Blogs & Comment

Special offers from financial institutions

Canadian Capitalist has a post on Scotiabanks Let the Savings Beginprogram, which gives consumers an incentive of up to $150 to use Scotiabanks credit/debit cards and bank accounts. I left a comment on the Canadian Capitalist website, but it was dashed off rather quickly and may be a bit jumbled. Maybe I can rephrase it better here in a post.
This offer could be a good deal for existing Scotiabank customers as Canadian Capitalist says. But I do have reservations that it is worthwhile for customers at other banks to switch to Scotiabanks credit/debit cards and accounts.
Why respond to a special offer with only temporary benefits? After the program is over, thousands will have signed up for a service for which there is a cost in time/effort to switch out of. This hassle of switching gives the institution some leeway to pluck a few feathers off the chicken. Over the longer run, things could average out – – and perhaps in favour of the service supplier.
In my opinion, it may be better to wait for offers with permanent or longer-term benefits before responding. In the meantime, it may pay to stay put with your existing institution and wait for them to introduce their incentive plan.