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Discussion Starter #1
I’ve been looking at options to move away from the TD All Inclusive Account due to the 5K minimum balance required. I do like having unlimited transactions, so the other option with TD is the next account down which still requires 4K.
I have some savings and GIC with a credit union but this particular one doesn’t offer a free chequing account, although the monthly fees are less than TD. (We also have investments with an advisor for our long term savings)
my spouse doesn’t want to move accounts away from TD as we have our mortgage and other products there. We maintain our own accounts so I can move away from TD but there is a level of convenience in everything there.
I often think I’d rather that 5K be doing something else. In reality when I look at what it would earn in my CU savings account, it’s only a few dollars a month and it is worth giving up the convenience of TD just to earn a bit of interest on the 5K? We own a home, a condo we rent out, and RRSP/TFSA investments so I do have my money working for me. I find myself annoyed that I have to give TD 5K for something I could get for free somewhere like Simplii or Tangerine, or an online CU (I use meridian and they now have an online bank Motus).
It feels a little silly to maintain a relationship with TD plus the CU I use now plus open another account for free chequing all to save a few bucks on the 5K...which I would keep in cash anyway because I consider it to be the first place I would dip into for emergencies. Thoughts?
 

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I recommend not concerning yourself over this. It's not worth it and there are many other ways of making money.

You're not losing interest on that 5K - it's going toward paying for the account and all it's features. The bank figures at 5K it's a wash.

It's much more convenient to keep your funds all at one bank and I would keep it in one of the big five.

You might start to educate yourself on investing and slowly move away from paying the outrageous fees for an advisor - that's where the big loss is...

ltr
 

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Discussion Starter #3
I recommend not concerning yourself over this. It's not worth it and there are many other ways of making money.

You're not losing interest on that 5K - it's going toward paying for the account and all it's features. The bank figures at 5K it's a wash.

It's much more convenient to keep your funds all at one bank and I would keep it in one of the big five.

You might start to educate yourself on investing and slowly move away from paying the outrageous fees for an advisor - that's where the big loss is...

ltr
Thanks for sharing your perspective. Yes, I take your point about the cost of investing with an advisor, which is a much bigger impact than interest on 5K.
 

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I view the 5k as the last little bit of my emergency cash reserve. plus I like The other small features.....Visa card fee rebate, no fee email transfers, no fee chequebooks, no fees at non-td bank machines, no fees at US bank machines, discount on TD borderless account. Comes with a small safe deposit box too but I don’t have one.
 

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My TD Bank Preferred Chequing account has a minimum of $2,000. I've been there for > 35 years, so I guess that account type is not offered anymore and I must be grandfathered. (I am a grandfather, so that's fitting I suppose).
 

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TD Bank Preferred Chequing account
I have a couple of those -- a joint with my wife and my own. The downside is that they charge a fee for sending you a statement and then have the temerity to claim that there are no fees! Once in a while I look at switching to one of the newfangled accounts with more explicit fee-free services, but nothing really jumps out at me. Last time I asked at the branch the manager said "Preferred Chequing? You don't want to give that up." Mine are a legacy of Canada Trust and still have the same account numbers and branch as back in the day.
 

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Maybe you were not referring to yourself, but why have a paper statement mailed to you? Download a PDF off the website and keep it in a folder on your PC. I have not had a paper statement from any FI, bank or brokerage or credit card for well over a decade. Everything resides nicely on the PC, in the cloud or on a USB key.

But getting back to the topic at hand, I agree there is minimal investment income lost needing to hold minimum account balances of $2-5k. At 2% BT, the income won't buy you a burger each year.

We have a few legacy chequing accounts ourselves, but we have senior's variety of 'no fee' basic accounts with Scotia and RBC. That gives us 10-12 free debits a month per account, and at least a few free e-transfers each month. That is all we need, even with a number of PAD debits (pre-authorized debits) for credit card and certain utility payments that cannot be charged to a credit card without a fee. If I need more e-transfers beyond monthly freebies, I just use EQ Bank's unlimited free e-transfers for that. Have no other use for other bank account related services.
 

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Discussion Starter #8
My TD Bank Preferred Chequing account has a minimum of $2,000. I've been there for > 35 years, so I guess that account type is not offered anymore and I must be grandfathered. (I am a grandfather, so that's fitting I suppose).
Yes, my spouse has this account and won't let it go :) Since we maintain separate accounts, I'm the one with the 5K minimum balance for the benefits of the free Visa Card, etc.
 

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Even if you get an interest rate of 2% on savings, that is 100.00 per year before tax. After tax it is closer to $50. There are competitors who may have a better deal. I believe with RBC if you have 3 types of accounts, the fee is waived. With some banks (maybe HSBC) they look at the aggregate amount you have with them to waive the fee.

At current interest rates, if you are happy with TD services, it may be better to just keep your accounts with them.
 

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I think the OP answered his own question in the last paragraph of his (first) post.

What's C$5K worth these days, considering you have a mortgage ... never mind what other bills that go along with your properties.

I think Money17#### should be happy (if not gasp) with my response on this bank (non)-issue.
 

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I find myself annoyed that I have to give TD 5K for something I could get for free somewhere like Simplii or Tangerine, or an online CU (I use meridian and they now have an online bank Motus).
It feels a little silly to maintain a relationship with TD plus the CU I use now plus open another account for free chequing all to save a few bucks on the 5K...which I would keep in cash anyway because I consider it to be the first place I would dip into for emergencies. Thoughts?
There is no real competition in Canada when any startups like Tangerine just get bought by Bank of Nova Scotia etc. I keep TD All-Inclusive, Tangerine and EQ Bank accounts in Canada and consider the $5k as an emergency fund

The only real benefit to TD over Tangerine imo is cross border banking and a safety deposit box. TD USA by comparison has $2.5k USD min balance for the flagship account, better credit cards with no fx fees etc.

