Personal Finance

Is it Me or is Coast Capital Savings Going Down Hill?

  • Last Updated:
  • Mar 3rd, 2014 12:06 am
Tags:
None
[OP]
Deal Addict
Dec 16, 2012
2171 posts
288 upvotes
Vancouver

Is it Me or is Coast Capital Savings Going Down Hill?

Hey

I been with Coast Capital Savings for at least 3-4 years now, I switched from BMO as my student bank account was expiring and I was going to be forced to pay $4 to $8 a month, while making a penny a month on interest....when I asked the BMO teller if there was anything to do to get a no fee account she told me to leave, so I did.

I found Coast Capital Savings as they constantly spout "no fees" and gave good interest. To me it seems in the last year they are increasing their fees on everything (cheques seem to go up every year and such) and now I noticed on April 1st they are making changes to their "No Fee Saving Account"

[QUOTE]The High-interest, No-fee Savings Account™
$1.00/additional transactions2
$2.15/international debit

This account now includes 10 free debit transactions every month and additional transactions will incur fees. The account will be renamed accordingly.[/QUOTE]

They are going from unlimited transactions down to 10 transactions a month and are charging $1/ transaction....that is crazy. At first I thought this only applied to interact purchases but then I see the "2" by it and followed that down

[QUOTE] Transactions include Coast Capital Savings® and THE EXCHANGE® Network ATM withdrawals, Interac Direct Payment, preauthorized payments, in-branch bill payments, in-branch transfers, and in-branch withdrawals and electronic transfers (Coast Capital Savings® ATM and Coast-by-Phone®, Coast Mobile Banking® and Coast Online®).[/QUOTE]

If I am understanding this right, pretty much anything you do, if you doing something at your local branch, or through the teller will be considered a transaction.....


I am happy I pay everything through Credit Card and barely use Cash, but I am not even sure if paying my bills will be a considered a transaction and will be dinged for that as well. I also shuffle my money from my accounts along(ie for my td e-series I have it hooked up to my checking account so I transfer every week $100 from savings to checking for this).

Will I get dinged for that as well?

https://www.coastcapitalsavings.com/Per ... 0228125408
14 replies
Deal Addict
User avatar
Aug 23, 2003
1436 posts
190 upvotes
All banks do similar things, they get you into an account and then change the rules to make more money. I had a high interest savings account with Scotiabank and then one day they turn it into just a regular savings account with like .0001% interest per annum and create a whole new name for their new high interest savings account.
Deal Fanatic
User avatar
Dec 3, 2004
5107 posts
3535 upvotes
Vancouver
Coast Capital Savings offers a free unlimited chequing account with unlimited debt transactions. But it sounds like this isn't enough for you... you appear to want to use a savings account as an unlimited chequing account so you can get a few extra pennies a month on your chequing balance. True RFD'er, but why do you think Coast Capital Savings is going downhill? Because they don't want to provide you with interest on your chequing account balance?

Summary: OP is whining because he is going to lose a few pennies a month in interest.
Member
Jan 7, 2013
305 posts
32 upvotes
Kitsilano
Which other banks allow you to use your savings account for day-to-day transactions without a minimum balance and zero fees??

and not to mention pay 1.1% in interest

Yeah OP, they're ridiculous :facepalm:
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”
[OP]
Deal Addict
Dec 16, 2012
2171 posts
288 upvotes
Vancouver
adamtheman wrote:
Mar 1st, 2014 6:57 pm
Coast Capital Savings offers a free unlimited chequing account with unlimited debt transactions. But it sounds like this isn't enough for you... you appear to want to use a savings account as an unlimited chequing account so you can get a few extra pennies a month on your chequing balance. True RFD'er, but why do you think Coast Capital Savings is going downhill? Because they don't want to provide you with interest on your chequing account balance?

Summary: OP is whining because he is going to lose a few pennies a month in interest.
Well first maybe it's stupid of me but you know I used the checking account, well for writing checks and that's about it.

Second I could not give a ***** about the few pennies of interest you just assumed I am after(did not even occur to me). I don't really have much money at any given time in my Savings account(all my money is in Gic, Index funds, RRSP, TFSA accounts or other banks with a way higher interest rate) so yea it is really just a few pennies.

