Peoples Trust is a CDIC-insured bank based out of Vancouver BC, Canada, and with branches in Vancouver, Calgary, and Toronto. While Peoples Trust is not an online bank, they do allow for electronic transfer of funds to and from other Canadian financial institutions. However, in order to keep their costs low and offer the best interest rates possible, they do not offer all of the typical services you get at most other banks.

In their own words (source: peoplestrust.com):

Peoples Trust has become a very successful provider of financial services by combining price competitive products with truly exceptional customer service and support. Recognizing that a smaller organization cannot compete effectively in all areas, the company carefully examined the financial services industry and selected a number of product lines which could be offered with real added value. The compact nature of the organization ensures that operating overhead is well controlled and contained, resulting in the ability of the company to pass on these cost savings to you, the customers, in the form of improved interest rates… lower for borrowers and higher for investors.

Assets consist mainly of conventional and insured loans on predominantly multi-family residential properties located in major urban centers. Investor Services Focus on traditional short and long term RRSP and GIC products, together with mortgage banking for institutional investors. The company is particularly active in the Mortgage-Backed Securitization program as an Issuer.

Peoples Trust maintains a unique and enviable position among Canada’s financial institutions as a result of long-term profitability, steady asset growth and the ability to perform above and beyond customers’ expectations.

Why did I decide to try Peoples Trust?

Given the current state of the economy and low interest rates, a savings account rate of 4.0% is certainly enough to catch anyone’s attention (this only recently fell to 3.6%, which is still significantly higher than other banks). Offering a rate higher than many GICs (and even higher than some Mutual Funds as of January 2009!), there is certainly incentive to “test the waters” with a new financial institution. But is there a catch? At the end of this article, we’ll review some of the pros and cons. But first, let’s go through the account opening process.

Opening an account with Peoples Trust

You can access the full Peoples Choice Savings account terms and conditions here.

To open an account with Peoples Trust, visit:

http://www.peoplestrust.com/depositSerives.htm

and under “Peoples Choice Savings Account” click “purchase”. This will bring you to the online application form. The application process is straightforward and after submitting, you will receive a confirmation e-mail that looks like this:

Thank you for placing your savings with Peoples Trust!

You chose to place your savings in a Peoples Choice Savings Account and will begin earning interest from the day your first cheque/deposit is received by Peoples Trust. Your terms and rates are listed below.

If you have chosen to pay by Personal Cheque, please make it payable to Peoples Trust Company and mail it with your confirmation number written on the front to:

Peoples Trust Company
1400-888 Dunsmuir St.
Vancouver, BC V6C 3K4

If your funds are being transferred by Electronic Funds Transfer, your deposit will be processed on the next business day.
We will send you an official confirmation with your account details as soon as your deposit is received and processed.

————————————————————————
Confirmation Number : xxxx
Product : Peoples Choice Savings Account
Term : n/a
Rate : 4.000
Amount : $xxx
————————————————————————

Here’s what might set off a red flag for you: the cheque must be made payable to “Peoples Trust Company”. I must admit, this made me nervous, so I did some due diligence. I verified the Peoples Trust address with the CDIC, and made out a cheque for a much smaller amount than my full deposit. In a few weeks (yes, it takes that long), I received my Peoples Trust package in the mail with the initial “starter cheques” and account information.

Transactions

Peoples Trust offers no online banking capabilities. This means that you cannot check your balance or pay bills online. Also, only the first 5 transactions of the month are free (after the 5 transaction limit, there is a $1.50 charge per withdrawal, as of January 2009).

Notable features include:

• Deposit a cheque by mail or personal delivery to a branch
• Write cheques on your savings account
• Transfer funds between your savings account and an external account at another financial institution (initiated by your external bank)
• Transfers usually take about 1 business day and cannot be cancelled once initiated (you need to wait until the money has transferred, and then transfer it back again)
• Set up or authorize withdrawals via phone or e-mail
• Set up pre-authorized, automatic deposits into your Peoples Trust account
• Check your balance and transaction history by phone

Notable omissions include:

• No bill payment service
• No ATM or debit card service
• No electronic fund transfer to other account holders
• All correspondence with Peoples Trust must be done via phone, e-mail (deposits AT peoplestrust DOT com), or by visiting a branch. This is also the case if you wish to take advantage of the other services offered by Peoples Trust (such as opening a GIC or an RRSP).

Pros

• The interest rate posted is accurate, and paid monthly!
• You can write cheques on your account (you get 4 free cheques with your starter kit, after that the minimum order is $29.00 for 50 cheques).
• There are no hidden fees (when you keep your transactions to the limit of 5 per month), no minimum balance, and your funds are indeed CDIC insured for the standard $100,000 per account holder.
• You get a monthly account statement via postal mail.
• Good customer service: I was pleasantly surprised with the polite, helpful staff at Peoples Trust. The best way to get in touch with a representative, I have found, is by e-mail, which is usually replied to within 24 hours. While some might prefer a phone call, I much prefer e-mail to waiting for 15+ minutes on hold for a phone representative at some other high interest accounts (as I’m sure we all have experienced!)

Cons:

• Of all the Canadian banks, Peoples Trust places the longest hold time on your deposits: up to 9 days. This, combined with the 5 transaction per month limit, means that if you’re very active with your account, you may want to hold an additional account for your main banking purposes, and consider Peoples Trust as more of an investment option than a daily bank account.
• While you are sent a written monthly statement, Peoples Trust does not have online banking capabilities. This means that you can’t check your account balance or transactions using their website. However, you can link your Peoples Trust account with another online account and access your money via your ING, HSBC, PC Financial, and other online accounts (explained next).

How to link a Peoples Trust account to your other online accounts

Recall that electronic transfers between your Peoples Trust account and other institution’s account(s) are initiated from your other institution’s account(s).

Normally, to link 2 different online accounts, you would need to submit a personalized, void cheque from one institution to other the institution where you want to initialize transfers. However, in your starter kit from Peoples Trust, you are only given 4 cheques, none of which are personalized (with your name and address). Most of the online banks you call will insist that they will not accept anything but a personalized, void cheque in order to link accounts. This is not true!

