Personal Finance

Do banks rate customers?

  • Last Updated:
  • Jan 3rd, 2023 4:42 pm
Tags:
[OP]
Penalty Box
Apr 18, 2013
3870 posts
2151 upvotes
Canada

Do banks rate customers?

I deposited a cheque the other day at a TD Branch and I started talking to the teller. He told me that because of my customer status there would not be a hold on any of the funds. But with other customers, he said TD would have put a hold on 50% of the funds for up to 7 days.

Does anyone know how this rating system works? Is it based on your credit score, or other factors?
34 replies
Deal Fanatic
Aug 31, 2010
6910 posts
5830 upvotes
gbill2004 wrote: I deposited a cheque the other day at a TD Branch and I started talking to the teller. He told me that because of my customer status there would not be a hold on any of the funds. But with other customers, he said TD would have put a hold on 50% of the funds for up to 7 days.

Does anyone know how this rating system works? Is it based on your credit score, or other factors?
Multitude of factors, including credit worthiness (that's what the hold policy is, after all), history of deposits, etc.

He was just fluffing you up a bit.
Deal Guru
User avatar
Oct 16, 2008
10140 posts
4418 upvotes
Vaughan
gbill2004 wrote: I deposited a cheque the other day at a TD Branch and I started talking to the teller. He told me that because of my customer status there would not be a hold on any of the funds. But with other customers, he said TD would have put a hold on 50% of the funds for up to 7 days.

Does anyone know how this rating system works? Is it based on your credit score, or other factors?
Yes, big time based on seniority and good credit.
...
Member
May 15, 2019
367 posts
375 upvotes
GWN
They rate customers based on profitability that the target provides to the FI.

examples: selling Mutual funds, gic's, minimal discounted mortgages, lines of credit, overdraft protection, insurance, minimal interest rates deposit accounts, bank service plans etc.

Credit scores justifies to the FI to charge you more (sometimes less).

Banks make billions by plan not by accident.
Newbie
Feb 22, 2022
31 posts
37 upvotes
If you have savings with them or investments.

Or you have credit lines with them, credit card, overdraft. With enought credit available and in good standing.

Then they are pretty sure you are good for the cheque amount and fees if it bounces.
Newbie
Dec 1, 2022
13 posts
9 upvotes
I wonder if banks would hold a cheque of $10000 if that person had a million bucks cash in their account…
Deal Addict
Jan 11, 2020
4065 posts
3334 upvotes
Yep, pretty easy to analyze. We all have internal credit scores at the bank.
.
Deal Fanatic
Jun 11, 2016
5042 posts
6227 upvotes
SnowyDumpling wrote: They rate customers based on profitability that the target provides to the FI.

examples: selling Mutual funds, gic's, minimal discounted mortgages, lines of credit, overdraft protection, insurance, minimal interest rates deposit accounts, bank service plans etc.

Credit scores justifies to the FI to charge you more (sometimes less).

Banks make billions by plan not by accident.
My bank must hate me. I strive not to pay a cent to a bank.
Deal Fanatic
User avatar
Jan 6, 2002
6449 posts
6990 upvotes
Toronto
gbill2004 wrote: I deposited a cheque the other day at a TD Branch and I started talking to the teller. He told me that because of my customer status there would not be a hold on any of the funds. But with other customers, he said TD would have put a hold on 50% of the funds for up to 7 days.
Spoiler Alert: EVERY company scores EVERY customer they track. Factors basically all boil down to:

