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4% chequing account?
February 24, 2024
9:42 am
green1
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Got an email today offering an EQ bank chequing account at 4% if you have your payroll deposited there (2.5% otherwise, and after first 12 months)

Seems like a pretty amazing rate (near the top of the HISA chart) for a chequing account.

February 24, 2024
10:59 am
canadian.100
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green1 said
Got an email today offering an EQ bank chequing account at 4% if you have your payroll deposited there (2.5% otherwise, and after first 12 months)

Seems like a pretty amazing rate (near the top of the HISA chart) for a chequing account.  

It is not a Chequing Account - it is a "Personal Account" and there are NO cheques.
4% is only received if you have your payroll - otherwise the rate is 2.5%.
This is really quite deceptive - you assumed it was a Chequing acct.

February 24, 2024
12:04 pm
Loonie
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canadian100 is correct. EQ has been pretending this is a chequing account for a while now. Fake news. I think it's safe to say that EQ will NEVER offer chequing.

EQ is trying to take a big swipe at the big banks that charge a hefty monthly fee for an account that typically pays no interest at all.

This might still work, especially for young people, which I think is their target market.
Personally, I would find it too much bother to switch my bill payments to another bank.

If I were going to switch, I'd probably go to Alterna Bank with its Coverdraft system. Another option is Motive with 4.1% on savings and a companion chequing account (free). The latter even pays .25% ('virtually unheard of" according to EQ Bank). https://www.eqbank.ca/education-centre/article-detail?urlName=cheque-your-savings-this-account-does-both

I am not inclined to trust a bank which so blatantly misinforms.

February 24, 2024
12:38 pm
pwm
Headingley MB
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It might be good for some people. Who writes cheques anymore? I just looked at my cheque register and we have used 8 cheques since the beginning of 2021.

That's 8 cheques in the last three years.

February 24, 2024
1:28 pm
Dean
Valhalla Mountains, British Columbia
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.
What PWM said

I'm an Ol' Fogy, and even I only write two or three cheques a year now.

They're going the way of the Dodo Bird.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

February 24, 2024
2:24 pm
green1
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I don't think we should be hung up on the word "chequing". I haven't written a cheque in close to 20 years. The point is that it's an account that can both be used on a day to day basis, AND get an interest rate that's competitive with some of the best HISA accounts out there, as long as you have your payroll deposited there (which, if you're using it as a day to day account, you likely will anyway)

I had been considering moving my day-to-day stuff from tangerine to motive to make it easier to move in/out of their HISA (best rate available), but this EQ offer is tempting.

February 24, 2024
3:07 pm
Loonie
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Yes, lots of people like to disparage cheques and point proudly to how few, if any, that they use.

I don't think it's a matter of quantity. It's about having the option of cheques when you need them.

I use them for 3 purposes:
1. paying tradespeople who won't accept CC.
2. Buying GICs from deposit brokers. It's the only form of cash they accept.
3. Paying a relative's retirement home monthly bill. They don't accept CCs. Can't do PAD as I have to alternate between two different banks due to a lack of cooperation from RBC, which won't allow me online access but will allow me to write cheques on her account.

If it weren't for cheques, I would find Tangerine next to useless, with their 25K transfer limit (last time i looked) and 3-link limit. With a cheque, you don't have to be on the phone for hours and you can deposit wherever you want. DUCA also has annoying limits, as do others, which can be avoided with cheques.

Still, if you want to deal with a bank that intentionally misleads people, go ahead.
The ideal candidate is someone who doesn't have a lot of money to move around yet or someone who does almost all their banking through a discount broker.

February 25, 2024
5:19 am
canadian.100
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Loonie said

I don't think it's a matter of quantity. It's about having the option of cheques when you need them.

I use them for 3 purposes:
1. paying tradespeople who won't accept CC.
2. Buying GICs from deposit brokers. It's the only form of cash they accept.
3. Paying a relative's retirement home monthly bill. They don't accept CCs. Can't do PAD as I have to alternate between two different banks due to a lack of cooperation from RBC, which won't allow me online access but will allow me to write cheques on her account.

