# data[].attributes.body
CUSTOMER SERVICE:
Last but not the least is the service each bank provides to their customers. People want their banks to care about the customers and their financial services. People love being welcomed and remembered by their bank staffs. This helps customers to emotionally connect with their bank staffs and share their concerns about their banking experience. The bank that takes their customers feedback to improve customers experience have gained reputation and trust from people regardless of their financial services. This in turn also increases customer satisfaction and makes customers think that they are valued by their financial institution. This helps in overcoming the competition. The study below shows how customer services affects the customer satisfaction and their choice of bank.

# data[].attributes.attachment_link.readable_text
Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Essay Writing Service. You can view samples of our professional work here.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

INTRODUCTION

How excellent service to bank's customers affect their satisfaction and their choice of banking. For banks to thrive, both product and service delivery must be adequately aligned with customer expectations: achieving customer satisfaction and loyalty is essential for long-term survival (Reichheld, 2003). It's critical to form a close working relationship with client that is why customer service is of vital importance. Clients should feel valued, wanted and loved. This is not just about how you handled a transaction. It's also about a relationship with people who are an essential part of everything you do (Woods, 1999). In addition, culture is also likely to be a key variable affecting perceptions and expectations of service quality (Malhotra et al., 2005).

The study will present the immediate experience of the clients with the bank and at the same time provide all the different strategies/techniques formulated by banks to improve their service, make them more outstanding or competitive with the others and how they will show to their clients the best service being offered by them.

Horovitz (1990), says 'Services exist in human experience. For service industries service consists of two dimensions: basic features sought by the customer and the service experience at the time of consumption' (Horovits, 1990:6).

Sisk (2010), said that customers expect to read other consumers' reviews of products and services, and it can be great from a viral marketing perspective.

STATEMENT OF THE PROBLEM

Nowadays many banks realize that all advantages, which they want to establish through their core products are quickly, wore away as others banks has the same products being offered. However, since it's a well known fact that no business can exist without customers, the important strategy is focused on providing the high-quality service for the customer, 1. How to create customer experience to improve customer satisfaction? 2. How to improve customer service to provide customer satisfaction?

PURPOSE OF THE STUDY

Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would do you want from your business if you were the client? How would you want to be treated? What are the services you expect to receive from the customer service representatives, supervisors and management of the branch as well as the other officer and employees of other departments? Were you satisfied with the bank facilities? Only bank clients can tell if the customer service they receive at the branch is up to their standards, which is why regularly asking the customers for their opinions is very important. Treat your customers like your friends and they'll come back. It will attract more client which means success for the institution. The institution will improve its name to integrity in the society.

LITERATURE REVIEW

Customer Service is the commitment to providing value added services to external and internal customers, including attitude knowledge, technical support and quality of service in a timely manner. According to Mitchell (2003), you can have the best service philosophy in the world, but if you don't have great players to execute it, you've lost the game. Also Mathieu (2001), service is becoming a smart strategy, because it provides a strong competitive advantage through differentiation opportunities even within the commodities market.

Traditionally customer service has been defined as the ability of an organization to constantly and consistently give the customer what they want and need. Researchers consistently find that it costs five times more to attract a new customer than it does to keep one you already have, Anderson et al (1991).

Increasing competition is forcing businesses to pay much more attention to satisfying customers, including by providing strong customer service. In order to deliver results to customers these employees not only need the ability to relate to customers, they also need the latitude to use their judgement in doing so (as well as receiving the appropriate reward and recognition, Heskett, Sasser and Schelesinger, 19977: 8-11. It may help the reader to notice the role of customer service in the overall context of product or service development and management. Bovée & Thill (1992), said that quality and customer services present strong barrier against the competition, ensure customer loyalty, differentiate product, decrease marketing costs and increase company profit.

RESEARCH METHODOLOGY

This study follows a qualitative and quantitative research methodology. Bank customers in United Kingdom will be requested to give their opinion about their service expectations in a bank industry. The measurement instrument will be use is questionnaire. First, this will include demographic information such as name, address, contact number and other personal information. Then it will provide all the responses from the bank customers that will help to evaluate how they are satisfied with the customer service of the bank, what service still needs improvement and if customers give importance to good service of the bank in choosing their banking needs. All attributes were positively worded. Expectations and perception statements will be put within the survey form. This meant that as soon as respondents had rate their expectation of each attribute, they immediately rate their perception of the same attribute. Respondents will also ask to rate their overall satisfaction with the bank on the measurement scale.

To measure out the perceptions of all customers, I will employ the scale developed by Moore and Benbasat (1991), anchored on a seven-point Likert scale ranging from strongly disagree (1) to strongly disagree (7). In educational research one of the popular format of questionnaire is these Likert Scale, especially in the field of special education. The Likert scale can be four-point, five-point, six-point, and so on. The even-numbered scale usually forces a respondent to choose while the odd-numbered scale provides an option for indecision or neutrality. The questionnaires will be for 40 customers to comment on the relevance and wording of the questionnaire's items, length of survey and time taken to complete questions.

DATA COLLECTION

A structure questionnaire will be use to collect necessary data, which serve as primary data to answer the research questions and objective regarding to the customer service and their role in banking industry in United Kingdom. The survey question will consist of some specific sections and each of this questions pertaining different part of the study. The survey will be conducted mainly via face to face interview.

CONCLUSIONS

In many banking institutions excellence in customer service is emerging as the valuable way to differentiate themselves from their competitors. For achieving excellence in customer service, banks need to clearly know detailed understanding of customer needs, expectations and values and based on these they need to develop unified organizational mindset, processes and systems to deliver the service excellence. Organizations that invest the time, energy, and resources required to achieve excellence in customer service will be the ones that will thrive and grow.

# data[].attributes.attachment_link.title
Importance Of Customer Service In The Banking Industry Marketing Essay

# data[].attributes.attachment_link.description
Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Essay Writing Service. You can view samples of our professional work here. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

# data[].attributes.body
MARKETING:
Success of every service industry relies on the marketing strategies. The banks might have exciting products with cool features and benefits. But if people are not aware of the existence of such banks and their products, it is pointless to have such good features. Marketing plays an important role in every customer driven industry. Also advertising right products with customized features and benefits to target customers will influence the people's decision on selection of bank. It is also important in retaining the existing customers by providing better banking products. The study below shows the importance of marketing in banking sectors.

