Personal Finance

Should I go with TD or CIBC?

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  • Oct 7th, 2019 3:55 pm
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[OP]
Newbie
Sep 30, 2019
9 posts
1 upvote

Should I go with TD or CIBC?

Hello All,

I just recently moved to Canada after study in the US. I'm wondering whether to open a checking account with TD or CIBC. I've also read on the forum here that one can have two accounts for different purposes, say regular use and investing, but I'm concerned about the monthly charges.

I have also considered Tangerine, but it seems they are introducing new fees across board.

Kindly help a newbie out here Disappointed But Relieved Face
27 replies
Sr. Member
Feb 28, 2014
563 posts
672 upvotes
processor01 wrote: Hello All,

I just recently moved to Canada after study in the US. I'm wondering whether to open a checking account with TD or CIBC. I've also read on the forum here that one can have two accounts for different purposes, say regular use and investing, but I'm concerned about the monthly charges.

I have also considered Tangerine, but it seems they are introducing new fees across board.

Kindly help a newbie out here Disappointed But Relieved Face
If you're new to Canada and in Ontario with a Meridian Credit Union branch nearby, consider their New to Canada program which gives you 3 years of free banking.
https://www.meridiancu.ca/Offers/New-to-Canada.aspx

There are other credit unions that may offer no-minimum free banking packages as their standard offer as well. Credit unions like DUCA in the Toronto area, FirstOntario in the Hamilton/Niagara Region and Coastal Capital in BC offers these free chequing accounts.

Now, if you see no need for physical branches, you can of course go with an online only bank or FI. Some FIs that offer free chequing with no branch access includes: Tangerine, Simplii, Alterna Bank, Motus Bank, Motive Financial, EQ Bank, B2B Bank and many others.

Hope this helps, cheers!
Deal Fanatic
Jul 1, 2007
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Are you over the age of 60? Why do you feel the need to bank with an old-fashioned brick & mortar bank? Do you need physical bank branches to go to in order to update your passbook or deposit your bond coupon cheques?
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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May 8, 2009
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deltatux wrote: If you're new to Canada and in Ontario with a Meridian Credit Union branch nearby, consider their New to Canada program which gives you 3 years of free banking.
https://www.meridiancu.ca/Offers/New-to-Canada.aspx

There are other credit unions that may offer no-minimum free banking packages as their standard offer as well. Credit unions like DUCA in the Toronto area, FirstOntario in the Hamilton/Niagara Region and Coastal Capital in BC offers these free chequing accounts.

Now, if you see no need for physical branches, you can of course go with an online only bank or FI. Some FIs that offer free chequing with no branch access includes: Tangerine, Simplii, Alterna Bank, Motus Bank, Motive Financial, EQ Bank, B2B Bank and many others.

Hope this helps, cheers!
+1

Credit unions and/or subsidiary banks are generally the way to go. B&M/big banks are generally uncompetitive in Canada for daily banking.

Financial institutions are like a buffet, take what you like and leave out the rest. Both TD and CIBC are nothing special for deposit accounts, but have nice offers for credit cards and also have unique feats for investments. Not saying they're "the best" at any of these, but may work for some and not for others. Subsidiary banks who offer credit cards generally have more no annual fee options that are okay and may offer better earn rates on basic cards (no income requirement, etc.) but may have crippled benefits (lousy or no extended warranty, etc.). If you combine cards from a few places, you can better map out benefits and earn rates. Right now for no-term, non-reg savings accounts, the kings are the subsidiary banks first B2B, then Motive.

Bottom line there's no best "one stop shop". Closest to that may have been subsidiary bank Motusbank, but they recently lowered their rates. They also don't offer CC's. Best to "de-bundle and save".
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[OP]
Newbie
Sep 30, 2019
9 posts
1 upvote
deltatux wrote: If you're new to Canada and in Ontario with a Meridian Credit Union branch nearby, consider their New to Canada program which gives you 3 years of free banking.
https://www.meridiancu.ca/Offers/New-to-Canada.aspx

There are other credit unions that may offer no-minimum free banking packages as their standard offer as well. Credit unions like DUCA in the Toronto area, FirstOntario in the Hamilton/Niagara Region and Coastal Capital in BC offers these free chequing accounts.

Now, if you see no need for physical branches, you can of course go with an online only bank or FI. Some FIs that offer free chequing with no branch access includes: Tangerine, Simplii, Alterna Bank, Motus Bank, Motive Financial, EQ Bank, B2B Bank and many others.

