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Originally Posted by Alberta_Beef
I too am seeking a new bank. I am looking at leaving TD as I am not happy with how some things recently transpired. Without going into detail and trashing them, I would like to hear more about banks and their perks, disadvantages.... etc.
I have been with TD for like 8 years so I am a bit lost in this.
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Honestly most FIs in Canada are pretty similar, especially the big 5 banks.
With all of them (TD, Scotia, CIBC, BMO, RBC) you'll find they have an incredible amount of cross-selling and consolidation abilities. What do I mean? They can handle your mortgage, credit card, insurance, investing etc. They also have the widest reach. You'll find a branch or ATM on pretty much every corner in Canada. You'll also pay the highest fees out of all your options, and not just for monthly service charges for your account but also transfer out fees of registered products, NSF fees etc.
Major advantages to the big 5 are, well they're big. Lots of modern technology, easy to consolidate your business. Major disadvantages would be you're small fish to them (most likely) and you're just one of millions of customers to them. That and they tend to be more expensive.
There are also two main alternatives. Virtual banks (ING, PC and a few others) and Credit Unions/ATB.
Virtual banks tend to be cheaper than the big banks for your monthly banking and generally tend to offer better GIC rates. This is because they have no overhead. Your major disadvantage is customer service. You will never, ever see anyone face to face. If your debit card breaks there is no branch, you have to call them. They are more meant for self sufficient people who don't like to be bothered with the added costs just so that they can get that face to face experience.
Lastly Credit Unions and ATB. Alberta Treasury Branch isn't a CU, they're obviously a treasury but I'll include them here. Generally smaller (located only in AB or sometimes just a smaller region/city), generally rely more on building relationships with customers. They can pretty much offer all of your banking needs the same as the big 5 but they often aren't quite at the forefront of innovation. Some even do actual underwriting, as opposed to having their computer tell them if you are approved for a loan or not.
Credit Unions require you to apply to join though. They do a simple credit check and while that isn't an issue for most people if you've got terrible credit they may deny you. Sometimes though you get patronage from them, I've heard some CUs in BC don't do this anymore though. Essentially you're a shareholder when you join a CU and they pay a portion of their profits to shareholders.
As previously mentioned First Calgary (obviously in Calgary) offers completely free banking with no strings attached. This is not very common as monthly charges are a huge source of revenue for FIs.
As to who you should choose it is really up to you. IMO you'll find pretty much the exact same level and types of services across all 5 big banks. The virtual banks are a matter of taste and self sufficiency. CUs, although they usually offer all relevant services that a big bank does, are sometimes a little too mom and pop for some people. Although to others that smaller community owned CU is better than the evil big 5. Depends on your perspective.
One other thing to consider is your needs. Do you just want a chequing account? Do you want to consolidate all of your loans/mortgages/investments to the same FI? How much and what do you use your account for?
All things to consider. Hope that helps.