Once you have opened an account with Peoples Trust and applied online with another financial institution to have your account linked, simply e-mail Peoples Trust and ask them to send an “account verification” to link to your other account (at HSBC, PC Financial, etc.). They require a fax number, address, and the name of a contact person in order to do this, but it will save you 30 bucks for the personalized cheques! It will take some time, but when completed, you will be able to transfer funds in and out of your Peoples Trust account electronically!

Summary

If you’re looking for a place to park your money until this unstable market settles (and beyond), Peoples Trust looks like a great option! Just be aware that you may need to do a little planning if you want to move your money in and out of this account.

Forum/Topic		Started	Last Post	Posts
	Peoples Trust Peoples Trust now has a TFSA	February 16, 2010 1:05 pm by Peter	February 20, 2010 3:02 pm by stylintheo	5
	Peoples Trust Peoples Trust Electronic Funds Transfer	February 1, 2010 1:52 pm by Ihatebankfees	February 1, 2010 1:52 pm by Ihatebankfees	1
	Peoples Trust Interest savings on $50,000.00	December 6, 2009 6:19 pm by Julie	December 6, 2009 6:19 pm by Julie	1
	Peoples Trust most recent high interest savings account rate	December 4, 2009 8:27 pm by amira	December 5, 2009 8:49 am by doc	2
	Peoples Trust Peoples Trust down to 2.10%	August 1, 2009 11:20 am by djino	November 5, 2009 2:47 pm by JR	20

I’ve always thought that ING Direct Canada’s business approach is smart, from its branding to its overall marketing to how it treats its customers. Over the years, it has projected a rather straightforward message about no hidden fees and good rates. This is complemented by an uncluttered website and a smart referral program. (In general, a referral program is usually a good idea, as it encourages people to recommend your product or company without having to pay them as employees. And, of course, you are not only getting new, high-quality customers — not just iffy leads — but you also take no risk until you’ve actually signed up a customer.)

ING Direct wasn’t the pioneer of high interest savings in Canada, but many people might think that it was. And even though the majority of other Canadian banks and credit unions have created high interest savings accounts (some which have higher interest rates), ING Direct remains a strong player. So it has been doing something right all along. Of course, the savings account isn’t the only “product” that ING Direct offers, but that account is a very important entry point for people to do other, more lucrative business with ING Direct, with mutual funds, mortgages, business accounts, and more.

Out of the blue, I recently got a package in the mail from ING Direct consisting of:

- The 272-page book The Orange Code: How ING Direct succeeded by being a rebel with a cause.

- A letter explaining their expanded referral program (both the referrer and the referree still get $13; however, they raised the limit from 20 referrals to 50 referrals, and extra monetary bonuses after you’ve referred 10, 20, 30, 40, and 50 friends:

– This letter also notified me that ING Direct had made a deposit to my account for back-dated referral money from before the referral program was changed. (I was lucky to refer over 20 people a couple of years ago from this post.)

Why is this smart?

By sending the package in the first place, they are showing some customers that they care.

With the free book, they are enticing customers to learn more about them. Presumably, this will spur readers to talk about the book and the story behind ING Direct. (Note: I haven’t read the book yet.)

The revamped referral program structure is designed to get influencers to work cheaply for ING Direct. When I say “influencers” I mean consumers that other consumers listen to, providing free, effective, word of mouth advertising, provided that the influencers actually like your company. If you have the capability to refer up to 50 people, you are probably well connected or have an opinion or channel that people respect. ING clearly wants those people on their side!

By back-dating the benefits of a program, you help to keep your existing customers and once again get them to recommend you to others. So many times in the forums, I’ve noticed people complain about how a bank’s new promotion doesn’t apply to existing customers. In other words, those banks usually project an attitude of only caring about sucking people in, but not in treating them well once they’re customers.

I have a friend who received a similar package from ING Direct at the same time as me. Her reaction was: “I couldn’t believe they gave me $50. I love them!” I’m not quite as enthusiastic, but ING Direct certainly succeeded in many respects here.

Forum/Topic		Started	Last Post	Posts
	ING Direct Referral Code Wanted	February 5, 2010 11:01 am by Lisa	February 5, 2010 11:01 am by Lisa	1
	ING Direct TFSA up to 3%	January 1, 2010 10:44 pm by Nightowl	January 3, 2010 9:44 pm by Peter	2
	ING Direct ISA rate up, some GICs down	December 14, 2009 11:31 pm by Nightowl	December 26, 2009 7:28 pm by Dave	3
	ING Direct New ING website	December 10, 2009 3:57 pm by Matilda Greene	December 10, 2009 4:18 pm by Peter	2
	ING Direct You might want to move your money out of ING Bank ASAP. 1 2	October 26, 2009 8:09 am by mike	November 18, 2009 8:22 pm by Hussain	21

It all started about a year ago when I graduated from school and was faced with the end of my ’student’ account at one of the big banks. Although I had already been paying fees (about $3.50/month, which bought me almost no services), the non-student plans were even worse. I decided it was time to explore some no-fee account options. Here is how I decided on Citizens Bank:

I didn’t want to buy a membership to a bank

My first line of inquiries was around credit unions, which typically have good reputations for having better fee structures. Citizens Bank is very comparable to credit unions, but it is not actually a credit union and thus you do not have to buy shares.

I wanted a stable bank, where my funds were secure

Citizens Bank is an ‘online’ bank, however they do have one branch location in downtown Vancouver, which appeases any worries I have about not having any face-to-face customer services options. As well, they are owned by Vancity, which means that they have the backing of a larger group. Funds deposited at Citizens Bank are also covered by the CDIC.

I wanted no-fee accounts, with high rates, and overall flexibility

I was looking to have two accounts: a chequing / savings account and a high interest account. Citizens Bank had both of these, and the accounts are automatically connected. My only point of dissatisfaction with their accounts was that the chequing / savings account was not completely ‘fee free’ (like Coast Capital Savings) as you have to keep a minimum balance ($1000) to avoid fees. However, as has been recently announced, they will have a completely free chequing / savings account shortly. This has improved my satisfaction about 30%, as I found it unreasonable that they could not match the Coast Capital ‘no fee’ account. After all, Citizens Bank is an online bank, meaning that they save on overhead costs.

