$20 bank fee per month!

If you are still paying the bank fee, perhaps you could consider whether to switch to a no-fee bank account from an online bank whose overhead cost is much lower than the brick-and-mortar ones.

I just heard $20 per month for a chequing account with one of the big five banks in Canada. The fees are quite similar among them. The banks pricing teams must have done their market research. Someone in the team is tasked to constantly monitor each competitor’s pricing and send out weekly communications for sure.

Many people might not want to take the trouble to apply for a new bank account.  $20/month is a recurring cost which can add up. These days, the online banks make it quite easy to open a bank account.  For some banks, the whole process is done totally online. We don’t need to be there in person at all.  We just need to fill out a few forms and provide a few documents online. In a week or two, an account will be opened.

Please remember to advise your employer and CRA/government to change the direct deposit bank account information. Also, set up the new payees in the new bank account.

Also, it is quite easy to transfer money between the accounts of different banks under your name. It just takes a few days. If the amount is not big, you can do e-transfer which can be completed instantly.

I totally understand some people prefer the in-person transaction and human connection. That is totally fine. If you have done almost all your banking transactions online, please do consider switching to a no-fee bank account.

If you don’t care about the $20 per month, you can donate it. That money can be used by others who need it more than the big banks. These days for many, every penny counts given how high the inflation is. Best of luck in your cost cutting mission!

Published by Worthfy

Financial literacy and counselling

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