Snippet: Big banks promising greener pastures

I don’t even remember how long ago it was when I set up my first bank account. It was years ago and I did so with the help of my dad at one of the big 5 Canadian banks. I still have that account today and have relied on it ever since. But why should I?

A retail banking survey conducted last year revealed that 70% of Canadians have been banking with their current financial institutions for over a decade. In the last five years, 15% of Canadians have switched banks. An article from the Globe and Mail indicates that new data shows that figure has now decreased to the mid single digits. Loyalty, it seems is on the rise and the big banks are left trying to poach new clients from each other.

Rather than offer better services at lower costs, the big banks seem to be content in cheap gimmicks to persuade the masses to jump ship and sign up with their lot.

RBC is offering a discontinued non-retina version of the iPad Mini if you complete two simple steps:

1. Open either a RBC Signature No Limit Banking or VIP Banking account.
2. Setup either 2 pre-authorized payments or 1 regular payroll direct deposit.

Et voila, after 6-8 weeks, you’ll receive an iPad in the mail. Be aware that if you close or downgrade the account before August 31, 2015, they’ll charge you $319+tax.

TD Canada Trust, not to be left out, is offering the latest 8” Samsung Galaxy Tab 4- a tablet just recently announced and not yet available for purchase. To qualify, you’d need to:

1. Open an All-Inclusive or Unlimited account
2. Complete two of the following: direct deposit, a pre-authorized debit or one online bill payment

The tablet will be sent 10-12 weeks after the conditions have been met. Buyer beware, the fine print notes that the product received may not be as shown.

The banks will be quick to tell you that monthly account fees can be reduced through signing up for additional services or maintaining a minimum balance. Clearly the play here is for the banks to get their foot in the door and sell more products such as mortgages and insurance.

On one hand, some new customers may be enticed enough to join and may benefit from a new toy that’ll be obsolete by the time they receive it. On the other hand, existing customers will continue to get annoyed that they don’t get any reward for their years of continued loyalty. Most won’t be bothered to endure the hassle of switching. Either way, fees continued to get paid and the banks win.

I would switch for better service at lower costs. A fancy gadget brings no benefit to my financial well being, thank you very much. Don’t they know that I could buy any tablet of my choosing if I saved on banking fees? Any big bank care to oblige?

What would it take for you to switch banks?