Give Me Back My Five Bucks

How to tell if it’s time to switch banks

Switching banks can be a huge hassle, which is probably why we rarely do it unless absolutely necessary. Sometimes we leave due to poor customer service, and other times it comes down to dollars and cents. Although, I know so many people who hate their bank, but because it actually requires doing something to make a change, they never do.

Some people remain loyal to their bank for life (like my parents), but with so many different financial institutions available to you, there is absolutely no need to stay if you don’t think you’re getting the service you deserve, and at the price you want to pay! Banks are a business, and you should always be on the lookout for the best deal possible.

Here are a few things to consider when choosing a new bank:

Bank fees

If you’re paying bank fees for a service that can be obtained for free somewhere else – like monthly account fees, debit card transaction fees, cheque ordering, or other miscellaneous banking charges – it might make sense to start thinking about leaving your bank.

Up until I graduated college, I did all of my banking at TD Canada Trust. Because I was a student, my chequing account was free, and I had basic services like a savings account, line of credit, and a visa card. It wasn’t until I graduated that I learned I would need to start paying $12.95/month for my chequing account.

However, most financial institutions that charge a fee for their chequing account will usually waive the cost if you keep a minimum monthly balance. For example, TD would waive the $12.95 fee if I kept a minimum of $3,000 in my account at all times. But as a recent graduate, I didn’t (and still don’t) have an extra $3,000 that I can have siting in an account not earning interest. Granted, interest in savings accounts are minimal right now, but something is better than nothing.

So, desperate to avoid paying banking fees, I moved over to PC Financial‘s free unlimited chequing account. That was over 5 years ago, and I have saved over $775 in banking fees alone just by making the simple switch. Since then, I have also opened up a second chequing account with ING Direct. ING offers things that PC doesn’t offer, so when I need to utilize those services, I initiate a free money transfer, and use ING instead. (If you have yet to sign up for ING Direct, consider using my Orange Key for a $25 bonus: 30874855S1)

Customer service

When you put your hard earned money into the hands of a financial institution, you have to be able to trust them. Whether it’s a bad experience with one particular employee, a pattern of poor customer service, or unacceptably long telephone hold times every time you call in, if you aren’t comfortable using their services, it’s time to take your money and run. The runaround I got with TD Canada Trust last year was one of the worst customer service experiences of my life. Nobody knew how to help me, I kept getting passed back and forth between customer service and the branch – and nobody once offered me a solution.

Social Media

I’ve actually proactively opened up an account with a bank because of their actions through social media. ING Direct is a great example of a company that gets how to market their financial products to those engaged through social media. They understand that in order to gain the trust of potential customers online, they have to become part of the conversation and part of the community. Because of their terrific customer service and social media influence, I now have a chequing account, three savings accounts, and a TFSA account with them.


If your bank is not conveniently located, it makes perfect sense to switch to one that is. Perhaps you first chose your current bank because it was closest to your house. But over the years, you’ve moved to an area with no branch close by.

Convenience can also vary between distance to your nearest branch, to the services offered by the bank itself. If you need business accounts, 24-hour ATM access, online banking, mobile apps, or more personalized service, finding a bank that fits your needs is crucial. Sometimes we can get so stuck in a routine that we forget there are other options available out there that will help us increase our daily productivity and lower our frustration levels.

Interest rates

When you deposit your money into a savings account with a low interest rate, you are potentially losing out on free money. TD Canada Trust’s Every Day Savings Account earns 0.25% for balances up to $5,000 (0.50% for anything above that), and their “High Interest” Savings Account earns 0% for anything under $5,000. Meanwhile, ING Direct offers 1.35% with no minimum balance required.

Once I was speaking with a friend who had about $4,000 in a “savings” account that offered 0.05% interest. Yes, you read that correctly. 0.05%. I asked why she didn’t move her money to a bank with a higher interest rate (at that time, PC Financial was offering 4% interest), and she replied by saying “I don’t need the money.” Um, what? The comment just destroyed me. Apparently I found the one person in the world who doesn’t like free money. :)

Why you shouldn’t switch banks

While it’s a good idea to do research and know what other banks are offering, you might find that what you currently have works for you. Additionally, you should always ask your current bank what they can offer you to keep your business. A major benefit of staying with a bank is maintaining a long account history. Sometimes it’s easier to get what you need – like a loan – when the bank can see that you have a long-term account that is in good standing.

I personally have absolutely no loyalty when it comes to banks, and have accounts with PC Financial (chequing/savings/TFSA/credit card), ING Direct (chequing/savings/TFSA), TD Canada Trust (line of credit/RRSP/TFSA), VanCity Credit Union (mortgage), and CIBC (credit card). It all comes down to dollars and cents to me, and it’s worth the hassle of switching banks every few years if it means that I’m getting the most for my  money.