No I am pissed of because of the work I am going have to do. I first have to go and find exactly what is considered a "transaction" is transferring money between my own accounts considered a "debit". If so this means I probably going have to go to my employer and get my direct deposit changed, which means fill out new forms and sending them to Toronto.

I then will have to remake all my transfer that I was doing to reflect all this. Next I have to let family members who probably don't know about this as I only found out about it through looking at my online account which they don't use.

They will have to get their direct deposits changed as it's even harder for them, as they go in branch to like pay bills and such, so they never go online and say transfer money from savings to checking(which maybe is a way to get around it as soon as your get your money just do a transfer into checking). This will take awhile as remember it was a hassle for them when they switched the deposit information from their old bank to coast capital.

Coast Capital Employees always by default just setup this High savings account as there was no fees, at all so why use a checking unless you need to write a checking? So everything was built upon making transactions from it, now they are changing it and the first thought that came to peoples mind is "a few pennies will be lost".........not maybe the hassle of having to switch your whole mindset?
Deal Fanatic
User avatar
Dec 3, 2004
5107 posts
3535 upvotes
Vancouver
xiaobao wrote:
Mar 1st, 2014 8:38 pm
Well first maybe it's stupid of me but you know I used the checking account, well for writing checks and that's about it.

Second I could not give a ***** about the few pennies of interest you just assumed I am after(did not even occur to me). I don't really have much money at any given time in my Savings account(all my money is in Gic, Index funds, RRSP, TFSA accounts or other banks with a way higher interest rate) so yea it is really just a few pennies.

No I am pissed of because of the work I am going have to do. I first have to go and find exactly what is considered a "transaction" is transferring money between my own accounts considered a "debit". If so this means I probably going have to go to my employer and get my direct deposit changed, which means fill out new forms and sending them to Toronto.

I then will have to remake all my transfer that I was doing to reflect all this. Next I have to let family members who probably don't know about this as I only found out about it through looking at my online account which they don't use.

They will have to get their direct deposits changed as it's even harder for them, as they go in branch to like pay bills and such, so they never go online and say transfer money from savings to checking(which maybe is a way to get around it as soon as your get your money just do a transfer into checking). This will take awhile as remember it was a hassle for them when they switched the deposit information from their old bank to coast capital.

Coast Capital Employees always by default just setup this High savings account as there was no fees, at all so why use a checking unless you need to write a checking? So everything was built upon making transactions from it, now they are changing it and the first thought that came to peoples mind is "a few pennies will be lost".........not maybe the hassle of having to switch your whole mindset?
Switch to their chequing account and stop whining. Coast Capital doesn't want you using the savings account for daily debit transactions - they want you to use their chequing account.

If you don't like it, then switch to another bank. I doubt anyone would consider that Coast Capital is "going downhill" because they are limiting debit transactions on a savings account.
[OP]
Deal Addict
Dec 16, 2012
2171 posts
288 upvotes
Vancouver
adamtheman wrote:
Mar 1st, 2014 8:52 pm
Switch to their chequing account and stop whining. Coast Capital doesn't want you using the savings account for daily debit transactions - they want you to use their chequing account.

If you don't like it, then switch to another bank. I doubt anyone would consider that Coast Capital is "going downhill" because they are limiting debit transactions on a savings account.
sigh, not sure if you read my post on the hassle it is, and yes I am considering a new bank....
Deal Addict
User avatar
Oct 4, 2004
4024 posts
968 upvotes
Vancouver
:facepalm:

A chequings account is used for everyday transactions such as withdrawals, debit purchases, writing cheques, receiving payroll, paying bills, etc, etc. It's truly the "everything" account. Most people put a few hundred to a small thousands of dollars in here.

A savings account is used "just" for savings. Savings- not spending money. It's where you put all the money left over from paying your bills and after investing in stocks, GICs, RRSP and TFSA (I include this because tax-free "savings" account is not entirely accurate, it's a vehicle for almost any type of investment you'd like, shielded from taxes on the gains). None of these can be made immediately available and liquid without some sort of penalty so a savings account is where you put an emergency amount of cash you've saved up for a rainy day. You're offered unlimited deposits, don't worry.

