If you are like me you have several resources when it comes to money. You may have any (or all of the following: credit card, debit card, chequing account, line of credit, mortgage, loans, RRSPs, RESPs etc.
Most people find it convenient to do all of their banking with the same bank. It makes sense right? Especially if you are happy with your bank. Bad idea.
I had a friend who did just this. She had her bank accounts and her credit card with the same institution. Then one day, her husband lost his job. As the money dwindled, she had to start picking and choosing which bills to pay. Since they needed a place to live she chose to make her mortgage payments (their mortgage was with another bank) and let the credit card go unpaid.
After a few months, the bank decided charging her interest was not enough. So, they went into her bank account and took the minimum payment out of her bank account. Her mortgage payment that month bounced.
It turns out all those papers you have to sign (you know, the ones you should read but never do) give the bank permission to do this! They can decide to go in to your account and get their money when they decide they want it, whether you can afford it or not.
I sincerely hope you are never in such a dire situation but since you cannot predict the future spread out your banking to give you protection and versatility (and so you don’t lose your house!)