ASSIGNMENT # 3

CIBC VS BMO

SUBMITTED BY :

KARAN BHAVSAR

RAVI KUKADIYA

SUBMITTED TO :

ANTHONY LUCIANO

Purpose Of Assignment

To satisfied the Banking need of Philippines couple by giving them value added service as a Financial planner of BMO.

The purpose is very clear to provide such a banking service that beneficial in terms of cost and benefit.

Also make them feel good and sense of belongingness for our bank. We try to find best banking service for this 35 year old person with good job and

savings of $350,000. The customer is new to Canada so they may be safer from new banking system.

This family have little idea about Canadian banking, so we try our best in terms of providing all the services that is important for them.

Safety (Strength Of The Bank )CIBC

When we talk about CIBC there is no doubt about safety because of its good reputation and value in market.

The Canadian Imperial Bank of Commerce , commonly CIBC, is one of Canada's chartered banks, fifth largest by deposits. The bank is headquartered at Commerce Court in Toronto, Ontario.

Every day, 42,000 employees help clients achieve their financial goals, because what matters to our clients, matters to CIBC. This focus drives CIBC decision making and is underpinned by their commitment to corporate responsibility.

CIBC seeks to create value for shareholders by generating consistent and sustainable earnings while achieving strategic growth.

Because of many reason we can easily say that CIBC provides one of the safe place to put investors money.

(http://en.wikipedia.org/wiki/Canadian_Imperial_Bank_of_Commerce, https://www.cibc.com/ca/about.html?int_id=HP_AboutCIBC_Var1)

BMO In terms of safety, Bank of Montreal is number one bank in Canada. Bank offers

lots of banking options to their customers. Bank won so many awards last year such as ‘Global Recognition for Excellence in Leadership Development’ (only Canadian Bank who won this award), ‘Celent Model Bank Award’ for innovative online appointment banking tool, also won three from China for excellent ‘Foreign Exchange Trade System’ many other award that confirm the BMO’s position in the market.

BMO is also well recognizing by numerous research firms, media ranking, rating agencies and industry association. It also suggest that the efficiency of

employees who put lot more efforts to make their customer sleep without banking tension.

Some research shows that BMO is outperforming from last 29 years in capital market that is one of the positive sign for customer to do bank with.

(http://www.bmo.com/home/about/banking/corporate-information/awards-and-recognition

http://www.bmo.com/pdf/nesbitt/Equity_Research_Strengths_Distinctions_2012.pdf)

Relationship managementAs we know that customer are very new to Canada so that they need some relationship kind of banking to feel them well with dealing bank. They also need help with some investment that gives them higher return in future.

Minimize feesOne of the major reasons for relationship banking is to lower the cost of banking and increase the number of benefits offer by bank to his loyal customer. Customer mainly wants that all the bank employees treat him in a best way and try to minimize the cost as much as they can.

Needs Purchase a home Banking package

Client's Profile Approximately Age of Couple : 35 yerars Two Small children (Age - 5 to 8 years) Total Earning - 1,30,000 $ (Per year) Total Savings - 3,50,000 $ (Cash)

Investment Profile Primary element

Age – the age of customer 35 years, most probably they are looking for long term investment in terms of banking and mortgage, car loan and many other investments

Risk tolerance –according to client’s age, he seems to be more risk taker. Time period –time period is probably for more than 25 years, because customer

will going to do transaction with bank in terms of lots of requirements regarding mortgage and TFSA.

Secondary element Tax Minimization- as we know that tax maximization is also one of the major

reasons for investment. Customer can open TFSA or RSP or both that will help him to minimize the tax.

Long term growth- customer also thinking in terms of long term growth in RSP and TFSA. This both the account and purpose determine the customer intended for long term growth.

Investment knowledge- person with sound investment knowledge can inspire him to do some investment in various investments that give him good return. Person with less investment knowledge mostly avoid investment stuff

Income Level- income also one of the important determinant of investment. High income people have higher saving amount so sometime they also prefer to invest their money their interested stocks, funds, GICs, bonds.