# data[].attributes.body
PROXIMITY AND ATM SERVICE:
Customers still prefer banks that are near by to their house or office. This is due their enhanced convenience. If they have something to do in the bank, people do not prefer to travel and wait for a long time to get their banking things done. Hence accessibility of a bank plays a significant role in people's decision of choosing a bank. Also customers love to have their bank's ATM services at important locations like malls, train & bus stations, near their office or home. This gives them a peace of mind that if there is an emergency for cash, they would be able to access their account. The website explains the role of ATM services in today's banking world

# data[].attributes.attachment_link.readable_text
Reports of the death of branch banking are decidedly premature. Branch banking isn't going away any time soon, but the branches of tomorrow are going to look very different than the branches of yesterday. The reasons are the rise of high-tech banking, customer demand for faster, more convenient bank transactions and the need to optimize operational expenses.

Transition to high-tech branch banking

One of the prime catalysts in the transformation of branch banking is a new generation of ATMs that makes the transition to high-tech branch banking easier, more customer-friendly and more profitable. Research backs up this conclusion. While recent surveys note that in the past five years, the number of U.S. branches is dropping, they also note that banks are continuing to invest in their branches. The fact remains that banks that have a visible network of branch locations tend to bring about more confidence and credibility than those that don't.

According to a recent Cummins Allison survey of banks and credit unions, financial institutions are increasingly focused on ATM capabilities to help in branch transformation. In addition, as institutions replace aging ATMs or expand their current ATM fleets, many plan to explore installing ATMs with new high-tech capabilities, such as chip-and PIN card technology, video conferencing, remote teller assistance, automated deposit and more.

Convenience centers to sales centers

As with most changes in the financial industry, this one is all about customer service; ensuring that your institution can serve your customers when, where and how they want to do their banking. In today's marketplace, branch bank transformation must take into account behavior of technology-savvy customers as well as the more 'traditional' clients. Mobile banking is a significant factor in the reduction of the number of visits to brick-and-mortar branches. In response to these changing consumer behaviors, the trend is now to incorporate digital technology in the transformation of branches from convenience centers to true sales centers. Today's multi-purpose ATMs play a critical role in this transition.

Optimizing expenses yields positive growth

What will the branch of tomorrow look like? In many cases, the largest difference will be that there will be fewer tellers - or no tellers at all - onsite. Instead, there will be more self-service equipment providing multiple services such as manage account balances, open loans, process currency or coins.

Next generation ATMs will be capable of doing everything from dispensing cash to accepting deposits and transfers to selling products such as loans and new accounts via remote teleconference with a teller or bank officer. In many branches, customers entering during normal banking hours will be greeted by a concierge who will discern what they wish to accomplish, then help them locate an appropriate ATM, assisting them if they want or need help during the transaction. ATMs will also continue to provide round-the-clock automated banking services for added customer convenience.

ATM reliability

Because new ATMs will be taking on a larger role in banking, reliability becomes more essential than ever. As more customers look to ATMs to perform more of their banking and financial activities, machines that are slow or out of service can reduce customer satisfaction and risk losing business. To ensure reliability, financial institutions are increasingly turning to suppliers with local repair, parts and maintenance presence, with timely response that brings machines back to working order in a matter of hours, not days.

Customer satisfaction

It's clear that an essential part of the new paradigm in branch banking is providing multi-purpose ATMs that increase the satisfaction of the institution's entire customer base, from Baby Boomers to Millennials. Bottom line, as financial institutions begin the transformation of branch banking, ATMs will be fundamental to their success.
When you are ready to replace, add or expand your ATM network, let's talk.
Cummins Allison offers a complete line of high quality, reliable ATMs to fit any branch configuration. Call 800-786-5528 or click cumminsallison.com/letstalk

# data[].attributes.attachment_link.title
The critical role of ATMs in the transformation of branch banking

# data[].attributes.attachment_link.description
Reports of the death of branch banking are decidedly premature. Branch banking isn't going away any time soon, but the branches of tomorrow are going to look very different than the branches of yesterday. The reasons are the rise of high-tech banking, customer demand for faster, more convenient bank transactions and the need to optimize operational expenses.

# data[].attributes.body
REPUTATION AND TRUST:
Trust plays an important role when it comes to money. Customers are clear in that their hard-earned money should be in safe place. It is important for every financial institution to stay out of any issue so that they do not loose their reputation and trust among people. This will take a lot of time. The trust cannot be gained within few years of establishment. Customers still expect their banks should have a legacy in the banking industry. The website below explains the safety of Canadian banks and the role of Canada Deposit Insurance Corporation (CDIC) in protecting consumers deposits.

# data[].attributes.attachment_link.readable_text
In November 2011 Minister of Finance, Jim Flaherty, claimed that the Canadian banking system is the soundest in the world. However, Canadian banks received $billions in financial support from the government between 2008 and 2010 and the federal government has plans to deal with a banking failure. So really, how safe are Canadian banks?

Since the 2008 banking collapse the Canadian government and the big banks have been bragging that they are safe in contrast to other banks around the world. Indeed, the 2013 budget states that an important Canadian bank becoming insolvent is "an unlikely event" (Economic Action Plan, 2013, pp. 144-145).

The Conservative government claims that Canadian banks had more sensible investment policies. It is true that the banks did not indulge in as much wild speculation as US and European banks, but only because the Canadian government had not gotten around to de-regulating the banks.

However, contrary to government claims, Canada's five largest banks (RBC, TD Bank, Scotiabank, BMO and CIBC) were bailed out. The banks' borrowing from the US Federal Reserve peaked at $33 billion, while loans from the Bank of Canada peaked at $41 billion in December 2008. In addition to this, in an unusual move, the Canada Housing and Mortgage Corporation (CHMC) bought $69 billion of bank held mortgages from the banks - in other words a $69 billion injection of cash.

