Personal Finance

Manulife All-In Banking Package launches

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  • Jun 25th, 2019 10:30 pm
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Manulife All-In Banking Package launches

I predicted this in another thread on another message board, and possibly on RFD as well when I saw that Manulife Bank had refreshed its Advantage Account by offering a rate of 1.50% (plus a time-limited 1.75-1.85% bonus interest rate for six months) that included free pre-authorized debits, free cheque transactions, and free bill payments regardless of minimum monthly balance. They'd streamlined their account opening process such that it could be opened entirely electronically, if you count the fact that linking bank accounts requires submission of a PDF e-Statement of your external bank account via scanning & uploading in online banking. As well, with only a $1000.00 minimum monthly balance for the month, all transaction fees were waived which gave you unlimited Interac e-Transfer and Direct Payment transactions, bill payments, and the like. I believe my words were something to the effect of, "watch out for a dark horse in Manulife, which could decide to go all in (emphasis added) on no fee digital banking by, say, removing that minimum monthly balance requirement."

While they haven't done that specifically, what they have done done is launched a new account called the Manulife All-In Banking Package Account. It will have a monthly fee of $10.00 per month, but no minimum monthly balance. Instead, at the end of every month, Manulife Bank will check automatically as to whether your high interest savings account balance is at least $100 higher than your previous month's balance. If it is, term # 5 in the fine print notes they'll waive the $10 monthly fee (not an annoying rebate like CIBC and others do). It includes all of the features of the Advantage Account, but without the minimum monthly balance. They're throwing in 1 year free of Amazon Prime ($79 CAD value), which you'll get an Amazon Prime membership code to redeem (doesn't say existing Amazon Prime members can't use these), and/or between 2-5 months free of an Audible subscription.

They also appear to be throwing in travel insurance into the mix, which could be useful for millennials, apparently at no extra charge. Interesting cross-sell, too.

Details are here: https://www.manulifebank.ca/campaign/al ... nking.html

Or here: https://www.allinbanking.ca/

They join a competitive field, with the recent launches of Motus Bank, rebranding of Motive Financial & Simplii Financial 2-3 years ago, and Alterna Bank completing. However, at least in terms of Motus Bank, they've got at least four (4) of significant edges: (1) they've got streamlined back-office and technological operations whereas Motus, for example, takes fully 2-3 extra business days to process externally-initiated incoming/outgoing EFT transactions from a Motus account; (2) they've got a fully staffed national contact centre and a national independent financial advisor network whereby a Manulife Bank customer could, theoretically, go into to, say, perform customer maintenance like updating their address, contact information, or opening a new account; (3) they've got access to deposited funds limits, which Motus doesn't offer; and (4) they've got their own privately operated Manulife Bank ATM network at Mac's and Circle K convenience stores outside of Quebec, which they could potentially add as full service ATMs.

The method of waiving the monthly fee is innovative, though I tend to prefer HSBC's method of waiving the fee based on the collective HSBC and subsidiary account balances in HSBC Advance and HSBC Premier; however, this is arguably a more democratic method in that any one who has the capacity to save $100 per month (or $40-45 per biweekly pay period) can benefit without the need to keep a larger balance on deposit. It also adds an element of stickiness to the deposits, at least in respect of saving that amount every month and keeping those funds on deposit.

Would I use it? Probably not, at least not yet. I'd be more inclined to go with the Advantage Account and stick $1,000 there as the difference between, say, 1.50% that Manulife offers and the average of the best HISAs (2.35%) is not especially significant on only $1,000 (85 bps, or 0.85%).

Cheers,
Doug
Last edited by dmehus on Jun 10th, 2019 12:48 pm, edited 3 times in total.
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Like many things Manulife it seems to sit in between the big banks and the non-traditional ones. Could be good for some people I suppose.
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joshnet wrote:
Jun 10th, 2019 11:28 am
Like many things Manulife it seems to sit in between the big banks and the non-traditional ones. Could be good for some people I suppose.
I would argue it's still better than Motus Bank, which had to be dragged kicking and screaming into offering Motus Chequing accounts to persons with less than a 620-680 beacon score. As well, they offer access to deposited funds limits on ATM and/or pulled EFT deposits, which Motus doesn't offer.

I would say they're comparable to HSBC Advance and marginally better than HSBC Advance in that you don't need $5,000 on deposit. It's arguably more democratic to the lower income segments of the population and encourages them to regularly save.

Personally, I'd be more inclined just to go with the Advantage Account, but it's a good offer.