The high interest savings account has consistently offered one of the top interest rates all year, and is currently about .10% higher than other banks. This account could also in many instances be used as a chequing / savings account as you can make bill payments, and some debit transactions out of that account (although I still wanted a chequing / savings account).

The chequing / savings account has unlimited transactions, and you can use any ATM on THE EXCHANGE Network (which makes it extremely accessible, as there are many banks on that network, such as HSBC and almost all credit unions). I also got free cheques with the account, which most banks do not do – even Coast Capital). They have a very basic but functional online interface that allows for online banking with bill payments and transfers. I have found interfacing between the two accounts is completely seamless, with instant transfers.

——————————————

All these elements lead me to open my account with Citizens. I found the actual opening of the account relatively easy – I did do it in branch (because I didn’t have any cheques from my other bank), and the service in branch was good. If you have cheques you can open the account by mail.

Unexpected, value-added features

Since becoming a client, I have come to discover some unexpected, value-added features:

Transferring funds between other Citizens clients

You can transfer money to other Citizens account holders for free. This is a great paperless way to settle payments with others. There are many applications of this, including: paying rent; settling a tab with a friend; and buying something online.

Memorized accounts

I have only recently discovered this feature, and it makes the above mentioned item much easier to do. Basically, you can have the system save other account numbers for you, so if you frequently transfer funds to other people, you can save them as a ‘memorized account’. Once logged in, click the Member Services tab, then click the Manage Memorized Accounts link on the left, add an account, name it and presto. Later, when you transfer money to another Citizens Bank member, you can choose their account from the memorized list.

Good customer service

I have occasionally had to phone their 1-800 number for customer support. I have always found the service to be very helpful, and very efficient. There is no 20-minute long phone tree or extended wait times; they pick up right away and provide good service. They are also open 24/7; you may be anxious about having a bank with only one branch, but it’s actually more accessible than most banks as you do not have to race to the branch before it closes. Whenever you have a problem, you can just call them up and receive quick service. This was one of my biggest complaints at my previous bank, as they were open so infrequently that I could almost never get service.

Corporate social responsibility (CSR)

Citizens is a bank you can feel good about banking with. They have great corporate social responsibility policies. For example, they set a goal to be carbon neutral as an organization, and they have achieved it ahead of schedule. You can read about how they did it here. As well, they have an annual campaign where bank clients can vote from a list of charities about where corporate donations will be made. Initiatives like these make you feel good about being aligned with the organization. Remember, money talks: if you are concerned about CSR you have to think about who you are storing your money with.

Areas for improvement

Online login

This is an issue I have only recently had as a complaint. Within the last 3 months they changed their online login system to add some new ’security’ features. You now have to enter your personal password, view a secret picture, and a secret word. Then if you have not registered your computer, or are using a public computer, you have to answer questions which you previously filled the answers in for. I hate this system. I find it cumbersome and annoying. I believe there may be a time and a place for extended security when using public computers, but I never use public computers for accessing my banking data (the best security measure of all), and therefore would have much preferred if there was an opt-in/out feature on the new security measures. That way I would not have to endure the hassle every time I log in from home, but if I knew I would be traveling or potentially using other computers, I could turn that feature on. I also question exactly how much security it adds to your account, since if someone could hack in and determine your password, why couldn’t they hack in and replicate your secret picture/word etc.

No fee account

As mentioned above it really bothers me that you need a minimum account balance in order to waive fees. The fact that they are apparently getting rid of this is a huge improvement.

Paperless statements

When I first joined I signed up to not receive my paper statements. However, I still receive them, and can’t fully figure out why. My complaint on this issue, is not one actually specific to Citizens but to all companies that try and sign you up for paperless – why can’t an option be that they email you a link to your bill every month. I don’t want to have to remember every month that it’s time to go online and check it, then have to find where it is on the website etc – this whole ‘paperless’ thing would work much better if they would send you a link once a month.

Automatic credit limit

When I first opened my chequing / savings account with Citizens, they opened it with an automatic $1000 credit / overdraft approved. I did not want that, and I still don’t. This should be an opt-in/out feature. My main concern is security – if someone stole my debit card tomorrow, they could withdraw my funds plus the $1000 ‘credit’ which I would then be on the hook for. Second, this extra $1000 is shown in your balance, so it can be confusing sometimes as to exactly how much you have if you forget to mentally deduct that $1000. Third, I find this to be sneaky behaviour on their part, as this credit comes with an extremely high interest rate in comparison to their regular lines of credit. It makes you feel that they are trying to pull a fast one on you, because if you ever make a mistake and dip into that money, you will be charged a hefty fee for that. I would prefer to take the risk of having a cheque bounce than to have this pre-approved credit.

——————————————

Overall, I have been happy with the service, security, and money management of Citizens Bank. I would recommend this bank to anyone.

Latest posts in the Citizens Bank forum

Forum/Topic		Started	Last Post	Posts
	Citizens Bank Citizens Bank is closing 1 2	August 5, 2009 8:49 am by Peter	February 24, 2010 7:31 pm by Doug	28
	Citizens Bank Download your account history before your Citizens Bank account closes	February 23, 2010 9:14 pm by Peter	February 24, 2010 8:28 am by Prag	2
	Citizens Bank Vancity has a new high interest savings account Jumpstart?	November 15, 2007 4:59 pm by Peter	January 9, 2010 8:34 am by Sleeperz	4
	Citizens Bank Checking account functional until probably February	December 7, 2009 1:08 pm by Patrick	December 7, 2009 1:08 pm by Patrick	1
	Citizens Bank DUPED! Citizens Bank Global Chequing Account…is not FREE!	February 4, 2009 9:51 am by Jeff	August 23, 2009 12:27 pm by Hornswoggler	11

One-time fees such as NSF, bank drafts, and so on will still apply (as with all chequing accounts) but say goodbye to usual operating fees or monthly fees. Moreover, if you use an ATM while traveling outside of Canada, Citizens Bank will waive their portion of the fees. (The other bank might still charge something on their side).

