Personal Finance

Who has switched completely to online banks?

  • Last Updated:
  • Mar 5th, 2020 7:11 am
Tags:
Sr. Member
Nov 14, 2010
937 posts
209 upvotes
I went the longest time with just a PC Financial / Simplii account. Never was a problem. Since I have some e-series MF accounts with them, I got a no fee account at TD "just in case". I've yet to need it.
redzone wrote: this is an intriguing method to achieve the need for quick cash when required. i like the approach. will have to do more research.

I do have a Simplii account as our day to day account i just remember the last time i needed a money order / bank draft i had to pay an extra fee to get it within a week. I guess thats not a big deal as it is such a rare event.
Most banks let you overpay your Line of Credit account, so you can use it as an account with unlimited free transactions and extra large overdraft, though there's differences in features.

RBC won't let you overpay.

Scotiabank does but the account is structured more like a Visa. Can accept bill payments, can make bill payments, can withdraw cash at Scotia ATM. Can't do EFT, not normal account transit numbers.

BMO I'm not familiar with. I think it's similar to Scotiabank's but in Mastercard form.

CIBC Free outgoing e-transfers (email money transfers). Can do EFT (to link to Simplii or EQ or direct deposit, or pre-authorized payments). Free Cheques?

TD Can do EFT. Can accept bill payments (so you can easily send large amounts of money from Simplii without doing an EFT link), can accept e-transfers, costs to send e-transfers. Free cheques. Combine with a free TD Everyday savings account to have a "real" deposit account. Everyday savings allows 1 free withdraw transaction per month.

Where you bank with TD now, you might be able to negotiate a good rate / limit. Having a high limit means if a quick opportunity came up, you could get a bank draft made, then wait for the money to transfer over, and not be out too much for interest for a couple of days. Also having TD & Simplii gives you two different ATM networks and institutions, where CIBC & Simplii are one and the same.
Deal Addict
Dec 16, 2012
2409 posts
425 upvotes
Vancouver
I am 90% online, I do have one account with a credit union. I keep it around for a few reasons

1. The checking account is free with no minimum balance.
2. Most online banks you can't use your interact card in the USA. I shop at WinCo grocery store and they don't take credit cards
3. I really don't like paying by cash so any money I get from people I deposit it and send it to my online banks

As for needing cash quickly, like others said how often do you need large amounts of cash? I keep a few hundred in my checking account and if I need more I guess I could e transfer from EQ to tangerine and then go to an ATM and withdraw.

I never needed to do something like that yet as I pay 99% by credit card. I got $20 in my wallet and might need it for months.

As for bank drafts, my wife only has tangerine and she wanted to buy a new car. We found one we liked put a deposit on it and said it will take a few days to get the draft.

The dealer made a bit of a stink about it but in the end what was he going to do let us walk because he would have to wait 2 extra business days vs 1 business day ( bought the car on a Sunday) and potentially sit on the car for who knows how long... That's why you have deposits

Otherwise we could have easily planned ahead transferred our Max budget to the credit union account as usually when you buy a car you know it's coming up and can start moving money around.
Deal Addict
User avatar
Jun 23, 2017
1033 posts
560 upvotes
Toronto, ON
redzone wrote: Im considering closing my TD account as im sick of having 2 grand just sit there to avoid the fees. Has anyone went completely to online banks?

Im worried about instances where i need my money quickly or need a bank draft/ Money order (say buying a car or house). I know some offer bank drafts but its slower then most physical banks.