Banking Offer:

BMO

Transaction1. Chequing (include O/D)

A. AIR MILES Plan Unlimited amount of transaction with $13.95 per month Overdraft protection is free for account holder, cost saving kind of

benefit Customer can save up to $342.60 on annual basis Customer can 50 air miles point if he maintain $3000 balance on

monthly basis There is no additional fee for using debit card outside thee Canada

(http://www.bmo.com/home/personal/banking/bank-accounts/choose-account)

B. Plus Plan 30 transaction per month by just $9.95 charge per month There is no fee for children and students, it is best for clients children.

Entire family can have same bank account No additional fee for overdraft protection Good in terms of, all the transaction can be shared between the

husband and wife. It return just less amount of fee plus separate account for husband and wife

(http://www.bmo.com/home/personal/banking/bank-accounts/choose-account)

2. High Interest Savings

On High Interest Savings Account we are offering 1.20% interest One of the main benefit is that there is no account charge Account holder can access to Financial Management tool that helps to

track and manage money, customer have clear-cut idea about his bank balance

(http://www.bmo.com/home/personal/banking/bank-accounts/smart-saver)

Investment3. Mutual Fund

A. BMO Equity Fund(Growth Mutual Fund) The minimum initial investment is $500 Previous year investor get 9.24% average return on his investment, which

is pretty good The CSP contribution, minimum investment amount is $50 per month

(http://www.bmo.com/home/personal/banking/investments/mutual-funds/navigator/funds/growth/bmo-equity-fund/at-a-glance?params=124&pch=mf01_en)

B. BMO Asset Allocation Fund(Growth Mutual Funds) The minimum initial investment is $500 If customer is using CSP i.e. Continuous Savings Plan customer has to

contribute $50 as a minimum investment amount Investor can get 5.97% on this mutual fund, so it is perfect for account

holder to invest in this king of mutual fund

(http://www.bmo.com/home/personal/banking/investments/mutual-fun ds/ navigator/funds/growth/bmo-asset-allocation-fund/at-a-glance?params=124&pch=mf01_en)

C. BMO Global Energy Class(Equity Mutual Fund) The minimum contribution limit and limit for CSP customer are same as

other mutual funds In previous quarter the average return was 11.90%, that is perfect for this

customer in terms of short term income generating source

(http://www.bmo.com/home/personal/banking/investments/mutual-funds/navigator/funds/aggressive-growth/bmo-global-energy-class/at-a-glance?params=123&pch=mf01_en)

D. BMO Greater China Class(Equity Mutual Fund) The minimum initial investment are same as other mutual funds In last quarter the average return was 3.56%, and out most of mutual

funds are outperforming from so long time(http://www.bmo.com/home/personal/banking/investments/mutual-funds/navigator/funds/aggressive-growth/bmo-greater-china-class/at-a-glance?params=123&pch=mf01_en)

4. GICsA. BMO Term Deposit Receipt

This GIC offers various interest rates for different GICs in terms of amount and time specified

Customer will get 1.70% interest if invested for 5 years and amount is between $1000 to $10,000

This interest rate is very high as compared to GICs for 1 to 2 year i.e. 0.75%

(http://www.bmo.com/home/personal/banking/investments/gic/gic-navigator/cashable-investments/bmo-term-deposit-receipt/rates?tpFilter=0)

B. BMO Rate Optimizer Plus GIC Years of investment is 5 year Same as other GICs price, the price of this GIC is $1,000 The interest rate is 2.20%, that seems one of the income source for this

family after 5 year of period

(http://www.bmo.com/home/personal/banking/investments/gic/gic-navigator/cashable-investments/bmo-rateoptimizer-plus-gic/rates?tpFilter=0)

5. RRSP Because this customers are new to Canada, they have long term plan to

live in Canada Retirement Savings Plan is good for him Every year account holder can contribute according to the limit set by

federal government, maximum is $22,450 or 18% of income whichever is less that amount can be contribute by RSP account holder

It is good for this family in terms of saving money for long term, that makes able to save money and will also become a source of income at the time of retirement

