Personal Finance

BMO Club Sobeys Bank Account - Grandfathered

  • Last Updated:
  • Jan 27th, 2023 12:33 am
Deal Addict
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Feb 25, 2014
2170 posts
341 upvotes
Mississauga
dmehus wrote: No fees on deposits to credit cards; it's a lesser-utilized feature. And, assuming you have a high credit limit, "cashback" limits are irrelevant as you suggest. My suggestion to "try" direct deposit is to try having your GST/HST credit cheque deposited directly to your credit card or linking your credit card (or LOC) account number to your Tangerine or PayPal account(s) using the "penny" test. A good way to do it without, potentially, delaying your paycheque! ;)

General "rule of thumb" on cash advance-like transactions: the "Big Five" banks generally do not charge a fee for advances/transfers from (via online banking or credit card cheque) your credit card or LOC account. However, most of the credit card-only companies (other than maybe President's Choice Financial, but then that's CIBC, and maybe Wal-Mart Financial) do charge for anything that isn't a "purchase". MBNA Canada, the direct credit card issuance division of TD Bank Group, is among the "worst offenders" for this. With BMO, you should be fine in this regard.

The one "caveat", if there is one, is if you have a third party that isn't on the account deposit funds to your credit card directly (via in-branch deposit), some banks are a bit "sticky" on this and may not allow these type of transactions to take place (especially if their credit card division may lack certain cumulative cash transaction tracking like their banking division, in the case of HSBC, which is operated by their former HSBC Finance division).

Cheers,
Doug
Wow, thanks for detailed explanation :)
Oh sada kehra bapu karda black nee, Jehra tere shahir (Toronto), Le lawan flat nee
Member
Oct 23, 2011
369 posts
501 upvotes
Kirkland, QC
Bomberman07 wrote: have you tried to transfert the funds from your BMO IGA account to your mortgage account?
No unfortunately the mortgage account is not selectable in the transfer screen. They don't let you deposit and withdraw like a chequing or savings account
Cerium398 wrote: You argument is this: if the mortgage was at another institution, and you wrote a cheque off your BMO account or got the other institution to put through a pre-authorized debit for a lump-sum payment, the transaction would be free. Why is BMO ripping you off by charging a $1 to make a payment toward their own lending product?
Exactly! As far as I can tell PC Financial does not charge fees when you pay your PC mortgage from your PC chequing account. With the BMO call center agents so far I haven't gotten very far. Their solution was to reverse the charges as a one time exception and advised me not to make more lump sum payments. Unfortunately my mortgage renewal is a long ways off, I just switched to BMO for their 2.99% promo but I will still try calling my BMO mortgage agent. Thank you so much for your reply
Deal Expert
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Feb 24, 2008
15369 posts
6696 upvotes
Gatineau
Poutinesauce wrote: I think it's better to close this account for those of you who have it, BMO is going to pull some shady stuff real soon to charge more fees as with the example seen above. I'm going to go close this now.
They can't charge anything without prior notice.

Until then, it still benefits me to keep it open.

djino
Sr. Member
Apr 28, 2014
675 posts
184 upvotes
Oakville, ON
spookstaz wrote: No unfortunately the morgage account is not selectable in the transfer screen. They don't let you deposit and withdraw like a chequing or savings account



Exactly! As far as I can tell PC Financial does not charge fees when you pay your PC mortgage from your PC chequing account. With the BMO call center agents so far I haven't gotten very far. Their solution was to reverse the charges as a one time exception and advised me not to make more lump sum payments. Unfortunately my mortgage renewal is a long ways off, I just switched to BMO for their 2.99% promo but I will still try calling my BMO mortgage agent. Thank you so much for your reply
So they reverse the charges as a one time exception (which means they could have done it all along and not wasted your time).

And they advise you not to make any more lump sum payments, which means you get charged more interest over time? That's their solution?

Those motherf***ers!!!

I guess your only other option to pay your mortgage faster without incurring that service charge is to go to accelerated bi-weekly payment schedule and exercise the annual option to increase your payment. I believe with the Special Fixed Low-Rate Mortgage you are limited to an additional 10%, as opposed to 15% with one of their regular mortgages.
Member
Oct 23, 2011
369 posts
501 upvotes
Kirkland, QC
Cerium398 wrote: So they reverse the charges as a one time exception (which means they could have done it all along and not wasted your time).