You do not need cheques for tradespeople - 99% of them accept CASH or interac e-transfer. In fact, interac e-transfer might even be accepted by your retirement home.

It would be nice if the GIC brokers were able to accept payment by an electronic method - it sure would save the wastage of paper cheques and the clearing process required to service them. I do think the world is moving away from paper cheques. In many cases the GIC brokers still provide a cheque for interest and the redemption rather than direct deposit to a bank account.

February 25, 2024
5:24 am
savemoresaveoften
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The only cheques I write are void cheques to check up account links with new FIs (if they still do it the old fashion way), and cheques to myself to do edeposit btw my accounts. Oh and monthly rent to my kid’s boarding house’s landlord.
Other that that, the ability to write cheques has zero value to me.

As for GIC broker, their systems are from the Stone Age, which is why I won’t use them unless they offer an outsized premium compared to direct dealing. They will cease to exist over the next 20 years is my bet.

February 25, 2024
5:40 am
Bill
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I use maybe 2 cheques a year, not bragging, just a fact, been like that for a few years now.

I like EQ Bank when they've got something I'm interested in, picked up a couple of their one-year 5.5% GICs yesterday, very easy to do online, happy with the rate.

February 25, 2024
6:42 am
savemoresaveoften
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Bill said
I use maybe 2 cheques a year, not bragging, just a fact, been like that for a few years now.

I like EQ Bank when they've got something I'm interested in, picked up a couple of their one-year 5.5% GICs yesterday, very easy to do online, happy with the rate.  

if u transfer in to purchase GIC, they have a mandatory 5 or 7 biz days hold on the funds (cant remember exactly), and wont budge even if you call in and ask them to release the hold so can put it towards a GIC right the way. They are the only one with that stringent requirement, that obviously benefits them 100%.

February 25, 2024
6:52 am
AltaRed
BC Interior
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canadian.100 said
You do not need cheques for tradespeople - 99% of them accept CASH or interac e-transfer. In fact, interac e-transfer might even be accepted by your retirement home.  

Interac e-transfer limits are not high enough for a number of transactions, e.g. deposits and progress payments on a $50k home reno, as an example, or for a new vehicle I bought a few years ago. While some have other options such as credit cards, merchant charges on credit card payments are still atrocious in this country, compared to Europe for example.

One thus does need to have the option to write a cheque from time to time and so it is a matter of what kind of account one can get away with via a particular FI to cover those 'one off' instances. I would imagine most folk on this site with their proliferation of accounts chasing yield, have at least one freebie option they can tap into for their highly infrequent chequing needs.

February 25, 2024
8:52 am
Doug
British Columbia, Canada
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AltaRed said

canadian.100 said
You do not need cheques for tradespeople - 99% of them accept CASH or interac e-transfer. In fact, interac e-transfer might even be accepted by your retirement home.  

Interac e-transfer limits are not high enough for a number of transactions, e.g. deposits and progress payments on a $50k home reno, as an example, or for a new vehicle I bought a few years ago. While some have other options such as credit cards, merchant charges on credit card payments are still atrocious in this country, compared to Europe for example.

One thus does need to have the option to write a cheque from time to time and so it is a matter of what kind of account one can get away with via a particular FI to cover those 'one off' instances. I would imagine most folk on this site with their proliferation of accounts chasing yield, have at least one freebie option they can tap into for their highly infrequent chequing needs.  

Exactly. Where I can now, I use Interac e-Transfers in place of paper-based cheques. Even Tangerine Bank provides an initial free book of cheques (50 cheque leaves) per chequing account opened. Simplii Financial provides an unlimited free supply of cheque leaves, for those that have higher needs. Otherwise, one can also have a CIBC Personal Line of Credit account or a Scotiabank ScotiaLine Personal Line of Credit account, which provide fee-free basic personalized chequebook orders and in-branch access. So, for example, you could send yourself a bank-to-bank transfer or bill payment to your PLOC, putting your PLOC into a credit balance to avoid daily interest charges, then write a cheque on your PLOC. sf-cool

Cheers,
Doug

February 25, 2024
8:58 am
Doug
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Bill said
I use maybe 2 cheques a year, not bragging, just a fact, been like that for a few years now.

