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Good "Complement" bank to Tangerine?
October 18, 2014
12:02 pm
Calan
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I do all my banking with Tangerine, but I keep an account with TD for depositing rolled coinage, or if Tangerine won't process a cheque for me, etc. I just transfer it to Tangerine once it's in.

All my stuff with TD is as a "student", so no fees. With my student status running out, I will need to either close the TD account or let it roll over to a chequing account w/ fees (don't like the idea of that!).

I'm happy with Tangerine (wouldn't go to someone like People's Trust due to the security issues), but I think I should maintain an account elsewhere (RBC, TD, Scotia, BMO, CIBC?) to be able to take advantage of "new money" promotions and, eventually, have somewhere other than Tangerine to shop for a mortgage and/or line of credit.

I know many of you do maintain an account with one of the big 5. Who, and why? If you only have an account with an online bank, have you ever regretted not having an account with the big 5?

October 18, 2014
12:33 pm
Rick
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I do not, and haven't for a looooooong time, had an account with the big 5. I had one with #6 (HSBC) for quite a few years until they got too uncompetitive. I moved to a credit union for my main banking, but they too lost their edge when rates started to fall. Now they are just a hub to transfer payments to and from my other institutions. I keep Tangerine around as I still have a line of credit and a few RSPs that haven't matured yet, but my main bank is now Canadian Direct Financial for all my daily banking, and People's Trust for my TFSA savings and some regular savings (it's easier to reach savings goals if I physically separate the funds, and their rates aren't bad). As for their security, they've been hit once and addressed the problem. The whole security breach was blown out of proportion IMHO. Good grief...governments have been hacked, major retailers, banks, no one is safe. No one is touching their rates right now so that's where my money is sitting. It's not locked in, earning above market rates, insured and more or less liquid. The only down side to CDF is their interface is a bit out dated and not quite convenient as virtually everyone else's, but their rates across the board are above average. The only time I regret going strictly on line is when I need a branch for something like a draft or something like that, and those times are few and far between. Haven't paid fees for basic service in years, don't see why I, you or anybody should. The banks make enough money as it is.

October 18, 2014
12:43 pm
GoJetsGo
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October 18, 2014
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Hi Calan,

I agree...there is not much sense in paying a monthly fee for a chequing account.

For "new money" promotions, I would consider opening accounts at PC Financial. Tangerine & PC Financial seem to have the best "new money" promos so you can transfer your money back & forth to take advantage of those. PC Financial, being run by CIBC, provides decent security.

Consider opening a savings account at TD and closing your chequing account. With no monthly fee this would allow you to still deposit your coins, purchase a draft without having to wait for it in the mail from PC Financial or Tangerine, and withdraw US cash at a teller if you travel.

October 18, 2014
1:24 pm
Loonie
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I have accounts with TD and CIBC for different purposes, but I pay no fees due to "senior" status. I think they now charge fees, even to seniors, but I am "grandfathered" in.
If this weren't the case, I would be highly annoyed at paying fees.

I think there is merit, though, in still having an account at a major bank. They have more capacity, more tools, than the other institutions I deal with. It's not just dealing with coins (TD has a machine, and I don't even have to roll them) and bank drafts. It's safety deposit boxes, more foreign currencies, transfers from outside the country, convenient and free bank machine access, power of attorney accounts, and no doubt many more. A lot of the smaller institutions can't or won't deal with these things.

If the Big Banks were really smart, I think they would be beefing up their in-branch service so that it was highly functional and customer-friendly, so that it really offered value that you couldn't get over the internet.
You should never have to wait for a teller when there are employees seated at desks or wandering around.
If I always ask for a desk calendar in the Fall, make sure I get one and don't tell me you ran out about a month ago and won't be getting any more and stare a me like I'm odd.
The number one priority should be on the person who walked in the door. So far, that hasn't happened.
I've moved a lot of money out of these two banks in the past year or two, and there hasn't been a peep from anyone there. They seem to be admitting that they can't compete and have nothing to offer. Even the phone companies can do better than that, with their "retention departments" and so on, ready to make a deal.
No deal, no money!

Like everything, it depends on your circumstances. If you haven't found a need for it, then don't bother.

October 19, 2014
3:37 pm
Jon
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I think a good complement is a credit union account that doesn't have fee, or you can keep a small line of credit in the big 5 so you can get free cheque and teller service if you don't mind it ding you credit record.

October 19, 2014
4:03 pm
NorthernRaven
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Remember, most Big5 chequing accounts waive the fee if you have a minimum. So for TD, you could deposit $1500 that would otherwise in Tangerine, pay no fee on the account, and it only costs you the lost interest. $1500 at 1.3% in Tangerine runs to $20/year, which might be a bit much even if you find value in a Big5 chequing account, but perhaps other Big5 accounts have a smaller minimum.

