Author Archives: Kristina Tahnyak

Good morning Dinks. We often talk about our financial habits, our past financial mistakes, our personal financial goals and our personal investment strategies – so today let’s discuss the one place that brings all of those subjects together…our bank.

As a former bank branch employee I find the relationships that people have with their banks absolutely fascinating. Some people opened their account at a bank branch because their family also deals there, some people opened their account at a particular bank because it is close to their home or office and some people opened their account at a certain bank based on the referral from a friend.

Why do you deal with your bank?

Maybe it’s because you are conservative. When I was searching for a bank in the U.S. I looked into major banks in the New York City area. After researching Chase, Bank of America and TD Bank I finally decided to open my checking and savings accounts with TD Bank because they have a Canadian counterpart and their fees are very reasonable based on their services. I didn’t search smaller banks or credit unions because I wanted a bank with a historical and national presence. If you are conservative then maybe you feel the same way about having a bank with stability.

Maybe you are frugal and shopped around for the best deal. Some people treat their banking relationship the same way they treat any other purchase, they shop around to get the best deal for their money. Establishing a banking relationship and keeping it for many years is very important for a lot of people, but if you are shopping around for a new bank because you don’t like your current bank then you may be shopping around for the best deal. Maybe you opened a bank account with the bank who is giving a promotional gift or with the bank that has the lowest account fees.

Maybe you belong to a community and opened your account because of a cultural affiliation. If you belong to a neighbourhood association, a worker’s union or a specific community then maybe you opened your account with a bank that offers special banking packages for members of the association. This is very common in cultural neighbourhoods as well as with workers unions such as police, construction workers, doctors and fire fighters.

Maybe you are a loyal client and will never change banks. As a financial planner I had clients who came from several generations of the same family. Sometimes I dealt with the grandparents, parents and kids of the same family. Parents like to open kids accounts for their children and then those children change their accounts to student accounts when they are teenagers and eventually regular checking accounts after they graduate from college and enter the workforce. I have changed my bank account twice in my lifetime and trust me it’s a hassle to contact all my utility companies and employer to give them my new banking information. I definitely understand the reason that people have the same bank account for their entire life.

Why did you choose your bank?

Photo by tax credits

Good morning Dinks. Yesterday I received a letter from TD Bank advising me that the fees for my checking and savings accounts are being increased. There were two inserts in the envelope that talked about how TD Bank is using my personal information. I never really thought about how or why my bank is using my information, but now it’s got me thinking.

I have a checking and savings account with TD Bank but I don’t have any credit products. That will probably change when I relocate to the United States, but for now I don’t see the point. Actually it is probably a really good idea to apply for a U.S. credit card now so that I already have an established credit history by the time I arrive in New York City, which will hopefully be later this year.

How much information do you give to your bank?

TD Bank only has my name, address, phone number in the U.S. and two pieces of identification on file – one of which is my Canadian passport. I personally don’t mind that my U.S. bank has my personal information on file, but I am a minority.

One of the main questions that we are asked by clients in Canadian banking is if our client information and servers are stored in Canada. Many Canadians do not want their information held or stored in the U.S. because of the Patriot Act and other American banking laws.

In my opinion it’s not really a big deal if my bank has my personal information on file because as a bank employee I understand why banks ask for complete personal and contact information as well as two pieces of identification – especially if clients are applying for credit. Being that clients are giving their information to a bank I would like to assume that the bank is keeping client information safe and sound. There are not many services in the world that consumers can have without giving the company some personal information.

Do you want to know what your bank is doing with your info?

The personal information insert from TD Bank advises clients that they can limit how their bank shares their personal information in some ways, but not all.  Banks need to share a client’s personal information especially within different organizations in the bank – if your branch has your personal information for your checking and savings accounts they will have to share it with their credit adjudication department if you apply for a credit card, loan or mortgage.

Banks are legally required to tell clients how and why their collect, share and keep client information safe. At any time clients can inquire how their personal information is being used.

One interesting statement in the information insert that I received from TD Bank is that it states TD Bank will continue to share a client’s personal information as describe in their information policy even after the person is no longer a client at the bank. I thought that the information would be stored and idle if a client no longer has an account, but the bank can apparently still use it.

Do you trust your bank with your personal information?

Photo by Anonymous9000