Personal Finance

BMO Minimum Monthly Balance to Waive Monthly Fee Increase

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  • Dec 21st, 2016 4:25 pm
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fccoup wrote:
Oct 29th, 2016 12:21 pm
ace604 wrote:
Oct 28th, 2016 6:08 pm

You are right. Well, close. Almost $5900 according to BoC. 2008 $5000 TFSA limit is up to $5500 now so that's a nice gauge of inflation for the layperson as well :)

The minimum balances at BMO, TD, etc are all a joke anyways IMO. It's just a way to charge people a fee without calling it a fee. Psychologically some people don't mind it that way.

Like 4% back on Rogers MC foreign transactions (with a 2.5% FX fee) 'sounds better' than 1.75% back with no fee. But it's worse. It's all marketing.

"Free" this, "free" that (with $x min. balance) 'sounds much better' than "this and that for $10/mo in lost interest", or "this and that for $7/mo fee".
First you have to understand that nothing in life is free. Once you accept that, then you will be a much happier person.

So now, you ask yourself: Would you rather have free banking at Tangerine (but no rep, no forex, no certified check, etc)

or keep $6000 in BMO ($10/month lost in 2% interest) for all that free stuff?

If it is worth it...then you do it, otherwise, you stick with the nofrills bank
IT'S NOT FREE STUFF!

LOL. Psychology got you too. You said "lost $10" for "free".

Losing is the same as paying.

I am strongly opposed to the terminology of calling something "free" when it costs you money, which, you know, makes it NOT free :D

That's not the definition of "free".

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
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ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
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esoxhntr wrote:
Oct 30th, 2016 12:09 am
ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
You can get a draft with many banks that offer free accounts. And you'd need pay for it, same with BMO. I am using IL, but I think I can do as easy as with a BMO account. You can link any account to fund IL. LOC might be different, don't have it. BMO can suck it as far I as I am concerned.
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esoxhntr wrote:
Oct 30th, 2016 12:09 am
ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
Cant u just use the LOC like a chequing account?
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angel_wing0 wrote:
Oct 30th, 2016 12:24 am
Cant u just use the LOC like a chequing account?
I thought of that, but they (teller) are saying my debit card/online access will be revoked when I close the chequing account. I don't know if that's accurate or not.
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migx wrote:
Oct 30th, 2016 12:23 am
esoxhntr wrote:
Oct 30th, 2016 12:09 am
ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
You can get a draft with many banks that offer free accounts. And you'd need pay for it, same with BMO. I am using IL, but I think I can do as easy as with a BMO account. You can link any account to fund IL. LOC might be different, don't have it. BMO can suck it as far I as I am concerned.
Big5 banks charge less for a draft at $7.50 than Tangerine, have it to you instantly...and can even waive the fee if you nicely ask
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esoxhntr wrote:
Oct 30th, 2016 8:37 am
angel_wing0 wrote:
Oct 30th, 2016 12:24 am
Cant u just use the LOC like a chequing account?
I thought of that, but they (teller) are saying my debit card/online access will be revoked when I close the chequing account. I don't know if that's accurate or not.
Just keep free savings acc then.
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MehtabS wrote:
Oct 30th, 2016 9:07 am

Just keep free savings acc then.
no such thing without a chequing accnt?
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keano wrote:
Oct 30th, 2016 8:54 am
migx wrote:
Oct 30th, 2016 12:23 am
esoxhntr wrote:
Oct 30th, 2016 12:09 am


how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
You can get a draft with many banks that offer free accounts. And you'd need pay for it, same with BMO. I am using IL, but I think I can do as easy as with a BMO account. You can link any account to fund IL. LOC might be different, don't have it. BMO can suck it as far I as I am concerned.
Big5 banks charge less for a draft at $7.50 than Tangerine, have it to you instantly...and can even waive the fee if you nicely ask
Definitely if you need drafts often a bank can be useful. By if you are like many people who need a draft once every 10 years, paying Tangerine $10.00 to courier one to you, or sending your money to a branch and then getting a draft from the bank is a perfectly reasonable solution (could be a bank you keep a free savings account at, or a friend or family member).

Most situations requiring a draft don't pop up on you unexpectedly and planning ahead by a day or two isn't a big deal.

If you use drafts monthly for some reason obviously this would not be workable.
Last edited by ace604 on Oct 30th, 2016 2:00 pm, edited 1 time in total.
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esoxhntr wrote:
Oct 30th, 2016 9:28 am
MehtabS wrote:
Oct 30th, 2016 9:07 am

Just keep free savings acc then.
no such thing without a chequing accnt?
Ohh they get you everywhere eh.
Edit: I see two free savings accounts that don't need chequing account.
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esoxhntr wrote:
Oct 30th, 2016 12:09 am
ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
There is a way "around that".