The suggestion for a savings account makes sense - the stuff you mentioned (coins, cheques) is all deposit, so if they will accept them into a savings account that might work. But beware that Big5 savings accounts usually have debit fees - TD for instance gives you one free debit per month, then $2/each. So you'd be limited to moving any accumulated savings to once a month. And the bank might eventually boot you out if your only business with them is a savings account with a few dollars in it!

If you do decide a Big5 account is useful, consider if you will need a discount brokerage in the coming years to invest in ETFs or other stock market stuff. If so, if you go with a Big5 brokerage, it would be convenient to have the account at the same place.

October 20, 2014
7:11 am
Loonie
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I don't think you should worry about getting a mortgage or line of credit, which you mentioned in OP. Any bank will be happy to loan you money if you have the right kind of profile at Equifax/TransUnion. The banks would see this as an opportunity to acquire you as a client.
As an example, I have a LOC with a bank where I do not have any other business, simply because there was a bonus deal on that I wanted to take advantage of when I first took it out umpteen years ago.

For a lot of young people, keeping 1500 dormant in a chequing account is not affordable, regardless of fees.
I believe the TD hi-interest savings account has no fees if you keep 25000 in it, but that is asking a lot too, considering it pays about 1.05%.
Everyone needs to run the numbers for their situation.

You should probably hang on to the student account as long as you can! When that comes to an end, make an appointment and go in there and try to bargain with them. There may be some perks they can give you to keep your business. You never know if you don't ask. Perhaps there is some account opening bonus that you could have, or a free ipad or whatever, free safety deposit box, lower rate on car or mortgage loan etc

October 20, 2014
3:14 pm
james1900
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Like any other business, banks aim to create profit. If helping you deposit coins does incur some cost, you should be willing to pay for it. Of course you can shop around to find the cheapest bank (i.e. Credit Union's no-fee chequing account). But they are not big 5.

October 20, 2014
4:12 pm
Loonie
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I think most people are Ok with paying for actual services, but what they object to is "paying" in the form of significantly inferior interest rates, especially if they are paying for services they don't use.

In the case of coin machines, I think it's mostly businesses that use them. I inherited someone's coin stash, which is the only reason I have had occasion to use them.

I will still keep my Big5 accounts, but I just won't keep as much money in them as I once did. I'm sure the bankers themselves would do the same if they were in my position.

October 20, 2014
8:34 pm
GS1
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I was in a US Costco last week standing at the manager's kiosk, waiting for someone to get an answer for me. The manager and an assistant had just removed a big bag of dimes from the vault and were pushing them through an industrial sized coin counter.

When I got there the digital display read something like $875.40. The next time I looked it read something like $904.68 which struck me as odd seeing as how it was all supposed to be dimes.

When they finished the total read $994.63 and the manager told the assistant to subtract $5.37 from "the cash count". The assistant said something like "Ok that will almost balance yesterday's overage".

I guess a bag of 10,000 dimes can be short or over 50 and no one seems to mind.

GS

October 20, 2014
8:43 pm
kanaka
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Maybe other coins were mixed in the bag of dimes.

October 21, 2014
6:31 am
GS1
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Yes - that could also explain the "partial 10 cent value". My obsessive personality would have wanted 10,000 dimes in a bag of $1000.00 - not 10,001 nor 9,999. But, I surmised, what I saw was industry practice.

GS

October 21, 2014
7:24 am
Loonie
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I love your attention to detail, GS! You always have such interesting observations!!

October 21, 2014
5:52 pm
Calan
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Thanks folks, some good thoughts in here.

I'm not depositing coinage regularly or anything (in fact, 99% of my purchases are done with my credit card for the cash back), but have in the past.

Loonie, like you I moved a lot of money out of TD (my life savings at the time!) and didn't hear a word from them. I actually went in person to close out a couple accounts and there wasn't so much as a "why?" - could be that my account was too small to be concerned with (I had already transferred almost everything out) but had they stopped to invite me to chat with one of their people or offer some type of incentive to stay, I probably would have remained a lifetime customer!

Since my chequing account with TD remains open as a student, I'll likely wait until they want to switch this over to a "real" account and then arrange a meeting at the bank. Think that if I offered to consolidate my banking & credit cards at TD they would give me a deal? I feel like this is not something any bank does, but without some type of incentive I'd likely go without an account there until I need something - e.g. a mortgage or LOC, which as Loonie said I'll probably find just as good a deal by promotion-hunting if/when the time comes, rather than trying to get some type of loyalty special treatment.

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