(http://www.bmo.com/home/personal/banking/investments/retirement-savings/retirement-savings-plan/rsp-essentials)

6. TFSA Account holder can contribute up to $5,500 Contributing limit is change by every year If customer can withdraw some amount he can re-contribute by next years Customer can get 2.25% annual interest on his savings deposited on

TFSA account It’s good for this customer because in long run savings helps to manage

some expense

(http://www.bmo.com/home/personal/banking/bank-accounts/tax-free-savings?nav=left)

7. RESPs RESP is the account that is especially for design for students education CESG i.e. Canada Education Savings Grant program was managed by

federal government Account holder can contribute $2,500 per annum and he directly get 20%

return on his investment This customer has two little girls of 3 year and 6 year, so this money will

be useful for their higher education Guaranteed return by government If the family’s income is between $42,707 to $85,414, children will receive

30% on the first $500 saved in your children’s RESP every year

(http://www.bmo.com/home/personal/banking/investments/education-savings/resp-essentials)

Credit :8. Credit cardA. BMO AIR MILES World MasterCard

The eligibility is to have minimum of $60,000 individual income or $100,000 household income, this customer are easily eligible

1 AIR MILES reward point for spending $15

$99 is annual fee for this card 19.90% interest rate Car holder also get insurance coverage for car rental collision damage,

flight delay, and baggage insurance

(http://www.bmo.com/home/personal/banking/credit-cards/airmiles/bmo-world-airmiles-mastercard)

B. BMO AIR MILES MasterCard No annual fee and also no eligibility criteria, anybody can get this card 1 AIR MILES reward for spending $20 19.90% interest rate If customer is going to pay $45 a year than BMO going to charge

12.90% interest from customer, that is somewhat good feature for customer

(http://www.bmo.com/home/personal/banking/credit-cards/airmiles/bmo-airmiles-mastercard)

9. PLC Line of credit is also very important banking tool to help in critical financial

situation. Customer just need to fill-out one form to apply for PLC Initially eligible customer can get Line of Credit up to $5000 Customer can make full payment without penalty Also get monthly statement of balance in PLC

(http://www.bmo.com/home/personal/banking/mortgages-loans/loans-loc/loc/personal-loc)

10.Mortgage

Mortgage – Locked In Mortgage (safe / avoid higher risk Variable which is open to change)

This family have good savings is about $350,000 According to his savings and other criteria this family can borrow up to

$225,000 as a mortgage The mortgage amount is very high because customer is having a good saving

plus he has $65,000 annual income per person

Our interest rate are 3.090% and 3.1000% for Fixed 5 year low rate and Variable 5 year mortgage respectively

(http://www.bmo.com/home/personal/banking/mortgages-loans/mortgage)

Other Future Products :

11.Car Loan Starting from $5,000 Customer have variety of fixed payment periods to choose from such as

monthly, semi-monthly, bi-weekly, or weekly Option for interest rate among fixed or variable interest rates Customer can make additional payment without any penalty, this facility is

not allowed by most of banks Payment period from 1-5 years, depending upon the loan amount and

amortization

(http://www.bmo.com/home/personal/banking/mortgages-loans/loans-loc)

CIBC

Transaction1. CIBC unlimited chequing Account

Monthly fees - $ 13.95 Transaction includes -Unlimited Earn aero plan Miles - Yes Unlimited transactions1 including cheques, withdrawals, transfers, pre-

authorized payments, bill payments and debit purchases To earn up to 10,000 Aero plan Miles for a limited time, plus 100

monthly miles, by enrolling in the Aero plan Miles reward feature and completing the qualifying banking transactions

No minimum monthly balance, Personalized cheques available; fee varies depending on style and quantity, To send 2 free INTERAC e-Transfers 2 per month

2. CIBC Everyday chequing Account Monthly fees - $ 3.90 Transaction includes -10 per day Monthly fee waived when you keep a minimum monthly balance of

$1,000 in your account 24 hour access to your account through CIBC branches, bank

machines, telephone banking, online banking, mobile banking or debit purchases

Main feature - $3.90 monthly fee is waived if you maintain a minimum monthly balance of $1,000

3. CIBC e Advantage saving Account

Maximize your savings with an account that pays high interest when your balance is $5,000 or more.