While Coast Capital made the big news when they offered their no-fee chequing account a couple of years ago, I am partial to Citizens Bank to an extent because of its Ultimate Savings Account. That account is consistently near or at the top of the high interest savings account rates. With the new Citizens Bank chequing account, I would be able to make unlimited, instant transfers between my own accounts and to other Citizens Bank accounts. Essentially, I can keep the bulk of my money in the high interest account, and instantly transfer it over to the chequing account as needed.

Citizens Bank is mostly an online bank, which suits me well because almost all of my banking can be done electronically. However, I am also fortunate enough to live near its downtown Vancouver location, which does offer teller service (for the rare occasion that I have to deposit a US dollar cheque).

Ever since I opened a Citizens Bank account 4 years ago, I have become more and more of a fan. They’re owned by Vancity, they have great service, they’re socially responsible and green, and of course they have practical, relevant account offerings. Heck, here I am writing what is essentially a free promo for them!

Latest posts in the Citizens Bank forum

Forum/Topic		Started	Last Post	Posts
	Citizens Bank Citizens Bank is closing 1 2	August 5, 2009 8:49 am by Peter	February 24, 2010 7:31 pm by Doug	28
	Citizens Bank Download your account history before your Citizens Bank account closes	February 23, 2010 9:14 pm by Peter	February 24, 2010 8:28 am by Prag	2
	Citizens Bank Vancity has a new high interest savings account Jumpstart?	November 15, 2007 4:59 pm by Peter	January 9, 2010 8:34 am by Sleeperz	4
	Citizens Bank Checking account functional until probably February	December 7, 2009 1:08 pm by Patrick	December 7, 2009 1:08 pm by Patrick	1
	Citizens Bank DUPED! Citizens Bank Global Chequing Account…is not FREE!	February 4, 2009 9:51 am by Jeff	August 23, 2009 12:27 pm by Hornswoggler	11

I first noticed this Direct Savings Account in early 2007. I was currently using PC Financial’s no fees checking account with their 4% Interest Plus high interest savings account. I needed an all-in-one chequing / high rate savings account solution and HSBC’s Direct Savings account was definitely that and more.

I signed up March of 2007 with their $25 sign-up offer (under the condition that I have $100 in the account on June 27th, they would then deposit $25 by August 1st). Just as with most high rate savings accounts, to sign up, you need to complete the online savings account application followed by mailing them your first deposit cheque to link your existing checking account from another financial institution.

The sign-up process was seamless and the ATM Card along with the PIN was mailed within about 5 business days (to change the PIN, just visit an HSBC Branch). I then contacted customer service to get set up for telephone and online banking.

As stated above, I find the Direct Savings Account is your best all-in-one solution for banking. Absolutely free transaction banking with no monthly fees, no maintenance fees, no account fees, and no transfer fees. Free unlimited bill payments and pre-authorized debits along with free bank-to-bank transfers. My initial transfer was a bank to bank transfer from my checking account with PC Financial (CIBC) to the Direct Savings Account.

As you know with most all banks, although you will see the funds from the bank-to-bank transfer in your savings account the next day, they will hold the funds for about 5-10 business days while the funds clear your linked checking account.

ATM Deposits might be your way around this. Another great service from HSBC is that they are connected to THE EXCHANGE network so you will not have to drive far to look for a HSBC ATM. This will allow you to make free withdrawals and deposits from any Bank of Montreal ATM as well as any other ATMs connected to THE EXCHANGE network (National Bank of Canada, Alterna Savings, etc). Just visit www.the-exchange.ca to find the closest ATM. Your question here might be, do they hold funds you deposit at an ATM? I believe when my account was set up, they had a hold on any deposits exceeding $100. I called into customer service and asked if they would increase this $100 limit. I believe they had to do a credit check of some sort, but I was able to have it increased to $1000 with no hold. (They also increased my ATM cash withdrawal daily limit to $600 and my Interact purchases daily limit to $2000.)

So I was set. With the free unlimited ATM withdrawals and interact purchases, I decided to set up payroll deposits with my employer and also pre-authorized payments for my car payments and insurance. If you need to set up pre-authorized payments with any bill companies, you obviously will not be able to send the company a cheque (this is one of the things lacking with this account, but then again, most banks do not offer cheques on their savings, so I cannot complain), you will need to visit a HSBC branch and ask them for a Void Cheque Form.

I cannot complain too much about the interest on this account. When I signed up, it was at about 3.75%. The interest has fluctuated between 3-5% over the past 15 months. The recent promo (Feb 4th to May 2nd) was for new and existing customers giving a 4.75% rate on balances exceeding the balance you had on February 4th (otherwise you were only getting the normal rate of 3.30%). To get around this, I opened up a second Direct Savings Account when the promo began and kept most of my funds in that account while transferring funds I needed into my first Direct Savings Account. Unlike PC Financial, all transfers within HSBC accounts are instant with no delays.

Since opening up the two Direct Savings Accounts with HSBC, I’ve opened up two U.S. Savings accounts (a High Rate U.S. Savings account along with a Regular U.S. Savings account). The Regular U.S. Savings account is also a no fees account. (Although I cannot make purchases with this account, I am able to make free deposits / withdrawals with a branch service person as well as unlimited free transfers online. The High Rate U.S. Savings account only gives you the open for unlimited transfers through online banking, so you would have to build your U.S. Funds in this account and then transfer it online to your Regular U.S. Savings account and withdraw with a HSBC branch service person. I also opened up an RRSP Account earlier this year and contributed some funds to take advantage of their 4% promo rate without having to be locked in.

As for online options, you are able to request to have your statements mailed to you or to view them online or both. Here are a few settings you can change with your online profile.

Contacting customer service has always been great. I always get through to speaking to someone right away. Though one problem I find is if you make any special requests like the one I mentioned earlier about increasing your hold limit on deposits at ATMs, you will need to speak to your banking advisor, which is someone in Vancouver who takes care of Direct Savings Accounts. If this person is not available, you will have to leave a message and wait for him / her to contact you back.

