Talking Cash: Chequing accounts comparison for students
I hate bank fees. Does that even
need to be stated? I can't imagine
someone claiming they love bank
fees. Well, actually, that's wrong.
The banks probably love them.
But aside from the banks, I don't think anyone likes bank fees. The kind of fees I'm talking about are chequing account fees, like being charged $10 each month to maintain your account, or being charged $2.50 or whatever on each debit transaction when you go over your monthly transaction limit. Stuff like that. I hate it. I loathe the idea of seeing the total amount of money I've paid in bank fees over the course of my lifetime because it makes me wonder about all the other great things I could have done with that money.
If you're a savvy shopper, though, you can find a chequing account that will minimize fees and still offer decent service. The account I use is PC Financial's No Fee Bank Account. I've talked to a few different people about PC Financial. Some people love them, some hate them. I can't speak to any of their products besides the chequing account, but if you're looking for a virtually free bank account, I think this is the place to start.
The advantages of the account include no monthly fee and no transactions fees. That's huge. It's hard to find a bank that won't charge people to have a chequing account. PC Financial, in fact, pays interest on money you have sitting in your account. The interest rate is laughably low (for example, 0.05 per cent on a balance of $1,000 or less), but getting paid pennies (or fractions of pennies) is still better than paying dollars to the bank. They also offer free cheques. Cheques aren't so useful these days, but if you need to get some for whatever reason, they can be quite expensive, so having that option for free is great.
The disadvantage to PC Financial is that they are essentially an online bank. They have telephone support and those pavilions in Loblaws grocery stores where you can talk to a customer service rep, but they have no physical branches. They're basically a discount subsidiary of CIBC. That is not exactly what they are, but it kind of feels that way. I think most younger people don't use bank tellers that much and do a ton of Internet and telephone banking, so I don't think this is a big deal for the college crowd. But if you do like having a physical branch where you can bank with an actual person, then PC Financial might not be right for you.
If you're a student, something you ought to consider is having a student account set up by whoever you bank with. Nearly all of the banks will waive monthly and transaction fees on chequing accounts for students — all you have to do is go into a branch and tell them you want to convert your account to a student account and show them your student card. I have an account with CIBC and this took five minutes.
So, as a student, you have some more free banking options compared to others. When you graduate, though, and if you don't mind doing nearly all of your banking online, then PC Financial might be a good place to look for low-cost banking. Another alternative is ICICI, a bank from India that offers low-cost Internet banking in Canada that is competitive with what PC Financial offers.
Jeremy Wall is studying Professional Financial Services at Fanshawe College. He holds an Honours Bachelor of Arts from the University of Western Ontario.
But aside from the banks, I don't think anyone likes bank fees. The kind of fees I'm talking about are chequing account fees, like being charged $10 each month to maintain your account, or being charged $2.50 or whatever on each debit transaction when you go over your monthly transaction limit. Stuff like that. I hate it. I loathe the idea of seeing the total amount of money I've paid in bank fees over the course of my lifetime because it makes me wonder about all the other great things I could have done with that money.
If you're a savvy shopper, though, you can find a chequing account that will minimize fees and still offer decent service. The account I use is PC Financial's No Fee Bank Account. I've talked to a few different people about PC Financial. Some people love them, some hate them. I can't speak to any of their products besides the chequing account, but if you're looking for a virtually free bank account, I think this is the place to start.
The advantages of the account include no monthly fee and no transactions fees. That's huge. It's hard to find a bank that won't charge people to have a chequing account. PC Financial, in fact, pays interest on money you have sitting in your account. The interest rate is laughably low (for example, 0.05 per cent on a balance of $1,000 or less), but getting paid pennies (or fractions of pennies) is still better than paying dollars to the bank. They also offer free cheques. Cheques aren't so useful these days, but if you need to get some for whatever reason, they can be quite expensive, so having that option for free is great.
The disadvantage to PC Financial is that they are essentially an online bank. They have telephone support and those pavilions in Loblaws grocery stores where you can talk to a customer service rep, but they have no physical branches. They're basically a discount subsidiary of CIBC. That is not exactly what they are, but it kind of feels that way. I think most younger people don't use bank tellers that much and do a ton of Internet and telephone banking, so I don't think this is a big deal for the college crowd. But if you do like having a physical branch where you can bank with an actual person, then PC Financial might not be right for you.
If you're a student, something you ought to consider is having a student account set up by whoever you bank with. Nearly all of the banks will waive monthly and transaction fees on chequing accounts for students — all you have to do is go into a branch and tell them you want to convert your account to a student account and show them your student card. I have an account with CIBC and this took five minutes.
So, as a student, you have some more free banking options compared to others. When you graduate, though, and if you don't mind doing nearly all of your banking online, then PC Financial might be a good place to look for low-cost banking. Another alternative is ICICI, a bank from India that offers low-cost Internet banking in Canada that is competitive with what PC Financial offers.
Jeremy Wall is studying Professional Financial Services at Fanshawe College. He holds an Honours Bachelor of Arts from the University of Western Ontario.
