Bank switching incentives flood your inbox. You open the email. Free iPad for moving your RRSP to them. $100 cash for opening a checking account. Your current bank never offered you anything. This new bank wants you badly enough to give you $500 worth of gifts. What are they getting in return?

Moorhouse points to the math: if they’re giving you a $500 iPad, they expect to make it back within months through mutual fund fees you never see. Online banks offer 1-2% interest while big banks cap at 0.5%. That promotional 3% rate? Fine print says it drops to 0.5% after six months. Ask your advisor what you’re invested in. If the answer is ‘I think it’s this,’ you’re paying someone who isn’t explaining clearly enough.

The bank making the most noise isn’t necessarily serving you best. Next time you see a promotional offer, check what happens after month six, not just the headline rate. And that TFSA sitting in cash at 2%? It can hold ETFs earning 6%, which means the tax-free growth you’re entitled to could be compounding on actual returns.

Topics: bank switching incentives, RRSP season marketing, TFSA investment options, mutual fund fees, online banks versus big banks

GUEST: Jessica Moorhouse | http://jessicamoorhouse.com

Originally aired on2026-01-26