It started as a savings account when I was 16 and first opened the account and it has since became a chequing account over time (although it still maintains some unusual accounting quirks due to its origins). This account has seen me through everything since then, from school to part-time jobs to my current full-time job. It's been my constant in life.
Of course, that constant presence has lately cost me to the tune of $10.95 a month.
Yes, so that TD can hold my money and maintain my business, I pay them $11 of my hard earned money every month.
Absolutely seeing those bank fees disappear from my account every month is increasingly becoming an issue with me as they should really. When you budget the dollars and doughnuts out of your monthly expenses, especially in my case, $11 seems like more and more money every single time. That $11 a month could shave a significant amount of time off my student loan debt every month. Or pay for some great meals. What have you really.
But I'm struggling with the idea of how to get rid of it.
It's not that there are 'no options' available to me to get rid of bank fees. In fact, TD, the very bank I'm gripping about does provide "free" chequing accounts to everyone.
Well, except that those free TD accounts comes with a catch that is partially the reason why I'm gripping still.
Free TD accounts require a minimum balance in order to have your fees waived. And before you think "Oh that's not so complicated" let me add, as far as minimum balances goes, these are not small insignificant minimums. Even TD's minimum chequing account (which comes with a $3.95 charge) requires a $2,000 minimum. And it's an account that I don't downgrade to despite the smaller price because I happen to use my account just enough a month with bills and whatever is that it is still cheaper to use the account I currently have than the one a pay grade down.
The account I'm currently using? I need $3,000 to get the $10.95 charge waived. Money that could be put to work elsewhere.
To be honest, you only have to look around at other major banking institutions in Canada to realize that most of them follow the same model of a minimum balance needed to avoid fees without any actual no-fee, no minimum banking options.
While the amount needed varies meaning that some accounts are still better than others, it really isn't enough for me to justify making any switches in banking. The model also begs the question, is there any actual no-fee banking options for Canadians that doesn't require us to be students, seniors or have lots of money sitting in a bank account?
Yes.
The more famous of the two I know of is the one offered by Tangerine, who not only doesn't charge fees but also pays interest on money held in your chequing account, something that my chequing account with TD doesn't provide at all for any amount.
However, while doing some quick and cursory research for this entry, I also found the President's Choice Financial no fee banking account... and found myself feeling it to be a better no fee account if only because it matches Tangerine and then exceeds it in services provided... except one.
Their interest provided is tiny compared to Tangerine, who provides 0.25% for the first $5000 while PC Financial doesn't provided a 0.25% interest until you have twice that ($10,000) in the bank.
While the pull to switch is strong, the inconvenience of switching after owning this account for as long as I have and having a large number of accounts associated with it is enough to deter me... but only for now. I'm still determined to eliminate my bank fees and that may mean having to eventually go elsewhere to do my banking. But for now as it were, I am looking towards getting the minimum balance to get it waived.
And the sooner the better.
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