The one negative encounter I did have with HSBC is when I lost my ATM Card on a Thursday evening. I went to an HSBC Branch Friday morning to get another one. They were able to provide one to me, but I was not able to use it for ATM / debit purchases for 2 business days. This meant having to wait until Tuesday to have access to my funds (although online banking was available). That Friday morning I had to transfer money from the Direct Savings Account to the U.S. account, then see the branch service person to withdraw the U.S. funds (while transferring it back to Canadian currency), so I could have some money for the weekend as my debit card was not usable. I had lost some money on the double conversion there. Keep in mind here, that HSBC Bank personnel do not have access to the Direct Savings Account — you will need to do all your transactions where this account is concerned all by telephone or online.

To wrap up this review, I would have to say my experience with HSBC as a whole has been very positive. From their free unlimited transactions, to their free unlimited ATM / debit access to their high interest rates, you really cannot ask for more. Customer service people are in Canada and always available (no hold times as of yet). Though I have read some people’s complaints about the online access, I myself am pretty happy with it. If you have the same banking needs as I do, I’m sure you will enjoy HSBC’s online Direct Savings Account. In my opinion, no other bank can compare.

Latest posts in the HSBC Direct forum

Forum/Topic		Started	Last Post	Posts
	HSBC Direct HSBC Ends ATM Agreement with BMO	February 6, 2010 5:08 am by djino	February 13, 2010 11:47 am by Doug	8
	HSBC Direct best fx exchange rates	February 7, 2010 8:49 am by doc	February 7, 2010 8:49 am by doc	1
	HSBC Direct us dollars accounts in canada	February 6, 2010 9:36 am by doc	February 6, 2010 9:36 am by doc	1
	HSBC Direct HSBC Direct Savings Name Change -> HSBC Advance Savings	November 7, 2009 5:58 am by djino	January 12, 2010 6:52 pm by Doug	11
	HSBC Direct Where did HSBC go on the Comparison chart?	January 7, 2010 3:30 am by mike	January 7, 2010 8:32 am by Peter	3

The only reason why I keep a chequing account is so that I can deposit the occasional foreign currency cheque with a teller and so that I can write cheques (although some hybrid accounts let you write cheques). However, I try to keep as little money as possible in my chequing account at all times.

Is it possible to experience high interest, no fees, and still have access to your money when you need it? No single account satisfies this, but as with most things in life, you can tweak your habits to improve you situation. Most day-to-day fees and hassles involve debit card and ATM transactions, cheques, bill payments, and transfers. Here are some simple tips that can help you to address these issues to get the most out of your bank accounts.

Use credit cards as much as possible

Stores would probably prefer that you use cash, but to the consumer, using a credit card helps you in three ways. First of all, you can perform unlimited credit card transactions (well, as long as you have the money for it). With many debit cards, your chequing account only allows you a certain number of transactions per month. Second, many credit cards have no annual fee and give you rewards like cash back or points to buy groceries and such. Third, you only have to pay off your credit card once a month. This means that you can continue to earn interest on money that sits in your bank account for up to two months before you have to pay off your credit card bill without penalty.

Of course, you have to be careful with credit cards. If you carry debt on the card, then obviously you are being charged interest. Also, if you have trouble spending money that you don’t have, credit cards exaggerate the problem. But keep track of your purchases and you should have no problem.

Pay your bills online or via telephone

Often, paying your bills online or via telephone is free. You don’t need to write a cheque, you don’t need to mail anything, and you don’t need to drive anything. In addition, online of phone payments are often posted the next day, so you don’t have to wait the week or more with other types of payments.

Use PayPal

With PayPal, once you have linked your bank account to your PayPal account, you can pay people via “pre-authorized payments”. This is different than debit card payments because there are often chequing account limits and fees on debit card transactions but none on pre-authorized payments (although you should check this with your bank).

Although PayPal became big because of eBay, you can use PayPal to pay for items and subscriptions on an increasing number of websites.

If you and your friends have PayPal accounts of the “Personal” type, you can pay each other instantly and without fees via pre-authorized payments. This lessens your need to carry around as much cash (thus lowering the need to go to an ATM) or write cheques.

Try and get your friends to open accounts with the same bank

Often, transfers within the same bank are unlimited and free. I have a friend that I’m constantly lending and owing money to. We pay each other back instantly and without fees through online banking because we both have accounts with the same bank.

Carry some cash around and don’t use other networks’ ATMs!

ATM network fees are a pain. But really, just find an ATM that is part of your bank’s network! For example, if you have an account with HSBC or any of the credit unions, you can use ATMs on any other HSBC or credit union THE EXCHANGE Network (I think it’s officially capitalized) without paying any fees. As another example, if you have an account with PC Financial, you can use any CIBC bank machine without paying network fees.

And if you have at least a couple hundred dollars in your chequing account, whenever you withdraw cash, just try and withdraw larger amounts at a time (like $200 instead of $60). This might sound simple too simplistic, but I used to always withdraw the smallest amount needed; it made a huge difference to withdraw slightly higher amounts in order to decrease the frequency of trips to the ATM.

Don’t be afraid of opening multiple accounts at different banks

Many chequing accounts that have no minimum balance simply limit the number of transactions you can do. So if you have $200, you can just keep $100 in one account and $100 in another account and thus get double the number of allowed transactions. And if you have accounts at different banks, this means that you have probably increased the number of ATMs you can access without incurring network fees.

Pick a high interest savings account over short-term GICs and pair a high interest savings account with a chequing account in the same bank

This goal of this tip is to help you earn a high rate on your money while keeping the money accessible.

High interest savings account rates are comparable to short-term GIC rates, but of course you don’t have to lock your money in. If you keep as much money as possible in a high interest savings account and have a chequing account with the same bank, you can transfer money back and forth as many times as you want between those accounts either instantly or within 1 business day on an as-needed basis. So if you know you need to write a cheque on a certain date, simply transfer your money last-minute from your high interest savings account to your chequing account. This trades off the additional simple step in order to access your money for chequing needs with the ability to earn a higher rate on your money.