To put this bail-out into perspective, the money would have "made up 7% of the Canadian economy in 2009 and was worth $3,400 for every man, woman and child in Canada." (CCPA, 6, 2012). In early 2009 CIBC, BMO and Scotiabank were bankrupt, only staying afloat with government support which was equal to or greater than the value of the companies. Nevertheless, while being bailed out the five biggest Canadian banks reported $27 billion in profits. In addition, their CEOs remained among the highest paid 100 CEOs of Canada's public companies and received substantial raises.

This raises the question - are Canadian banks too big to fail? The amplitude of the financial support given to Canadian banks in 2008-2010 suggests that the Government of Canada, the Bank of Canada and the big banks themselves believe that the major banks are 'too big to fail' and will be bailed out irrespective of the cost.

Meanwhile, the 2013 Canadian federal budget, released on March 21 st, makes provisions for possible bank defaults that raise some serious questions. Chapter 3 "Supporting Jobs and Growth" in the budget lays out the framework for bankrupt Canadian banks to recapitalize themselves using 'bank liabilities' (Economic Action Plan, 2013, pp. 144-145). The budget states that:

" The Government proposes to implement a "bail-in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital [emphasis added]. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants." (Establishing a Risk Management Framework for Domestic Systemically Important Banks", pages 144 and 145)

The proposal disingenuously does not define "bank liabilities." Bank liabilities are the debts incurred by a bank, what a bank owes. While a bank has traditional business liabilities and debts (for electricity, office supplies, employee wages), the bulk of a bank's liabilities are financial, of which the most important liability category is clients' deposits. In its present wording, the proposal seems to allow insolvent banks to use clients' bank accounts to recapitalize themselves.

During March mainstream media reported that Cypriot depositors were going to get a 'haircut' to pay for Cyprus' economic crisis. The Cypriot government, agreed to a Troika (IMF, ECB and EU) imposed plan to seize up to 40% of the money in people's accounts with more than 100,000€.

This strategy became known as a 'bail-in.' As a result of these levies, many small, family businesses will face ruin, and many middle class savings will be severely hit. The news that everyday Cypriots will be losing parts of their savings was alarming, but seemed far removed from the reality of most Canadians' lives until the release of the 2013 budget.

Initially, none of the major Canadian media outlets reported on this section of the federal budget. Analysis could only be found on small blogs and through foreign news agencies like RT. Then, on April 2 nd The Globe and Mail ran an article with the Minister of Finance's response to depositors' concerns. The article reported that the Canadian government "is scrambling to clarify the language around its proposed "'bail-in'" scenario for Canadian banks in the event of a financial crisis, hoping to distance itself from the type of bail-in that occurred last week in debt-riddled Cyprus." Apparently, Canadian bank regulators had been using the term 'bail-in' for a few years to describe their proposed plan to stabilize the banking sector, but the term took on new meaning due to the situation in Cyprus.

The Finance Department issued a statement emphasizing that depositors' money would not be used to help stabilize an insolvent bank and that instead, Canadian banks would have to rely on their own capital. Under the proposed Canadian plan, banks would set aside contingent capital, such as shares, which could be quickly converted to cash to provide liquidity and stabilize their operations should a crisis hit. It also stated that depositors' accounts will continue to remain insured through the Canada Deposit Insurance Corporation (CDIC), preventing tax-payers from taking a hit like they did in Cyprus in case of a bank default.

Ministry of Finance's statement, that banks will have to rely on themselves, seems to support the budget's conclusion that "this risk management framework will limit the unfair advantage that could be gained by Canada's systemically important banks through the mistaken belief by investors and other market participants that these institutions are ―too big to fail."

The Tories are claiming that the Canadian state will not back failing banks. However, they also claim that the banks did not receive a bail-out in the last financial crash. It is clear that if, or when, the next financial crisis hits, Canadian banks will be vulnerable. Canadians have one of the highest rates of household debt in the world, standing at 165% of disposable income. Household debt was 128% of disposable household income in the USA in 2007, the year before the economic crisis hit. Much of Canadians' debt is tied up in housing mortgages and there is still a housing bubble in many parts of Canada. Without state intervention the next financial crisis will be devastating.If banks are expected to convert their liabilities (especially if these remain loosely defined) into regulatory capital, there would just be all the more reason for depositors to make a run on their banks in case of an economic crisis.

Of course the Ministry argues either way depositor insurance would protect bank accounts. However, it should be noted that Cypriot accounts were also insured as Cyprus is a signatory of European Community agreements which protect depositors' investments up to 100,000€. However, initially the Troika's bank levy would have hit both small and large savings with a 10% levy across the board. The Cypriot parliament only rejected this plan under intense popular pressure, which took the form of protests outside the parliament.

In the case of a Canadian 'bail-in,' depositors holding under $100,000 would probably be safe, as accounts up to $100,000 are insured by the Canada Deposit Insurance Corporation (CDIC), a Federal Crown Corporation. However, anything above $100,000 could hypothetically be seized. In such a scenario small businesses and the middle class could be severely hit.

If deposits under $100,000 were included, either the CDIC insurance would have to be voided, causing a huge political row, or the CIDC would be bankrupt and so the government would have to bail it out. The CDIC does not have nearly enough money to cover all the deposits it insures. The 2012 CDIC report shows that the Crown Corporation is increasingly pessimistic about its own ability to intervene successfully (guarantee deposits) in the case of bank insolvency. According to its annual report, the CDIC insures $622 billion and but only has $2.4 billion in funding and a $18 billion borrowing limit.

The 2013 budget proposal indicates that in private the government is less confident about Canadian banks than it states in public. The proposal also shows that if there would be a problem with Canadian banks, the government would mainly go after the middle layers of society, those with accounts exceeding $100,000, while 'respecting' the CDIC. The poor, those with under $100,000 in savings would probably be spared, as would the very wealthy, assuming that they have their assets in complex financial portfolios, stock options, and off shore accounts.

What does all this mean in the end? The 2008-2010 bail-out and the proposal in the 2013 Federal Budget mean that Canadian banks are not as safe as the Canadian government and the big banks claim. Moreover, the ongoing secrecy about the 2008-2010 bail-outs also casts serious doubt over the sincerity of Flaherty's statement and his assurances that taxpayers and depositors will remain untouched in the event of a bank becoming insolvent.

