To take part in discussions on talkSFU, please apply for membership (SFU email id required).

Bank Account Fees...?

2

Comments

  • edited June 2008
    cibc = pc financial
  • edited June 2008
    sukjin why should i stay with td's infinity account which is 12.95 when I can get the same thing at vancity for 7.95 and 1k min balance rather than 3k, or coast capital for 0.00 a month, i'm just curious if im missing something
  • edited June 2008
    Honestly, you shouldn't even be paying any fees for a basic daily banking account.. even if you have large amount of transactions. There are good banks out there that offer what you need with no charge.

    Paying for a daily bank account is stupid.. why? Well, you put your money in say.. TD.. and they take your money and invest it and keep all the gains. While they do that, you pay them monthly fees.. awesome. No matter what the TD guy said, paying for a bank account is dumb (especially if you are only using it for daily transaction needs).

    And don't even get me started with TD savings account..
  • edited June 2008
    LOL td savings account is awful, its basically 0.00 interest
  • edited June 2008
    The TD guy is gonna say its "0.05%".. lol

    You should go with PCF..savings rate for them is 3.05% for balances over $1k and very liquid. Chequing account is free with unlimited transactions and no minimums as well. Cheques are free. Access to all CIBC and PCF ATMs. And it is CDIC insured..same deposit insurance you get from TD.
  • edited June 2008
    sukjin86;31778 said:
    cibc = pc financial
    It's CIBC without the tellers and the fees. Did you have a point to that statement, though?
  • edited June 2008
    randomuser;31832 said:
    sukjin why should i stay with td's infinity account which is 12.95 when I can get the same thing at vancity for 7.95 and 1k min balance rather than 3k, or coast capital for 0.00 a month, i'm just curious if im missing something

    I agree that TD accounts are not student friendly, and I do agree that there are better accounts. Personally, 25 transactions are not enough for myself.

    Besides the fees, you have to take into consideration the banks hours, locations, accessability, customer service, and other products which the bank offers.

    Randomuser, when choosing a bank, always look at what other products the bank offers, products that suit your needs, and products which you will need in the future as well. (Loans, mortgages, premium rates, High Value client offers, credit cards, quality of banking technology, online banking services etc). The longer you stay with any bank, the more seniority you build.

    Given the economic conditions, its good be banking at a bank which is well established.
  • edited June 2008
    Steven;31858 said:
    The TD guy is gonna say its "0.05%".. lol

    You should go with PCF..savings rate for them is 3.05% for balances over $1k and very liquid. Chequing account is free with unlimited transactions and no minimums as well. Cheques are free. Access to all CIBC and PCF ATMs. And it is CDIC insured..same deposit insurance you get from TD.
    Let's get one thing straight here. I'm not trying to 'preach' TD Bank here, I'm just trying to offer some help in understanding fees/accounts etc. I personally have a bank account with TD, A credit union, and ING Direct.

    TD savings accounts are bullshit, and same with any other 'high interest savings accounts'. A savings account is designed for to 'put money aside'. The misconception with savings accounts is that most people think of it as an investment vehicle. (which is the way banks advertise it, in order to get clients opening up savings accounts)

    The highest ones out there right right now are probably 3.5%, which is lower than inflation. If you seek high returns, you should have your money invested elsewhere (stocks, corporate bonds, hedge funds, mutual funds, etc)
  • edited June 2008
    OK since were talking financial jargon here, sum1 wanna give me the lowdown on Canada Savings bond and if there worth getting for some1 of 18+ years.
  • edited June 2008
    ^
    Depends what kind of returns your looking for
    Canada Savings Bonds usually range from 1%-2.5% interest, depending on the type.
    Meaning, If you bought a Premium Canadian Savings Bond at 2.5%, for 1000$, and you kept it for 5 years, you can cash it for $1131.41 in 5 years time.
  • edited June 2008
    thats lame...
    i wanna invest 2-5 g's sumwhere
    recommendations? ne1 need a loan?
  • edited June 2008
    ^ what's the interest charge? =P
  • edited June 2008
    Hmm.... My RBC Student Chequings doesn't cost me anything.

    It's 25 free debit transactions a month, which is really all I need because I use my CC more. Online banking is free, withdrawal is free, transferring is free...
  • edited June 2008
    sukjin86;31895 said:
    Let's get one thing straight here. I'm not trying to 'preach' TD Bank here, I'm just trying to offer some help in understanding fees/accounts etc. I personally have a bank account with TD, A credit union, and ING Direct.

