Employee Discount Scam

Employee Discount, What Does it Mean?

I note one of the major banks is now offering Employee Rate Mortgages, attempting to entice you to move your mortgage over to their bank, with the promise of the same kind of discounts or lower rates that you would only receive if you were an employee of said bank. This continues on from the automobile manufacturers (specifically Ford) that offers Employee Rate discounts on their cars, but what kind of discount are you really getting?

RBC even touts these discounts when trying to entice new employees:

Whether you are looking to arrange a loan or buy a home, employee banking benefits can help you reach your financial goals. You’ll have access to valuable discounts on a wide range of banking, investment and insurance services, including reduced mortgage rates and reduced home and auto insurance rates.

These must be amazing discounts, and they are willing to give any person who walked in off the street the exact same “employee enticing” savings that they offer to their new hires ? That is amazing, but if they are giving you the same “insiders” rate that they give their own employees, weren’t those same folks taxed on that “benefit”?

Employee Discount

The Employee Discount Scam

No, this has little to do with the employees of RBC, and more to do with car financing marketing schemes from the Automobile industry. The Mortgage business is becoming quite cut-throat, so this is RBC attempting to differentiate themselves from their competitors by cloaking a better deal with the promise of it being an “insider’s deal” (thus assuredly the best deal you could possibly get).

What is next? I can see the marketing scheme already,

If you can find a better mortgage deal, you bring it to us and we will match that deal!

No, wait, that is precisely how the Mortgage business currently works.

Given our finance minister’s laissez faire attitude towards the banking industry lately, we may see more interesting “marketing schemes” introduced to entice us to move our hard earned cash to another banking institution.

Changing banks is fine, but make sure you get a good deal when you do it.

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iPad Compatible Banking Apps

A while back I purchased an iPad for myself to see if I could “run” my small business (yes, this web site is a small business, stop snickering) on an iPad. I have learned a fair amount about the apps on the iPad and such, but I have also learned that for some odd reason many different apps only have iPhone compatible versions.

For those unfamiliar, you can run iPhone compatible apps on your iPad, however, they only run in Portrait Mode (short across top, longer on the side) and it looks pretty clunky (and most likely, if anything goes wrong, you are not going to get any customer support).

Apple iPad

Your New Banking Device ?

Whilst attempting to figure out how things work, I tripped across a couple of interesting issues with the Canadian Banks and their “apps”:

  • TD has an iPad compatible app, as does Tangerine bank, haven’t tested to see if the scan cheques capability works on either app
  • PC Financial, Capital One and Amex all have iPhone apps, but nothing that runs on an iPad, currently
  • For those of you curious this site is supposed to be iPad compatible too.

Having iPhone compatible apps is fun, and convenient, an iPad version with a few more features would help consumers more (although you would be banking over very unsafe WiFi networks).

How did I deal with this shortcoming? I tweeted about it (naturally):

Amazing stuff. Boomer and Echo pointed out that ten years ago I wouldn’t be making these complaints, but I had a retort for that as well:

No answers to my tweets (yet), aside from TD favoriting my comment about how their app did work with an iPad.

This was written on an iPad using Microsoft Word, and OneDisk to store it, which was then transferred to my web site, convoluted, but it works (for now).

Do you use your Tablet for on-line banking? How about your Smart Phone?

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Thank You TD

I figure I should write an official thank you note to TD, TD Mutual Funds and TD Waterhouse, because without them I would not have some of my most popular articles.

TD Toronto Dominion Bank

TD

I went back over my archives and I realized that not only am I a customer of TD, TD Mutual Funds and TD Waterhouse (and a shareholder as full disclosure), but I write about their services a great deal.

Many (if not all) of the articles in my RDSP page talk about TD Waterhouse’s RDSP, which while currently one of the only RDSP Investing Vehicles that gives you the freedom to choose whatever portfolio you like, it still has many shortcomings that need to be addressed.