Nowhere does Flaherty propose to make the rich pay for a future crisis anymore than they did for the last one. He has made sure that the big banks and the inflated salaries of the top management are protected.

# data[].attributes.attachment_link.description
In November 2011 Minister of Finance, Jim Flaherty, claimed that the Canadian banking system is the soundest in the world. However, Canadian banks received $billions in financial support from the government between 2008 and 2010 and the federal government has plans to deal with a banking failure.

# data[].attributes.body
TRANSPARENCY:
Customers always look for bank that do not charge for any unnecessary things that customers are not aware of. An informed customer is a happy customer. So it is important to get customers consent before adding, removing or making changes to a customer's account package. The website below briefly explains the issue going on with top Canadian banks that are being investigated for possible violations of consumer protection laws. If results of this issue is published including the list of banks that violated the law of consumer protection, this will definitely affect the popularity of top banks in Canada. Customers always look for honesty and integrity with the Financial Institutions they are banking with.

# data[].attributes.attachment_link.readable_text
A number of Canada's big banks are under investigation for possible violations of the consumer rules that govern financial institutions, top officials from Canada's financial consumer watchdog told members of Parliament Monday.

However, officials from the Financial Consumer Agency of Canada (FCAC) were tight-lipped, refusing to say which banks are being investigated or exactly which rules they are alleged to have broken.

In many cases, the results of investigations will remain a secret. Officials say the results of some investigations may become public and be published on the agency's website. However, the agency has no plans to let complainants know if their complaints weren't investigated, or if they were investigated and weren't found to be grounded.

The FCAC's investigations of possible violations by some banks is the latest development in a series of events that began when CBC's Go Public revealed some bank employees were under intense pressure to sell customers products and services they might not need in order to meet sales targets.

That series of stories prompted the FCAC to conduct what FCAC Commissioner Lucie Tedesco told members of the House of Commons finance committee Monday was the "most significant" initiative in the agency's history.

Over the course of nine months, the FCAC put the banking practices at BMO, CIBC, National Bank, RBC, Scotiabank and TD under a microscope. FCAC staff interviewed more than 600 employees and listened to hours of phone centre calls between bank employees and clients. It reviewed more than 100,000 pages of bank documents and reviewed 4,500 complaints.

'Mis-selling' financial products

In March, after nine months of study, the agency made public a 24-page report which concluded that the sales culture in Canada's big banks increases the risk of "mis-selling" products - selling customers products they don't need or can't afford, or selling them on the basis of incomplete, unclear or misleading information. The agency also said the steps banks have put in place to prevent that are insufficient.

However, the study also didn't find evidence of widespread mis-selling by banks - a finding some bank employees have said is disheartening.

The FCAC's report didn't address alleged breaches of the consumer provisions of the Bank Act. "These allegations are being investigated on a separate track and FCAC will take enforcement action where appropriate," the authors of the report wrote.

Tedesco said the agency is planning separate reports for each of the six banks outlining the agency's findings.

"We will work to ensure that the necessary changes to mitigate the risks identified in the report are implemented."

However, there are no plans to share those reports with the Canadian public.

Tedesco said the agency is increasing its supervision and doing risk profiles of each bank. Banks the agency believes are at greater risk of breaking the rules designed to protect consumers will face closer scrutiny, Tedesco told members of the committee.

The agency also plans to use 'mystery shoppers' - people hired to pose as consumers - to find out more about what is going on.

For us, they cross the line when they don't obtain the consumer's express consent to purchasing this product and they cross the line if they don't provide the level of disclosure that is required by the regulation and the legislation - FCAC Commissioner Lucie Tedesco

At the same time, the federal government is working on an update to Canada's consumer protection rules, Tedesco told the committee.

Meanwhile, potential cases of banks breaking the rules that were identified during the study are under investigation, she said.

"We will continue to investigate those potential violations of the consumer provisions under the Bank Act."

Conservative MP Dan Albas questioned why the FCAC's report didn't include recommendations for concrete things the government could do to better protect bank customers.

"I have to say Ms. Tedesco, I'm a little disappointed in your report."

Room for improvement

Tedesco suggested several changes that could be made, largely by the banks and FCAC - to the way they handle complaints, for example.

"Typically, they don't capture first level complaints and ... probably 95 per cent of complaints are resolved at the first level."

Monitoring complaints at that first level can help banks identify emerging problems, Tedesco pointed out.

Among the products the FCAC has identified as "problematic" is creditor insurance marketed by banks, said Tedesco.

"This product might be good in some circumstances but it is often sold without the appropriate explanation as to how it works or its products and services, and sometimes people think they are getting it for free," she said.

"For us, they cross the line when they don't obtain the consumer's express consent to purchasing this product and they cross the line if they don't provide the level of disclosure that is required by the regulation and the legislation."

Richard Bilodeau, director of supervision and promotion for the agency, said the agency identified eight violations that resulted in three decisions by the commissioner adding up to $650,000 in fines in the past year. The decisions didn't name the institutions involved.

Tedesco said the FCAC's interventions have resulted in $21 million in reimbursements to bank customers over the past two years.

Liberal MP Wayne Easter, chairman of the committee, said it's important that Canadians trust the FCAC to look out for their interests and "if there needs to be more authority in the legislation, we need to know that.

"If anyone in the public community starts to feel that the government or FCAC or any of the other regulators are not providing enough ... protection for the little guy because it happens to be the big, powerful banks, then we've got a real problem and I think that's where we are."
Elizabeth Thompson can be reached at elizabeth.thompson@cbc.ca

# data[].attributes.attachment_link.title
Big banks under investigation by financial watchdog | CBC News

# data[].attributes.attachment_link.description
A number of Canada's big banks are under investigation for possible violations of the consumer rules that govern financial institutions. However, officials from the Financial Consumer Agency of Canada won't say which banks are being investigated, or exactly which rules they are suspected of breaking.

