-resident and needed a credit card. TD gave me one for a minimum amount after telling them I'd been a customer for 20 years. Others wouldn't despite me having a rather large sum in my bank account.

That being said, TD gave me a hassle "granting" me a SLOC despite having large cabbage in their bank and having been a customer for 25 years at that point. I had enough to more than pay cash for the house, but they were giving me grief about giving me a SLOC.

The Branch manager, who knows me and my family finally intervened and talked some sense into them. He said that HQ makes decisions based purely on numbers. I got the SLOC but still felt like TD thought they were doing me a big favor by giving it to me.

All this loyalty still didn't help when TD decided to bump up their rates on SLOCs last autumn.

Problem is that my finances are now so entwined with TD, (SLOC, Waterhouse account) that moving everything would be a huge hassle. I think they know that and bank (sorry) on it.
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******* wrote:
Feb 24th, 2010 4:20 pm
I could never and still can't understand why people are so reluctant to switch financial institutions when the level of service that they have come to expect and deserve is not being met. Would you still shop at the same grocery store if they raised their prices over the competition? or how about if their reps were incompetent and didn't give you the time of day? You probably would start shopping at another location or company altogether. Why is banking/investing/having a mortgage at anyone financial institution any different?
I think the big problem is vendor lock-in. It is nowhere near as simple to switch banks as switching grocery stores. You have to call all these lenders and change PAP withdrawals, do the same with your mortgage and investments. You have to get your work to change the direct deposit, and you have to try to time all this just right so that you never have any bounced payments. You have to change your info with the Canadian government too if you do direct deposit. And umpteen other people you may or may not forget about.

I just went through all this about 5 months ago, so I know what a hassle it is. I still to this day do not have *everything* moved over that I planned.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings

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