What are some of the reasons you’ve switched banks for?

Author: Krystal Yee

I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.


  1. It’s all about the fees for me. Customer service is no big deal to me since 99% of my banking is done online.

  2. Jess says:

    My husband and I both switched banks when we opened up a joint account before our wedding. I had been with RBC all my life up to that point, but for the past few years I found the customer service to be awful. We’re actually with a local credit union now, and it’s been a great experience. We both still have savings accounts and credit cards through our previous banks, but we rarely use them.

  3. maria pater says:

    I switched banks because BMO didn’t seem to know how trust accounts work and they kept taking money out to cover bank charges from the trust account. Now my current bank doesn’t charge to maintain a trust account and they don’t dip into it eithee

  4. Melanie says:

    I just switched my chequing account to ING and I am so excited about this new venture. I already have five savings accounts with them and love them so I’m sure it will go great.

    The reason I am leaving PC Financial (will probably keep the account open but it won’t be my main one), is because of two key reasons A) they have a great, easy to use app on the iphone which will make transferrig money and paying bills super easy (PC does not have one). and B) they do not charge for interac email money transfers, and PC does.

    I also love their social media presence. Anytime I mention ING in a tweet, within ten minutes I have received a tweet back from someone on their team. I love the engaging activities!

  5. Cassie says:

    I left my last bank because they kept screwing up my student line of credit. Every year they would request proof of enrollment, and every year we would give it to them. A couple months later they’d contact us again asking for proof of enrollment, and we’d give it to them again, reminding them that we had already given them a copy months before. Come December every year (right before Christmas break) they would freeze my line of credit because I “hadn’t proven I was a student”, and every year we had to go through the pain of getting them to get their act together to take the hold off. They screwed up far too many things, and treated me like a child so frequently, that I just closed all of my accounts and went elsewhere.

  6. Eddie says:

    I thought about switching banks because I was fed up with the fess, and was about to switch until I went into RBC, and did some negotiating. Now I don’t pay any fees on 2 personal accounts, and 2 business accounts. I have a TFSA with ING as well. Great bank.

  7. Brian says:

    Fees and interest rates are the reason I move around. I haven’t paid a bank fee in the better part of a decade (when they have tried to charge me one, I ask them to waive it and they usually do based on my history).

    I’m not an interest rate chaser but I have moved online savings account when they drop the rate below what I think is acceptable.

    • Krystal Yee says:

      Agreed. I opened up an ING count exactly because PC Financial’s interest rates weren’t on par. I won’t move my money back and forth constantly, but if the gap widens too much, I’ll probably make a transfer.

  8. Alouise says:

    I had a CIBC account for years, since I was 12 or 13. When I started University I got a student account, because of there were no fees. Then I realized they were charging me the regular bank fees during the summer break, even though I was still enrolled in University and would resume classes again in the fall semester. I asked if they could waive the fees, and I was told no. I had opened a savings account with ING Direct, and when I found out I could also open a no fee chequing account I completely switched over to ING. Not paying fees has been great. The only annoying thing about ING Direct (for me at least) is there isn’t an ING branch close to where I live, so I have to make deposits at a nearby Canadian Western Bank – and for some reason the branch that’s closest to me always has their ATMs down.

  9. Ann says:

    Well, I am thoroughly disappointed with TD Canada Trust. I had a grandfathered account I opened 23 years ago (when it was still Canada Trust—note why do they keep the word Trust in the name…I should have been suspicious). In March of 2015, my minimum balance so that I didn’t have to pay for bank fees increased by 100% (from $1000 to $2000). and went to Tangerine (previously ING). I received $120.00 to have my direct deposit switched there and $50.00 for using an Orange key from a friend for referral. What’s even better is that there are no minimum balance and all transactions are free. Feel free to use my Orange Key and receive another $50.00 as a bonus!My orange key is 14373808S1. The weblink for Tangerine is:
    $120.00 direct deposit bonus end at the end of June 2015. You can get another $50.00 from using my Orange key.

Leave a Reply

Buy the Book!

A beginner's guide for Canadians looking to get their financial life in order. Get great info on budgeting and saving, RRSP's and pensions, investing types, insurance, and where to go for additional resources.

Recent Tweets


  • Not a bad place to spend the last 5 days!hellip
  • Foggy day down by the river NewWest
  • Games and pizza just might be the perfect way tohellip
  • Current mood
  • OMG a million times yes! xoxo
  • Gorgeous day for snowshoeing!
  • Dreaming about warmer days and incredible hikes like this onehellip
  • Yep 2017 was a pretty good year! 1 Hiked thehellip

© 2018. Give Me Back My Five Bucks. All rights reserved. Powered by WordPress & Designed by Mike Smith