Hope this helps, cheers!
Thank you so much, deltatux!

The Meridian new comers package looks very good. Do you know if in the long-term they would be able to provide healthy/competitive rates on LOC and mortgages? I'm looking to build a relationship that would pay off, so not sure how to approach this area.

As regards the online FIs, I'm torn between Tangerine, Simplii and EQ - which do you recommend?
[OP]
Newbie
Sep 30, 2019
9 posts
1 upvote
Thalo wrote: Are you over the age of 60? Why do you feel the need to bank with an old-fashioned brick & mortar bank? Do you need physical bank branches to go to in order to update your passbook or deposit your bond coupon cheques?
Lol...I'm no where close to 60!

I'm honestly not the brick & mortar bank kind of person, since I seldom ever visit a bank. Which of the online FIs would you recommend?
[OP]
Newbie
Sep 30, 2019
9 posts
1 upvote
titaniumtux wrote: +1

Credit unions and/or subsidiary banks are generally the way to go. B&M/big banks are generally uncompetitive in Canada for daily banking.

Financial institutions are like a buffet, take what you like and leave out the rest. Both TD and CIBC are nothing special for deposit accounts, but have nice offers for credit cards and also have unique feats for investments. Not saying they're "the best" at any of these, but may work for some and not for others. Subsidiary banks who offer credit cards generally have more no annual fee options that are okay and may offer better earn rates on basic cards (no income requirement, etc.) but may have crippled benefits (lousy or no extended warranty, etc.). If you combine cards from a few places, you can better map out benefits and earn rates. Right now for no-term, non-reg savings accounts, the kings are the subsidiary banks first B2B, then Motive.

Bottom line there's no best "one stop shop". Closest to that may have been subsidiary bank Motusbank, but they recently lowered their rates. They also don't offer CC's. Best to "de-bundle and save".
Thanks for the info, titaniumtux!

I will look more into these subsidiary banks you mentioned.
Sr. Member
Feb 28, 2014
563 posts
672 upvotes
processor01 wrote: Thank you so much, deltatux!

The Meridian new comers package looks very good. Do you know if in the long-term they would be able to provide healthy/competitive rates on LOC and mortgages? I'm looking to build a relationship that would pay off, so not sure how to approach this area.

As regards the online FIs, I'm torn between Tangerine, Simplii and EQ - which do you recommend?
Building relationships with a bank doesn't really net much, at least from experience. It's not like you'd get a better rate by knowing your financial advisors or give them the bulk of your business. As for can Meridian provide healthy/competitive rates? They can, as a credit union, it's a not for profit financial co-operative, they reinvest their profits back to the business, in the form of lower rates and/or paid out in shares back to their members.

As for online FIs, I personally recommend neither, I recommend Alterna & Motus Bank instead, both are owned & operated by their respective credit unions.
Deal Addict
Dec 10, 2007
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deltatux wrote: Building relationships with a bank doesn't really net much, at least from experience. It's not like you'd get a better rate by knowing your financial advisors or give them the bulk of your business. As for can Meridian provide healthy/competitive rates? They can, as a credit union, it's a not for profit financial co-operative, they reinvest their profits back to the business, in the form of lower rates and/or paid out in shares back to their members.

As for online FIs, I personally recommend neither, I recommend Alterna & Motus Bank instead, both are owned & operated by their respective credit unions.
I think it really depends quite a bit, e.g. how long have you been doing business with them and how much. My experience is that my FA acts like a private banking agent to me; he is able to get me fees waived off, start applications for me when I am not physically present and he responses to my email. I even have his cell #. But I also had been working /w him for over 10 years and he has 2 mortgages and other stuffs from me.
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Nov 22, 2015
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processor01 wrote: Lol...I'm no where close to 60!

I'm honestly not the brick & mortar bank kind of person, since I seldom ever visit a bank. Which of the online FIs would you recommend?
Depends on what's most convenient for you for ATM access. Tangerine is a subsidiary of Scotiabank, so free access at all Scotia ATMs. Similarly, Simplii is a subsidiary of CIBC.
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Nov 22, 2015
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processor01 wrote: Hello All,

I just recently moved to Canada after study in the US. I'm wondering whether to open a checking account with TD or CIBC. I've also read on the forum here that one can have two accounts for different purposes, say regular use and investing, but I'm concerned about the monthly charges.

I have also considered Tangerine, but it seems they are introducing new fees across board.