August 3, 2007

I am in the process of “trying” to open an online savings account with ICICI Canada. I went through their online application about three weeks ago and sent an initial deposit cheque as they instructed. About five days later, I got a generic email from ICICI advising that they received my deposit cheque, but I needed to call them for unspecified reasons before they could process it. I called their “customer service” number and spoke with a lady who had a very heavy Indian accent (I assume ICICI has farmed their call centre to some contractor located in India). She informed me that I needed to send them copies of two pieces of identification, one of which had to be my Social Insurance Card, and the other a piece of photo ID such as a driver’s license or passport. This is the first time I had ever been asked to do this by any bank offering online services, but as I have nothing to hide, and privacy is an illusion in this country anyway, I went along and faxed copies of my SIN and driver’s license to the fax number the lady provided me. That was two weeks ago, haven’t heard a peep from ICICI since. I plan on calling them to find out what is going on. Somehow, I expect to be told that they never received the ID documents, or that they “lost” my deposit cheque.

I agree with other posters about the lack of a “warm fuzzy feeling” when dealing with ICICI. I had originally planned to transfer the cash portion of my RRSP holdings to this bank, but I’m having second thoughts about entrusting ICICI with my retirement savings. I’ve read some other blogs on this bank, most of which lambasted the abysmal customer service. Some posters reported problems getting credit for promotions (e.g. $20 referral for account opening, etc…). Others reported intermittent access to online accounts and delays getting funds transferred. I also have a funny feeling about their current 4.5% interest rate. Is there anyone else out there who suspects that ICICI will pull a fast one a few months down the road and lower their rate back down to 4.0%? If you look at their online rate history, you will notice that their most recent jump from 3.75% to 4.5% is way out of proportion with previous rate hikes. I suspect the current rate of 4.5% is really a promotional rate in disguise. Only time will tell I guess. I plan to keep a very modest amount in my ICICI account (if I ever get one) and see what happens.

August 7, 2007

I called ICICI “customer service” and spoke with yet another lady who had a very heavy Indian accent (NOTE: I have nothing against India or Indians, it is just very frustrating having to ask someone to repeat herself 3-4 times so I can understand what she is saying). I advised the lady that I had faxed the identification documents that ICICI requested. The lady put me on hold for 5 minutes while she searched for the fax. When she returned, she advised that they had received my fax, but the ID documents could not be read because of poor fax quality. When i asked why ICICI had not bothered to call or email me to explain this, she advised that it was MY responsibility to call THEM. I held my temper and explained that I had used the highest resolution setting possible to send the fax, but I would try to re-send it again anyway. The lady advised me to call “customer service” about 3 hours after sending the fax to confirm that the fax was acceptable. I’ll probably get around to doing this tomorrow.

ICICI is not making a good impression on me to say the least. If they have further “problems” with my follow-up fax, I may just put a stop payment on my initial deposit cheque and tell them to stuff their savings account. PC financial is looking to be a much better choice at the moment. Their rate is currently 4% (0.5% less than ICICI, and you have to maintain a mimimum balance), but at least they are a subsidiary of a major Canadian bank (CIBC) and their customer service reps all speak coherent english (at least the ones I’ve dealt with).

August 8, 2007

Tried to re-fax copies of my ID. TWICE. Total of three times. Both cases today were the same. I was expected to fax the info then call THEM. Both times, they said ythey couldn’t read the fax. The originals are high-quality photocopies. ZThe fax machine I am using is a high-quality office fax. GET A NEW FAX MACHINE ICICI CANADA!!!!!!

So now I have to mail the ID documents in. Maybe I’ll send them COD and see what happens…

Not liking ICICI…

August 13, 2007

Received an email from ICICI Canada on August 11 (Saturday) saying something to the effect of “welcome to ICICI, your new savings account has been opened”. Also noticed that my first deposit cheque was cashed with a posting date of August 9. The email also said that I would be receiving a user ID and password to access their online banking website. Presumably this information will come by regular mail if ICICI follows the standard practices of the other online banks.

These events were unexpected considering the hassle that ICICI is putting me through vis a vis my identification documents (see previous posts). I still have not sent copies of my ID docs by mail. I think I will wait a week or so to see if the account info arrives. Maybe somebody at ICICI actually took a few moments to have a closer look at my faxes and were able to read my ID docs. Or maybe they are just a typical bloated bureaucracy where the right hand has no idea what the left hand is doing. My money is on the latter scenario. We’ll see what happens…

August 17, 2007

Received a password to access my savings account on ICICI’s website in the mail yesterday. I guess they figured they were causing themselves as much hassle with the ID documents (see previous posts) as they were causing me…

Thing is, I still can’t access my funds online yet because ICICI hasn’t sent me a “Customer ID Number”. That is apparently supposed to be sent by mail as well. When you first sign up with them by internet, they assign you something called a “Temporary Reference Number” which is not the same thing. Hopefully this “Customer ID number” will be in the mail tonight.

Why do I have a feeling that their e-commerce website is going to be a joke…

August 20, 2007

FINALLY, I have an ICICI “HiSave” account. Yippee.

Received ICICI’s “welcome package” by mail today, which consisted of a one-page “welcome” letter and about three pounds worth of “terms and conditions” pamphlets. The welcome letter also included the “customer ID number” needed to login to the bank’s website.

Of course, when I used the customer ID number and password supplied by ICICI, I got a message saying “Invalid Login ID or Password”. At this point, nothing surprises me with this bank. Their login “help” page says to type in my “ten digit customer ID number”. The number given to me is only nine digits. Hmmmmm. Called ICICI customer service and explained the problem, which, in all fairness to ICICI, was fixed promptly (although no explanation was offered for the cause of the problem in the first place). I can now see my account details, which appear to be accurate, and the interest rate is actually 4.5% as it should be. My linked chequing account appears to be correct as well.

“All’s well that ends well” I guess, although I have to say that of all the online banks I’ve dealt with, ICICI’s application process was by far the worst.

So now I’ll shift my attention to how ICICI delivers their services. I’ll be watching for things like fund transfer time (does the bank show a negative bias towards withdrawals), excessive hold-times on incoming deposits, and whether or not ICICI drops their industry-leading 4.5% CAD savings rate down in a few months to something in the order of 4% to 4.2%. I still have a funny feeling that their current rate is really a promotional rate in disguise. I’ll bet the rate will come down if the Bank of Canada doesn’t raise the overnight rate again in September.