I'm sorry that you weren't properly informed by the bank staff, that is their mistake. It's also their mistake that they made a free, minimal catch savings account, it's silly and competes directly with their chequings product but its also partially yours for not understanding the differences between these two types accounts which are offered by every bank.

You may feel inclined to move your money to a new bank because you feel cheated. Unfortunately you won't find a better product anywhere else. Savings at a big 5 bank? < 0.5% interest, extremely limited free transactions. Savings at a competing credit union? Extremely limited free transactions. ING Direct? You can't even touch that money except to move it between your ING chequings account or wait a few days for it to move to your local bank.
Removed external link in signature.
[OP]
Deal Addict
Dec 16, 2012
2171 posts
288 upvotes
Vancouver
lhsonic wrote:
Mar 2nd, 2014 3:36 am
:facepalm:

A chequings account is used for everyday transactions such as withdrawals, debit purchases, writing cheques, receiving payroll, paying bills, etc, etc. It's truly the "everything" account. Most people put a few hundred to a small thousands of dollars in here.

A savings account is used "just" for savings. Savings- not spending money. It's where you put all the money left over from paying your bills and after investing in stocks, GICs, RRSP and TFSA (I include this because tax-free "savings" account is not entirely accurate, it's a vehicle for almost any type of investment you'd like, shielded from taxes on the gains). None of these can be made immediately available and liquid without some sort of penalty so a savings account is where you put an emergency amount of cash you've saved up for a rainy day. You're offered unlimited deposits, don't worry.

I'm sorry that you weren't properly informed by the bank staff, that is their mistake. It's also their mistake that they made a free, minimal catch savings account, it's silly and competes directly with their chequings product but its also partially yours for not understanding the differences between these two types accounts which are offered by every bank.

You may feel inclined to move your money to a new bank because you feel cheated. Unfortunately you won't find a better product anywhere else. Savings at a big 5 bank? < 0.5% interest, extremely limited free transactions. Savings at a competing credit union? Extremely limited free transactions. ING Direct? You can't even touch that money except to move it between your ING chequings account or wait a few days for it to move to your local bank.
I fail to see how this is partially my fault, They made this account to the tune that you only needed a checking account for you know writing checks, heck they even recommended to only move money to checking accounts when your writing a check.

Even if I knew that it was the checking account was the "everything account" why would I use it as such when I could just have one account that gained interest? Heck I did not even get a checking account till like last year as I never wrote checks up till then.

Should I be keeping $5000 balance now too because you know one day they might change that too as you know other banks apparently do that as well so I guess Coast Capital should do it as well. My point has always been they built a product that could be used for every day expenses and left it like that for years and years and now their doing major changes to it.

But it seems like everyone else here is fine with them limiting the account and it only seems like I am the only one, majorly inconvenienced by this, as I was using the account improperly(because you know the definition of savings account is not to take money out of it............even though they set it up the totally oppositem but labels trump everything) and should have known that one day they would put transaction limits on it.
Member
Aug 26, 2008
465 posts
40 upvotes
Vancouver
xiaobao wrote:
Mar 1st, 2014 4:36 pm
To me it seems in the last year they are increasing their fees on everything (cheques seem to go up every year and such)
So use PCF (free cheques) or ING Thrive Chequing (free chequebook on signup). Or ABC Cheques/other 3rd party cheap cheques provider.

Honestly if you're an RFDer you shouldn't be using cheques and if you do, don't buy direct from the bank. Cheques are more expensive at the big 5, I think.
xiaobao wrote:
Mar 1st, 2014 4:36 pm
They are going from unlimited transactions down to 10 transactions a month and are charging $1/ transaction....that is crazy. At first I thought this only applied to interact purchases but then I see the "2" by it and followed that down

If I am understanding this right, pretty much anything you do, if you doing something at your local branch, or through the teller will be considered a transaction.....
Big deal, so have multiple savings accounts then. PROBLEM SOLVED. Most people don't need to do more than 10 transactions per month, but if you do then just start using savings account no. 2, 3, 4, etc if you need to.

