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LOBLAWS is getting bank into banking
September 14, 2020
11:57 am
Kidd
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https://www.bnnbloomberg.ca/pc-financial-launches-no-fee-bank-account-1.1493635

This might be of interest to some.

Sorry, it's getting "BACK" into banking

September 14, 2020
2:41 pm
Dean
Slocan Valley, West Kootenays, British Columbia
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.
It doesn't look like something I'd be interested in, but here are a few more details . . .

.
'Carpe Diem'

      Dean

sf-cool " Live Long And Prosper " sf-cool

September 14, 2020
3:48 pm
topgun
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Kidd said
https://www.bnnbloomberg.ca/pc-financial-launches-no-fee-bank-account-1.1493635

This might be of interest to some.

Sorry, it's getting "BACK" into banking  

I had a PC no-fee bank account 17 years ago. Converted to Simplii 3 years ago. I rarely use it. Once you get a senior account it is not a needed.

Have a Great Day

September 14, 2020
4:03 pm
KamWest
Toronto
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PC was great back in the day, I used it in my youth to save my money. I had every service they offered and when Simplii took over it turned into simplii nothing.

A high interest savings account making 0.2% interest. They should be reported for calling it a high interest account, it's completely false advertising.

I don't understand why simplii even exists, other than no fees there is nothing to differentiate it from CIBC. All CIBC would have to do is make one account with no fees and eliminate simplii.

As for PC financial, I read through the materials in both links and I assume there is no interest on this account. They say up to 100k fully insured yet they make no indication if this is an interest bearing account.

So basically its nothing more than another simplii account offering simplii nothing.

As far as rewards go, that's a joke, any rewards savings are eaten up by having to shop at Loblaws to use them, the prices are way higher than at the bargain alternatives. So in the end you really don't save anything and they just use the points to track you.

Personally I think all points cards suck and my MBNA Elite Master Card blows most of the cards out of the water by giving back straight cash applied directly to my statement.

I would consider the PC account as a beginner account for my 13 year old though, it sounds pretty safe and would allow him to get his feet wet. Not sure if I like all the tracking stuff though.

September 14, 2020
4:04 pm
Norman1
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The PC Money Account is a non-interest bearing deposit account with CDIC member President’s Choice Bank.

Cheque writing and cheque deposits are not supported.

The account balance can be spent through a MasterCard that is accepted everywhere a MasterCard credit card is accepted.

Looks useful for those who cannot/do not want to use a regular MasterCard credit card and would like to save those hefty fees for prepaid cards.

September 14, 2020
4:12 pm
KamWest
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@Norman1

Yup, except now the merchant has to pay Mastercard fees up to 3% instead of a 5 cent debit card fee.

It's really a massive money making scheme for mastercard and I'm sure Loblaws is getting a kick back of some sort.

I recently stopped accepting credit cards for my online store and have switched exclusively to e-transfer. I was paying 35k a year in fees to the credit card companies and now its zero.

The only one that suffers with this type of account is the merchant because paid through the mastercard network is bound to cost the merchant and in the end those fees are added to the pricing.

September 14, 2020
4:23 pm
mmlt
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I have their credit card and that was against my better judgement. I had nothing but trouble with them 10 years ago when they were into banking.

September 14, 2020
6:29 pm
Dean
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Yup ... it's basically a "Savings Account" with 0.00% Interest + a few silly frills ... LOL sf-laugh

Thanks for the chuckle, PC Financial ❗ sf-wink

    Dean

sf-cool " Live Long And Prosper " sf-cool

September 15, 2020
5:16 am
KamWest
Toronto
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@Dean

One huge drawback though...

It is not a real debit card so if you go to a store that does not take mastercard you are up the creek without a paddle. With a real account you can pay by debit if the merchant does not take mastercard.

I know a number of businesses, myself, a few donut shops, some variety stores etc that do not accept credit cards because of the high fees.

Now because this account is linked to the Mastercard Network it probably wont work with the interac debit system. Unless of course it also runs on the interac system which from reading the article is highly doubtful.

September 15, 2020
1:54 pm
Save2Retire@55
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I always shop at Maxi (Quebec version of Loblaw) and they usually have the best deals. I won't consider this card. I am good with getting the Points using the Point card for some of the items (Whatever the deal is) and pay with Credit Card CanadianTire World Elite MC for a 3% return.

Why would anyone replace a better return from Credit Cards (Almost all CC give back 2% on Grocery shopping) with this which gives 1% back in points? I don't get it.