# data[].attributes.body
EARN MONEY:
Who does not like to save? The answer may be no one. Every one loves to save a little bit of money through any means to contribute to their future goals. This is one of the most important factors for customers who open an account to deposit their savings money and do not want to take that money out unless absolutely necessary. This factor may attract senior citizens who invest their retirement money in savings account so that they can earn some money. The interest rates offered by various banks play a major role in customers decision in choosing a bank. The website below shows the comparison of interest rate offered by new emerging banks. It is evident that interest rates are a major marketing tool used to attract more customers towards them.

# data[].attributes.attachment_link.readable_text
This post may contain affiliate links. Please read my disclosure for more info.
Updated March 23, 2019
Thinking about earning tangible returns on funds in your savings account? You should take a look at high-interest savings accounts. Savers have not been getting a lot back in returns on their savings accounts for the better part of a decade. This has largely been due to a low-interest rate environment in which the Bank of Canada's (BoC) benchmark rate has remained at historically low levels together with inflation.

Recent hikes in rates by the BoC have not translated into higher savings rates being offered by the "Big" banks, and you can still find rates as low as a measly 0.05% on what is supposed to be a savings account earning you some income. The downside to the ridiculous rates is that you are earning negative real returns (i.e. losing buying power) after inflation is taken into consideration.

Savings accounts are generally not the place to park your funds if you want to generate significant returns on it and realize some capital growth. However, if you have funds that are meant for short-term projects (such as a vacation, wedding, tuition, or home down payment) which you do not want to be exposed to the vagaries of the stock market, a high-interest savings account (HISA) can serve as a low-risk option to safeguard your money.

A high-interest savings account can help you earn some interest while keeping pace with inflation. However, in order to outpace inflation today, you should be looking at interest rates that are close to 2% or higher. The top 5 HISA rates in Canada from non-credit union banks are:

EQ Bank: 2.30% non-promotional rate

Tangerine: 2.75% introductory rate (with this promo link)

Motive Financial: 2.80%

Wealth One Bank of Canada: 2.30%

Wealthsimple: 2%

High Interest vs. Traditional Savings Accounts

When people hear "high-interest savings accounts" or "HISA," they often wonder what differences (if any) is between them and traditional savings account at their bank.

For starters, a HISA pays a higher interest rate than is offered on regular "savings." For example, compare a 0.05% rate on a savings account at a major bank while 0.90% is offered on a HISA at the same bank.

There may be limits on the frequency at which you can make withdrawals from a HISA. The reasoning behind this is simple - the bank lends some of the deposits they hold to borrowers in order to generate income. The longer your deposit sits in your HISA, the more it earns for the bank. If you are 'in' and 'out' of your account too frequently, then your money is not earning as much for the bank and they are unable to justify paying you higher rates.

That being said, the majority of online-only banks which offer great HISA rates do not have limits on the number of withdrawals you can make from your HISA per month.

There may be fees associated with some transactions conducted in a HISA, if you exceed your monthly quota. These may include when you exceed a certain number of withdrawals, money transfers, or when you request a paper statement. The bank may also require you to maintain a minimum balance in order to earn the HISA rate. Again, most online-only banks waive these fees, except for free interac transfers which often have a limit.

Essentially, a high-interest savings account is not designed to conduct day to day transactions.

Top High-Interest Savings Accounts in 2019

Here are the top high-interest savings accounts available in Canada as of today. Before choosing a bank to save with, take a look at their small-print including:

Are there any restrictions on transactions allowed per month? Any lock-in periods?

Are any fees charged on withdrawals or transfers?

Is the offered rate a promotional or introductory rate, or is it an ongoing non-promotional rate?

1. EQ Bank: Savings Plus Account (2.30%)

EQ Bank is the online-only banking arm of Equitable Bank. Their high-interest savings account (HISA) is known as "EQ Bank Savings Plus Account" and currently offers one of the highest non-promotional savings rate in Canada at 2.30%.

There is no monthly fee, unlimited transactions, free electronic fund transfers, no minimum balance, free mobile cheque deposits, free bill payments, and unlimited free interac transfers per month. Interest rate is calculated daily on your closing balance and paid monthly. The maximum balance you can hold in your account is $200,000.

2. Tangerine: Savings Account (2.75% promo rate)

Tangerine is a subsidiary of Scotiabank and was formerly known as ING Direct. Their HISA is referred to as the "Tangerine Savings Account" and currently offers a promotional rate of 2.75% for your first 6 months and 1.20% thereafter.

Their savings account has zero monthly fees or account minimum, no lock-in periods or service charges, and an automatic savings plan. When you sign up using this special promo link to open your savings account, you enjoy a decent introductory rate of 2.75% for 6 months! get a $50 cash bonus paid into your account without any hassles.

In addition to the HISA, Tangerine also offers a TFSA and RRSP savings plan which offer similar rates (2.75%/1.20%) and a $50 cash bonus when you sign up for them using the promo link below.

Visit: Tangerine Bank (special promo link) and open a HISA, TFSA, or RRSP Savings Account.

Bonus: You can receive up to $200 cash bonus when you open a no-fee chequing account and deposit at least $100. Sign up for a Tangerine Chequing Account here (use this promo link and enter the Orange key 'Orange50') to receive up to $200 in free cash! You will also earn interest on your chequing account balance!

3. Motive Financial: Savings (2.80%)

Motive Financial is a division of the Canadian Western Bank which is a member of CDIC. Their HISA is known as "Motive Savings" and currently offers 1.50% on account balances up to $5,000,000.

The account comes with unlimited deposits and withdrawals, no monthly fees and no minimum balance requirements.

4. Wealth One Bank of Canada: HISA (2.30%)

WealthOne Bank of Canada is a relatively new bank and a member of CDIC. Their HISA is known by the same name and currently pays 2.30%. They also offer TFSA and RRSP savings accounts.

There are no monthly fees, unlimited transactions, no-minimum balance requirements, and you have access to their automatic savings program (ASP).

5. Alterna Bank: HISA (2.35%)

Alterna Bank and Alterna Savings are together known as the Alterna Financial Group. Their HISA is known by the same name and currently offers a non-promotional rate of 2.25%.

There is no minimum balance requirements, unlimited and free bill payments, and 2 free interac transfers per month ($0.95 thereafter). The maximum balance for new customers is $250,000 and they are also available in Quebec.