Would love to hear anyone's pros / cons experiences.
not quite... but i no longer have any bank accounts where i need to maintain a min. balance just to avoid monthly bank fees. Hated tying up my cash that way.
Now I enjoy my accounts @ Simplii, Tangerine, EQ Bank, Motive Financial, etc. Smiling Face With Open Mouth
Deal Addict
User avatar
Jun 23, 2017
1033 posts
560 upvotes
Toronto, ON
eblend wrote: I don't really see a need to have a physical branch at all for 99.999999% of the time.
.... and many banks are converting physical branches to glorified internet cafes, where you walk in and do you banking online using their iPad or laptop. No bank tellers to help with transactions.
Deal Addict
User avatar
Jun 23, 2017
1033 posts
560 upvotes
Toronto, ON
f00kie wrote: I learned this a decade ago or something from RFD, but I can't believe people aren't using this more often:
Open an unsecured (or secured... doesn't matter) LOC with a major bank. Doesn't matter what the limit is. This is now your free, no fee, chequeing account. You get a debit card, you can make purchases, you can deposit or take out cash. You can even do bank drafts for huge 6 figure amounts.
poorwingman wrote: I have found it helpful to have an account at a traditional bank to withdraw large sums of cash quickly for vendors (i.e. wedding, renovations).
+1. After paying off my mortgage, CIBC gave me this 'free' HELOC to use. Convenient for CIBC as well as they've assessed the property simply want to retain me as a client after discharging mortgage.
Free cheques. Free use of their ATM's. Free Interac e-transfers. and ability to walk in and get a stack of $100 bills ahead of seeing the fam for festive gatherings for gifting to younglings. [yeah, i know some of their ATM's dispense c-notes too!]
Last edited by 905P4N6 on Feb 19th, 2020 9:13 am, edited 1 time in total.
Deal Addict
User avatar
Jun 23, 2017
1033 posts
560 upvotes
Toronto, ON
cheapskatescooner wrote:
CIBC Free outgoing e-transfers (email money transfers). Can do EFT (to link to Simplii or EQ or direct deposit, or pre-authorized payments). Free Cheques?
I get free cheques with my CIBC HELOC and OK to overpay into it.
Newbie
User avatar
Mar 23, 2017
89 posts
105 upvotes
London, ON
Me! Well I moved my chequing account to Simplii but I still have a LOC at CIBC like others have pointed.
Sr. Member
Aug 15, 2009
690 posts
446 upvotes
Montreal
From NBC to Tangerine. Been great ! I ordred a draft online and took 36 hours to arrive at my door. If you have a Café near you, you can have it shipped there if you don't trust courrier.
Deal Addict
User avatar
Jun 23, 2017
1033 posts
560 upvotes
Toronto, ON
elpaso wrote: From NBC to Tangerine. Been great ! I ordred a draft online and took 36 hours to arrive at my door. If you have a Café near you, you can have it shipped there if you don't trust courrier.
... and no-fee easy access to your cash via BNS ATM's.
[OP]
Deal Addict
Mar 12, 2008
1615 posts
181 upvotes
Toronto
Thanks all.

Looks like i got lots of answers.
Deal Expert
User avatar
Aug 18, 2005
18998 posts
3655 upvotes
Burlington-Hamilton
Switching to online banks is like switching totally to smartphones running iOS or Android. It's cool and convenient, but sooner or later, you're going to need a 'real' Windows PC or brick & mortar account.

I've been using PC / Simplii since 2001 as my primary banking, but I would never go without at least 1 B&M account.

Especially when you're house shopping, you make an offer today, you learn at 8pm that you won, and need a deposit draft tomorrow morning, you need a real B&M bank.
Sr. Member
Oct 29, 2009
609 posts
294 upvotes
I am in the process of making this transition. I have investments + free savings account at a Big 5 bank, and am currently moving daily banking to an online bank. Since e-transfers are free it is straightforward and free to move money from the online chequing/savings to the Big 5 bank if I need branch services.

We'll see if it works out, but it sounds reasonable in theory :).
Deal Addict
User avatar
Jan 2, 2012
3647 posts
1515 upvotes
Toronto
Jucius Maximus wrote: Switching to online banks is like switching totally to smartphones running iOS or Android. It's cool and convenient, but sooner or later, you're going to need a 'real' Windows PC or brick & mortar account.

I've been using PC / Simplii since 2001 as my primary banking, but I would never go without at least 1 B&M account.

Especially when you're house shopping, you make an offer today, you learn at 8pm that you won, and need a deposit draft tomorrow morning, you need a real B&M bank.

Meh I've gone without a B&M bank for over 15 years now, and have not remotely needed one even once during that time. And bought multiple homes and cars in that time.

If you are bidding for a home on an offer date, then you should already have the certified deposit cheque in hand.

Else you can have one within a few hours with the online banks (for Simplii, certified cheque will be ready at your closest CIBC). Not a good reason for hassle of keeping a B&M account IMO.
Sr. Member
Aug 15, 2009
690 posts
446 upvotes
Montreal
Jucius Maximus wrote: Switching to online banks is like switching totally to smartphones running iOS or Android. It's cool and convenient, but sooner or later, you're going to need a 'real' Windows PC or brick & mortar account.

I've been using PC / Simplii since 2001 as my primary banking, but I would never go without at least 1 B&M account.

Especially when you're house shopping, you make an offer today, you learn at 8pm that you won, and need a deposit draft tomorrow morning, you need a real B&M bank.
I don't know how it works out in the rest of Canada but in Qc you don't need to deposit a draft the day after your offer got approved.
Deal Addict
User avatar
Sep 19, 2013
2294 posts
782 upvotes
Winnipeg
I've been online since 8 yrs now. Primary bank is Simplii, but have also used Tangerine. The only complaint till now has been when I bought my house, it took 3 business days for the draft to arrive. Face With Stuck-out Tongue And Tightly-closed Eyes
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)