Interest rate - 1.20 % Each transaction1 costs $5 (excluding online transfers to your other

CIBC personal bank accounts) Online transfers to other CIBC personal accounts (excludes INTERAC

e-Transfer  which will be treated as a transaction) - free Get 24-hour access to your account through CIBC branches, bank

machines, telephone banking, online banking and mobile banking(https://www.cibc.com/ca/chequing-savings/index.html?hpint_id=HP_IntMEGA-BA-E)

Investment4. Mutual funds

A mutual fund is a pool of investments managed by investment experts. Mutual funds are popular because they are affordable, easy to buy and sell, and can provide diversification. We offer following type of mutual funds to this Couple.

A. CIBC Money Market Fund – Class A Units This maximize interest income while attempting to preserve capital

and maintain liquidity by investing primarily in high quality, short-term debt securities issued by the Government of Canada or any Canadian provincial government, obligations of Canadian banks and trust companies, and commercial paper with an approved credit rating.

Minimum Initial Investment - $ 500 Rate of return - 0.7 % per year This helpful to couple to short term by quick and easy access to

their money and/or may need their money in less than one year.

B. CIBC Monthly Income fund

This provide a reasonably consistent level of monthly income while attempting to preserve capital by investing primarily in a diversified portfolio of debt and equity instruments.

Minimum Initial Investment - $ 500 Rate of return - 4.3 % per year Current price - $ 12.76 This MF very good option for those seeking a reasonably consistent

level of monthly distributionsC. CIBC Global Bond Fund

This MF provide a high level of income and some capital growth, while attempting to preserve capital, by investing primarily in debt securities denominated in foreign currencies issued by Canadian or non-Canadian governments, or corporations, and international agencies such as the International Bank for Reconstruction and Development, also known as the World Bank.

Minimum Initial Investment - $ 500 Rate of return - 7.1 % per year Current price - $ 11.17 This is a good MF for those who seeking higher returns and who

are willing to accept some additional risk

D. CIBC Dividend Income Fund

To maximize returns with a conservative investment philosophy by investing primarily in a diversified portfolio of Canadian income-generating equity securities and debt securities.

Minimum Initial Investment - $ 500 Rate of return - 6.9 % per year Current price - $ 9.8

This MF is very good option for this couple because it creates both income and the potential for long term growth

This MF more suitable for who investing for the medium to long term

E. CIBC Canadian Index Fund This MF provide long-term growth through capital appreciation. The

Fund is managed to obtain a return that approximates the performance of the S&P/TSX Composite Index. The S&P/TSX Composite Index is intended to represent the Canadian equity market. It includes the largest companies listed on the TSX.

Minimum Initial Investment - $ 500 Rate of return - 5 % per year Current price - $ 23.33 This MF is a very good investment for who looking for a broadly

diversified Canadian equity fund with returns close to those of the S&P/TSX Composite Index

Suitable for those investing for the medium to long term(https://www.cibc.com/ca/mutual-funds/index.html?hpint_id=HP_IntMEGA-INV-MutualFunds-E)

5. GICsCIBC Guaranteed Investment Certificates (GICs) provide you with safe and flexible investment options. According to this clients investment profile CIBC offer mainly following types of GICs.

A. CIBC cashable Escalating Rate GIC

The CIBC Cashable Escalating Rate GIC offers guaranteed premium returns, rates that increase each year, and access to your money on each anniversary date or up to 7 days after.

Minimum investment - $ 500 Terms available - 3 and 5 year In this kind of GICs investors can withdraw all or some of your

money (minimum $500) on each anniversary date - or up to 7 days after and still earn interest.

Two type of payments :

o Simple interest: paid annuallyo Compound interest

B. CIBC Short - term GIC

The CIBC Short-Term GIC is a safe place to park your money for a short period of time, while enjoying a guaranteed rate of interest and fully-protected principal.

