That makes me feel like dancing like Carlton:
I can’t believe that it is already the end of August! Do you know what this means?! It means that all of the kiddies are heading back to school! Which also means that the banks are in full force, looking for new customers.
My last post was all about the monthly bank fees that the big five Canadian banks are charging customers. Since launching in January, these charges keep coming up in my budgeting consultations. I’ve had clients that are paying anywhere from $4/month – $50/month on bank fees. And if you think about this on a bigger scale, the cost runs from $48-$600/year! Not only that, but the big banks are only offering a .05% interest rate on their so-called “High-Interest Savings Account”. This interest rate doesn’t seem too high to me.
Let’s get into some of the real High-Interest Savings Accounts….
If you’ve read any of my past posts, you should know by now that I’m a huge PC Financial fan. I’ve been banking with them since I was in high school. Here’s why:
- There are no fees on their daily chequing account. I’m talking nada, zilch, nothing. And they have a sliding annual interest rate that is offered depending on how much money you have in your account. This rate ranges from 0.05% – 0.50%.
- Free unlimited cheques.
- PC Points towards free groceries and more. Since opening an account in high school, I’ve redeemed over $700 in free groceries.
- Free access to any PC Financial or CIBC bank machine. (Note: PC Financial bank machines won’t be available when Simplii Financial take over on Nov 1, 2017).
- Free unlimited Interac Debit and Interac Flash debit purchases.
- Free transfers between accounts, bill payments, and pre-authorized bill payments. No minimum balance required.
- $1.50 Interac e-Transfers.
- The interest plus savings account. The current rate offered is 0.90%. So when I bank with PC, they actually pay me to bank with them. Cool.
So you could probably imagine how much I freaked my freak when I heard the news that CIBC and PC were ending a 19-year business agreement. But it’s going to be ok. PC is keeping their credit card and their PC points incentive, but their daily banking is being rebranded to Simplii Financial under CIBC (which will begin on November 1, 2017). I’ve been promised by PC that the transition to Simplii is going to be smooth. Here’s to hoping!
I know lots of people who bank with Tangerine and love them! Here are some of the reasons why:
- Free, unlimited debit purchases, bill payments, and pre-authorized payments. Yay for free daily banking with their No Fee Daily Chequing account.
- Withdrawals and deposits at any Tangerine or Scotiabank’s ATM.
- Your first book of 50 cheques is free. Any chequebook after your first is $20.
- Earn 0.15% interest on every dollar in your chequing account.
- $1.00 Interac e-Transfers.
- The Tangerine Savings Account. With a rate of 0.90%, no fees or service charges, no minimum balance required, and an automatic savings program, it’s no wonder why so many people love banking with them.
I recently heard about EQ Bank and was interested in the 2.30% high-interest savings rate that they offer. What’s the catch? How can they provide such a great rate compared to other no fee banks and credit unions?
They don’t have any branches or ATM’s so all of their banking is done through their website or mobile app. I mean, it seems as though most of our banking is heading online anyways, it’s just that EQ Bank is ahead of the game. They still offer unlimited deposits and bill payments, 5 free Interac e-Transfers each month, and unlimited Electronic Funds Transfer so you can move money from another branch into EQ Bank to watch your savings grow even faster. I’ll probably open my own account in the next week or so with the interest rate they’re offering. I like knowing that my money is compounding interest faster than it would with one of the big banks (with their 0.05% interest rate). Good job EQ Bank. Keep up the good work.
- Free, unlimited daily banking, no minimum balance required, with no monthly fees. 2 Free Interac e-Transfers/month ($0.95 after).
- Access to over 3,300 ATM’s in THE EXCHANGE Network.
- High Interest eSavings Account offers a 1.90% interest rate with no minimum balance required, and no service charges or fees.
- Free, unlimited daily banking, no minimum balance required, with zero monthly fees, and unlimited Interac e-Transfers.
- Access to over 3,300 ding-free ATM’s/branches across the country.
- Envision also offers a wide range of high interest savings accounts that has something for everyone!
Which one will you choose?
With so many no fee banking options, I sometimes wonder why more people aren’t making the switch. If you think about it, these no fee banks are paying you to use their services with the high interest savings rate that are offered. It’s one of the many “cut backs” that I often suggest in my budgeting consultations. If you’re ready to take charge of your own personal finances, please contact me!
Who do you bank with? Are you happy with them? Would love to hear from you in the comments below!