Personal Finance

Bank Overdraft Protection

  • Last Updated:
  • Jul 29th, 2019 2:33 pm
[OP]
Newbie
Jun 25, 2012
21 posts
13 upvotes
MONTRÉAL

Bank Overdraft Protection

Anyone from Quebec Province: I was told from TD Bank that the overdraft protection will be terminated on August 26. It means if there is no enough money on the checking account, there is $48 NSF fee charge every time. I called TD, and they said this is only for Quebec. I just want to know it is real for all bank, or just for TD? How about Desjardins bank?
10 replies
Deal Guru
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Feb 24, 2008
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Gatineau
I have $5000 Overdraft Protection on my Tangerine Checking account. I have received no such news indicating a termination of my OD Projection on my account.

djino
"I live in Gatineau, Quebec"
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May 15, 2013
1642 posts
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Montreal
djino wrote: I have $5000 Overdraft Protection on my Tangerine Checking account. I have received no such news indicating a termination of my OD Projection on my account.

djino
"I live in Gatineau, Quebec"
OP is asking for the NSF fee for not having enough money in your checking account.
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Feb 24, 2008
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iamthebest wrote: OP is asking for the NSF fee for not having enough money in your checking account.
I thought OP was asking if Quebec persons are now losing out on the ability to have OD protection.

Djino
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Dec 24, 2007
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tryitagain wrote: Anyone from Quebec Province: I was told from TD Bank that the overdraft protection will be terminated on August 26. It means if there is no enough money on the checking account, there is $48 NSF fee charge every time. I called TD, and they said this is only for Quebec. I just want to know it is real for all bank, or just for TD? How about Desjardins bank?
Get a Personal Line of Credit from TD and use that as your chequing account. Don't obsess about the interest rate offered as you don't intend to ever really borrow from the LOC, just use it like a chequing account. No fees to use, no fees for the LOC cheques, only pay interest if you ever go into a positive balance (like a credit card). If you deposit money to the LOC to cover your cheques ahead of time, the account will go into a negative balance, so you don't incur any interest.

You never worry about going into overdraft since you just draw on the LOC and pay interest for the time the amount is borrowed...If you went over the amount you had deposited, say $1,000 cheque at 8% LOC interest rate, the interest works out to just $0.22 a day...... way, way cheaper than $48 NSF fee.

The LOC account works just like a chequing account and nobody will notice the difference - you get an account on which they will give you a free chequebook to write cheques with, you can use the account to make all your online payments, you can make unlimited number of transactions free, you can withdraw money from ATM on it, you can transfer money to and from it online.

Just don't tell the TD bank that is your intention for getting an LOC and asking them how it might work as a chequing account, just say you need one just in case you need emergency funds.
[OP]
Newbie
Jun 25, 2012
21 posts
13 upvotes
MONTRÉAL
@ djino: yes, I am asking "if Quebec persons are now losing out on the ability to have OD protection". I will wait for few days to see. I noted that the Desjardins Bank giving the opportunity method (like overdraft protection): they use your Desjardins Credit Card as OP - when your checking account does not have enough money, they will withdraw from CC as Cash Advantage. So, I am thinking probably it is true that Quebec does not have Overdraft Protection. Anyway, let's wait and see.

@ WetCoastGuy: I do have LOC with TD with +1.5%. But I do not know it can be used like checking account. I setup pre-auth. payment using my checking account (car, insurance...). Can I use LOC for pre-auth payment as well? If it is the real, I will close my TD checking account. Thanks.
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Dec 24, 2007
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tryitagain wrote: @ djino: yes, I am asking "if Quebec persons are now losing out on the ability to have OD protection". I will wait for few days to see. I noted that the Desjardins Bank giving the opportunity method (like overdraft protection): they use your Desjardins Credit Card as OP - when your checking account does not have enough money, they will withdraw from CC as Cash Advantage. So, I am thinking probably it is true that Quebec does not have Overdraft Protection. Anyway, let's wait and see.

@ WetCoastGuy: I do have LOC with TD with +1.5%. But I do not know it can be used like checking account. I setup pre-auth. payment using my checking account (car, insurance...). Can I use LOC for pre-auth payment as well? If it is the real, I will close my TD checking account. Thanks.
Yes, I would think so since it just another bank account, but I can't say 100% because I've never used pre-authorized payments with it - I've set recurring payments for something like Shaw cable for set dollar amount every month. You can check with TD bank about that.
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Sep 6, 2018
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tryitagain wrote: @ WetCoastGuy: I do have LOC with TD with +1.5%. But I do not know it can be used like checking account. I setup pre-auth. payment using my checking account (car, insurance...). Can I use LOC for pre-auth payment as well? If it is the real, I will close my TD checking account. Thanks.
Correct, you get direct deposit info that can be used for EFT debit or deposit (same as any deposit account,) as well as ATM access and cheques. Same for Simplii and CIBC LOCs. Not sure if TD charges for Interac E-transfers or not but Simplii does not.
Member
Nov 22, 2012
480 posts
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NS
aweawea wrote: Correct, you get direct deposit info that can be used for EFT debit or deposit (same as any deposit account,) as well as ATM access and cheques. Same for Simplii and CIBC LOCs. Not sure if TD charges for Interac E-transfers or not but Simplii does not.
You can use a TD LOC just like a chequing account. Write cheques, PAD/PAP transactions, e-transfer, etc. Thus, I closed my TD chequing account to avoid paying a monthly fee. The only negative is that the LOC charges a fee for e-transfers.
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Jan 21, 2018
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Vancouver
I wonder if people have really thought about what overdraft "protection" does? You're telling your bank or financial institution that if any unexpected charge comes along that exceeds your account balance, they should just go ahead and pay it, and not bother you about it. Is that really what you want? What if it's a fraudulent charge? Or an erroneous charge from some outfit that you granted pre-authorized payment authority to?

I don't have any trouble keeping track of my account balances and authorized payments. If there's an overdraft, there's something wrong that I don't know about. What I want is for the bank to TELL ME when an overdraft charge comes in, and hold it for at least 24 hours while I find out what's going on. But I'm not aware of any financial institution in Canada that offers to do that. They all want you to either authorize overdraft with no questions asked, or else slam you with a hefty overdraft fee that you don't find out about until days or weeks later.
[OP]
Newbie
Jun 25, 2012
21 posts
13 upvotes
MONTRÉAL
Thank you for your post. I totally understand what you said. I checked all my bank accounts everyday. It only takes few minutes. If there is any suspicious transaction I do not know, I will call my bank immediately. So, I am not worry about the that. But, you know, sometimes I forgot that I have one pre-auth payment is due. If I do not have overdraft protection, the payment will be bounced back and $48 charge. This is why I want to have OP. It happens 2-3 times for me in 5 years. When I checked my account at night, I found there is negative, so I move money right away to make it positive to avoid the overdraft fee (if you make negative to positive before 11:59pm, there is no overdraft fee).

I just ordered check for LOC account, and will close my checking account after one month testing. TD overdraft protection is going to end on August 26th. I still have time to prepare.

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