The RESP page is all about the RESPs that I initially set up with Canada Trust Mutual Funds, that got transferred to TD Mutual Funds, and I should have moved them over to TD Waterhouse (but that is my own fault).

Then there are the many discussions about Bank Fees and my begging for cheaper rates.

A Bill Paying Solution

I also note that the TD Banking Web Page has added a very useful tool to their web bill paying and that is the ability to show you the last time you paid a specific bill. Remember I lamented about getting inundated with bills from various sources, but with this page, I can at least go and check to see when the last time was that I paid a specific bill.

TD Bill Payment

New TD Bill Payment Page

Having the record of when you last paid a bill and how much you paid will make life a little simpler for me at least.

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Credit Checks Can Cause Issues

It is interesting to see how the dominoes fall  in the financial world, and one of the most entertaining stories I have is from about 25 years ago as my wife and I were looking to buy our first house.

As we shopped for the first Big Cajun Hacienda,  Mrs. C8j and I decided we needed to shop around to get the best mortgage deal, that was possible at the time. At the time interest rates were very high and we were hoping to find as low a locked in rate as we could (it ended up being 12.5% for a five-year term). We spoke to our bank (at the time) Scotiabank but my brother had (at the time) a good deal (in his opinion) with BMO, so I went and spoke to them as well.

Both banks wanted to “pre-approve” me for a mortgage on the basis of my income and such, so they both came back with about the same deal for me, so we were leaning towards Scotiabank (as they were our current bank). Scotiabank also suggested I apply for their Visa card to help with moving expenses and such, and it seemed like a good idea (at the time).

Gift Cards, Cash

So Many Cards so easy to get these days.

The application seemed straight forward, but about 3 weeks later I got a terse, but polite, letter saying that my application for the Visa Card was denied, with no explanation (but thanking me for applying).

I was flaberghasted, insulted and very mad (in my younger days, I was even a bigger hot head than I am now), so I phoned the number on the letter to get an explanation for this serious insult that had been inflicted on my Financial Ego! I spoke to a very patient and nice lady at the Scotiabank Visa help center (I would say she earned her pay that day), and she calmly explained that my “file had been flagged” and that was why I was refused the Visa Card.

“Why was the my file flagged?”, I asked.

The answer was simple, my “credit file” had been accessed twice in the week before my application, which caused the system to kick out my application as high risk. Why did my “credit  file” get accessed? Remember those two pre-approvals? Those two procedures cause the whole system to suddenly view me as a bad credit risk, because people were looking up information on my credit, as simple as that.

Once the patient young lady on the phone and I figured this out, she said she could put through my application, and get me the card in a few days, but I decided not to do that, and decided to go with BMO instead.

Dell Canada Inc

This was the first time I had been exposed to the Business of Credit, Mortgages and Banking and it was an eye-opening experience, and from that I have learned to be wary of banks, and to always ask questions about all processes no matter what transpires.

Oh, and isn’t it interesting that I was actually turned down for a credit card? Anybody heard of that these days ?

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Bell Ringing Banks and Frank Costanza

One of my favourite Seinfeld episode (if I can have just one) is the episode where Frank Costanza (played by Jerry Stiller) starts a PC Sales company out of his garage, and every time someone made a sale (not George, but that Lloyd Braun!) they  rang a table bell, needless to say things get a little out of control and “SERENITY NOW!!!” (something I also yell a lot) was in great usage in that episode.

Why would I bring up such an obtuse TV reference, maybe I had nothing better to write (did I just hear a bell ring), or maybe it was because I was in my local TD Canada Trust branch and saw the following sign:

“… if you like the job we did ring our bell to show your satisfaction…”

(Or something like that). My wife dutifully rang the bell after visiting with the young teller she was at, but as I left, I rang the bell as well and pronounced loudly:

“That was for the banking machine it did a GREAT JOB as well!”

I just wish I’d yelled, SERENITY NOW! right after that .

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