Banks may seem like an odd place to look for free services, but the advantage of being a full service customer with one of the Big Five is that the more business you give them the better the deal.
It’s helpful to know what else your bank can offer besides a basic chequing and savings account, especially if it comes without a cost. Some banking freebies are obvious, like bundling your accounts to save $130 or more on monthly fees. Others, like a new account bonus that can save you up to $250, might require a bit more investigation.
Here are some things you might have to ask about or go looking for:
New account bonus
One of the best ways to get something from your bank is to open a new account. Banking has never been more competitive, and sometimes banks offer generous incentives for new customers. Here are three new customer incentives currently being offered:
TD offers a $250 welcome bonus if you open a Select Service, Value-Plus or Infinity account
CIBC offers 15,000 Aeroplan points if you open an unlimited chequing account. Make one direct deposit and one debit transaction. Add overdraft protection.
ING is offering a $50 bonus if you open a chequing or savings account with an initial deposit of $100.
These types of promotions come around from time to time, so it’s always a good idea to ask about new customer incentives before you switch banks.
Most major banks and credit unions also have free chequing account options available for seniors, post-secondary students and children under 18.
Unlimited chequing accounts
With an unlimited account you pay a higher monthly fee to avoid getting nickel-and-dimed with additional charges. You should expect these types of accounts to include unlimited debits and withdrawals — including non-branch withdrawals — free email money transfers and some overdraft protection.
All of the big banks offer an unlimited chequing account option for one monthly fee, and most will waive the fee when you maintain a minimum daily balance.
TD spokesman Tamar Nersesian says their Select Service account offers a number of free services and products if the minimum monthly balance of $5,000 is maintained.
These include:
Free small Safety Deposit Box
Free certified cheques
Free Canadian and U.S. dollar drafts
Free preferred US Bank account which includes a free US Dollar credit card
Free debits (no branch fee) from almost any ATM in the world
When you add it all up, there’s over $500 a year in products and services available for free. Other banks have similar programs.
Bundling your banking
The advantage of using a full service bank for all of your banking needs is that you may qualify for a multi-product discount on fees, or a better interest rate on your line of credit or mortgage.
RBC offers rebates for clients who hold multiple RBC products. For example, RBC’s No Limit Banking customers can get a full rebate of their monthly bank account fees when they have a rewards Visa, an investment and mortgage with RBC. That’s a savings of $131.40 per year.
The CIBC Total Banking Rebate gives you the opportunity to receive a rebate of 30 to 50 per cent off your monthly chequing account fees for clients who hold multiple banking products with CIBC. Depending on the account, you can save anywhere from $23 to $88 a year.
When you bundle accounts you can often get the annual fee waived for a premium credit card, which can save you up to $170 a year.
Banking on the go
Mobile banking technology is making it easier for Canadians to do their banking on the go. More than 2.5 million Canadians have downloaded a mobile banking app on their smart phone.
CIBC is a leader in mobile banking technology and now allows clients to sign up for free text message alerts to let them know when their bills are due, or if a scheduled payment did not go through, along with other text message alerts to help them manage their day to day finances.
CIBC and Rogers recently announced that clients will soon be able to use their Rogers smart-phone to pay at the checkout with their CIBC credit card — this service will be available later in 2012 — and there will be no additional fees for clients to use this service.
Investing
The discount brokerage arm of a full service bank offers a number of advantages for clients looking to invest, including free market information, research reports and online tools to help manage your investments.
RBC offers free “practice accounts” where self-directed investors can learn the ropes of online investing without risking their own money. Clients can buy and sell a wide range of investments with $100,000 of “practice money”.
CIBC was the first major bank in Canada to launch a mobile stock trading app, and since then other banks have followed suit. Sean Hamilton from CIBC says there is no added cost for self-directed clients to trade on their mobile device when compared to online trading — and mobile trading provides an added convenience for those who wish to trade while on the go.
Budgeting and planning
Your bank should be providing you with the right tools and advice to help you meet your long term financial goals.
There are a number of free tools available for customers, if you know where to look.
RBC’s myFinanceTracker is an online money management tool that makes it easy to stay on top of your finances. The RBC Advice Centre is an online resource with advice on banking, home ownership, saving and investing.
TD Helps is an online resource where you can get answers on home ownership questions from buying your first home to renovating.
The SmartSteps program is a way BMO says it helps clients save on fees and interest costs. SmartSteps includes some on-the-spot money saving tips.
CIBC CreditSmart is a free service where you can set customized budgets and receive alerts if you exceed your planned budget for the month, or alerts if you approach your credit limit, helping you stay on top of your everyday budgeting and saving.
http://www.moneyville.ca/article/1211328--banking-freebies-get-free-stuff-from-your-bank-account
Posted via email from Markham Real Estate Today with Asif Khan
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