    TD savings accounts are bullshit, and same with any other 'high interest savings accounts'. A savings account is designed for to 'put money aside'. The misconception with savings accounts is that most people think of it as an investment vehicle. (which is the way banks advertise it, in order to get clients opening up savings accounts)

    The highest ones out there right right now are probably 3.5%, which is lower than inflation. If you seek high returns, you should have your money invested elsewhere (stocks, corporate bonds, hedge funds, mutual funds, etc)
    I'm not saying you are preaching TD bank here. I am just trying to offer some help in understanding comparison of bank accounts.

    As for savings account, people do perceive it as investment vehicles, which is totally wrong. However, with that said, people do need to put their emergency funds somewhere.. so why not a high interest savings account where it is totally liquid?

    For the people that want to invest and gain higher returns, GICs and CSBs are not the way to go. In fact, if I was to advise you, I would get you started with mutual funds first as it is a low risk method of investing for beginners (and you can start off with relatively low amounts). As for hedge funds, most average Canadians do not even qualify to invest in them.

    I am personally a financial advisor and I advise most of my clients who are new to investing to do that. Avoid GICs and CSBs or vehicles that are usually guaranteed because they usually give you lower than inflation returns. Discipline yourself to save every month into a mutual fund of some kind and after you have built up some wealth, then consider investing in stocks.

    As for savings accounts, it is solely for emergency fund purposes. And getting a higher interest rate sure beats 0.050%.
  • edited June 2008
    lazyGUY;31929 said:
    thats lame...
    i wanna invest 2-5 g's sumwhere
    recommendations? ne1 need a loan?
    How often would you like access to this money?
  • edited June 2008
    long term....4+ years
  • edited June 2008
    lazyGUY;31997 said:
    long term....4+ years
    You should definitely consider investing it in mutual funds then. But I'd need to know more of your situation to give you a precise answer to what you should do with it. PM me, we'll talk more.
  • edited July 2008
    I should point out that Vancity just gave everyone 3+% "jump start" accounts. You can move money in and out of it online, free of charge, instantly. I've never paid a single fee for my account (except for a few times when I withdrew cash from another bank's ATM...which is standard -- and since Vancity is a credit union, you can withdraw from ANY credit union ATM free of charge, which are plentiful). And I don't have any minimum amount of money in there right now either.

    @Steven: Who do you work for?

    I strongly *don't* recommend mutual funds at this age, unless you have a bunch of money kicking around that you DEFINITELY won't need for the next 10 years (7 minimum). And at this age... you're probably going to be moving out or getting married sometime, so...how you would manage that I don't know. Short term, mutual funds are pretty much dangerous.

    I think whoever trained you is feeding you bullshit Steven, or you're just desperate to screw someone for a commission. I'm speaking from personal experience, as I got suckered into an investment and now I'm going to need to withdraw those funds and get slapped with a 5% early withdrawal fee (which is also flopping around wildly, sometimes up sometimes down).

    Mutual funds are good long term, and relatively safe at 10+ years, and good ROR (~8%+) if you're invested with a good company and in a good portfolio, but otherwise, don't do it. GIC's lock you in, they're not liquid, low interest... but they're safe.

    Seg funds are slightly safer than mutual funds, and still offer good interest. They guarantee you will get back at least 75% or 100% of what you invested, after X years. You choose X...the longer you wait, the more aggressively they'll invest your $$. Of course, I'd probably take the slightly higher interest of a mutual fund if you have time, because I'd be choked if I got 0% anyway.

    For anyone here...I'd recommend just stuffing your money into one of the higher interest (liquid) accounts that your bank offers, until you get your life together and can consider something more long term.

    Though of course it's important to invest earlier rather than later before you eff yourself for retirement and all.
  • edited July 2008
    ralph2087;32891 said:

