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Bank rates that should be charged are interest they should be paying me, not fees they should be charging me.
This is the reason why I use an online bank. They actually pay YOU for the right to use your money.
Brick and mortar traditional banks are typically good investments, and are often included in many mutual funds and EFT’s… in part, because they make lots of money off the fees they charge their clients.
- keep less than $4000 in your chequing account? Then pay a fee
- make too many transactions in a month with your own money? Thats a fee
- lowest rates possible for savings accounts (don’t make me laugh by calling them HISA’s)
- pressure to buy their investment products with high management fees that would eat away at your gains.
- what ridiculous fees have you been charged?
Online or alternative banks
- often pay interest on your chequing account!
- provide better rates for High Interest Savings Accounts so your savings can grow faster.
- usually have 24/7 support since there are no branches
- lower overhead since there is no brick and mortar to support, savings is passed on to YOU!
What type of bank do you use? And why?
I use two of the higher interest rate offerings from online banks. EQ bank provides 1.25% on their High Interest Savings account, and Wealthsimple provides .5%. I also use Tangerine for my every day checking account, and never pay any fees.
With inflation and the higher cost of living, we have to make our money stretch further. For the money you are not investing, park it in a high interest savings account, so at least you are earning some interest. Don’t let bank fees chip away at your money!
For more content like this, check the Finance and Investing section of the blog.