Canadians don’t switch banks often. Or ever really.
A common joke in finance is that people are more likely to get divorced than they are to switch banks.
And, at least according to some surveys, it’s true. Some estimates show that 80% of Canadians have never switched bank accounts. Most just bank where their parents happened to, or at whichever bank happened to be near their house.
The reason this is a problem, or at least worth talking about, is that it means banks don’t need to care that much about you. They’re not worried about you leaving.
And that tends to lead to things like:
– Paying super low rates of interest
– Charging high fees (overdraft, etc.)
– Selling inferior or uncompetitive products
– Encouraging you to take on more and more debt
– Bad practices like post-claim underwriting
One of the things we focus on at Tallkirk Financial Group is making it as easy as possible to switch where you’re currently banking or holding your accounts.
Because it’s often easier than you think and more beneficial. It sometimes makes it possible for you to:
– Earn a way higher rate on your savings account
– Avoid some of those fees
– And gain access to the best products available (investments, insurance, mortgage rates, etc.)
It’s not always the case, but part of improving your financial situation will likely involve shopping around and interacting with a few different financial institutions. That’s part of what we help our clients do because it can make a big difference over time.
There’s something to be said for loyalty. But it’s worth asking, what has your bank done to deserve that loyalty?