With your InvestorLine non-registered account you automatically have a Bmo savings account called "AccountLink" with 2 free debits per month. So you don't need that extra chequing account with 2K min. To waive fees.
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esoxhntr wrote:
Oct 30th, 2016 8:37 am
angel_wing0 wrote:
Oct 30th, 2016 12:24 am
Cant u just use the LOC like a chequing account?
I thought of that, but they (teller) are saying my debit card/online access will be revoked when I close the chequing account. I don't know if that's accurate or not.
MehtabS wrote:
Oct 30th, 2016 9:07 am
esoxhntr wrote:
Oct 30th, 2016 8:37 am
angel_wing0 wrote:
Oct 30th, 2016 12:24 am
Cant u just use the LOC like a chequing account?
I thought of that, but they (teller) are saying my debit card/online access will be revoked when I close the chequing account. I don't know if that's accurate or not.
Just keep free savings acc then.
Indeed, the Savings Builder account allow one transfer out every month. I know the Smart Savers/Premium Savings account cannot be linked to a debit card so that's out.
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minimalist wrote:
Oct 30th, 2016 2:37 pm
esoxhntr wrote:
Oct 30th, 2016 12:09 am
ace604 wrote:
Oct 29th, 2016 1:34 pm

(and no it's not worth it for me at all, I don't need anything that BMO is offering me for $10/month)
how about for $3.33 / month ($2000 * 2% / 12 months. 2k will be the new minimum to avoid fees on their lowest account)? for me, it still makes sense to 'pay' that because of the other bmo products I have (LOC, Investorline and the odd occasion I'd need a draft) that make life easier to have a BMO account. But, if I'd find a way around those, I'd be gone as well.
There is a way "around that".

With your InvestorLine non-registered account you automatically have a Bmo savings account called "AccountLink" with 2 free debits per month. So you don't need that extra chequing account with 2K min. To waive fees.
HSBC High Interest Savings account offers 3 debit transactions free.
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I have been banking with TD since my parents opened my 1st bank account for me at the young age of 4, and switched to BMO in May 2015. A good friend of mine had been banking with PC Financial for many years (since 2004) but a few months ago they decided to close the account and moved their money to TD and from watching their experiences, I can definitely say there is something good about having branch service available. The ability to just walk in to the branch and get what you want right away is definitely a bonus. Couple of things my good friend complained about PC Financial:

Long waits at the call center
Holds on deposits for a whole week even after banking with them for over 10 years
Need to withdraw more $$ than your limit, have to call and wait on hold then as for your limit to be temporarily raised
No certified cheques at all and if you need a draft, you have to have it sent to CIBC for a large fee

For most people, you would be able to get by with BMO's Practical Plan. 12 transactions/month for $4.00/month or waved with $1,500 minimum blalance ($2,000 starting December 1, 2016). If you don't use your debit card to make purchases (don't know why you would anyways) 12 transactions would be more than enough. As an example;

1. Mortgage/Rent
2. Enmax (electricity, water, sewer, garbage disposal)
3. Direct Energy (natural gas)
4. Credit Card
5. Condo Fees (if applicable)

This leaves you with 7 additional transactions that you can do such as pay any additional credit cards, withdraw cash, or pay less frequent bills such as Income Tax, Property Tax, University Tuition and occasional major expenses such as down payments on cars. AND you get to enjoy all the branch services holding only $2,000 idle. With interest rates as low as they are right now, you are not missing out on much at all
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CalgaryMan wrote:
Oct 30th, 2016 9:02 pm
I have been banking with TD since my parents opened my 1st bank account for me at the young age of 4, and switched to BMO in May 2015. A good friend of mine had been banking with PC Financial for many years (since 2004) but a few months ago they decided to close the account and moved their money to TD and from watching their experiences, I can definitely say there is something good about having branch service available. The ability to just walk in to the branch and get what you want right away is definitely a bonus. Couple of things my good friend complained about PC Financial:

Long waits at the call center
Holds on deposits for a whole week even after banking with them for over 10 years
Need to withdraw more $$ than your limit, have to call and wait on hold then as for your limit to be temporarily raised
No certified cheques at all and if you need a draft, you have to have it sent to CIBC for a large fee

For most people, you would be able to get by with BMO's Practical Plan. 12 transactions/month for $4.00/month or waved with $1,500 minimum blalance ($2,000 starting December 1, 2016). If you don't use your debit card to make purchases (don't know why you would anyways) 12 transactions would be more than enough. As an example;

1. Mortgage/Rent
2. Enmax (electricity, water, sewer, garbage disposal)
3. Direct Energy (natural gas)
4. Credit Card
5. Condo Fees (if applicable)

This leaves you with 7 additional transactions that you can do such as pay any additional credit cards, withdraw cash, or pay less frequent bills such as Income Tax, Property Tax, University Tuition and occasional major expenses such as down payments on cars. AND you get to enjoy all the branch services holding only $2,000 idle. With interest rates as low as they are right now, you are not missing out on much at all
Tangerine clears a large amount of my deposits every time, and when I did used to use PCF for a decade before that I could easily clear 100% of every deposit by depositing it into the LOC first, then transferring it to chequing or savings.

The only issue with Tangerine is if you need drafts often, otherwise $10 for a couriered draft once a decade is a small price to pay for FREE unlimited debits with $0 minimum balance (and an actual half-decent interest rate being paid compared to both chequing or savings at the big 5 banks).
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)

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