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Ect., Financial Sense/ Money Matters

Financial Sense: Don’t Rely On The Same Bank Twice

bankersIf 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.

bankAfter 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!)


About Shannon

I am a university educated full-time working mother of four children. Proudly Canadian, I freeze my butt off along with my loving partner, two dogs and a cat. I hope you enjoy reading my posts as much as I love writing them, but if you have nothing nice to say, don't say anything at all.


6 thoughts on “Financial Sense: Don’t Rely On The Same Bank Twice

  1. They can actually go into other bank accounts as well, they are just required to go through the courts to do so so it rarely happens.

    Posted by Heather C | July 31, 2013, 11:34 am
    • Yeah, here it’s a big long process so you would know what’s happening, not “surprise”!

      Posted by Shannon | July 31, 2013, 12:16 pm
      • With every bank I’ve ever worked at, the only time they’d take from an in house account was after 90-120 days of no contact and no payments. A lot of times, as long as you are in contact with the bank they want to help, not hurt you.

        Oh and they aren’t notified of the court orders here. If they were warned, people would go take all the cash out. Same thing with tax levis, child support and lawsuit claims.

        Posted by Heather C | July 31, 2013, 1:39 pm
      • Wow! You should set up a financial blog. I bet you could give a lot of great advice. I knew nothing until abstracted reading and researching all about the laws in Canada.

        Posted by Shannon | July 31, 2013, 3:48 pm
      • I’ve thought about doing a feature post here and there on my blog but I have a lot of things to wrap up first. I may very well do that soon 🙂

        Posted by Heather C | July 31, 2013, 4:43 pm


  1. Pingback: A Happy Relationship Means Having Your Own Bank Account | A Game of Diapers - January 28, 2014

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