Minimum investment - $1,000 for terms greater than 30 days $5,000 for 30-day term

Terms Available - 30 to 364 days This GICs park your money for a short period of time, perhaps

before making a major purchase or investment decision. This GIC is issued by CIBC and qualifies as collateral for loans.

(https://www.cibc.com/ca/gic/index.html)

6. RRSP

CIBC RRSP (Registered Retirement Savings Plan) can contain GICs, stocks, bonds, savings accounts, and mutual funds, among other securities. Here we cover best for this client which is RRSP GICs.

CIBC Escalating Rate RRSP GIC

The CIBC Escalating Rate RRSP GIC offers guaranteed premium returns and rates that increase each year.

Minimum Investment - $ 500 Terms - 3 to 5 year In this GICs no withdrawals allowed prior to maturity There are no fees unless you transfer all or part of your RRSP funds to

another financial institution, in which case a $100 fee will apply. Interest rate increase as the term period is long In this investment guaranteed return and 100% protection of your

investment.

(https://www.cibc.com/ca/retirement/rrsp/gics.html)

7. TFSA

CIBC TFSA Tax Advantage Savings Account

The CIBC TFSA Tax Advantage Savings Account is an attractive daily interest savings account option in which you earn a competitive,

guaranteed high interest rate tax-free and you have access to your money any time.

Earn guaranteed interest tax-free Minimum investment - $ 25 Regular Interest Rate - 1.15 % In this account no fees unless you transfer all or part of your TFSA

funds to another financial institution, in which case a $100 fee will apply

In this customers can use a CIBC TFSA Regular Investment Plan to make automatic deposits to your CIBC TFSA Tax Advantage Savings Account to maximize your interest

(https://www.cibc.com/ca/investing/tfsa/tax-advantage-savings-acct.html)

8. Education - RESP RESP is investment for the child which is one of most profitable invest

currently in market which gives near to 20 % every year.

A Registered Education Savings Plan (RESP) is a tax-deferred investment plan that helps you save for a child's post secondary education, so that you'll have the funds you need, when you need them.

The lifetime RESP contribution limit is $50,000 per child and contributions can be made until the child turns 31. There is no annual maximum contribution limit.

The CESG(Canada Education Savings Grant) is payable until the end of the calendar year a child turns 17, and the maximum lifetime CESG payment is $7,200.

(https://www.cibc.com/ca/education/index.html)

Credit9. Credit Card

According to this customer profile CIBC provides mainly his two credit cards is as below.

A. CIBC Aerogold Visa Infinite card

This card provides premium travel rewards with strong reward-earning potential, including a Welcome Bonus of 15,000 Aeroplan Miles upon first purchase. Rewards for everyday spending, including 1 Aeroplan Mile for every $1 charged to your card.

Features :

Annual Fee - $ 120 Annual Interest Rate - Purchases -19.99 % Annual Interest Rate - Cash - 21.99 % 50% more Aeroplan Miles at gas, grocery and drug stores  Additional purchasing power over your credit limit with no overlimit fee5

Access to the Visa Infinite Luxury Hotel Collection — exclusive benefits at some of the world’s most intriguing and prestigious hotel properties

CIBC Auto Pay service automatically debits your credit card payment from a personal deposit account.

B. CIBC Aventura Master card

This credit card everyday card with the benefit of travel rewards, including a Welcome Bonus of 2,500 Aventura Points upon first purchase. The freedom to choose from hundreds of airlines with no blackout periods, fees or restrictions. Premium coverage, including Out-Of-Province Emergency Travel Medical Insurance

Features :

Annual Fee - $ 39 Annual Interest Rate - Purchases -19.99 % Annual Interest Rate - Cash - 21.99 % Car rental discounts of up to 25% at Avis and Budget locations with your

CIBC credit card CIBC Auto Pay service automatically debits your credit card payment from

a personal deposit account This card provides Commission-free regular American Express Travellers

Cheques, Cash advances of up to $1,000 a day.