6. Wealthsimple: Smart Savings (2%)

Wealthsimple is better known as a robo-advisor for the management of your investment portfolio. Their HISA is called "Wealthsimple Smart Savings" and offers an interest rate of 2%. There are no monthly fees, unlimited free transactions, and no minimum account size.

7. Oaken Financial: Savings Account (2.30%)

Oaken Financial is Home Trust's direct banking arm. Their HISA is known as "Oaken Savings Account" and currently offers a rate of 2.30%. They also offer TFSA and RRSP savings account at higher interest rates.

The Oaken savings account has no monthly fees and no minimum balance.

All the online banks above are CDIC insured. There are also credit unions offering equally great savings interest rates. These credit unions are insured by their provincial deposit insurers, such as the Deposit Guarantee Corporation of Manitoba which guarantees 100% of deposits held by Manitoba's credit unions and caisses populaires. You do not need to reside within Manitoba to take advantage of this benefit.

8. Zag Bank: Savings (1.65%)

(**New Information - Zag Bank shut down at the end of 2018!) Zag Bank is owned by the Western Financial Group. Their HISA is known as "Zag Savings" and currently offers a 1.65% rate. They also offer TFSA and RRSP savings accounts with the same rate.

There is no monthly account fee and most transactions are free. The maximum amount you can deposit with them is $5 million.

Credit unions are offering some great rates!

9. Ideal Savings: 2.50% HISA

10. Hubert Financial: offers 2.50% on their HISA

11. Maxa Savings: 2.45% HISA

12. AcceleRate Financial: offers 2.40% on their HISA

13. Achieva Financial: offers 2.40% on their HISA

14. Implicitly Financial: offers a 2.40% HISA

15. Outlook Financial: offers a 2.40% HISA

Advantages of a High-Interest Savings Account

1. Higher Returns: As already mentioned, you will earn better returns with a HISA than with a traditional savings account.

2. Safe and Guaranteed: Your money is generally safe in a HISA. If the financial institution is a member of the Canada Deposit Insurance Corporation (CDIC), then your funds are insured up to $100,000 per customer per if the bank should go bankrupt. Deposits at credit unions are insured provincially and usually cover the customer's full deposit, even those exceeding $100,000.

3. Flexible: Compared to a Guaranteed Investment Certificate (GIC) which may lock-in your funds from 6 months to 5 years or even longer, most HISA's are readily accessible and penalty-free if you need your money. As such, a HISA can be a good option for holding emergency funds.

4. Bonuses: Some banks will offer you cash bonuses when you sign up (such as Tangerine). They may also offer promotional rates that come up now and then.

Disadvantage of a High-Interest Savings Account

A savings account will not double your money overnight, but that's not necessarily a bad thing. They are less risky than many other investment assets and your expected return is supposed to reflect your assumed investment risk.

The main downside to savings accounts and other fixed-income assets, in general, is taxes. The tax on interest income is at your marginal tax rate which can result in a significant chunk of your earnings going to the tax man if you are in a high-tax bracket. Interest income is taxed less favourably compared to dividends or capital gains.

To avoid paying taxes on your HISA returns, an option is to utilize a TFSA Savings Account.

Related Posts:

# data[].attributes.attachment_link.title
High-Interest Savings Accounts in Canada for 2019

# data[].attributes.attachment_link.description
Updated March 23, 2019 Thinking about earning tangible returns on funds in your savings account? You should take a look at high-interest savings accounts. Savers have not been getting a lot back in returns on their savings accounts for the better part of a decade.

# data[].attributes.body
CONVENIENCE:
The image shows the ranking of each bank with highest online banking customers. It is evident that CIBC is occupying more customers by providing them more convenient banking. Also most of the youngsters who has a mobile phone with them rarely visits banks. So banks providing convenient mobile banking will have a bright future.

# data[].attributes.body
MINIMUM MONTHLY BALANCE:
This is for customers who does not like to pay monthly account fees for an account. This feature is cool for customers who always maintain a decent balance in chequing account. But there is a question if it is wise. Since saving money in chequing account does not earn any interest, most people go for savings account which helps them earn some interest. The website mentioned below shows the existing offers of banks that makes people to invest a huge amount of money to waive the monthly account fees. This website can actually give an eye opening moment for customers who think that they have saved the money by maintaining balance through investing a huge amount on chequing accounts. This eventually does not earn them any money.

# data[].attributes.attachment_link.readable_text
YOU MUST MAINTAIN A MINIMUM BALANCE

Many banks require that you keep a minimum balance in your account in order to receive some kind of benefit from them.

Is the benefit worth the minimum balance? Let's have a closer look.

The TD all-inclusive chequing account looks like a great deal:

TRANSACTIONS: All transactions are free - up to a $804.50 value per year. Includes a free safety deposit box and personalized cheques. Whoa.

CREDIT CARD: They waive the annual fee on one of 5 top TD credit cards. Up to $120 per year saved. Nice.

MONTHLY FEE: And...you can get all of this for free, with no monthly fee, if you keep a minimum balance of $5,000 in your account at all times. Otherwise the monthly fee is $29.95 for all of the awesome stuff.

TOTAL SAVINGS: So, if I add that all up, I'm saving $804.50+$120+($29.95 x 12 months) = $1,283.90 per year!

Seems like a no-brainer. You keep $5,000 in your account and you save $1,283.90 annually.

That's like investing in something and getting a 26% return. If you have $5,000 to invest, you are totally better off to just leave it in your bank account and you'll make 26%.

Right??
WRONG.
This is how they get you.

YOU CAN'T SAVE SOMETHING THAT DOESN'T EXIST

It all looks so magical and wonderful. But there are actually no savings at all because you have equivalent alternatives that cost NOTHING.

Let's try this again:

TRANSACTIONS: Free transactions are great, but they only have value if there is a situation where you might have to pay them. I bank with Tangerine and my transactions are always free. So free TD transactions are worth $0 per year to me. I don't want a safety deposit box as that would imply I want to visit a branch. And I'm hoping that people stop using cheques any day now, because email money transfers are so much better.