Kindly help a newbie out here Disappointed But Relieved Face
For your consideration, TD and BMO both offer fee waivers for keeping $5000+ in your chequing account. I think it also waives the $120+ fee on their premium credit cards.

CIBC also has one of the best offers if you have $100K+ in investments, including self-directed Investor's Edge accounts
Deal Addict
Jan 13, 2014
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Calgary
superfresh89 wrote: For your consideration, TD and BMO both offer fee waivers for keeping $5000+ in your chequing account. I think it also waives the $120+ fee on their premium credit cards.

CIBC also has one of the best offers if you have $100K+ in investments, including self-directed Investor's Edge accounts
CIBC also has fee/Aventura card fee waiver if you 6k or more in their smart plus account .
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Nov 22, 2015
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masarwar wrote: CIBC also has fee/Aventura card fee waiver if you 6k or more in their smart plus account .
Oh that's right. The 100K across investments is a more attractive offer than leaving 6K sitting in cash though
Deal Addict
Jan 13, 2014
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superfresh89 wrote: Oh that's right. The 100K across investments is a more attractive offer than leaving 6K sitting in cash though
Absolutely! just an option as some people prefer the perks of free banking whereas some would make twice of that fee back if they invested the 6k.
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May 11, 2014
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What province do you live in? That would probably help to determine where would be the best institution.

While the online banks are great, some of them still need a cheque at a brick and mortar bank to be set up.

For cheapest chequing and highest interest rate, Motive Financial, Alterna Bank are probably the best, however if i'm not mistaken, you will likely need an account at a mainstream bank first.
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As a direct comparison to Tangerine, have you considered Simplii Financial? Only fees that I can think of off the top of my head is the usual NSF, Stop Payment, Returned Cheque, etc fees (there is a $1/mo fee if you wanted paper statements..) Beats Tangerine with free unlimited cheque books (limited to like 10 business days per request?) and free unlimited Interac E-Transfers.

B2B Bank is currently the winner in Savings interest rates at 3.3%.

You'll also need to figure out how to transfer your money over. Is TD Cross Border services going to help you adopt to the (terrible) Canadian banking system? Are you going to wire it? Cash? (Not recommended in large amounts, especially over CA$10,000)
Newbie
Apr 24, 2019
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Hands down CIBC.
I had TD account for long time but they are very bad when it comes to giving credit cards to members.
You need to think about future as well. working with top 5 banks will give you benefit in future for sure. I have been with CIBC for 4 years and they are wonderful. If you have good relation with bank they will always help you out.
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Jan 2, 2012
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processor01 wrote: I'm honestly not the brick & mortar bank kind of person, since I seldom ever visit a bank. Which of the online FIs would you recommend?
I recommend Simplii for day to day banking. Have been with them for ages (formerly under PC Bank) and have zero complaints. Truly no fees, unlimited everything, access to CIBC ATMs, free cheques, free E-transfers, etc etc.
GPT1989 wrote: You need to think about future as well. working with top 5 banks will give you benefit in future for sure.
Like what kind of benefits in specific?

In my experience there is no benefit for regular banking that can be offered, that justifies any fees being paid.
Newbie
Apr 24, 2019
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You can open an account where you keep around 5-6k for free. benefits were in terms of getting credit card and line of credit.
CIBC dividend credit cards has a new feture called " pace it". I love it. If you purchase anything more then 300$ you can do installments for cheaper interest rate. for 6 months it will be 5.99%, 9 months it is around 7.99% which is perfect in case of emergency. I booked tickets for my parents for about 3000 I did 5.99% interest rate for 6 months which is way cheaper then most of line of credit rates now-a-days.
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GPT1989 wrote: You can open an account where you keep around 5-6k for free. benefits were in terms of getting credit card and line of credit.
CIBC dividend credit cards has a new feture called " pace it". I love it. If you purchase anything more then 300$ you can do installments for cheaper interest rate. for 6 months it will be 5.99%, 9 months it is around 7.99% which is perfect in case of emergency. I booked tickets for my parents for about 3000 I did 5.99% interest rate for 6 months which is way cheaper then most of line of credit rates now-a-days.
In general it's a very bad idea financially to keep $5-6K balance in a chequing account, just to get "free" banking services. Would be much better in an RRSP or TFSA, or to use on any debts elsewhere you're paying interest on.

But yes if you need constant access to credit, a bank you have a relationship and banking history with may be able to help you out.

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