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No fee Checking vs Interest Plus
April 11, 2009
5:24 pm
Selby
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If I've got it right the No Fee Checking is giving 2% on $25000 or more and Interest Plus is giving 1.45% on $1000 or more. Can this be correct? More interest on checking than savings???

April 11, 2009
6:01 pm
Doug
British Columbia, Canada
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December 12, 2009
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That's the way I read it as well, Selby, and it's a point raised by others on this forum. Given the relatively high threshold and the fact the no-fee bank account has a tiered interest schedule, I would wager they've (a) simply not bothered to update the rate knowing few of their customers keep money in their chequing account or (b) now that interest rates are so low, they've decided to keep the chequing account rate where it is given the high threshold and reward customer loyalty to those keeping large balances with PC Financial.

That said, it could and likely will be lowered soon. 🙂

Cheers,
Doug

April 12, 2009
1:06 am
Selby
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Well its good to know that I can still read and comprehend at least a bit. Sorry for bringing up a point that has apparently been discussed.

As I recall there is no fee for moving money between the 2 accounts. Is this correct?

April 12, 2009
7:03 am
Mike
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I have both as well and there is no fee in moving the month between the accounts, just 1 day time delay is required from Savings to Checking.

There would be a "break point" of how much you need to have in the checking vs the saving account to make more at the interest rates. Maybe someone can do it here?

Mike

April 12, 2009
9:53 am
Selby
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Guests

Interesting question Mike. I would have thought the minimum 25000 @ 2% would get you more than 25000 at 1.45 but I'm willing to learn.

April 12, 2009
2:13 pm
Shawguy
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From what I understand is you only get 2% on the amount above 25k...so if you have 26k in there...only 1k is earning 2% and the other 24,999 is earning the other rate of like .50

no fee bank account

on the portion of
balance between:
annual interest rate (%)
$0.00 - $1,000.00 0.10
$1,000.01 - $5,000.00 0.15
$5,000.01 - $10,000.00 0.25
$10,000.01 - $25,000.00 0.50
$25,000.01 and up 2.00

April 12, 2009
2:54 pm
Jason
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If my math is correct, the break-even point is $73,727. So if you have more than $73,727, go with the chequings, otherwise go with the savings. With the former, you do get the advantages of a chequings account so that's something to consider. Also, I doubt both rates will remain constant for any significant period of time.

April 13, 2009
1:22 am
Selby
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Great info. Should teach me to read the interest tables closely

April 13, 2009
7:47 pm
James
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January 30, 2009
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Excellent points and info SG and Jason.

To complicate things further, there is also the 'anniversary bonus' to consider. So if you have been a PC customer for more than 3 years, you may want to consider leaving the funds in the 'interest plus' account to ensure the required average balance (as Doug said, assuming PC will eventually even out these rates).

(ie. if you moved all of your funds to the chequing account, for a few months, you would drop your average yearly balance which might cost you a few hundred dollars if you are moving large sums of money)

Also recall that there is a limit of 50,000 per transfer at PC financial.

April 15, 2009
12:34 am
Selby
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Great discussion. I'm really well educated compared to a few days ago. Explains why the internet is so popular as a source of information.

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