RBC Dividend Growth Investing INvestment blog winnipeg canada

F*#K You RBC! You are the WORST – And why you should buy their stock. *Warning Vulgar Language*

I have had an RBC bank account since I was about 8 years old.  My parents signed me up with the Leo Lion Savings account.  I will be turning 35 this year – and have added the following RBC products over the years:

  • RBC Visa
  • RBC Mutual Funds
  • RBC Line of Credit
  • TFSA Via RBA
  • Direct Investing
  • RESP
  • Spousal RSP
  • Joint Account with Wife

In the last 12 months, RBC has fucked me over more times than I can count.  Here are a few examples:

Example 1:
I had a $40,000 line of credit with a very good interest rate.  I usually didn’t carry a balance on this – however every now and then I would use it to invest if there was a stock I really wanted to buy – but didn’t have the cash on hand.  When we recently purchased our new house – the lender giving us the mortgage wanted us to pay off the line of credit before approving us- so my lawyer sent a letter & Cheque to RBC saying part of the proceeds of my house sale should pay down the L.O.C to zero.  RBC not only paid off the Line of Credit – they also closed it altogether (without telling me).  To make matters worse, at my next appointment RBC told me they had a special offer for me.  Can you guess what it was?  A $10,000 line of credit with a higher interest rate.

Example 2:

I had previously set up opened a Direct Investing Account for my wife as well as a TFSA & Spousal RRSP.  I made sure to ensure I had trading authority on her accounts (as she has no interest in any of this).  I recently redeemed some of my RBC rewards for $650 that I could deposit into a RRSP.   I set up an appointment at the branch to make the deposit into my spousal RRSP.  The guy at the branch said no problem – but that he wasn’t licensed to sell that fund so we would have to call the head office and do it over the phone. (Annoying – but no big deal).  After waiting on hold for a few minutes, the guy from head office said I couldn’t deposit this into the spousal RRSP without speaking to my wife (who wasn’t with me).  I explained I had trading authority and even gave him the password they had set me up with for instances just like this.  Again – he said I couldn’t deposit this into her spousal RRSP without her first reviewing the fund facts as it is a 100% equity fund.  I explained we JUST opened this spousal RRSP a few months prior, she had signed off on the fund facts, it fit her risk profile AND I HAD TRADING AUTHORITY anyway….  Still – it wasn’t good enough for this guy – and finally I had enough/gave up and decided to just deposit it into my RRSP.

***This is where it gets really interesting***

Example 3:

After finally giving up – I told the guy at the bank to just put the funds into my RRSP in one of the funds I already own (Canadian Equity Income Fund).  I watched him type “Canadian Equity Fund”.  I see this and say – “just to confirm this is the equity INCOME fund- not the Equity Fund right?  He assures me – that yes- it will go into the fund I already own.  A few days pass and I log into my online banking only to find I now own $650 of a new fund (Canadian Equity Fund).

Dividends Investing RBC Personal Finance Blog Canada Winnipeg Jordan Maas


So now I am on the phone with head office – trying to fix the situation – I just need to  transfer all the funds out of the Canadian Equity fund and into the Canadian Equity Income fund.  To his credit – the guy on the phone was very understanding and did this right away.  So I assumed (BAD IDEA) this guy was competent and could help me with something else.  I decided I wanted to reduce my bi weekly contributions into my RRSP and put the difference into the spousal RRSP instead since my account was quite a bit larger than my wife’s.  I have done this on the phone before – so figured it would be no big deal (BIG MISTAKE).  The guy tells me I can’t increase my contributions into Amber’s account because by doing so it means too high a % of her account will be in equities.  Here is the kicker.  She only has 1 fund which is already 100% equities.  All I was trying to do was to increase the bi weekly contribution to this account.  I tried explaining to this guy that whether you put 1 dollar or 100 dollars into the fund- it is still the EXACT same % …but he somehow couldn’t grasp this.  At this point I am seeing red.  I was ready to lose it.  I tell him forget it – and I am just going to close down all my RBC accounts.

.RBC Dividend Growth Investing INvestment blog winnipeg canada

After a day or two of deciding how I was going to stick it to RBC for Fuckin’ with me – I started thinking about all the things i would need to do to actually make this happen:

  • Get a new bank account
  • Set up Direct deposit with my employer
  • Close out mutual funds, transfer RRSPs, get a new brokerage
  • Cancel all the accounts I just set up for my wife
  • Contact my cell phone, internet, mortgage, insurance companies, and more and get them to switch everything over.

In the end, I decided I really didn’t want to go through all that – hell that would take even more time – and surely I’d become even more frustrated with some of those companies along the way – Plus who is to say a new bank would be any better?

And this is why I believe RBC (or any major Canadian bank) is a great stock to buy.  What other company/industry would I be willing to put up with so much shit – only to end up saying “Awww, fuck it – it’s not THAT bad”.