I like EQ Bank when they've got something I'm interested in, picked up a couple of their one-year 5.5% GICs yesterday, very easy to do online, happy with the rate.  

Same here, Bill. I don't think EQ Bank wants to introduce paper-based cheques as they are strong advocates of open banking, open competition, and modernized banking systems. Introducing paper-based cheques perpetuates the legacy banking systems of the Big Six Canadian banks + Laurentian Bank, built in the 1970s when many on this forum were the age I am now (if not younger!).

The renaming of the Savings Plus Account to Personal Account was a good, overdue move, consistent with it being marketed as a day-to-day banking account rather than a top-tier HISA. The only things I would like to see them do now is (a) introduce an EQ Bank Personal Line of Credit account, (b) make the 4% interest rate with recurring payroll or pension direct deposit on the Personal Account indefinite, rather than being limited to the first twelve months only, and (c) introduce a postpaid credit card product.

Cheers,
Doug

February 25, 2024
9:41 am
Norman1
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The rename doesn't address the limitations of the EQ Bank offering. One is eventually going run into those limitations and have to shop around for a real chequing account.

$100,000 maximum for a cheque to deposit. What's one going to do with a $250,000 cheque for the inheritance from the estate of a deceased relative or the $600,000 cheque for the proceeds from the sale of one's townhouse?

Wire transfer in? No, the EQ Bank account cannot receive wire transfers. Even if the wire transfer could be received, there's that $500,000 maximum balance per customer.

I helped a relative with probating a will. Probate court accepts Interac Debit but not MasterCard or Visa. That's likely because of the interchange charged for MasterCard or Visa transactions. That EQ Bank Card is a MasterCard prepaid card only and not an Interac Debit card.

Couldn't use Interac Debit in the end either. The probate tax turned out to be way above the Interac Debit limit of any debit card any of us had! Off to a regular bank for a bank draft.

February 25, 2024
10:33 am
Bill
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I'm guessing pretty much everyone on this site aside from the very young uses a bricks and mortar institution for their main daily transactions chequing account.

February 25, 2024
10:42 am
zgic
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Bill said
I'm guessing pretty much everyone on this site aside from the very young uses a bricks and mortar institution for their main daily transactions chequing account.  

I use Tangerine as my main daily transaction chequing account. And it is NOT a bricks and mortar

February 25, 2024
11:35 am
savemoresaveoften
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Bill said
I'm guessing pretty much everyone on this site aside from the very young uses a bricks and mortar institution for their main daily transactions chequing account.  

Not exactly the very young ones but prob younger than the average here.
I use CIBC cuz once you meet their min. requirement (which is quite generous in my mind), the perks of free prem checking account, free infinite visa credit cards, free safety deposit box (which I dont care) won my business.
Havent used a teller service for years, except the time when I need to get cash to pay garage door guy...

February 25, 2024
1:21 pm
Doug
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savemoresaveoften said

Not exactly the very young ones but prob younger than the average here.
I use CIBC cuz once you meet their min. requirement (which is quite generous in my mind), the perks of free prem checking account, free infinite visa credit cards, free safety deposit box (which I dont care) won my business.
Havent used a teller service for years, except the time when I need to get cash to pay garage door guy...  

That's true. CIBC actually has a decent all-inclusive wealth + banking package for the mass affluent. After HSBC Bank Canada is legally dissolved on March 28th, 2024, CIBC's Smart Plus Account will be the only banking account that offers a 100% fee rebate (HSBC waived the fee, but functionally, it's the same thing) if you maintain a total relationship balance of $100,000 or more and they include CIBC Investor's Edge and CIBC Investor Services wealth accounts as qualifying accounts.

Cheers,
Doug

February 25, 2024
4:44 pm
Loonie
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re: canadian100's idea that I should pay tradespeople with CASH (his emphasis), I'd much rather stay home and write a cheque than go to a bank, stand in line to withdraw cash and be told that my cash requirement exceeds their limit - which has happened to me at CIBC - as well as being exposed to covid etc in the process. And, as a person with a disability, it would be onerous. Cheques are convenient for me, and I can write as big a one as I need without complaints from CIBC.

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