Cheers,
Doug
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I'd say they're each better in different ways. With Manulife you'd have much less interest rate, and also you'd need to be careful with the savings balance or else be charged. Trade-offs either way. Both aren't institutions I'm personally interested in.
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joshnet wrote:
Jun 10th, 2019 11:42 am
I'd say they're each better in different ways. With Manulife you'd have much less interest rate, and also you'd need to be careful with the savings balance or else be charged. Trade-offs either way. Both aren't institutions I'm personally interested in.
Agree with you there. They're still marginally better than HSBC, though. For me, Motus poor operational processes and underwhelming back-office technologies are more of the concern for me, but Manulife's offerings aren't compelling at present. That said, I've been utterly disappointed with EQ Bank - not only do they not have access to funds limits despite marketing themselves for daily banking, their transaction narratives are completely lacking. That's a deal-breaker and if they don't start putting in the name of the incoming or outgoing FI and the last 4 digits of my account number, I will close my account with them by next year when I purge my Scotia, Coast Capital Savings, and Tangerine accounts, and I might just go with Motive Financial and/or Alterna Bank and a Manulife Bank.

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Doug
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I realize this thread isn't about Alterna, but I've had a pleasant experience with them all around. No problems. Motive less so, not answering emails and such.
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joshnet wrote:
Jun 10th, 2019 11:59 am
I realize this thread isn't about Alterna, but I've had a pleasant experience with them all around. No problems. Motive less so, not answering emails and such.
Right, but you have to consider Motive Financial is like a side business - they're akin to a branch of Canadian Western Bank, like Achieva Financial or Hubert Financial, and are staffed as such. They're just a virtual deposit gathering business and aren't intended to provide the traditional level of customer service. I kind of think of them, in terms of customer service (or lack thereof) as Telus' Public Mobile whereby most of the support you get is unofficially in third-party forums and message boards. ;)

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Doug
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I agree, to a point. If Motive advertises certain things (such as email support) then there's a reasonable expectation of it. In the case of Public Mobile this is clear.
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Interesting... but you have to get the credit card and bank account right? You can't just get the bank account? Is the credit card competitive?
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ranny3 wrote:
Jun 10th, 2019 12:26 pm
Interesting... but you have to get the credit card and bank account right? You can't just get the bank account? Is the credit card competitive?
Nope, that's just a cross-sell. You can open the chequing account, which is called the Everyday Banking Account, but have to open a HISA (at 1.20%, not 1.50% like the Advantage Account), to get the fee waiver on the chequing account since you have to grow your HISA balance by $100 each month.

The credit card, though, is optional.

Cheers,
Doug
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dmehus wrote:
Jun 10th, 2019 11:13 am
They're throwing in 1 month free of Amazon Prime ($79 CAD value), which you'll get an Amazon Prime membership code to redeem (doesn't say existing Amazon Prime members can't use these), and/or two months free of an Audible subscription.
As per your link, it's one year for new and existing members if you meet the qualifying purchases using either debit or credit card.

i.e.
One year of Amazon Prime and up to five months of Audible are yours when you use your All-In Banking Package. Already an Amazon Prime member? Your next year is still on us.
To get Amazon Prime and Audible on us, simply make 10 or more purchases in each of the first two full months.
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Sauerkraut wrote:
Jun 10th, 2019 12:41 pm
As per your link, it's one year for new and existing members if you meet the qualifying purchases using either debit or credit card.

i.e.
One year of Amazon Prime and up to five months of Audible are yours when you use your All-In Banking Package. Already an Amazon Prime member? Your next year is still on us.
To get Amazon Prime and Audible on us, simply make 10 or more purchases in each of the first two full months.
+1

Thanks, @Sauerkraut. I didn't mention all the specific terms (i.e., purchase requirements, which, presumably, can be done with either a Manulife debit or My Money credit card), but I really appreciate you pointing out my typo of "month". It's now been corrected. :)

Cheers,
Doug
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I probably won't use it, but I like the idea. It's friendlier to say you can get fees waived if you save a little bit every month, versus having to leave a few thousand in the account at no interest (and so they can ding you for the full fee if you ever dip below by accident), or invest a few tens of thousands, or etc. like some other banks do.

I also like that it might encourage someone to save, who doesn't already do it. I know we talk a lot about a few hundredths of a percent in interest, or saving the same on your investments' MER, but actually saving instead of not doing so, is more important than either of those.

Obviously they're launching this to make money, but it's refreshing to me that it's not just another account where you can get whatever you want for free if you're already rich.
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Manatus wrote:
Jun 10th, 2019 1:12 pm
Based on their schedule of services and fees, it is a "rebate".

https://repsourcepublic.manulife.com/wp ... e5-mBoGN4x
I saw different links that quote it as a fee waiver and others that say "rebate" or "rebated". So, until we have actual confirmation of this, ideally with a screenshot, I'll call it a fee waiver. :)

Cheers,
Doug

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