(https://www.cibc.com/ca/credit-cards/index.html)10.Line of credit

CIBC personal Line of credit

CIBC provides flexible access to funds for everyday expenses or big-ticket items, at interest rates lower than most credit cards.

Helpful for home renovations, vehicle purchases, daily spending and even consolidating your higher interest debt

Rate - Variable rate based on CIBC prime ( 3.00 %) Access credit that ranges from $5,000 up to $200,000 with a secured

lines of credit

Receive free personalized duplicate cheques and Receive itemized monthly statements

In addition CIBC provide option :

o CIBC Personal Line of Credit Disability Insuranceo CIBC Personal Line of Credit Life Insurance

(https://www.cibc.com/ca/loans/pers-line-of-credit.html)

11.MortgageAs per the investment profile and saving of couple CIBC provides following Mortgage offer.

CIBC Fixed - Rate Closed Mortgage

Interest Rate - 5.14 % Special interest rate offer for 4 years - 2.99 % Payment frequency options of weekly, bi-weekly, semi-monthly or

monthly Minimum mortgage amount is $10,000 Special interest rate offer for 4 years - 2.99 %

(https://www.cibc.com/ca/mortgages/fixed-rate-closed-mortg.html)

Other Future Products :

12.CIBC Personal car Loan Term - 1 to 8 year Borrow a minimum of $5,000 This car loan help with financing a new or used vehicle This car Loan offers no charge with an Electronic Fund Transfer

(EFT) In this customer can skip up to two payments yearly

(https://www.cibc.com/ca/loans/car-loan.html)

Part B

Mortgage Pre-Approval scenarios

According to current economic position and given data of client they can afford maximum Purchase price is $ 825,908.( Appendix 1)

Down payment - $ 225,000 How much they borrow maximum - $ 600,908(Appendix 1) Other expense Will be 5 to 10 %($ 260 appro.) of total saving ($ 350,000) How much is monthly payment - $ 1201 ( Appendix 2) Interest rate - 4.14 % Total principal and Interest paid for term -$ 72,041( Appendix 2)

cost comparison of Banking package

In terms of chequing account, BMO charge $13.95 for unlimited transaction meanwhile CIBC bank charges exact same as BMO that is $13.95 and offers unlimited number of transaction

In terms of cheaper chequing account, BMO charge $4 and offers 10 transaction per month while CIBC offers the same service by charging $3.95

In terms of credit card cost, BMO charge $99 and CIBC charge $120 It terms of reward benefit CIBC offers lot more better point system i.e. called

Aero Miles as compared to BMO Both the bank do not charge for overdraft protection that is common among both

the banks

Monthly banking fees

As we talk about banking fees in cost comparison section, the cost of banking is some of different in both the bank

Meanwhile the monthly bank account charges are almost same in both the banks, but CIBC is somewhat cheaper in terms of credit card facility

There is no charge for banking account for children or students in both the banks, meanwhile the benefits are somewhat different

Credit Cards

BMO offering BMO AIR MILES World MasterCard with $99 as a annual fee, 1 Air Miles points for spending $15, 19.99% interest rate

CIBC offering CIBC Aero Gold Visa Infinite Card with $120 annual fee, initially customer can get 15000 Aero Miles for doing first purchase, 1 Aero Miles reward point for charging a $1 from card user, interest rate is 19.99% and 21.99% for purchase and cash

In terms of credit cards CIBCs Aeroplan Miles reward program is very attractive for this kind of customer

Part C

Direct bank to bank comparison chart :

BMO Bank CIBC Bank1. BMO offers five different kinds of

chequing accounts.1. CIBC offers four different kinds of

chequing accounts.2. In terms of cost and benefit, one of

the good account is AIR MILES Plan with $13.95 monthly charge also include Air Miles reward program.

2. CIBC offers the same kind of account names as CIBC Unlimited Chequing Account with $13.95 monthly charge with Aero Plan Miles reward program.

3. BMO offers account called practical account with 10 transaction per month and charge $4 monthly charges.

3. Bank offers account called CIBC Everyday Chequing Account with same as BMO, 10 transaction per month with $3.95 monthly fee.