    I strongly *don't* recommend mutual funds at this age, unless you have a bunch of money kicking around that you DEFINITELY won't need for the next 10 years (7 minimum).
    I never said to invest mutual funds in short term. Time horizon depends on how aggressive your fund is. There are very safe funds out there that offer guarantees with daily lock-in NAVPS funds out there (look up Mackenzie Destination Funds).
    And at this age... you're probably going to be moving out or getting married sometime, so...how you would manage that I don't know.
    Go check out the fund I just mentioned. Maturity dates vary from 2015, 2017, 2020, 2025. You choose. There are a couple funds out there that do similar things but without the daily lock-in NAVPS.
    I think whoever trained you is feeding you bullshit Steven, or you're just desperate to screw someone for a commission.
    If I'm desperate for commission, I wouldn't be here talking to students about money. Why? Students have none. I'm purely trying to help some people understand more about the financial services.
    I'm speaking from personal experience, as I got suckered into an investment and now I'm going to need to withdraw those funds and get slapped with a 5% early withdrawal fee (which is also flopping around wildly, sometimes up sometimes down).
    Sorry to hear that, but I would never advise my clients to invest if they see they need to use their money in the near future. Hence that is why I suggest building up emergency funds and taking care of short term needs before thinking about investing. However, starting early to SAVE is very important and that is what I am trying to get at. It pays to start early and smart.. savings account is good for emergency funds. Investments, it depends on what you are aiming for.
    Mutual funds are good long term, and relatively safe at 10+ years, and good ROR (~8%+) if you're invested with a good company and in a good portfolio, but otherwise, don't do it. GIC's lock you in, they're not liquid, low interest... but they're safe.
    Yes, but they also give you very low returns after inflation and taxes. Nonetheless, its only good for short-term needs. If you want guarantees, I'd suggest something like what I mentioned above.. at least you have the chance to gain higher interest than GICs.
    Seg funds are slightly safer than mutual funds, and still offer good interest. They guarantee you will get back at least 75% or 100% of what you invested, after X years. You choose X...the longer you wait, the more aggressively they'll invest your $$. Of course, I'd probably take the slightly higher interest of a mutual fund if you have time, because I'd be choked if I got 0% anyway.
    Yes, but high in service fees. The product I just mentioned does this with less fees.
    For anyone here...I'd recommend just stuffing your money into one of the higher interest (liquid) accounts that your bank offers, until you get your life together and can consider something more long term.
    It is important that you know what you are saving for. Emergency funds and short-term needs.. high interest savings account is a good choice. I don't recommend students investing lump sums as it is highly likely that they will need it in the short term. Save regularly is key (e.g. 100 per month)
  • edited July 2008
    President's Choice for me. CIBC used to clip me about $10-$20 a month and I could never seem to quite figure out how they came up with the number. I got fed up after they slammed holds right back onto my account when my friend effed up and gave me a check drawn on an account without funds.

    This was after three years of no holds at all on my CIBC account. Fascist bastards. They even lied to me after I asked will the holds be taken back off.

    I closed out the account six months later, after leaving it dormant due to my switch to President's Choice. Haven't looked back since.
  • Open a good bank account and get $50 too!

    I have been using ING Direct for years.
    No fees and service charges, no hustle for low balance.

    So open one and get $50 bonus on the first $100 you put in.

    This offer expires on August 31st/2012 and goes back to only $25 bonus.

    Use Orange Key # 20243821S1 for referral here: http://www.ingdirect.ca/referafriend/

  • Oh, I also use Presidents Choice :)
  • All I can say is that Envision is the worst credit union ever! The management and staff pretend like they care, and then when you ask them about a fee, they dont give an F. I had to call the service line to get it explained. The staff are so terrible. The worst branch is the one on 64th avenue in Langley. I see new people working there everyday because the employee turn around rate is so high. I have had employees complain to me about their management at the branch back when I used to be a "member" there. You are not a member of anything but crap at Envision!!
  • I use PC and they are great. but just be warned, youll get slapped in the face with a hefty 45$ fee if you're even 1 cent under the limit when a transaction goes through.
  • You might want to give Banking Tools a spin:

    http://www.fcac-acfc.gc.ca/eng/resources/toolCalculator/banking/index-eng.asp

    from Financial Consumer Agency of Canada.

     

  • Can we sign up for PC Financial online? Or do we have to goto SuperStore to sign up?
  • THE WORST BANK/CREDIT UNION IS ENVISION. DO NOT BANK THERE. YOU WILL GET CRAPPY SERICE!! THEY LIE TO YOU AND TALK TO YOU BEHIND YOUR BACK WHEN YOU LEAVE!
  • Coast Capital, man.
  • For comparison purposes, Student account fees for different banks are listed at:

     

    http://www.fcac-acfc.gc.ca/eng/resources/publications/banking/PDFs/bankingPackage/Table2-eng.pdf

     

    (from Financial Consumer Agency of Canada)

  • JUST JOIN COAST CAPITAL SAVINGS THE BEST CREDIT UNION EVER GREATER THAN EVERY OTHER BANK. 

Leave a Comment