I use to get charged up the ass for just leaving my money at royal bank. Just wondering what your thoughts about these banks and their service charges?
how do you feel about bank service charges
- Thread starter LittleAsianGuy
- Start date
Most banks make so much money from loans, rsp's etc, it annoys me when I get charged for every transaction.
G.A.
I was told by a teller that my monthly flat 8.00 charge was cheap. Told her im tired of this and took my business elsewhere.
So what happens to the people who don't have RSPs, Loan and Mortgages and only have a bank account? They just get free service? I hate to admit it, but in a bank's point of view, they must protect the shareholders. Think of the salary they have to pay the bankers??? President choice and InG direct can afford the no fee banking cause their cost is low. You will see Coast capital savings or TD, HSBC giving out free chequing accounts but that is only in stages. They lure you in to the bank and after awhile, they ended some how making money off from you anyways. I am ok with paying the service charges, I do however am concerned of bank procedures as they can vary from branch to branch. The way I look at it, you have a bank account, do you expect them to give you free service?
I agree but when you have any concerns or questions, be prepared to be on the phone for a bit.Ya i went to presidents choice also and love it
I highly suggest Coast Capital to anyone that wants value for their banking.
I agree banks need to make money, though I did find Royal Bank is particularly bad for service charges. Unlike at least one other chartered bank (CIBC), Royal doesn't have a no-fee option for any of their chequing accounts, ie., there's no way to avoid service charges at all.
What drove me about Royal was after they rolled out online banking, they initially tried to charge their customers a $2.95 monthly Internet banking fee. What?? They wanted to charge me to save them the work of employing a teller's services?? At least I have to give them credit for withdrawing this charge later on.
I was going to suggest this but ya beat me to it. You can use 100 debit transactions per day everyday at no cost. I usually never carry cash so I always paid by debit for purchases and was dinged an average of $30 a month. So I switched to PC Financial and I have had this account for 4 years now and have never paid a cent for anything. Using a CIBC bank machine for withdrawls is also free.
You are fooling yourself if you think that the people who "only have a bank account" are getting free service. For every $100 dollars someone has in a bank getting say ½% to maybe 3½% interest, the bank can loan out $500 at whatever interest rate they can get say 5½% to 8½%. That means that the bank is making a net of 25% interest on your money (5% x 5). On top of this they charge you a fee so that they can borrow your money.
As for "protect there shareholders"? Banks are making record high profits. Why - because of service fees and the large difference between savings and loan interest rates. Before service fees came into being about 15 years ago, the difference between savings and loan rates were about 1½ - 3%, now it is 5 - 8%.
The other "good" reason the banks give for service fees is that it costs them a lot to service your account. Well last time I checked, electricity was relitively cheap and I do not recall ever hearing that someone had to pay a computer a salary.
As for the "break" they give you for no fee for a minimum balance, well they should. Lets say that the minimum balance is $2,500 and it is in a chequing account making no interest. The bank can loan out around $12,500 at lets say 8% interest for an annual profit of $1000. So by not charging you say $12.50/month they are "giving up" $150/year in revenue to make $1000/year. From the banks point of view this is a great deal.
I concur....I've been with TD over 7 years and with a minimum balance in your chequing account, you can avoid those monthly banking fees.
Perhaps look at TD...they offer: late night banking (open until 8:00pm); open Saturdays: (9:30am - 3:00pm); just to name a few advantages...and a real live teller when you need one !!!
Years ago there were no service charges and banks made most of their money by lending it out or investing it and getting returns that way. Banks still make lots of money that way - the service charges just give them more money. The lenders will now look at each sector of the service they provide (ie deposits, mortgages) and require each separate sector to earn a profit. As such deposits earn their profit from service fees. I too use PC Financial but I also have a safety deposit box at a "real" bank. If you have no need for teller service them an internet based bank like PC or ING workes great and you can't beat the price. Plus I see that their interest rates are much better.
If you really want to what it's like dealing with the banks, open a commercial account. There's an annual review fee, a monthly administration fee, a charge for every transaction and a per deposit charge over and above the per transaction fee.
The greedy bastards get you coming, going and standing still!!! People bitch about lack of competition in retail gasoline sales, but the banks are the leaders in anal rape (withut lubrication) of their customers. When one implements a new ripoff fee, the others follow suit immediately.
The greedy bastards get you coming, going and standing still!!!
People bitch about lack of competition in retail gasoline sales, but the banks are the leaders in anal rape (withut lubrication) of their customers. When one implements a new ripoff fee, the others follow suit immediately.They make more than enough off of interest charges on loans. Read the book "The creature From Jeckyll Island". You will never look at banks the same way!
go to a credit union
I moved from RBC to a credit union about eight years ago, when I purchased my first home. The credit unions were much easier to deal with when it came to mortgages, and lower service fees were just a side bonus. As long as I maintain a minimum of $500 in the account, no service fees. I know that they're making a profit by loaning my money out, but at least I don't see a $15-20 per month service charge, or a per transaction service charge any more. $500 is not big deal to me, as I know they are providing a service and need to cover their costs. Besides, I get several hundred dollars in profit sharing at the end of every year. I can't ever see myself dealing with one of the big banks ever again.
I moved from RBC to a credit union about eight years ago, when I purchased my first home. The credit unions were much easier to deal with when it came to mortgages, and lower service fees were just a side bonus. As long as I maintain a minimum of $500 in the account, no service fees. I know that they're making a profit by loaning my money out, but at least I don't see a $15-20 per month service charge, or a per transaction service charge any more. $500 is not big deal to me, as I know they are providing a service and need to cover their costs. Besides, I get several hundred dollars in profit sharing at the end of every year. I can't ever see myself dealing with one of the big banks ever again.
CIBC Everyday Chequing - $1000 minimum. No charge for Interac. They will charge you for withdrawals from non-CIBC ATM's though.
I totally avoid service charges. I will not put money in a financial institution and choose a checking or savings account unless there are ZERO service charges. I have Citibank online accounts and I avoid the charges by paying one dollar a month from my checking account (which is linked to a high interest moneymarket account) to each of two credit cards that have zero balances. I make small purchases every now and then to use up the credit balances on the cards.
---Dr. Moe
Funny, I thought banks can only lend out money that is locked in??? Like GICs, RRSPs, Term Deposits?????
Wow what the fuck? I just sold something to someone through Paypal. He puts $4 into my Paypal account, and I'm charged a $0.67 fucking Paypal transaction fee!
Actually, I believe the Canadian bank charter allows them to lend 10 dollars for every one dollar on deposit. They pay you 2 or 3% for the money that you have on deposit, and they in turn lend out 10 times that amount at whatever their going interest rate is.