* How old are you?
* How rich are you?
* How loyal are you?
* How reliable are you?
* How annoying are you?
* How needy are you?
Si Tacuisses, Philosophus Mansisses
Deal Guru
User avatar
Oct 16, 2008
10140 posts
4418 upvotes
Vaughan
KravenHead wrote: My bank must hate me. I strive not to pay a cent to a bank.
Nah, banks don’t hate customers. It’s better to be their customer than others.
...
Deal Fanatic
Jul 1, 2007
8547 posts
1724 upvotes
Deposit holds are mostly a credit or credibility thing, but beyond that the banks do rate clients. There are "High Value Clients" who usually have some kind of indicator on their profiles. There are also clients with lot's of warnings on their profile...
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Banned
Aug 17, 2022
26 posts
27 upvotes
teoconca wrote: Nah, banks don’t hate customers. It’s better to be their customer than others.
All banks, and all retailers and any other business for that matter, all rate customers, and aren't afraid to drop them if they actually cost them money, or otherwise take up too much of their time / whine too much to make it worthwhile and creates too much mental stress for their employees & management to deal with.

Definitely not true that businesses will always say "it's better to be their customer than others".

I work in a company in a services industry, and we definitely have no problem with "firing customers" who are unprofitable, and take up too much of our time or just generally difficult to deal with.
Deal Addict
User avatar
Jul 25, 2015
1992 posts
1698 upvotes
Burnaby, BC
Yes they do, I had a branch manager call me "the worst customer" smiling. I said why. He said we don't make money out of you, you pay on time, don't use your HELOC and your balances qualify for no fees. Apparently they lose money.
Deal Fanatic
Apr 5, 2016
5975 posts
4422 upvotes
Calgary/Vancouver
Reminds me of the time where I was chatting with the ABM and this teller screwed up by accidentally moving her monitor to show the client something, but didn't close the alerts. One of the alerts said the client was a problem client and not to offer anything. Oh man the client was so pissed when he saw that LOL.
Member
May 15, 2019
367 posts
375 upvotes
GWN
Piklishi wrote: Yes they do, I had a branch manager call me "the worst customer" smiling. I said why. He said we don't make money out of you, you pay on time, don't use your HELOC and your balances qualify for no fees. Apparently they lose money.
If one has any of GIC, Mortgage, deposit balance with $ minimum for "no fee" qualification, chequing account, mutual fund, credit card use, car loan, etc. It may be indirect but the bank is making money from that person
Member
Aug 23, 2021
229 posts
221 upvotes
Saturday, I went my TD brach to withdraw a thousand dollars- gifts for grandkids. Imagine my surprise when the teller told me that my access card allowed me to withdraw $5,000 at ATM. I had always assumed the limit was $500
Deal Fanatic
Aug 31, 2010
6910 posts
5830 upvotes
KravenHead wrote: My bank must hate me. I strive not to pay a cent to a bank.
Trust me, the bank is making money off you lol any money you hold in a bank.. they're making money on.

For example, just because you don't pay interest on your credit card doesn't mean the bank is making no money..
akfdqwer wrote: I wonder if banks would hold a cheque of $10000 if that person had a million bucks cash in their account…
Probably not, but depends on history of returned NSF cheques and how long that cash has been there. But, in my experience working at a bank in university many moons ago, the only people who had a problem with cheque holds were those who needed the money. The guy with $1 million in his account couldn't care less if the $10k is held.
Deal Addict
Apr 15, 2006
1403 posts
1456 upvotes
Yes, used to work for one of the big 5.

We look at how much money you have, what products you have with us, your usage habits and your future potential as a customer.
[OP]
Penalty Box
Apr 18, 2013
3870 posts
2151 upvotes
Canada
bandersnatch wrote: Yes, used to work for one of the big 5.

We look at how much money you have, what products you have with us, your usage habits and your future potential as a customer.
How is "future potential as a customer" determined?
Deal Addict
Jan 30, 2012
1675 posts
1068 upvotes
TORONTO
Numbersman1941 wrote: Saturday, I went my TD brach to withdraw a thousand dollars- gifts for grandkids. Imagine my surprise when the teller told me that my access card allowed me to withdraw $5,000 at ATM. I had always assumed the limit was $500
I dunno about TD, but when I withdraw from the ATM using other bank accounts the paper receipt says "daily cash limit remaining: $XXXX" that shows that info.

Top