4. Bank offers 1.20% interest on High Interest Savings Account

4. CIBC offers almost same as BMO is about 1.15% of interest on High Interest Savings Account

5. The standard credit card in terms of benefit is BMO AIR MILES World MasterCard with $99 as a annual fee, 1 Air Miles points for spending $15, 19.99% interest rate.

5. The standard credit card offered by CIBC is CIBC Aero Gold Visa Infinite Card with $120 annual fee, initially customer can get 15000 Aero Miles for doing first purchase, 1 Aero Miles reward point for charging a $1 from card user, interest rate is 19.99% and 21.99% for purchase and cash withdrawal respectively.

6. In terms of mutual fund, minimum investment limit is $500, most of mutual funds are outperforming which is good sign in terms of investment

6. The minimum investment limit is as same as BMO i.e. $500, CIBC also offers consistent interest rates

7. BMO offers 0.75% on GIC of 1 to 2 years maturity, 2.25% interest rate for 5 year fixed GICs

7. CIBC offers 0.90% interest on 1 to 2 years GICs meanwhile interest rate is 1.90% for 5 year fixed GICs

8. Minimum interest offered on GICs is 0.20%

8. Minimum interest rate is little bit lower is about 0.25%

9. BMO offers 2.25% interest on Tax Free Savings Account

9. CIBC offers 1.15% interest on Tax Free Savings Account, that is almost half as compared to BMO

10.BMO provides good Mortgage rate for 5 year that is only 3.09 %

10.Whereas CIBC charged more interest rate than BMO that is 5.14 %.

Diagnosis/Advantage/Disadvantage : When we talking about overall comparison between BMO and CIBC ,it is very

hard to tell total winner or loser but up to some extend we can say that BMO offered better services and package to the Philippines couple.

In terms of number of chequing account BMO is offer five account which offers greater variety of selection to the customer.

Reward program i.e. Aero Miles offered by CIBC is lot more attractive than BMO, it more beneficial to the customer

BMO offers 2.25% interest on 5 years GIC which is greater than CIBCs interest rate on GIC for same period of time

BMO is also leading interest giver in terms of Tax Free Savings Account, the interest rate offered by BMO is almost double of CIBCs interest rate on Tax Free Savings Account.

In the terms of Mortgage also BMO has very lower interest rate (3.09 %) than CIBC which near to more than 2 % (5.14 %)

Summary/Recommendation/selling features :

After defining the all general benefits now this a time of think particularly about (Philippines couple) client. So below are the some unique selling feature which BMO offer and some recommendation for clients.

BMO offers 6 months of free banking for small business, business, and agricultural business just need to talk to representative this is very helpful to Philippines couple because of that they can expand their money in long run.

BMO provides very low interest rate for 5 year Mortgage with compared to any bank which is very helpful to this couple to buy house.

 According to brendan wood survey BMO is number one in Industrial Products, O&G Large Cap,, Precious Metals Small/Mid Capital which shows very good position for bank so this client have no safety issue in future.

In addition BMO provides special service to newcomers which is cover many discount and befits in the sense of tax or other things.

On the other hand CIBC has only some benefits in GIC interest rate and in some MF but it's not weight more on client side.

At last but not least ,BMO provides very special plan for newcomers which is not offered by most of bank that is "Free Banking Plan". In this plan they provides complete banking plan for free for one full year. This includes unlimited bill payment option ,transfer, debit card and BMO ATM services.

Finally ,we can say that on the basis of all this information BMO is better option for Philippines couple than CIBC.

Resources used:Website

http://www.bmo.com/homehttps://www.cibc.com/ca/personal.htmlhttp://en.wikipedia.org/wiki/CIBChttp://en.wikipedia.org/wiki/BMOwww.bmo.com/smll-bsns-comm_fall.../Take%20One_E.pdf

Branch visits BMO Bank Goretti Domingues416-740-5593Goretti.domingues@bmo.comFinancial Services Manager1530, Albion RoadEtobicoke