Exchange Rate Tip: Be a Better Bank Customer

I just found out today that because I’m also a customer of my bank’s investment banking outfit, it entitles me to a better USD-CAD exchange rate than regular customers!  I forgot to ask just how much the benefit was, but I am pleasantly surprised since this is the second time in about a week that my bank has bent over to help me out, and it’s all because I’m becoming a “better customer.”

So if you’re Canadian, consider becoming a customer of your own bank’s investment service.*  If you bank at the Bank of Montreal, sign up with BMO Investorline.  If you’re at Scotia, enrol with Scotia McLeod Direct Investing and link it to your online account.  It can pay off in the long run.  This preferred exchange rate was never advertised at my own bank – as far as I’m aware – the teller just mentioned it now because “I’m a good customer.”

How to be a better customer?  (1) Keep your account open: don’t close it and keep switching banks.  If you want an account with another bank, open one, but keep your previous one active too.  The longer you have an account with your bank, the better your relationship with the bank will be.  (2) Try to keep as many of your products as possible at the same bank.  Money market fund, Foreign exchange account, savings accounts, credit line, credit cards, etc.  Same principle as above.  Have several at several banks if you need to.

*If you’re American, as I understand it most banks or “savings and loans” vehicles don’t also have their own investment bank associated with them.  So I’m not sure how this would work.  You should still look into how you can get preferential exchange rate treatment if you’re a great customer, however.

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Tagged as: banks, exchange rate