If that anecdotal evidence isn’t enough to convince you RBC would be a good buy – these results just came in today:

  • RBC reported net income of C$3 billion this quarter ($2.4 billion), up 7 percent.
  • RBC reported net income of C$3 billion this quarter ($2.4 billion), up 7 percent.
  • RBC increased its dividend 3 cents to .94 per quarter
  • After adjustments, Canada’s biggest lender by market capitalization earned $2.05 per diluted share, beating the $1.99 expected by analysts surveyed by Thomson Reuters.

Sorry for the long rant – but I figure if RBC is going to bend us over so much – we may as well at least get them to pay us back in dividends & strong capital gains.

*To my credit – I DID close down all my mutual funds, and move everything to Direct Investing – which will result in me saving about $2000 in fees I would have paid to RBC.

That’ll show em 😛





12 thoughts on “F*#K You RBC! You are the WORST – And why you should buy their stock. *Warning Vulgar Language*

    • Yea – that’s what I mean. They are basically all the same – and once you are with one- it would have to be something extremely drastic to make you switch/close an account…Over the years there have been some great people who I’ve dealt with – but overall I feel like most have less knowledge than me – so most appointments are a waste of time (hence the move to Direct investing).

      To their credit – the branch manager did call me to apologize and to see if there was anything she could do to convince me to stay with the bank after I threatened to close my accounts.


  1. Thanks for sharing your experience, Jordan! This is a great example of how banks are a sticky business. In all honesty, I used to work for RBC in 2012-2015. I worked in mutual funds and I worked for direct investing. I’m now in a totally different role with a different company in more of a digital space, so this was a reminder of what jobbing used to be like. I can’t speak for the credit line situation, but in the defense of the mutual fund representative, the representatives really are not able to do anything. It’s due to the regulations that are set up around this industry. The systems that they use will not even let them buy or sell funds when the asset allocation doesn’t line up. I get that it’s ridiculous when the allocation was already 100% equities, but it’s just the way the industry is set up. The reason I left the mutual fund role was because I didn’t like this aspect of it. There were just too many restrictions. Nevertheless, it sounds like they screwed up a lot with the credit line and wrong mutual fund SMH. Thanks for sharing man!

    Liked by 1 person

    • Thanks for stopping by & sharing your experience in the industry!
      Don’t get me wrong – I totally get that there are rules in place to protect people (from themselves mostly). That said – the situation I was in – wasn’t one of these. The branch manager eventually called and apologized and said they were in the wrong. I had done the KYC with my wife to ensure she was profiled as an aggressive investor, so there was no reason she shouldn’t have been able to increase her contributions. But I do understand the need for some regulations too.
      Take care!


  2. This is the general experience with big banks. I guess they have way too many customers and don’t care for one. Bank of America comes to my mind immediately. Credit unions are much better. Also, just because someone works in a bank does not make them financially savvy. You need to double check every minor detail. Especially the ones related to tax and investment. The implications are profound.

    Liked by 1 person

    • I agree 100%. I learned quite a while ago that a lot of the people in the industry have no idea what is best for you. Don’t get me wrong – some are great – but in the end – the only person who will always do best for you – is YOU. That’s why I swapped everything to direct investing 🙂


  3. Haha nice post man.

    Brutal storys but i can believe them. I could be wrong but i think rbc did the right move in the first one. When we bought our house they wanted us to pay off a debt and then close that account (loc as well) so maybe they had to for the mortgage.

    I got really annoyed when we switched our mortgage to them. 2 weeks before we started transferring our rrsp from mutual funds over to direct investing. I got all the mortgage stuff transferred and done before the switch from mutual funds to di. That drove me nuts.

    2 times the last month rbc direct investing had some major problems. I complained the first time and asked for some free trades. They denied me. The 2nd time i told em to get me free trades or im leaving. They gave me free trades =)

    I was really debating leaving them but all my bank fees are free other than investing trades and mortgage payments. Its not that bad of a deal! Like you said the hassle is alot too.

    Dealing with people at the bank is always fun. I swear I know more than most of them.


    Liked by 1 person

  4. Hah – yup…and that’s why it’s a great stock to own. Terrible service- but we keep going back. Reminds me of Costco….people PAY for the right to shop there..haha

    I might have to see if I can get some free trades or something…the Branch Manager said she would pay for a nice dinner for me and the wife…lol


  5. A few years ago, my RBC line of credit interest rate was raised 3% without warning. I called and they said we have decided to raise rates on selective accounts. So I thought I was signalled out since I had low balance.

    I found out a few weeks later, a blogger had it happen to them. An then a few weeks later, a co-worker had her line of credit interest rate go up and she had her mortgage and bank accounts with them.

    As an investment, RBC was pretty safe. I wish I never wrote covered calls and still owned them today. The yield will have to be higher for me to start another position.

    Liked by 1 person

    • That’s pretty shady. Luckily I can say – if they ever raised the rate on the L.O.C they always sent something in the mail before hand…
      Speaking with friends and co-workers – it definitly doesn’t seem to be an “RBC” issue – more of a large financial institution issue….RBC just happens to be the one I have been “fortunate” enough to deal with..haha


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