August 28, 2007

Haven’t transferred any money yet, so I can’t comment on whether ICICI’s system works. I’ll be doing that soon enough though.

I wanted to put a quick post up here about the Bank of Canada’s pending rate decision (September 7 I believe) and ICICI’s current direct savings “rate” of 4.5%. There has been a lot of rumbling in the financial press lately that the BoC will not raise the overnight rate, mostly because of the cooling of the US housing market caused by the subprime mortgage debacle (these days, it seems like the only qualification to get a mortgage is that you have a pulse). Anyway, I posted some time ago that I felt that ICICI’s savings “rate” of 4.5% is really a promotional rate in disguise. I strongly believe that if the BoC keeps the overnight rate where it is, ICICI will shortly thereafter lower their savings “rate” down to something in line with the other online savings banks (currently between 3.75% and 4.0%, excluding introductory promotional rates).

I suppose one could argue that there is nothing wrong with ICICI attracting new customers this way, but I think it’s highly unethical if not illegal (all the other banks lure customers with promotional rates or one-time cash payouts to sign up with them). I originally planned to deposit the cash portion of my RRSP portfolio with this bank, but I am holding off for this reason (some banks charge a fee to transfer out RRSP accounts, and they take forever to process the transaction as well, sometimes as long as a month).

September 21, 2007

I see from looking at ICICI Canada’s homepage that I’m not the only one who thinks their current interest rate of 4.5% is really a promotional rate. ICICI is telling people through their site that their rate is not a “promotional time offer”. I’m still not convinced. Isn’t it interesting that every other bank and credit union that offers high-yield savings acocunts offer rates that are below the Bank of Canada’s current overnight rate (4.5%)? To my knowlege, the next highest-yielding Canadian savings account is offered by Achieva Financial, an arm of a Manitoba Credit Union. Their rate is currently 4.35%. My gut feeling is that ICICI is subsidizing this current rate from other sources of revenue to try and lure as many depositors as they can. When they reach some critical mass of depositors (as determined by their bean-counters), they will yank their rate back down to something in line with the other online banks, and hope that you can’t be bothered to transfer-out all your savings when that happens. We’ll see what happens in the next several months.

On another note, I opened an online RSP savings acocunt with ICICI, and funded it with a small amount from my existing ICICI online savings acocunt. The RSP account was successfully created in 2 days. There is a problem though. ICICI’s web interface allows me to transfer funds in to the newly-created RSP account, BUT IT DOES NOT ALLOW ME TO TRANSFER FUNDS OUT! I’m going to give them a call and find out what gives. All the other online banks allow you to electronically transfer funds out of RSP savings accounts through their website (less the statutory withholding taxes of course). If it turns out that ICICI insists that I fill out and mail a form to transfer funds out of my RSP account, I am going to be pissed. One of the reasons to have part of your RSP holdings in cash is to have liquid funds that are available in an emergency should the need arise. I don’t want to wait weeks for my money if I have an emergency and need it NOW.

September 24, 2007

I spoke with a “Customer Service Representative” at ICICI today and asked the person why I could not electronically transfer-out funds from a RSP Savings Account. The representative indicated that they “do not allow that”. Apparently, the only way you can get at your RSP funds is if you send the bank a “letter of direction” stating that you want to withdraw funds. The bank will then issue a bank draft, less the witholding taxes. The bank does not even have a form to help you with this. They make it very easy to get money in, but it’s not so easy to get it out when you need it. Granted, registered funds are supposed to be long-term investments, but if you have an emergency and you need access to your RSP funds in a hurry, your only option would be to drive to an ICICI bank branch (very few of these) and wait in line. If you live far away from major centers like Toronto where the branches are, you can forget about quick access to your cash. Other online banks (e.g. ING Direct) let you do an online transfer out of your RSP account to your other online accounts or your linked chequing accounts, and the system just deducts the appropriate witholding taxes at that time.

I’m not yet abandoning the idea of putting RSP cash in this bank, but this is really giving me pause.

September 27, 2007

I had actually gone so far as to fill in an ICICI application to transfer a large amount of RRSP savings funds from another bank to ICICI, and had sealed the envelope and put a stamp on it. That was two days ago. Instead of mailing the envelope, I set it aside for some sober second thought. Am I glad I did that! I figured that I would be more comfortable with my money at a Canadian bank where people speak coherent english (most of the time), and that I would be willing to forego a few tenths of a percentage point on the interest rate to make that happen. I just finished opening an online RRSP Savings account at PC Financial, and I just came here now to post that fact. I considered opening one at Achieva Financial at 4.35% (a credit union in Manitoba), but they are not set up to do online RSP fund transfers between linked accounts (at least they were up-front about that, unlike ICICI), so the money would not have been readily available in an emergency. PC Financial allows online transfers of RSP funds, both in AND out. And yes, 4.25% is not bad, especially considering that they are affiliated with CIBC, the biggest nickel-and-dime-the-customer-to-death chartered bank in the country (in my opinion, don’t get me started on that…).

Latest posts in the ICICI Bank forum

Forum/Topic		Started	Last Post	Posts
	ICICI Bank please send me ICICI promo code 1 2 3 4	November 23, 2008 2:07 am by Tim	March 9, 2010 5:01 pm by Voodoo guest	66
	ICICI Bank promo code needed	December 7, 2009 12:43 pm by Moe	December 7, 2009 12:43 pm by Moe	1
	ICICI Bank google ranking number 2 –	November 3, 2009 12:20 pm by timk	November 3, 2009 12:20 pm by timk	1
	ICICI Bank down to 1.20%	September 29, 2009 4:02 am by Ben	October 2, 2009 1:08 am by raven212	5
	ICICI Bank refer code	September 11, 2009 6:33 pm by Ashley	September 12, 2009 2:14 am by guest	2

So far at ICICI, I’ve made an external transfer, sent referral e-mails to two people and looked at my account history online. The interface is simple and gives me the information requested (unlike the main ICICI website, which I’ve found to be quite confusing at times).

