2.2.7 Video: Banking tips

Introduction

Your banking accounts are not only an essential tool for managing your money, but they can add up to a surprising cost. Let’s look at how to get the banking services you need at a reasonable cost.

Segment 2: Problem identification

It can be overwhelming to look at the buffet of options available to you for your banking needs. Not only is there a large variety of institutions, like banks, trust companies, caisses populaires and credit unions, but each institution also offers many selections and combinations to suit each and every banking situation. The challenge here is to find a good banking arrangement that is going to give you exactly what you need without costing too much.

Segment 3: Know your needs first

Before you can confidently choose the banking services that are right for you, take a look at your own activities.

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For example, review your average account balances, number of deposits, and bill payments and other transactions that you typically make each month. By looking at how you use your banking services, you can judge exactly what your needs are. And from there you can decide the best way to do your banking.

Segment 4: Choosing an account

Once you've understood your own banking activities, you can begin looking for an account that works for you and your personal banking needs.

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Let's review some important considerations.

• Compare interest rates and fees at different institutions to explore what's available out there.
• Choose an institution with a convenient location to avoid traveling too far or having to use ATM machines from another institution.
• Check for account packages and combination services that lower overall costs. Or Special Fees for seniors, children or students that may apply to you.
• Negotiate. Ask if an institution will reduce or waive fees to match offers at other institutions, or if they will reduce fees to get your business such as investments, RRSPs or mortgage accounts.
• Use the online banking tool to compare costs of accounts. It can be found at the Financial Consumer Agency of Canada website at fcac.gc.ca And lastly, Pay Attention! Stay within the limits of your current plan to avoid extra charges, like ATM charges, fees for extra transactions and NSF charges. Check regularly to ensure that the account is still the right one for you.

If you're not sure, ask an account rep. It's not easy to compare all the features yourself and choose the best package for your needs.

Segment 5: Rights

It's also important to remember that you have rights as a banking customer.

You have the right to know what the fees and interest rates are on your account. The Financial Consumer Agency of Canada ensures that financial institutions abide by this legislation.

If at any point you feel as though your rights are not being respected, talk to a customer representative and, if necessary, contact your branch manager or other senior representative.

If this doesn't solve your problem, you can visit:

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* the Financial Consumer Agency of Canada, website at www.fcac.gc.ca to find out How to Lodge a Complaint.

* or contact the Ombudsman for Banking Services and Investments (1-888-451-4519 and OBSI website (www.obsi.ca) on screen).

Conclusion

Choose your banking services as you would any other paid service: compare the costs and the services offered and work out the best price for the services that you need.