I will probably keep the TD account open for cross border banking but I don't feel like $5k is much of a deal when Tangerine and EQ can accomplish 99% of banking. Eventually I will probably reduce it to a lower account and pay the rare fee if any
 

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To me it sounds like neither TD nor the credit union have anything special to offer you that couldn't be found elsewhere and probably better. Are the GIC and savings rates at the CU as good as the best of the online banks (like EQ)? If not, I think an optimal solution would be to drop both TD and the CU, then get an unlimited chequing account at Simplii or Tangerine, and park the emergency fund in EQ or the like.

I get the argument it's only $100 difference, but with TD especially you are not getting any extra benefit, so why not go with the competitor who gives you more for less? Also, the argument about "I need an emergency fund anyways" makes less sense when you consider if you actually need to withdraw from your emergency fund you immediately also start getting charged those monthly fees. So why not set things up so that you are free to use your emergency fund when and if needed without the threat of extra charges?

I'm also going to dismiss the "convenience of having everything in one bank" argument - it's no like you got to drive from one branch to another to do your banking. My "banking" activities consist of surfing to Simplii website, then Tangerine, then TD - how much more "convenience" do I really need? Also, unless you actually need the funds, the emergency fund is basically a "set and forget" account.
 

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Discussion Starter #13
To me it sounds like neither TD nor the credit union have anything special to offer you that couldn't be found elsewhere and probably better. Are the GIC and savings rates at the CU as good as the best of the online banks (like EQ)? If not, I think an optimal solution would be to drop both TD and the CU, then get an unlimited chequing account at Simplii or Tangerine, and park the emergency fund in EQ or the like.

I get the argument it's only $100 difference, but with TD especially you are not getting any extra benefit, so why not go with the competitor who gives you more for less? Also, the argument about "I need an emergency fund anyways" makes less sense when you consider if you actually need to withdraw from your emergency fund you immediately also start getting charged those monthly fees. So why not set things up so that you are free to use your emergency fund when and if needed without the threat of extra charges?

I'm also going to dismiss the "convenience of having everything in one bank" argument - it's no like you got to drive from one branch to another to do your banking. My "banking" activities consist of surfing to Simplii website, then Tangerine, then TD - how much more "convenience" do I really need? Also, unless you actually need the funds, the emergency fund is basically a "set and forget" account.
You raise good points to consider.
 

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At $29.95/month for anything from accidentally dipping below $5k to needing some funds for 1 day

A LOC or a savings account makes more sense as an emergency fund really

This year EQ offered 2.45% 3 month GIC and Tangerine offered 6 month 2.8%. TD forgettabootit
 

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Since we maintain separate accounts, I'm the one with the 5K minimum balance for the benefits of the free Visa Card, etc.
Hold on here, you didn't mention this at the start. What services do you use for "free" with this account? Do you regularly use the Visa Card? Which premium card is it and if you could get an equivalent Visa separately, how much would it cost, or would you use it? Do you use the safety deposit box? Do you make regular withdrawals from non-TD ATMs? They have a no-fee charge for that.

If your response is none of the above, or if you can find another free equivalent Visa card (or if it isn't your main card), then going with Simplii or Tangerine would probably meet your needs.
 

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To me it sounds like neither TD nor the credit union have anything special to offer you that couldn't be found elsewhere and probably better.
tell me more. I’d like to hear what’s better....I’d consider switching if the offer was materially better.
 

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Discussion Starter #18
Hold on here, you didn't mention this at the start. What services do you use for "free" with this account? Do you regularly use the Visa Card? Which premium card is it and if you could get an equivalent Visa separately, how much would it cost, or would you use it? Do you use the safety deposit box? Do you make regular withdrawals from non-TD ATMs? They have a no-fee charge for that.

If your response is none of the above, or if you can find another free equivalent Visa card (or if it isn't your main card), then going with Simplii or Tangerine would probably meet your needs.
We use the TD infinite cash back visa. So the annual fee and additional user fee is waived ( total of $170). I have used the free bank draft benefit a couple of times. No use for a deposit box. I have used other ATMs and avoided the fee but typically I can get to a TD ATM. I have family in the UK and when I visit there the no charge international ATM is useful, especially as many ATMs in the UK don’t charge a fee for the user. So the primary benefit we use is the Visa. (As well as unlimited transactions and free e transfers but those are available else where). We both do a little bit of investing with TD direct investing as well.
 

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We use the TD infinite cash back visa. So the annual fee and additional user fee is waived ( total of $170).
So, when it comes down to it. Is the TD Infinite cash back Visa worth the opportunity cost of $100 in interest? 3% - groceries, recurring bills, gas and 1% everywhere else + roadside assistance.
vs.
Tangerine money back: 2% back - choice of 2 categories (3 if you have a savings account), 0.5% everywhere else
vs.
Hometrust preferred visa: 1% back + roadside assistance + 0% foreign exchange fee
vs.
BMO cashback card: 3% groceries, 1% recurring bills, 0.5% everywhere else.
vs.
Costco (if you have a membership): 3% restaurant, 2% gas, 1% everywhere else.

You mention visiting the UK, so having a no exchange fee card is useful, which is where Brim provides a benefit over Hometrust as you get 1% cash back in addition to no exchange fee.

You can go with a combination of cards if you are comfortable with that as well, but it depends on your spending habits, and whether you need roadside assistance or travel extensively.

I should mention that I have the same account, so that is where my bias would be, but also hold Hometrust, Costco and Brim.
 
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