Personal Finance

One bank or many? Is there a benefit?

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  • Jul 29th, 2020 10:01 am
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[OP]
Jr. Member
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Oct 25, 2016
185 posts
92 upvotes

One bank or many? Is there a benefit?

I have way too many bank accounts and my friend recently said it would be best to have all of my accounts at one bank as they appreciate loyalty and will make getting future loans etc from them easier. Now I don't know if this is true--so I would appreciate your feedback on this.

That said, if I were to do this, I am having a very hard time narrowing down a bank that does what I need/want.

My Accounts
Checking
Line of Credit (no fee)
RESP
TFSA
Credit Cards

Business
checking,
savings,
Line of Credit (no fee)
Credit Cards

Does anyone have any bank suggestions and if I should stick with one bank, or are there very limited benefits to doing so?
Last edited by ElliottGalt on Jul 28th, 2020 11:44 pm, edited 1 time in total.
Member since Feb 19, 2008
7 replies
Deal Guru
Dec 5, 2006
13051 posts
8290 upvotes
Markham
Is it harder to get loan or whatever for you now?
Do you plan to get loan in near future?
Could you consolidate when you are near to get loan?
Deal Addict
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Sep 14, 2012
2372 posts
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Montreal, QC
ElliottGalt wrote: I have way to many bank accounts...
What exactly is "way too many bank accounts"? Personally I think if you can manage the accounts and are aware of them along with any fees associated with them and they each serve a purpose, it is all good.

In terms of loyalty, I think the amount of money you have at the institution makes more of a difference than what other institutions you deal with. My main brick & mortar bank (TD Canada Trust) is aware that I also deal with RBC and Tangerine and they don't seem to care (i.e. I get promotions, help, pre-approvals, etc.). Likewise with RBC and Tangerine.

TD Canada Trust has most of my assets/investments and I've been a long time customer of their's but that hasn't helped me in getting the best rate for my Line of Credit with them (Tangerine beat them) nor has it gotten me a better interest rate for their GICs.
Deal Fanatic
Apr 16, 2007
8132 posts
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Financial District B…
ElliottGalt wrote: I have way to many bank accounts and my friend recently said it would be best to have all of my accounts at one bank as they apprishiate loyalty and will make getting future loans etc from them easier. Now I dont know if this is true--so I would apprishiate your feedback on this.
*appreciate



That is not always true.
If later down the road you were to need a personal loan, line of credit, secured auto loan etc., with having more than one bank you can actually do your own interest rate shopping with the banks that know you.

Lastly, loyalty is poopoo. While some banks will give you some benefits for multiple credit products for the most part banks don't care about loyalty anymore and this is coming from someone that works in the finance sector.


Loyalty is usually displayed by goodwill gestures/gifts/benefits/periodically wave fees/charges.
Banking benefits for multis is just a sales and marketing scheme to generate more business. Don't confuse this with loyalty.
Last edited by mikeymike1 on Jul 28th, 2020 10:05 pm, edited 2 times in total.
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Deal Fanatic
Dec 12, 2009
5432 posts
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Toronto
There are other reasons for dealing with more than 1 bank.
Low or zero interest balance transfers.
One bank system goes offline - you likely have access to the other.
Your accounts at one get frozen for any # of reasons, you can function using the other.
Knowing that when bank A has you by the short & curlies you can easily move to bank B; this makes any negotiations or decisions a lot easier.
Member
Jul 17, 2018
301 posts
158 upvotes
Having everything with one bank is just more convenient. That's it. I have never heard of any "loyalty" bonus outside of grandfathered plans which is different. For big banks, RRSP maintenance fee waiver takes into account the money you have in your TFSA account but that has nothing with who you bank with in terms of your chequing and savings account.

I think there are benefits to banking with more than one bank. If you really need to hit the ATM you can withdraw more money within 24 hours. If you need to send $$$ in interac payments within 24 hours you can send more money. CDIC insurance is also a factor.
Sr. Member
May 2, 2019
723 posts
955 upvotes
Vancouver
ElliottGalt wrote: I have way too many bank accounts and my friend recently said it would be best to have all of my accounts at one bank as they appreciate loyalty and will make getting future loans etc from them easier.
You won't find a bank that gives you loans easier based on so called "loyalty". For easier loans and better interest rates, your best bet is to work on improving your credit score. Moving to one bank might in fact reduce your credit score (e.g. if you close your long-standing credit card account at another bank).

There are reasons for using more banks or less banks (not necessarily one).

Less banks:
  • Convenience (everyday and in case of dealing with moving or inheritance).
  • Your personal info is kept in less places, so less likely to get stolen.
  • Faster to transfer money within a bank.
  • You can qualify for certain products / better pricing that require certain total assets with the bank (study availability/requirements at a particular bank).

More banks:
  • You can take advantage of many special offers and incentives (study RFD threads).
  • You can mix and match product offerings at different banks, totally worth it to shop around.
  • Backup for emergencies (technical issues at a bank, etc).
  • deposit insurance only covers limited amounts, so it's wise for wealthy people to use multiple banks. Similar for investment insurance.
Deal Fanatic
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May 11, 2014
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Rankin Inlet, NU
Some credit unions have loyalty or patronage refunds/dividends and they are based on the number of products used, interest earned or paid, and/or their account balances.
eg Servus Credit Union

But knowing how most work, this on it's own likely isn't worth the dividend. For instance much higher interest rates on savings than Servus CU even considering this bonus.

RBC has a multi-product rebate. But then you tie your money to arguably less competitive products, for the sake of a free chequing account you can get elsewhere.

I balance accounts at 9 different banks and credit unions.
1) Scotia -main bank, mininum $5k for free credit card with lounge passes (for when I travel, where Amex not accepted)
2) CIBC - have $100k in investments using brokerage
-chequing account free, and free Aeroplan VISA
- Use for free bag when redeeming Aeroplan
miles

3) 1st Choice Savings (my CU) - GICs and supporting hOmetown

4) Alternabank - My professional side income so for taxation purposes keeping records easy to assess

5) Oaken, B2B, Implicity, and Manulife
-Assorted non-registered savings

9) Motus $100 GIC (inactive)
-they rubbed me the wrong way. Cashing out on maturity unless interest rate is really good
Support your local Credit Union!

Sask Pension Plan Upto $7000/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222

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