September 15, 2020
2:05 pm
Norman1
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PC Financial is offering incentives to try the account out and embed it into one's financial life:

8 Earn up to 50,000 bonus PC Optimum™ points by taking advantage of introductory offers. Here are all the bonus points available to you:

  • Earn 10,000 bonus PC Optimum bonus points when you make your first purchase of $50 or more, using a valid PC Money Account, within three months of account approval. Limit one offer per PC Money Account. Account must have sufficient funds at the time of purchase. Bonus PC Optimum points will be deducted for any returns. Bonus points will be awarded to your PC Optimum account within 4‑7 days of eligible transaction.
  • Earn one bonus of 10,000 bonus PC Optimum points when you link a bank account with another financial institution to your PC Money Account and receive a success message upon verifying your external account online. Limit one offer per customer. Both accounts must be in good standing at the time they are linked. Bonus points will be awarded to your PC Optimum account within 4‑7 days of successfully linking accounts.
  • Earn a bonus of 1,000 PC Optimum points for each of up to five bill payments of $50 or more to unique payees, per calendar month, made using a valid PC Money Account. Bonus points will be awarded to your PC Optimum account within 4‑7 days of a successful bill payment.
  • Earn a one‑time bonus of 25,000 PC Optimum points when you set up automatic payroll or pension direct deposit into your PC Money Account for the first time and complete at least three direct deposits into the account within the three consecutive months following setup. Limit one offer per PC Money Account. Bonus points will be awarded to your PC Optimum account within 4‑6 weeks of completing your third direct deposit.
September 15, 2020
7:58 pm
Doug
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This will fail miserably. This is essentially a prepaid credit card, which they've already been in and failed in. It's somewhat surprising that it's a non-interest bearing deposit account, yes, but nevertheless, for all sakes and purposes, it's a prepaid spending card. There's lots of those! If they're competing against the no-fee chequing accounts, well, this falls woefully short there. So it's kind of slightly better than the former and the worst of the latter.

There's just too much competition, and there's no incentive for people already accustomed to putting their spending on their PC Financial credit cards to open up yet another card linked to a deposit account, which can't write cheques and most other things. People will just keep banking whereever they bank, and this will flop, big time.

Cheers,
Doug

September 15, 2020
9:07 pm
AltaRed
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They are banking on PC Optimum points being equally valuable to cash back. I think they know they have strong momentum behind PC Optimum and are fortifying it (beyond groceries, Shoppers and Esso gas) with banking. The money they make off the prepaid sums will cover the cost of loyalty (PC Optimum) points.

Many folks are heavily invested in the PC Optimum program. Question is whether it will attract anyone "new" to PC Optimum beyond their existing customer base. Certainly won't attract me, even as an existing PC Optimum member.

September 16, 2020
5:34 am
Dennis
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Can it get points from online bill payment to Brokers/CRA/Credit Card?

September 16, 2020
8:06 pm
Briguy
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Can't be used for free at ATM other than PC Financial ATM, so I don't see the point since I'd rather just get :
1) a Stack card for foreign ATM
2) a chequing account with a debit card with a big 5 bank for domestic ATM
3) a credit card for purchases which earns more than 1% and has extra insurances

September 16, 2020
8:54 pm
Norman1
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Dennis said
Can it get points from online bill payment to Brokers/CRA/Credit Card?

Normally, no. But, as an introductory offer, one can earn 1,000 points each on up to five bill payments of $50 or more to unique billers each month.

September 17, 2020
6:55 am
savemoresaveoften
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Norman1 said

Dennis said
Can it get points from online bill payment to Brokers/CRA/Credit Card?

Normally, no. But, as an introductory offer, one can earn 1,000 points each on up to five bill payments of $50 or more to unique billers each month.  

Earn a max of $5 a month does not appeal much to border having another account.

September 17, 2020
7:32 am
Dennis
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Norman1 said

Dennis said
Can it get points from online bill payment to Brokers/CRA/Credit Card?

Normally, no. But, as an introductory offer, one can earn 1,000 points each on up to five bill payments of $50 or more to unique billers each month.  

Thank you. Maximum 50$ doesn't seem attractive.

September 17, 2020
8:21 am
Doug
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AltaRed said
They are banking on PC Optimum points being equally valuable to cash back. I think they know they have strong momentum behind PC Optimum and are fortifying it (beyond groceries, Shoppers and Esso gas) with banking. The money they make off the prepaid sums will cover the cost of loyalty (PC Optimum) points.

Many folks are heavily invested in the PC Optimum program. Question is whether it will attract anyone "new" to PC Optimum beyond their existing customer base. Certainly won't attract me, even as an existing PC Optimum member.  

They get that on PC MasterCard, though, AltaRed. I completely disagree here...PC MasterCard already has one of the lowest threshold credit adjudication requirements, on par with Walmart Canada Bank and slightly above Capital One. Thus, the rewards will be equal to or superior on the PC MasterCard. This is a complete duplication, and the lack of functionality of a chequing account will not get the outside Loblaw transactions they're wanting.

Cheers,
Doug

September 17, 2020
8:23 am
Doug
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Briguy said
Can't be used for free at ATM other than PC Financial ATM, so I don't see the point since I'd rather just get :
1) a Stack card for foreign ATM
2) a chequing account with a debit card with a big 5 bank for domestic ATM
3) a credit card for purchases which earns more than 1% and has extra insurances  

Yep! And I predicted this on RFD, as you may recall. Some others doubted me that the PC Financial pavilion ATMs wouldn't be surcharge-free.

And yeah, you could substitute #2 with a credit union on Exchange + Acculink and do equally well. But your scenario works as well. sf-cool

Cheers,
Doug

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