We are about to enter a period of intense competition for customer loyalty. Aeroplan is losing Air Canada as its key partner – what will it do to keep its members from fleeing to other customer loyalty programs? And what will those other programs do to pry people away from Aeroplan?
As I said in this column last week, Canadians should prepare for all-out war between loyalty programs for their business. Keep your eye on what Aeroplan rivals like Air Miles and SCENE come up with. Remember, Air Miles is still smarting from the bad publicity it received last year over an ultimately abortive plan to have points older than five years start expiring. For now, consider whether it makes sense to start using your existing Aeroplan points instead of saving them for a future trip.
The Rewards Canada website says Air Canada’s decision to leave Aeroplan wasn’t a surprise because Aeroplan has evolved away from its original role as a frequent flyer plan. When Air Canada introduces its new offering, expect rewards based on travel (flights, hotels) and spending on credit cards, but not spending in retail stores.
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Don’t get a divorce – get a bigger house
This slogan is brought to you by a realtor whose marketing is included in this collection of the funniest real estate ads in the never dull Toronto-area market.
Rent or own in retirement?
A useful summary of the pros and cons for both owning a home and renting in retirement. A financial planner told me the other day that one of the top questions clients are asking is whether it makes sense to rent in retirement.
Affordable international vacation spots
Seven cities in Mexico, Europe, Asia and the Middle East. Maybe this can help you zero in on a destination – a list of how much it costs to grab a beer in cities around the world.
Thoughts on moving in together
Expensive rents are a big reason why more couples are living together. Here’s a look at some of the financial questions they should be discussing, including who gets the home if the couple breaks up.
The Netflix economy – renting over owning
All about the implications of the pay as you go economy – basically, renting goods and services instead of buying them. From a personal finance point of view, pay as you go can be very liberating. Instead of owning a car, for example, you just buy the rides you need via a car-sharing service or the likes of Uber.
Today’s featured financial tool
The Financial Consumer Agency of Canada offers this credit card selector tool. Pick a card by features like rewards, fees, insurance and benefits.
The question: “If a financial institution collapses and a person’s term deposits are covered by CDIC, what is the process for obtaining the funds?”
The answer: “Canada Deposit Insurance Corp. will find you if the financial institution that sold you a term deposit collapses. You don’t have to apply for coverage. CDIC targets three business days for paying deposits to investors. You would receive principal and interest to a combined $100,000 per eligible account. More details are available in a column I wrote for Globe Unlimited subscribers.
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.
What I’ve been writing about
- Prepare for all-out war among loyalty programs for your business
- This is how millennials could end up paying the bills for baby boomers
Canadians are good borrowers, but it may come at a cost.
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