Bank loyalty: When should you stay, and when should you switch?
This post is sponsored by RBC.
Many Canadians stay with the same bank for decades. It feels familiar, it works, and changing can seem like a lot of effort without much of a payoff. But when it comes to your money, bank loyalty can be both a convenience and a quiet financial drain. The big question is: When does staying put make sense, and when does switching banks mean more money in your pocket?
Why bank loyalty is so common in Canada
Bank loyalty runs deep in Canada. Nearly seven in 10 Canadians have been with the same primary bank for more than 10 years. That kind of long-term commitment is shaped by how our banking system works.
Canada has just over 80 banks, and about three-quarters of all consumer banking is handled by the “Big Five”. With fewer choices and strong brand recognition, many people open their first chequing account as a student and never think about it again.
The result is comfort, and very little comparison shopping. While that loyalty feels harmless, it can quietly cost Canadians hundreds or even thousands of dollars over time.
What are the benefits of staying with the same bank?
Sticking with one bank can make life easier, especially when your financial setup is straightforward. Benefits include:
- Convenience: Having one login, one app, and all your accounts in one place makes it easier to track spending, move money, and manage bills. For many people, that simplicity is worth a lot.
- Relationships: A long record with the same bank can help when applying for new products, like a mortgage, personal loan, or credit limit increase.
- Bundles: Banks may reward existing clients with bundled perks like fee rebates, bonus rewards, or discounts when you combine chequing, savings, credit cards, and borrowing products.
This is where smart loyalty comes in. For example, RBC offers a range of chequing accounts and credit cards designed for different life stages and spending habits. Some chequing accounts focus on keeping monthly fees low, while others offer more transactions or added features for higher-activity users. On the credit card side, options range from cash back cards to rewards cards that earn points for travel or merchandise.
The key advantage is flexibility. RBC makes it easy for customers to review and switch products within the same bank – moving to a lower-fee chequing account, changing to a cash back card if spending priorities shift, or upgrading rewards as your income grows. That allows customers to stay with a trusted brand while still adjusting their banking to match how they actually live and spend.
What are the downsides of bank loyalty?
The downsides of bank loyalty arise when nobody bothers to look.
Existing customers aren’t always offered the most competitive rates. New clients often receive better mortgage deals, higher promotional savings rates, or better credit card offers as motivation to sign up. If you don’t ask, you may never see them.
Fees can also creep up over time. A chequing account that once felt reasonable can quietly start costing $15 or $20 a month, even if your banking habits haven’t changed.
Your financial needs evolve, too. The account or card that worked when you were a student, renter, or first-time cardholder may no longer fit your income, family size, or spending patterns.
For example, credit card holders with similar spending habits can earn more than $500 extra in cash back simply by choosing a card that better matches how they spend. Everyday banking matters too – the average Canadian pays more than $220 a year in bank fees, which can be worthwhile, if they’re using the account that’s right for them.
In many cases, these gaps exist because people never compare what they have with what’s available.
Is it a good idea to switch banks?
Switching can make sense if your bank no longer offers low-fee options, competitive rates, or products that reflect your current needs. It may also be worth considering if customer service or digital tools fall short.
If you’re wondering how to switch banks in Canada, the process is usually simple. Opening a new account, moving your direct deposit and pre-authorized payments, and closing your old account can typically be done in a few steps. Switching chequing or savings accounts does not affect your credit score, since no borrowing is involved.
That said, switching banks isn’t always necessary. Often, the better first move is reviewing the options your current bank offers.
What should your bank offer to keep you loyal?
Before deciding to leave, ask your bank if they offer:
- Low- or no-fee chequing options, or reasonable minimum balances to waive fees
- Competitive savings options or promotional rates for existing customers
- Credit cards that offer cash back or rewards aligned with how you actually spend
- Multi-product discounts across banking, credit cards, and borrowing
- The flexibility to switch products as your needs change
- Strong digital tools and accessible customer support
- Fraud monitoring and protection features that add peace of mind
If your bank checks these boxes, staying loyal can still deliver real value.
For RBC customers, reviewing your accounts is simple. Check whether your chequing account fees still match your usage, confirm your credit card rewards line up with where you spend most, or ask whether a different account or card could reduce costs or increase rewards. Small changes can add up over a year, and RBC has a wide range of account and card options to meet your evolving needs.
The bottom line
Bank loyalty can be a strength or a financial trap. When your bank continues to offer fair fees, competitive options, and products that evolve with your life, staying put makes sense. When it doesn’t, exploring alternatives can pay off quickly.
Whether you’re asking how to switch banks or deciding to stay, the smartest move is the same: review your options regularly and make sure your loyalty is still working in your favour.