Banks can be vicious! long story

[beerbaron105]

so i went to my local td branch yesterday, i have had an account with them for 4-5 years so far, anyways, i opened an ING direct savings account because id rather have 3.35% interest then 0.05% or whatever the rate is from TD, so i go there to close my savings account and transfer the funds to my chequings account from which i will move to my ING account, anyways...

i also wanted to check what their daily interest savings plan rates were, since i had one of those set up as well, but it is very recent, only 3 mths old and 250 dollars in it - i find out the rate for under 5,000 is 0.08% or something close to that, pathetic....

this lady overhears us from behind a cubicle and comes forward asking if i need any help with investing my money, i say no and explain why im moving money out of my td account because of pathetic interest rates, she then became very defensive and said they can match the rates that ING provides, i told her that it was 3.35% interest for the savings account, she comes back to clarify ".35%?" i say no, 3.35% !! she started going off on sales pitch about how well mutual funds do in TD even tho they arent a mutual funds company, i just nod and nod and nod...

i also mention to her that i have an account with investors group, where my financial advisor has projected an 8% return every year with my relatively conservative investment plan, she asks me why im not doing this with TD since TD is a real bank and not just some investing company that will collapse, as well, saying they cant promise anything and i wont get anywhere near that, i was gettign pretty edgy at this point, since she was trying to hard to keep my business, i made it clear to her taht i still had a chequings account, line of credit, and credit card with them - she responded by saying to call her and we can set up some investings....ya ok


so in summary

1. closed TD savings account, moved money to chequings
2. money in chequings will be moved to ING savings account leaving a $1000 balance in chequings
3. daily interest savings plan has pathetic rates, i will probably close that next, its automatic $50/mth, small side investment, but i wont see any returns there
4. dump some extra money into my investors group portfolio

my goals:

1. save for a house
2. build my rsp
3. ensure credit card paid in full at the end of every month.

just an interesting day at the bank

[Rubyred]

Just cause investors group has "projected" an 8% return every year does not mean you will get it. They project a high rate of return to get your business, but really they don't do any better than the banks when it comes to mutual funds.

Personally I had a bad experience with investors group, and I realise that I am much more comfortable with the bank, where they follow the rules much more strickly and can't make changes with your money without your knowledge. When it comes to investors group you need to have ALOT of confidence in your financial advisor, otherwise you can get screwed.

Just keep in mind "projected" means "we hope, we dream you will get 8%" but odds are, as the bank told you, you won't get anything near that, unless you went into a higher risk investment, in which case you can lose alot more too.

[a4toronto]

don't listen to bankers. do your research, make your own decisions.

[Sylvestre]

um, that was neither long nor vicious.

[YnD]

She just doing a retention pitch to you to keep your business.

How is that vicious? She didn't actually process any transcations for you that were edgy etc.

If this upsets you then you must be really edgy when telemarketers call

[elty]

I think the TD TSX/Bond mutual funds are actually pretty good.

[nano]

you should have asked for a ipod

[Firebot]

She was actually right in most of what she said.

[HammerTime]

If you are looking for a high interest rate, you may want to consider PC Financial savings account - the interest is 4.0% which beats ING (as long as there is more than $1000 in the account).

[eejikes]

Actually did sort of the opposit closed my chequing with TD now fully PCF dependent (Hurray for free chequing). But left my savings account open with them to maintain the relationship. Figure Ill be saving my self 3.95 * 12 months = $47.4 a year. Goods savings I say especially when you wonder what the difference between having a PCF and TD chequing is?

[ferkel]

Investors Group will likely lose 8% of your money annually.

[beerbaron105]

Investors Group will likely lose 8% of your money annually.


well if thats the case id be pulling out, but so far the balance statements i receive are positive

[mcewen]

well if thats the case id be pulling out, but so far the balance statements i receive are positive

What you're losing is the opportunity cost if you had your account somewhere else. Over the long term you may do 8%... but elsewhere you might do 8.5% or 9% or 10%... That may not sound like a lot.. but over 30 years... .5% is a great deal. On the other hand..... at least you are not with the banks.

[pitz]

You mention that you have a line of credit with TD Canada Trust. Why don't you just cancel your chequing/savings accounts and do all of your banking out of it? Just don't tell the bank your plans -- they love to keep the ignorant masses paying $5/month for a basic chequing account, and may describe such a plan as 'weird', or tell you a boogeyman story.

Of course, you'll want to redirect all of the money in your chequing and savings accounts to your broker for investment purposes. I mean, better to earn "8%" on investments, than 3.35% or 4% or whatever on a savings account.

You might pay a couple dollars a month in interest, but I think you'll find that paying interest is cheaper than paying bank fees (if you keep the borrowing to a minimum), and who minds paying a little bit of interest if your investments are growing at 8%?

[ferkel]

well if thats the case id be pulling out, but so far the balance statements i receive are positive

once the money is with IG, you have to pay hefty redemption fees to get your money back. They've got you by the balls for the next six years

[pitz]

once the money is with IG, you have to pay hefty redemption fees to get your money back. They've got you by the balls for the next six years

Yeah TD is a no-load shop I understand for mutual funds. Aside from a certain few funds having 90-day or 180-day minimum hold periods, you can trade them, redeem them, or purchase them as much as you want.

disclaimer: i own shares in all of the 5 major Canadian banks, but no IGM in my portfolio ;)

[beerbaron105]

once the money is with IG, you have to pay hefty redemption fees to get your money back. They've got you by the balls for the next six years


thats ok, ive got a long term plan with IG anyways, im only 21, better to start my rsp now rather then later on down the road.

[beerbaron105]

another question, can i close this daily interest savings RSP with TD without penalty? there is only 250 dollars in it and its relatively fresh, 3-4 mths old, but the interest is pathetic and i could put the 50 bucks a mth elsewhere

[monty613]

The funniest thing about this thread is how the title says banks can be vicious, but the OP has his money invested with some jackass at Investors Group. The DSC structure and MERs on their mutual funds is almost criminal.

[beerbaron105]

The funniest thing about this thread is how the title says banks can be vicious, but the OP has his money invested with some jackass at Investors Group. The DSC structure and MERs on their mutual funds is almost criminal.


care to elaborate?

[monty613]

care to elaborate?

What else needs to be said? Their mutual funds are garbage.

[ericw]

TD is much better than IG, for sure. I've heard many unethical practices of IG advisors. The only difference is that you might feel more personal at IG because you have a FA to deal with. But at TD u r most likely team managed.

[Pixie]

I don't know anything about IG, but noticed that service at my old Canada Trust branch really slid when TD got involved. I jumped ship over to PCF after banking with CT all my life and haven't regretted it...yet...