Personal Finance

Skip some fees hack with big five (tested with TD)

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  • Feb 23rd, 2018 1:35 pm
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[OP]
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May 8, 2009
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South Pole

Skip some fees hack with big five (tested with TD)

For those who have one foot in with one or more of the big five, just figured out a hack to save on fees while accommodating certain transactions. We all know a LOC Is like a no fee chq account, but we may not want a LOC with every bank we deal with (available CL allotment, credit check, etc.).

I have visa cards with TD, and if I want to make a payment close to the deadline, it's easiest to push it to the card from a TD bank account. My solution is to have multiple savings accounts. Each savings account can receive unlimited deposits at no fee, and can transfer money between savings accounts at no fee. There is a maximum of one no-fee transfer out per savings account. Since these are all low interest, I nicknamed them all LISA (low interest savings account).

I have one LISA for transfers in (linked to Simplii and Ting). I have one LISA for transfers to first visa card and another LISA for transfers to the second visa card.

I would be open to getting a LOC with TD with a small CL to accommodate outbound transfers, but am in no rush and would only take it if pre-approved.

I can't be bothered with hefty fees on chq accounts, or keeping a positive balance of $5k in a chq account while not accumulating interest.

Just thought I'd share this with the RFD community.

Edit: this trick will not work with RBC.
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40 replies
Deal Expert
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Jan 27, 2004
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T.O. Lotto Captain
free checks.

Upgrade to your banks most premium bank account option. Most will offer free checks for people with this option.
Order checks. When they arrive, switch your account back to the lower fee option of your choice.

Worst case scenario... You pay that monthly fee of $30... But you get a check book for that price. You could even order multiple times and get a few hundred to last you a life time.
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Feb 16, 2018
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UrbanPoet wrote:
Feb 18th, 2018 2:06 pm
free checks.

Upgrade to your banks most premium bank account option. Most will offer free checks for people with this option.
Order checks. When they arrive, switch your account back to the lower fee option of your choice.

Worst case scenario... You pay that monthly fee of $30... But you get a check book for that price. You could even order multiple times and get a few hundred to last you a life time.
People still use cheques these days? (With the exception of a business) I would be surprised if they are still accepted in a few more years in any retail setting with the ease of access to e transfers and mobile debit/credit terminals
[OP]
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HghSsociety wrote:
Feb 18th, 2018 6:46 pm
People still use cheques these days? (With the exception of a business) I would be surprised if they are still accepted in a few more years in any retail setting with the ease of access to e transfers and mobile debit/credit terminals
Alternative to e-transfer. Most of us can do mobile deposits via app. Agree that checks are too much of a hassle. Even if you cash a check, that still counts as one outbound transaction/transfer, so won't really help me any.

@UrbanPoet +1 to the account upgrade/downgrade trick. I plan on doing that with CC's with AF (at least travel rewards card... upgrade before buying flights. After the trip and before the renewal, downgrade to avoid AF).

I still think I'll do fine with three LISA's for now :lol:
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Deal Expert
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HghSsociety wrote:
Feb 18th, 2018 6:46 pm
People still use cheques these days? (With the exception of a business) I would be surprised if they are still accepted in a few more years in any retail setting with the ease of access to e transfers and mobile debit/credit terminals
The odd occassion. Lots of rentals only have an option to pay by check... usually bc of old property owners stuck in their ways. Thats one of the things keeping checks alive... lol
[OP]
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UrbanPoet wrote:
Feb 18th, 2018 7:48 pm
The odd occassion. Lots of rentals only have an option to pay by check... usually bc of old property owners stuck in their ways. Thats one of the things keeping checks alive... lol
My hack is essentially for those who want to do external transfers, pay bills (such as CC's), etc. directly with the big bank without incurring fees. Needless to say, anyone on RFD who relies on checks probably already banks with Simplii/TING.
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Sr. Member
Nov 8, 2006
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Toronto
Along the same line as cheques, upgrade the account to get money order and then downgrade.
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Jul 3, 2017
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Your suggestion isn't real clear. Are you saying that you potentially save money on the fee to transfer out or withdraw money by having multiple savings accounts that each allow one such transaction free?

I have similar accounts at other banks, but they allow 2 or more such outgoing transactions free per month, so this would be more useful with the TD account I would guess.
[OP]
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Exp315 wrote:
Feb 19th, 2018 9:57 am
Your suggestion isn't real clear. Are you saying that you potentially save money on the fee to transfer out or withdraw money by having multiple savings accounts that each allow one such transaction free?

I have similar accounts at other banks, but they allow 2 or more such outgoing transactions free per month, so this would be more useful with the TD account I would guess.
+1

True that, every bank has different fee pricing. I went with TD for their credit cards, and figured I'd grab their free low interest savings accounts. I can see where it'd be less relevant with banks that allow more no-fee transactions.

