Personal Finance

CIBC eliminates Monthly Fee Waiver with $2000 balance for the Everyday Chequing Account (Sept 1, 2017)

  • Last Updated:
  • Sep 19th, 2017 12:00 pm
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Oct 19, 2016
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If I was you, Id consider BMO or TD.. They have free checking with minimum balances.

Although they will probably charge you to order a check book... Thats the only negative I can think of.
cloakster wrote:
Aug 10th, 2017 6:49 pm
So I was thinking of closing my CIBC account as I only keep it around as a backup. But I have decided to keep it based on the following logic. So I purposely keep $2100 in the account to avoid the $3.95 fee and $100 extra as backup. If I were to transfer $2k to EQ (or Tangerine during promos), $2k @ 2.3% = $3.83/month. When you factor in the $3.83 being a taxable income, you get $2.5-$3 per month in interest. So the actual net loss is only $1-1.5. Yes, it really does suck giving CIBC $3.95 per month, but I think for the net loss of $1-1.5, its worth keeping it as a backup account. At least it makes sense for me as CIBC is the only of the major 5 banks that I have an account with.
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cloakster wrote:
Aug 10th, 2017 7:26 pm
That's the plan for the future. For now I am trying to keep my credit checks and unused credit to a minimum as I plan to apply for my first mortgage within the next 1-2 years.
Like the Shawguy said, you can still open loc if you have good income and good credit score. You get free cheques and free email money transfers and unlimited transactions. What more do you need?
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MehtabS wrote:
Aug 10th, 2017 9:55 pm
Like the Shawguy said, you can still open loc if you have good income and good credit score. You get free cheques and free email money transfers and unlimited transactions. What more do you need?
How much is good income?
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ofertasgo wrote:
Aug 11th, 2017 12:20 pm
How much is good income?
above 45k
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Just a head's up we had one of the very old accounts ~24 years old and they are switching us. If you talk to customer retention they will credit you the $300 that is being offered to new customers with no strings attached, so you can do this and still change banks later. We've now structured things so that we will only be paying the minimum monthly fee and will no longer be keeping a minimum balance since we can earn more with that money elsewhere than it costs to have it sitting dormant in our account.
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Clacker wrote:
Aug 11th, 2017 2:03 pm
Just a head's up we had one of the very old accounts ~24 years old and they are switching us. If you talk to customer retention they will credit you the $300 that is being offered to new customers with no strings attached, so you can do this and still change banks later. We've now structured things so that we will only be paying the minimum monthly fee and will no longer be keeping a minimum balance since we can earn more with that money elsewhere than it costs to have it sitting dormant in our account.
Which account (name) is it? It took me 3 visits and 1 phone call and everybody but the first teller told me that Personal Chequing Accounts and Waive Accounts would not be changing. I was also told that I'd receive a non-generic letter or email or banking inbox message if that were to change.
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GTEH!
Coming up soon, Sept.1. Better put a reminder to close Account.
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Pretty painless to close my CIBC account. Just needed my driver's license at the teller. I'm either just keeping with Tangerine or going with BMO or TD with their free chequing offerings.
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Does anyone here use CIBC investor's edge? If I close my CIBC chequing account, is it free to transfer money into AND out of my CIBC investor's edge account from another bank (e.g. Tangerine)?
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townfries wrote:
Aug 13th, 2017 5:15 pm
Does anyone here use CIBC investor's edge? If I close my CIBC chequing account, is it free to transfer money into AND out of my CIBC investor's edge account from another bank (e.g. Tangerine)?
Yes, just give them a call during business hours and give them bank num, transit num, and acc nmbr and they will link it.
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Jaye1111 wrote:
Aug 11th, 2017 9:51 pm
Which account (name) is it? It took me 3 visits and 1 phone call and everybody but the first teller told me that Personal Chequing Accounts and Waive Accounts would not be changing. I was also told that I'd receive a non-generic letter or email or banking inbox message if that were to change.
The account was called "Menuplus Maximize Interest"
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Mar 12, 2017
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I have a Smart Account ($3,000 minimum balance) because I send a lot of e-transfers. So I guess I'm safe. $3,000 in dead money is an opportunity cost of $69 per year in lost interest (2.3% EQ Bank). $5.75/month opportunity cost. But I sent 15 e-transfers since the beginning of the month and they typically cost $1.00-1.50 per at other banks. So I'm getting my money's worth. I sent 65-80 e-transfers/month from March to May and my debit card got disabled multiple times because they thought my account was hacked or that I was doing something illegal. LOL. So yeah you have to cool it with the Interac e-transfers.
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cloakster wrote:
Aug 10th, 2017 6:49 pm
So I was thinking of closing my CIBC account as I only keep it around as a backup. But I have decided to keep it based on the following logic. So I purposely keep $2100 in the account to avoid the $3.95 fee and $100 extra as backup. If I were to transfer $2k to EQ (or Tangerine during promos), $2k @ 2.3% = $3.83/month. When you factor in the $3.83 being a taxable income, you get $2.5-$3 per month in interest. So the actual net loss is only $1-1.5. Yes, it really does suck giving CIBC $3.95 per month, but I think for the net loss of $1-1.5, its worth keeping it as a backup account. At least it makes sense for me as CIBC is the only of the major 5 banks that I have an account with.
A free savings account works well as a backup.

You are still losing $2+ per month. Dunno how you got down to $1-1.50.

$3.83 interest minus 50% tax is still over $1.90/mo you are losing.
On $2100 it is $2.01.

That's a 100% loss if you keep CIBC chequing vs ditching it or getting a free savings account.

EDIT: LOL, wait ... I think I get what you were doing. You were using (A) $2100 in CIBC to waive as your zero line instead of (B) put the money in EQ with no CIBC chequing account? You can add a free savings.
So (C) money in EQ plus pay $3.95 is a $1-1.50 loss vs (A)? Why switch to C then? C makes the least sense. And if you stay with A you are losing 100% of $3.83 - tax vs (B).
Last edited by ace604 on Aug 15th, 2017 3:08 am, edited 1 time in total.
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NEETtrader wrote:
Aug 14th, 2017 11:10 pm
I have a Smart Account ($3,000 minimum balance) because I send a lot of e-transfers. So I guess I'm safe. $3,000 in dead money is an opportunity cost of $69 per year in lost interest (2.3% EQ Bank). $5.75/month opportunity cost. But I sent 15 e-transfers since the beginning of the month and they typically cost $1.00-1.50 per at other banks. So I'm getting my money's worth. I sent 65-80 e-transfers/month from March to May and my debit card got disabled multiple times because they thought my account was hacked or that I was doing something illegal. LOL. So yeah you have to cool it with the Interac e-transfers.
But what was the opportunity cost on putting that $3k into Bitcoin a few years ago ... it'd be worth $15k, $50k, $100k++ by now depending on how long you are talking about ... massive opportunity cost :)
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You cant compare like that... Bitcoin a highly speculative gamble(where investor could lose 100% of his money) VS a bank account(where it is CDIC insured - his $3K wont dissapear).

If we knew how bitcoin would perform, ofcourse we would all go back in time and would have put everything in bitcoins including borrowed money.
ace604 wrote:
Aug 15th, 2017 3:11 am
But what was the opportunity cost on putting that $3k into Bitcoin a few years ago ... it'd be worth $15k, $50k, $100k++ by now depending on how long you are talking about ... massive opportunity cost :)

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