Personal Finance

Using TD line of credit like chequing account?

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  • Feb 9th, 2022 11:28 pm
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Deal Fanatic
Feb 15, 2006
9183 posts
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Toronto
taurus25 wrote: Reviving an old thread ...

Can I have my Auto Payments; Insurance paymentd directly go from TD and Mortgage if possible ? Will save me hassle of moving money around ... ?
Yes you say set up auto deduction from your auto payment, to your TD LOC. You give them a void cheque (of the LOC) and they can set that up.

It's like any chequing account.
Deal Addict
Aug 17, 2012
1752 posts
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Windsor
Arrgh wrote: Yes you say set up auto deduction from your auto payment, to your TD LOC. You give them a void cheque (of the LOC) and they can set that up.

It's like any chequing account.
Thanks ... Was in TD today n probably they dont have knowledge abt it...


I trust RFD more than TD reps ..lol
Deal Fanatic
Oct 1, 2004
6651 posts
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GTA
The only advantage of doing this is to avoid the monthly fee for a cheqing account? Got offered prime +3.99 which is pretty high to me.
Deal Fanatic
Feb 1, 2006
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Muskoka
taurus25 wrote: Thanks ... Was in TD today n probably they dont have knowledge abt it...


I trust RFD more than TD reps ..lol
This is like Fight Club, you don't talk about it! If TD reps start hearing about this happening more and more, they will shut it down. They can easily make their LOC's not be able to go negative balance, like other banks do.
Deal Fanatic
Feb 1, 2006
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Muskoka
greg123 wrote: The only advantage of doing this is to avoid the monthly fee for a cheqing account? Got offered prime +3.99 which is pretty high to me.
For free, you get an unlimited transaction chequing account at a bricks and mortar big bank, with free cheques as well. I have been using it for 10+ years now.
Deal Fanatic
Feb 15, 2006
9183 posts
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Toronto
Bullseye wrote: This is like Fight Club, you don't talk about it! If TD reps start hearing about this happening more and more, they will shut it down. They can easily make their LOC's not be able to go negative balance, like other banks do.
Why would TD do that? They need to be competitive with other banks. I've had LOCs with other banks and they're all the same, free cheques, unlimited transactions. Can use like a chequing account.

BTW, TD reps certainly know about it. There is no secrecy about it.
Deal Addict
Nov 8, 2017
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A chequing account.
This is exactly what I use by CIBC LOC for.
No fees @ all, except when carrying a balance.
Deal Fanatic
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Jul 4, 2005
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Ottawa
My limit is 25k, and I plan to get a large deposit in there(house sale). Anyone try this or alike? I’d move it to my chequing account once it clears. Also I’d like to write a cheque out from it for >25k(credit balance). Anyone get away with this? I just need to deposit the large sum, then distribute it to the fam via cheques since they’re not all with td.
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Aug 16, 2009
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jeeva86 wrote: My limit is 25k, and I plan to get a large deposit in there(house sale). Anyone try this or alike? I’d move it to my chequing account once it clears. Also I’d like to write a cheque out from it for >25k(credit balance). Anyone get away with this? I just need to deposit the large sum, then distribute it to the fam via cheques since they’re not all with td.
I would not risk depositing such a large amount in case it gets flagged/frozen for review. Open a savings account (free) and deposit the cheque there.
Deal Fanatic
Feb 15, 2006
9183 posts
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Toronto
jeeva86 wrote: My limit is 25k, and I plan to get a large deposit in there(house sale). Anyone try this or alike? I’d move it to my chequing account once it clears. Also I’d like to write a cheque out from it for >25k(credit balance). Anyone get away with this? I just need to deposit the large sum, then distribute it to the fam via cheques since they’re not all with td.
Go to a branch and tell them about this (large deposit) coming. Should be ok. Hopefully you're getting a certified cheque or wire coming in, so that it won't be held for many days.
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Jul 4, 2005
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Ottawa
Too late. Money came in already. It was a certified cheque that my lawyer deposited directly into my account via teller. No funds are on hold. I’m going to keep it there for a few weeks just to see if it gets called out.
Jr. Member
Mar 21, 2018
111 posts
29 upvotes
Other than lack of mobile payment is their any downside to this. Does TD have rules against using it like this, but choose to ignore it? If I called them and said, I am using this instead of my checking account, so close it; will they say anything?
Deal Addict
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Dec 24, 2007
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summerss wrote: Other than lack of mobile payment is their any downside to this. Does TD have rules against using it like this, but choose to ignore it? If I called them and said, I am using this instead of my checking account, so close it; will they say anything?
There are no rules against it but why would you need to call them up and raise the issue? Lots of TD reps probably don't even know that it could be done and wouldn't be able to tell you anything anyways. Bank reps aren't there to "help" you, they are there to push Bank products. Just go ahead and do it...so far lots of RFDers are using the LOC as a chequing account but TD can easily change the terms, so no account can go into negative balance.
Deal Addict
Feb 9, 2013
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Mississauga
Does BMO LOC work the same way as TD LOC - using it as a chequing account?
Sr. Member
Jan 3, 2013
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Mississauga
summerss wrote: Other than lack of mobile payment is their any downside to this. Does TD have rules against using it like this, but choose to ignore it? If I called them and said, I am using this instead of my checking account, so close it; will they say anything?
Just go ahead and close your checking acct but don't alert TD to the fact you will instead be using the LOC as a checking acct.
Deal Addict
Nov 8, 2017
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jdu0ng wrote: Does BMO LOC work the same way as TD LOC - using it as a chequing account?
No. Only CIBC and TD
Newbie
Feb 18, 2018
55 posts
47 upvotes
I've been using a TD LOC as a checking account for the last few months. Only snag is that there is a $0.50/$1.00 fee for Interac e-Transfers, unlike most of the fee-bearing accounts. For the amount I use eTransfers, I'm still ahead.
Deal Fanatic
Mar 21, 2010
6737 posts
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Toronto
You're not using it "like a chequing account", you're using it "to smooth out your income and expenses", which is a perfectly acceptable day-to-day use of a LOC. Just don't obviously leave several thousand sitting there forever (which you shouldn't anyway since it should be earning you some money).
Deal Addict
Sep 11, 2006
2304 posts
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I have a LOC but never use it, so if I over deposit and withdraw but keep it above $0 there's no transaction fees and it's just a free chequing account? What happens when they change the terms, everyone is forced to get a real chequing account?
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Dec 24, 2007
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Shadow Rider wrote: I have a LOC but never use it, so if I over deposit and withdraw but keep it above $0 there's no transaction fees and it's just a free chequing account? What happens when they change the terms, everyone is forced to get a real chequing account?
Yes, there are no fees at all for using the LOC unless you happen to actually borrow money. When they change the terms we'll deal with that when it happens, no point speculating what fees or restrictions there might be.

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