I guess your only other option to pay your mortgage faster without incurring that service charge is to go to accelerated bi-weekly payment schedule and exercise the annual option to increase your payment. I believe with the Special Fixed Low-Rate Mortgage you are limited to an additional 10%, as opposed to 15% with one of their regular mortgages.
Yeah or make larger lump sum payments less frequently. I wanted to make an extra $500 payment every 2 weeks, but now I know I will get charged so I'll wait until the end of each month and make a larger payment. As far as I can tell these fees were not declared anywhere on their website or when I signed up for the IGA account or later (May 2014) when I signed on with them for my mortgage.

However it is still cheaper than switching to one of their monthly plan accounts.
Deal Addict
Feb 10, 2013
4532 posts
1090 upvotes
Richmond
or create a pcf no fee banking account. transfer the funds you need to pay payments , go in branch and give them a cheque drawn on the pcf account. xd, if they are being mean, give them more work.
Moderator
User avatar
Mar 23, 2004
47191 posts
13370 upvotes
Markham
Poutinesauce wrote: I think it's better to close this account for those of you who have it, BMO is going to pull some shady stuff real soon to charge more fees as with the example seen above. I'm going to go close this now.
djino wrote: They can't charge anything without prior notice.
+1, and it's "without sufficient notice" on top.

I doubt they will make this account worst since not too many ppl have it in the first place.
Deal Addict
Jul 28, 2003
1879 posts
55 upvotes
Toronto
After signing up for this in May of this year, I have yet to receive any free bonus Club Sobeys points as per the promotion for both the Chequings and Savings accounts. I have called both BMO and Club Sobeys, and they are both stating the other party is responsible for crediting me with the bonus points.

Has anyone else received their bonus points since signing up before this ended?
Sr. Member
Apr 28, 2014
675 posts
184 upvotes
Oakville, ON
Sorry to necrobump this thread. I just realized this:

For those that actually signed up for the account, the first book of cheques is free
If you want subsequent books of cheques, you must pay, but they are heavily discounted
You can get a book of 50 for $11 and change after shipping and taxes

Log into BMO Online Banking and go to cheque order
When you get transferred to the D+H website, select Personal Cheques, and on the next screen with the cheque options, click the Hyperlink that says BMO Unique Products to get to the Club Sobeys Cheque Re-order
Deal Addict
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Feb 25, 2014
2170 posts
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Mississauga
You can still signup for this account at branch.
Deal Guru
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Apr 17, 2005
11038 posts
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Brampton
MehtabS wrote: You can still signup for this account at branch.
Really, good to know! I know someone who was looking to sign up & I figured it's no longer possible.

Have you recently signed up that you know about this?
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Deal Addict
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Feb 25, 2014
2170 posts
341 upvotes
Mississauga
I have inquired about it at branch and the adviser said that there are many people are still signing up for this account. So yes it is possible. I did not open one because I already have two free accounts at tangerine and pcf.
Newbie
Mar 7, 2011
2 posts
Ottawa ON
I asked in branch, the accounts are grandfathered and not available.
I don't know which branches let you open accounts recently, but I'd like to go there. :D
Deal Addict
Apr 9, 2010
3461 posts
1801 upvotes
Montreal
Poutinesauce wrote: I think it's better to close this account for those of you who have it, BMO is going to pull some shady stuff real soon to charge more fees as with the example seen above. I'm going to go close this now.
Who would close a free account at a major bank for "possible" changes? That makes absolutely no sense whatsoever.
Member
Aug 9, 2014
468 posts
109 upvotes
Toronto, ON
kenze wrote: Who would close a free account at a major bank for "possible" changes? That makes absolutely no sense whatsoever.
Source says that this account is on the chopping block come the next release of BMO's fees in May.
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Mar 23, 2004
47191 posts
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Markham
here2day wrote: Source says that this account is on the chopping block come the next release of BMO's fees in May.
Link to this "source" would be great.

BMO already grandfathered it, and now they want to shut it down? Damn.
Deal Addict
Feb 24, 2008
2223 posts
733 upvotes
here2day wrote: Source says that this account is on the chopping block come the next release of BMO's fees in May.
I hope this is not true.

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