Here’s a screenshot of the ICICI online interface:

Things you can do in this interface include:

• View account summary
• Export account history to various formats (plain text, Excel, Microsoft Money)
• Open new accounts (like RSPs, and term deposits)
• Make incoming and outgoing transfers to linked accounts
• Change your mailing address, e-mail address, and password
• Refer people to earn money through their referral plan

One cool feature is that you can see a summary of who you have referred and whether they have submitted an application yet (although that doesn’t mean that their account has been opened yet).

Latest posts in the ICICI Bank forum

Forum/Topic		Started	Last Post	Posts
	ICICI Bank please send me ICICI promo code 1 2 3 4	November 23, 2008 2:07 am by Tim	March 9, 2010 5:01 pm by Voodoo guest	66
	ICICI Bank promo code needed	December 7, 2009 12:43 pm by Moe	December 7, 2009 12:43 pm by Moe	1
	ICICI Bank google ranking number 2 –	November 3, 2009 12:20 pm by timk	November 3, 2009 12:20 pm by timk	1
	ICICI Bank down to 1.20%	September 29, 2009 4:02 am by Ben	October 2, 2009 1:08 am by raven212	5
	ICICI Bank refer code	September 11, 2009 6:33 pm by Ashley	September 12, 2009 2:14 am by guest	2

If you carry a balance on your credit card then the first priority for picking a card should be ones offering low interest rates. The potential points you could earn are not worth the interest fees you will be charged. I will not be addressing low interest fee cards in this post – only ones with a points system (usually meaning high interest rates).

When picking a credit card points system you need to cost out the reward you will receive in order to compare. If there is a fee associated with the card in order to receive the points program, in my experience, this never equals out to a financial plus.

I want to share a good points program card I have found in my research. It’s the CIBC Shoppers Optimum Visa card. You receive 3,000 bonus points for signing up and then receive 5 points for every dollar you spend. Interest rate is 19.5%. You also receive 50% more points when you use your card at Shoppers Drug Mart with your Optimum card. If you spend $15,000 a year on your credit card (which is the amount I was using to compare cards), you will receive 75,000 Shoppers points, this equals their highest reward level of $150. This reward ‘cash’ can be used to buy anything at Shoppers Drug Mart. You can likely earn more than just the 75,000 points for $15,000 because of bonus points and extra redeeming programs through Shoppers (for example at certain times of the year for the 75,000 points you actually receive a reward of $200). It gives you the most value to reach their highest reward level before cashing in, although technically you can start redeeming for ‘cash’ at 3,500 points (value of $5). See the regular points table here.

Points earned at Shoppers are good value for money for two reasons. First, items available for purchase at Shoppers Drug Mart are extremely varied (you have a lot of choice on what to buy). Secondly, although you can choose to buy ‘fun’ items you can also use it to buy necessary items that would already be in your budget, thus saving money (ex: toothpaste, shampoo, makeup etc).

Credit card point systems are most associated with travel rewards. However it can be to your advantage to search for cards giving you rewards at retail stores you actually use. At a $15,000 level of spending travel rewards points will just not offer you yearly value. It would likely take you 2 to 3 years to save up points to receive a mid sized trip. So although over the long run, you might gain more ‘cash’ value from these cards, the long wait before you can redeem does not always make it. If you have a higher level of spending you can put on your credit card, these travel programs may offer you more value. If you want to pick a travel rewards program you should pick one tied to an existing travel rewards entity (not a private one) – for example Aeroplan or Airmiles – this is because you will be able to earn points faster since you can earn in other circumstances such as when you take a flight that is not bought on points.

Some locations to start your research are CIBC (they offer a fairly large collection of cards with points programs) – and Citizens Bank (who offer some innovative points programs tied to charities).

The bottom line when searching out a credit card points system is to estimate how much you can put on a card a year, how many points that will earn you, and what the ‘cash’ value of those points are. This will help you make an informed decision and make your money do some work for you.

Forum/Topic		Started	Last Post	Posts
	Credit card reward programs MBNA’s Smart Cash Card – BEST CASHBACK CREDIT CARD EVER!!! 1 2 3 4 9	April 20, 2009 5:29 am by djino	February 27, 2010 10:00 am by Ricky	161
	Credit card reward programs Scotiabank Momentum Visa: 1 to 2% cash back	March 19, 2009 6:29 pm by Peter	October 5, 2009 4:02 am by djino	4
	Credit card reward programs New article about searching for the right credit card	September 12, 2007 7:43 am by Peter	October 4, 2009 4:45 am by James	4
	Credit card reward programs MBNA’s Smart Cash Card – WORST CREDIT CARD EXPERIENCE EVER!!!	August 25, 2009 10:04 am by Max	August 25, 2009 10:15 am by Max	3
	Credit card reward programs CHASE’s Amazon.com Rewards Visa Card- BEST CASHBACK CREDIT CARD EVER???	July 30, 2009 1:05 am by Max	July 31, 2009 5:18 am by Max	4

First of all, you should have some information on what my financial background is like and what my banking needs are. I am a conservative investor, holding most of my funds in high interest savings accounts and in term deposits (or GICs), registered and non-registered. I am at a stage in my life where I am looking to purchase a place, so I need access to my funds either tomorrow or in months when I actually find a place that I want to buy.

In terms of my banking needs, it is very simple – I don’t want to be limited and I don’t want to pay fees. Sounds simple, but it really isn’t. I am looking for an account where I can perform as many transactions as I need, including bill payments, transfers, deposits, withdrawals and Interac direct payments. I also want to have cheques and easy access to ATM machines if I need one.

Based on this, I did a comparison of accounts at banks and credit unions, large and small. I focused first on finding accounts that did not have any fees and then on the features they provided for daily banking. I did not include accounts that were free but limited, for example only providing 4 free transactions a month – this would just not meet my needs.

Please note that this comparison table is accurate to the best of my knowledge as of August 28, 2007. Please let me know if you see any errors and I will correct them. Also, please check with the specific banks to confirm any information.

*HSBC Direct Savings Account is a high interest savings account with no minimum balance required and no monthly fees.

I also noted that there are some banks that do not offer such an account: RBC, CIBC, and Envision Credit Union.