If Simplii or any of the small banks were to offer the same deal as TD's CBI or FCT Infinite cards, I probably wouldn't have bothered with TD :lol:
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Jul 13, 2014
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Why do you need to bank at the same place as your credit provider?

I made that mistake once and I'll never do it again.
This message has been approved by the Office of the Mayor of Toronto.
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Jan 16, 2018
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MayorOfToronto wrote:
Feb 20th, 2018 2:52 am
Why do you need to bank at the same place as your credit provider?

I made that mistake once and I'll never do it again.
Perhaps just like Exp315, may probably misunderstood this hack, but believe the suggestion here is if you "ONLY" had "desired/needed" credit card account(s) with a big five or so bank(s) then open a "low interest" savings account (LISA) with same bank for transfering/depositing in enough to pay off credit balance(s) owing just on/before due date.

For those who have little to no trouble opening savings account(s) wherever they maintain their low number of credit cards, do recognize the advantage of LISA if you want/wish at most times to 1) avoid tying up any money at credit card's bank sitting idle, 2) moving or keeping money only where you get maximum benefit/return with least cost and effort including any bank promo, and 3) avoid pre-authorized payment (PAP) and 4) have the free convenience(s) offered by LISAs like deposit/transfer-in to directly pay off LISA institution's credit cards on time/due date;
however, the opportunity cost seems to trade off varying loss of time, simplicity and/or convenience features from other existing solutions like PAP and/or LOC you mentioned that you opt out of because of "available CL allotment, credit check, etc.".
E.g., as poster in another thread remarked about valuing their "time and peace of mind", this might be another ymmv since those dynamically changing/growing their number of accounts or having initially large collection of all types from banks (and/or credit unions), may likely find themselves choosing one more order of magnitude complexity change in their life with this hack and its upkeep imho. Smiling Face With Open Mouth And Smiling Eyes
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Oct 23, 2017
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titaniumtux wrote:
Feb 18th, 2018 11:15 am

I can't be bothered with hefty fees on chq accounts, or keeping a positive balance of $5k in a chq account while not accumulating interest.

Just thought I'd share this with the RFD community.
Hi, I'm just curious how much money this saves you every month?
[OP]
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archonz wrote:
Feb 20th, 2018 5:57 am
Perhaps just like Exp315, may probably misunderstood this hack, but believe the suggestion here is if you "ONLY" had "desired/needed" credit card account(s) with a big five or so bank(s) then open a "low interest" savings account (LISA) with same bank for transfering/depositing in enough to pay off credit balance(s) owing just on/before due date.

For those who have little to no trouble opening savings account(s) wherever they maintain their low number of credit cards, do recognize the advantage of LISA if you want/wish at most times to 1) avoid tying up any money at credit card's bank sitting idle, 2) moving or keeping money only where you get maximum benefit/return with least cost and effort including any bank promo, and 3) avoid pre-authorized payment (PAP) and 4) have the free convenience(s) offered by LISAs like deposit/transfer-in to directly pay off LISA institution's credit cards on time/due date;
however, the opportunity cost seems to trade off varying loss of time, simplicity and/or convenience features from other existing solutions like PAP and/or LOC you mentioned that you opt out of because of "available CL allotment, credit check, etc.".
E.g., as poster in another thread remarked about valuing their "time and peace of mind", this might be another ymmv since those dynamically changing/growing their number of accounts or having initially large collection of all types from banks (and/or credit unions), may likely find themselves choosing one more order of magnitude complexity change in their life with this hack and its upkeep imho. Smiling Face With Open Mouth And Smiling Eyes
Big +1. Well said.
Dealmaker1945 wrote:
Feb 20th, 2018 8:46 am
Hi, I'm just curious how much money this saves you every month?
To answer your question, there's no "tangible savings", this is instead a "safety net", to prevent potential fees/interest charges.

If you don't meet the minimum payment (which can crank up when you run a big spend) on a TD CC, they actually increase interest rates (plus affects your credit). Heck, since I can e-transfer up to $3k and flip that to CC all within a day, this can be a safety net to make sure I don't get hit with nasty reprocutions by the bank for innocent negligence.

Everything is fine and dandy until you hit a rough patch in life where managing these CC's with high rewards becomes overwhelming. Establish safety nets when times are good, because the banks will take you for a ride when times are rough.

@MayorOfToronto this is exactly my outlet to avoid doing my daily banking with one of the big five, despite benefiting from their CC's.
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Jr. Member
Jul 18, 2015
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Vancouver, BC
I think this is what could be achieved in general:

-Have Credit card at Institution X.
-Open a free savings account at Institution X.
-If for some reason you cannot make payment 1 or 2 days before due date, then interact e-transfer money from Institution Y to Institution X free savings account.
-Pay off credit card at Institution X with free savings account to avoid interest or a phone call.

Don't see it being used often, but I have done this before because there will always be an off day when something comes up.

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