CREDIT CARD: I have two credit cards - my Tangerine Mastercard with no fee and 1-2% cash back, and my Scotiabank Visa with no fee and car rental insurance benefits. I don't pay fees so I don't need to save any.

MONTHLY FEE: I pay no monthly fee at Tangerine and I even make a tiny bit of interest on my chequing account. No minimum balance required.

TOTAL SAVINGS: So, if I add that all up, I'm saving $0+0+($0 x 12 months) = $0 per year!

For $0 per year in savings, I can choose to leave $5,000 of my money in my TD account forever.

Or I could put $5,000 in a GIC and make $150 per year.
Or buy $5,000 of Canadian bank shares and make $200 in dividends per year.
There are a lot of things to do with your $5,000 that don't involve fake savings.

Always remember when banks quote savings, they are only comparing to themselves. It's up to you to compare their offer to the other products out there.

BUT I WANT THE FREE TV!!!

TD also has a free TV offer along with this account.

As I've already discussed in my RBC iPad post, if you were already going to switch to TD and buy a 40" TV, then please proceed.

But otherwise, the life energy you are spending to get a free TV doesn't seem worth it.

Many of the terms are similar to RBC's offer, but the TV is worth a bit more ($500), you have to be approved for a TD credit card within 14 days and then spend $500 on that card before October.

Then the TV comes 3 months after all of the conditions have been met.

All that, plus holding your $5,000 hostage for 6 months or more.
The whole thing gives me a headache.
Ultimately, you make the decision that is right for you. My goal is to provide you with as much information as possible to make that decision. Decide wisely.

Related Posts

# data[].attributes.attachment_link.title
Bank Waives Insane $29.95 Monthly Fee If You Give Them $5,000 to Keep Forever (Minimum Balance) - Invest Wisely

# data[].attributes.attachment_link.description
Many banks require that you keep a minimum balance in your account in order to receive some kind of benefit from them. Is the benefit worth the minimum balance? Let's have a closer look. The TD all-inclusive chequing account looks like a great deal: TRANSACTIONS: All transactions are free - up to a $804.50 value per year.

# data[].attributes.body
MONTHLY ACCOUNT FEES:
The amount that customer pays every month as an account maintenance fee plays a major role in choosing a bank in real world. People are not really ready to pay a lot of money to maintain an account. Hence Federal Government has ordered all Canadian banks to include a basic account package with limited transactions so that banking is affordable for every Canadian. But customers who cannot stick to minimum monthly transactions are looking to upgrade accounts so that they can access their account without any interruption. The website below is a sample of an account features and benefits from TD. This also allows customers to compare between three options of accounts.

# data[].attributes.attachment_link.title
Open a TD Every Day Chequing Account | TD Canada Trust

# data[].attributes.attachment_link.description
Looking for an easy everyday banking solution? The TD Every Day Chequing Account helps you save money with free transactions and deposits. Open an account today!

# data[].attributes.body
WELCOME OFFERS:
As a new comer to Canada, I looked for a bank that gave best welcome offers. There were a lot of promotions going on at that time including free iPad or 350$ cash while opening a new account. RBC offered one of the coolest offers. They gave free iPad for all eligible new chequing accounts. This attracted interest of many people. But there were additional terms and conditions to get that free iPad. Hence it is important to read all the terms and conditions before signing up a bank. This website provides all necessary information about promotional offers and their deadlines provided by each of the bank. It also mentions what should be done to be eligible for the promotional offers while opening an account in Cana

# data[].attributes.attachment_link.readable_text
I remember a few years ago I needed a new tablet for school (specifically an iPad) but didn't want to pay for one. I remember that the Canadian big five banks usually did a promotion where they gave away a new tablet for signing up with their bank and paying a banking fee per month and then you will get the new iPad for free. At the time, I looked into it in more detail and decided that it wasn't worth it (there wasn't an option to waive the banking fee with a certain deposit threshold...so basically it was like paying for the iPad on a monthly basis). The barriers were too high for me to change my bank for the tablet.

I have a bottom line, I don't like to pay for bank fees.

In fact, when I accidentally go under my minimum threshold and a bank fee gets triggered, I call the customer service rep and ask for it to be reversed. All $10.95 of it.

How many hoops will you jump through for free cash or an iPad and how loyal are you to your big bank?

Recently we signed up for a new joint account and were told about a welcome offer promotion to get $300 in cash. Then I got a letter in a mail encouraging me to switch to RBC for my daily banking needs and I will get a 9.7″ iPad. And then... a few days later, I saw a big ad in front of BMO declaring that they will offer new banking customers $350 in cash. I came to the conclusion that they must all be competing against each other for new banking customers!

My sisters each got a new Samsung flat screen television last year (or a few years ago? I forget) for signing up for a bank account. Who doesn't like free??

Here are some of the new bank account offers available and their caveats! I'm not sure how often they come around (as I never really noticed before) but I believe they are at least annually. You can't 'churn' these accounts, unlike travel hacking. If you opened up an account and closed it recently, you may not be eligible for the offers- check with the bank that you are interested in opening an account with.

Of the Big 5 Canadian banks (RBC, TD Bank, Scotiabank, BMO, CIBC), only four of the five are running a promo right now for new accounts.

Update: January 2019 Right now there are no promos that are active that I know of. These seem to start running in the spring or summer. I'll keep this updated once I find out.

RBC Promotions: RBC All-Inclusive Bank Account

The gift: $300 Cash (their summer 2018 promotion was a 9.7" iPad Wi-Fi 32GB (a $429 value per Apple Canada))

Deadline for account sign up: April 1, 2019

RBC Signature No Limit Banking account- $14.95 monthly fee, $39/year credit card rebate,

RBC VIP Banking account- $30 monthly fee, $120/year credit card rebate. Free safety deposit box (up to $60/year rebate), and free personalized cheques.

The Ask: By June 28, 2019: set up two pre-authorized payments from the account or one automated and recurring payroll or direct deposit to the account

The downside: The multi-product rebate doesn't completely cover the monthly fee of these two chequing accounts. The monthly fee after the multi-product rebate is still $8.95 for the No Limit Banking Account and is $19.95 for the RBC VIP Banking Account.