The reason you're getting flack is you're complaining against Coast, one of the best value credit unions here. No other credit union/bank with a widespread presence in Vancouver has a free chequing account.
I buy: US Starter Shares with DRIPs
Deal Addict
Feb 10, 2013
4035 posts
642 upvotes
Richmond
be glad they give you 1.10 interest. Other banks give less for their high interest savings account and ding you per transaction. Vancity dings you $5 for every transaction made from the account except deposits and online transfers and online bill payments for their version of the high interest savings account. You should be glad coast captial is allowing you access and the ability to do 10 debits per month. It's called an emergency fund for a reason. You only dip into it when you have nothing in your chequing account to cover said bill at the till. You don't touch it for a reason. Pcf doesn't even provide you access to your savings account via the till when you pay with debit. Be glad coast captial is allowing you to access your funds 10 times per month on an emergency basis. Have you never heard of a rainy day fund? Open a no fee, unlimited chequing account for everyday banking with coast captial. Your savings account should be your rainy day fund you only touch when you need funds that your chequing account does not have.
Deal Addict
User avatar
Oct 4, 2004
4024 posts
968 upvotes
Vancouver
xiaobao wrote:
Mar 2nd, 2014 4:11 am
Should I be keeping $5000 balance now too because you know one day they might change that too as you know other banks apparently do that as well so I guess Coast Capital should do it as well. My point has always been they built a product that could be used for every day expenses and left it like that for years and years and now their doing major changes to it.

But it seems like everyone else here is fine with them limiting the account and it only seems like I am the only one, majorly inconvenienced by this, as I was using the account improperly(because you know the definition of savings account is not to take money out of it............even though they set it up the totally oppositem but labels trump everything) and should have known that one day they would put transaction limits on it.
As a matter of fact, no-one requires you to keep a $5000 (or any amount, really) minimum balance to maintain a savings account- nobody. So if Coast Capital decided to do that, then yeah, you'd have every right to complain.

You're not listening. Everyone is fine with this because no-one expects their savings account to function like their chequings account and use it for that purpose. Even with the changes you mentioned, their product is still the most competitive in the market. Honestly, if you don't like it, your options are to either go to another bank and get a lesser, more expensive product, or, do a one-time switch to their unbeatable chequings product because if you're using a savings account like you are at Coast Capital anywhere else, you'll be paying up your arse in fees if 10 transactions per month doesn't cut it for you (to the tune of $15-30 a month!).
Removed external link in signature.
Deal Addict
Feb 10, 2013
4035 posts
642 upvotes
Richmond
lhsonic wrote:
Mar 2nd, 2014 2:29 pm
As a matter of fact, no-one requires you to keep a $5000 (or any amount, really) minimum balance to maintain a savings account- nobody. So if Coast Capital decided to do that, then yeah, you'd have every right to complain.

You're not listening. Everyone is fine with this because no-one expects their savings account to function like their chequings account and use it for that purpose. Even with the changes you mentioned, their product is still the most competitive in the market. Honestly, if you don't like it, your options are to either go to another bank and get a lesser, more expensive product, or, do a one-time switch to their unbeatable chequings product because if you're using a savings account like you are at Coast Capital anywhere else, you'll be paying up your arse in fees if 10 transactions per month doesn't cut it for you (to the tune of $15-30 a month!).
if op wants that he should have stayed with TD. Last i remember, td did allow you to use their savings like a chequing account. At least that's what td advertised a couple years ago when i was in to deposit a paycheque
Deal Addict
User avatar
Oct 4, 2004
4024 posts
968 upvotes
Vancouver
bluebellrose wrote:
Mar 2nd, 2014 3:32 pm
if op wants that he should have stayed with TD. Last i remember, td did allow you to use their savings like a chequing account. At least that's what td advertised a couple years ago when i was in to deposit a paycheque
I think many of the big banks operate their savings account this way. Not sure though. The difference is that they charge you per transaction or, in the case of TD, make you stick $25,000 in there- in which case you're eligible for their premium interest rate and get all of your transaction fees waived... too bad their premium interest rate is worse than the basic interest rate offered by OP's credit union!
Removed external link in signature.
Deal Addict
Feb 10, 2013
4035 posts
642 upvotes
Richmond
vancity has my chequing labeled as a dual chequing and savings account. lol. Depends on how some of the banks and big 5 deal with things i guess. interest is crap though. 0.020%

Top