The recent online problems at Bank of Nova Scotia BNS-T highlight the harsh truth of electronic banking – it’s never going to be 100 per cent reliable. Always have a backup.
Scheduled maintenance performed Nov. 8-12 resulted in some Scotiabank customers not being able to access their accounts, or see some of the accounts listed when they did log in. One reader reported seeing duplicate transaction in his account.
I reached out to Scotiabank clients on Nov. 15 via the social media platform X and some access problems were still being reported. Online banking is supposed to be the 24-7 answer for busy people monitoring their accounts and making payments and transfers. When you can’t access your online accounts, it’s like someone turned off the lights.
Fear of service interruptions is one of the reasons why people stick to Big Six banks instead of trying challenger banks that operate strictly online. But outages are going to happen in online banking, regardless of who you deal with.
That’s why your banking backup plan should include a no-fee transactional account at an alternative bank that gives you a competitive rate on savings while allowing you to pay for purchases via debit, make e-transfers and pay bills. Keep a few hundred dollars in this account in case your main chequing account is unavailable. Think about having enough to buy groceries or a pay a utility bill that comes due.
Having a backup account at an alternative bank is also a kind of audition. You may find you like the combination of zero account fees, decent interest and a full range of transactions so much that your Big Six bank becomes your backup.
Big banks do have their branch networks to fall back on if you’re blocked from getting into your account online, but what’s that worth to busy people who can’t spare time to line up? I was in a bank branch recently to take care of a piece of business I couldn’t do online and the wait was considerable.
One final e-commerce survival tool is the website Downdetector, which tracks service outages in the financial services, telecom, social media, gaming and more. An answer to the obvious question when you can’t log in – is it me, or them?
As for Scotiabank, its response to my questions included the following statement: “We sincerely apologize for the inconvenience this issue caused. We have advised our clients that we will pro-actively waive overlimit fees and credit card interest charges with a payment due date of November 11-15, 2024, and we will work with them to correct any incorrect entries on their accounts.”
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Rob’s personal finance reading list
Priced out of housing in Cape Breton
A woman priced out of the housing market on Cape Breton Island – yes, even there – describes how she ended up buying a broken-down farmhouse from her parents and rebuilding it.
Bidding wars, the play
A new play now running in Toronto is about a group of people bidding on the last affordable house in the city. Comedy or tragedy?
When hackers attack
A retirement blogger on how hackers gained access to a laptop in her household and then withdrew money from accounts at two banks. The story here is how the banks handled this fraud. One nailed it, the other’s response was alarming.
Costco tips for small households
The idea of buying in bulk for lower pricing falls down when you live alone or with a partner. Here are some deals for small households at Costco, including bread and paper towels.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: I have a defined-benefit pension that I will soon start taking. Its indexing feature is complicated and not that effective unless markets and inflation co-operate, so let’s say it has limited to no indexing. Some advice columns I have seen suggest I treat my pension as my bond safety net and maintain most of my other retirement savings in stocks. That is largely what I am currently doing. Should I change my approach when I retire soon?
A: Theoretically, putting most of your own retirement savings into stocks and regarding your pension as the bond component makes sense. But you’ll need to be able to weather periods when stocks get pounded. Having some bonds or cash-type investments might help you cope better with temporary stock market setbacks.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A summary of daily limits for Interac e-transfers at various banks.
In the social sphere
Social Media: A rundown on the various ways to donate to charity.
Listen: A discussion of the disconnect between households that are struggling financially and the fact that household finances in aggregate look strong.
Money-Free Zone: Alt rocker J Mascis’s Can’t Believe We’re Here is just the thing right now, and it’s not only the name of this tune. Mascis has a touch for blending the rough and the soft.
More PF from The Globe
- WestJet Rewards members say upcoming loyalty program changes are laughable
- Saver vs spender: How relationships can work despite different money habits
- Yes, homeowners are richer than renters. But that doesn’t mean renters are doomed in retirement
- Leaving an unequal inheritance to children comes with risks
- Why financial planners are taking longevity assessments more seriously
- Why this former educator got out of the stock market and invests only in GICs