For more information, here's a link to the 2018 RBC iPad Promotion iPad offer from RBC

Here's a link to the RBC $300 Cash promotion in 2019

TD Bank Promotions: TD Canada Trust

The gift: There doesn't seem to be anything going on with TD Bank right now (2019), except for $25 with refer a friend. In 2018, it was $300 cash

Deadline for account sign up: September 13, 2018

TD Unlimited Chequing Account: $15.95 monthly fee but it is waived if you have a minimum of $4000 in your account. You also get Interac e-Transfer® (unlimited) and unlimited transactions.

TD All-Inclusive Banking Plan: $29.95 monthly fee but it is waived if you have a minimum of $5000 in your account at all times (before the end of the day of each day). Same free Interac e-Transfer® and unlimited transactions. Also an annual $120 rebate for certain TD credit cards (this is huge for us, we signed up for an Aeroplan card also having a TD Visa Infinite Aeroplan card prevents your Aeroplan points from expiring). You also get free personalized cheques, a free small safety deposit box, and free certified cheques and money orders.

The ask: You have to complete 2 of the 3 tasks by November 15, 2018

Recurring direct deposit

Online bill payment through EasyWeb or the TD app (of a minimum of $50)

Recurring pre-authorized debit with a minimum of $50 and the first one has to be done before November 15, 2018.

The downside: You'll have to have $4000-5000 locked in just to save on the monthly bank fees. To me though, this isn't a downside as I see it as a 7% return since we are saving the $29.95 monthly fee over one year.

For more information, here's a link to the TD bank offers for new accounts which is the $300 cash offer from TD Bank

This is the one we signed up for and we got our $300 cash deposited quickly after we jumped through the hoops.

Bank of Montreal

The gift: $300 Cash or 1000 Air Miles

Deadline for account sign up: April 30, 2019

BMO Plus Plan: $10.95 per month, but waived if you have $3000 minimum. With this account, you get $100 of the potential $300 cash bonus.

BMO Performance Plan: $15.95 per month, but waived if you have $4000 minimum. You get $100 of the potential $350 opening up this account.

BMO Air Miles Plan: $15.95 monthly fee, and there is no waiver. You get 1000 Air Miles with this plan

BMO Premium Plan: $30.00 monthly fee, and it is waived if you have $6000 minimum. You get $300 of the potential $300 for opening up this account.

If you closed an account from January 1, 2018 to April 2019 you are not eligible for this offer

The ask:

Set up a deposit by April 30 2019, in one of the above accounts.

Set up a recurring direct deposit into lead chequing account by May 31, 2019

Have at least one direct deposit transaction posted to lead account by May 31, 2019

The downside: The cash bonus or Air Miles will be posted to the account by July 19, 2019. Also, if you open up a joint account, one one of you are allowed to receive the cash bonus.

For more information, here's a link to the $300 cash offer from BMO

CIBC

The gift: An Amazon Prime One Year Membership (worth $79). In 2018 the bonus was $300 cash

Deadline for account sign up: February 28, 2019

Smart Account: $0 monthly fee is the minimum is $3000 or more and you make a recurring direct deposit or two pre-authorized payments EACH month. The cost is $4.95 if you don't keep the minimum. For up to 12 transactions (then $1.25 after that) and for unlimited transactions, it is $14.95/month.

The ask: Sign up for a Smart Account and give CIBC your email address. Complete a direct deposit or 2 pre-authorized payments within 3 months

The downside: This seems pretty straightforward and it is $3000 minimum balance to waive the fee. Doing a mandatory direct deposit is kind of annoying as you will need to get paperwork sorted from your employer- which might be a barrier (it is for me)

For more information, here's the link to the Smart Account Amazon Prime Membership

HSBC

The gift: Up to $1000 cash HSBC Share the Experience

Deadline for account sign up: Doesn't seem to be a deadline, it is effective September 2018

The ask: Refer a friend with this Referral Card

If you refer a friend with $1,000,000 deposited or invested with HSBC, you get $1000 (Jade Qualified Referral)

If you refer a friend with $100,000 deposited or invested with HSBC you get $350 (Premier Qualified Referral)

If you refer a friend with $10,000 deposited or invested with HSBC you get $100 (Advance Qualified Referral)

If you refer a friend with $1000 deposited or invested with HSBC you get $50 (Personal Banking Qualified Referral)

The downside:
You can only refer max 10 friends (imagine if you knew 10 millionaires! Haha!)

For more information, here is a link to the HSBC website for more details and PDF of the HSBC Referral Card with the fine print.

As you can see, they are all offering some big wins (at least $300 in cash) but upon closer inspection, they have varying levels of hoop jumping to get your prize. Some of them seem great but you find out that the negatives outweigh the positives (for example, no waiver of bank fees) or that the 'ask' is too much of an ask (I'm sorry, arranging direct deposit away from my regular bank is too annoying).

I am loyal to my main bank (have been since I was a high school student) but sometimes these bank promos are too good to resist- so I add to my chequing and savings account hoarding.

I doubt this is an exhaustive list of all the Canadian new bank account promos available this year, but these are some of the big ones that I have noticed recently.
Thanks for visiting! Before you go, you might also be interested in these posts: Readers, have you ever gotten a bank freebie before for opening up an account?

# data[].attributes.attachment_link.title
Canadian New Bank Account Promos (A Free iPad or $350 Cash) - Genymoney.ca

# data[].attributes.attachment_link.description
I remember a few years ago I needed a new tablet for school (specifically an iPad) but didn't want to pay for one. I remember that the Canadian big five banks usually did a promotion where they gave away a new tablet for signing up with their bank and paying a banking fee per month and then you will get the new iPad for free.

# data[].attributes.headline
ASSESSING THE FACTORS DETERMINING CUSTOMER'S CHOICE OF BANK - BY KRUTHIKA VETRIVEL SELVAN. 

# data[].attributes.subject
ASSESSING THE FACTORS DETERMINING CUSTOMER'S CHOICE OF BANK - BY KRUTHIKA VETRIVEL SELVAN. 

# data[].attributes.body
In this post readers can except the various factors that influences a customer's decision in choosing a bank.