Personal Finance

Is bank loyalty important these days?

  • Last Updated:
  • Feb 26th, 2010 11:17 pm
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Member
Feb 26, 2009
225 posts
18 upvotes
Agreed. There is a little bit of an apples and oranges thing going on there.

Plus which, there are only so many hours in a day, and doing a lot of this stuff entails a great deal of time and effort, as has been your experience, brunes.

i.e. It's taken since December for me to get an account at a financial organization that gets a lot of print here at RFD all set up because of the way they do things, and some errors on their part (as well as Canada Post) Even Ally took close to 3 weeks for some reason.

I opened those accounts because I got tired of only earning 1.25 or 1.35 on my savings at ING and CT Bank, or 0 at TD.

Toss a SLOC or a mortgage and all the fees and red tape involved in getting new approval into the mix and switching becomes somewhat daunting. I admit, if my interest payments on my SLOC weren't tax deductable, I'd probably be more motivated, but I'm slowly weeding TD out of my life too.
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Dec 5, 2003
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tigger03 wrote:
Feb 23rd, 2010 11:05 pm
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).
Good to know - I worked at the bank a long time ago and that is how we treated canadian drafts and money orders (certified cheques were different a bit different) - we wouldn't just deposit it without looking but generally we wouldn't put any holds on these funds.
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Jan 24, 2010
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Richmond
Loyalty does make sense (sometimes big difference) only if you have good relationship with your bank's branch manger, or some sales associate, or some role like that.
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Dec 8, 2007
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It makes sense from a customers perspective as a point of leverage for lending products (mortgage, LOCs, reduced rates, etc.)

Other than that - No. Follow the path of least resistance to the lowest available rate.
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Feb 26, 2009
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Phoenix88 wrote:
Feb 24th, 2010 11:57 pm
Good to know - I worked at the bank a long time ago and that is how we treated canadian drafts and money orders (certified cheques were different a bit different) - we wouldn't just deposit it without looking but generally we wouldn't put any holds on these funds.
In the last couple of years, the number of fraudulent certified cheques apparently has increased to the point where holds are very often put on them. They're no longer as "certified" as they once were.

I haven't had a draft put on hold, though I only deal with my home branch when it comes to things like this (after having a problem with another branch), though I do know of one person that has had a bank draft put on hold. Maybe fraud with those has increased as well.
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Aug 16, 2009
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deruo wrote:
Feb 25th, 2010 10:33 am
In the last couple of years, the number of fraudulent certified cheques apparently has increased to the point where holds are very often put on them. They're no longer as "certified" as they once were.

I haven't had a draft put on hold, though I only deal with my home branch when it comes to things like this (after having a problem with another branch), though I do know of one person that has had a bank draft put on hold. Maybe fraud with those has increased as well.
So whats the point of paying extra to certify a cheque if holds are routinely placed ?

Might as well just write a cheque and not get it certifed.
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Oct 25, 2003
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smokescreen15 wrote:
Feb 25th, 2010 12:02 pm
So whats the point of paying extra to certify a cheque if holds are routinely placed ?

Might as well just write a cheque and not get it certifed.
And make it a felony for writing bad checks! Welcome to America!

I wrote the dealership a $20,000 personal check when buying my car lol.
it's me ramin.
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Feb 26, 2009
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smokescreen15 wrote:
Feb 25th, 2010 12:02 pm
So whats the point of paying extra to certify a cheque if holds are routinely placed ?

Might as well just write a cheque and not get it certifed.
I agree. Except in some cases, such as deposits for real estate purchases, a regular cheque is not acceptable.

Which is why I tell anyone I do business with that needs to have a "certified" cheque, to just get a bank draft instead (if they haven't already purchased the certified cheque). It's cheaper, just as good (better, it would seem) and chances of a hold being put on it seem to be less than the case of a certified cheque.
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Jul 18, 2005
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smokescreen15 wrote:
Feb 25th, 2010 12:02 pm
So whats the point of paying extra to certify a cheque if holds are routinely placed ?

Might as well just write a cheque and not get it certifed.
financial institutions want your money -- it's as simple as that. There are SEVERAL certified chqs and bank drafts put in hold unless they are being redeemed by the same instituion or they can verify it with a quick phone call.
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deruo wrote:
Feb 25th, 2010 4:55 pm
Which is why I tell anyone I do business with that needs to have a "certified" cheque, to just get a bank draft. It's cheaper, just as good (better, it would seem) and chances of a hold being put on it seem to be less than the case of a certified cheque.
Isn't it pretty trivial to cancel a certified cheque after it's issued?
What if there were no hypothetical questions?

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