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Tangerine – My Switch to NO Bank Fees

TangerineI finally made the switch! In fact, I had originally applied a year ago but never got around to sending a cheque to activate the account. I was determined to not have bank fees, not be held hostage by needing to have a few thousands in the account and benefit from the wonders of technology for free electronic transfers.

Related: My Banking Utopia

It feels good! The switch works with one exception, I don’t have a line of credit at Tangerine and you need a mortgage there to have a line of credit. I tried getting one at RBC but I was faced with the problem of already having access too much credit. For someone with a great credit who pays the bills on time, I thought it was interesting what the tightening of rules does.

My Money Flow – Start With No Bank Fees

Nothing beats a picture so I’ll have start with that. It starts with no bank fees at Tangerine and ends with a small bank fee at ScotiaBank for now.

Money Flow

Out of all those accounts, I only pay fees at ScotiaBank. I used to have the ScotiaOne account but with my changes, I have changed it to the basic account which has the lowest fee. Until I can have a line of credit elsewhere, I need a basic account to move money around.

I am super impressed with Tangerine’s ability to transfer money around. I was sold on the free email money transfer but it turns out that I can just add my other bank accounts, valid them with a cheque deposit of $1 and the account is set for transfer. I no of no other banks that can provide that.

  • RBC is necessary for accessing RDB Direct Investing and transferring money. The good thing is that it’s free to have the account for me as I meet the minimum requirements of funds and number of accounts. I have my kids account there too.
  • ScotiaBank is where I have my mortgage and superb VISA Momentum Cash Back credit card.
  • Coast Capital Savings is where my wife account is at. It’s a true no fee chequing account. It was my initial plan to use a no fee chequing account but it was too hard to transfer money I found.

Tangerine Freedom - Steps For Switching Banks

Here are the steps I went through. My Orange Key is 38025164S1 if you want to open an account with a bonus!

Step 1. Open the account in your new institution (hopefully Tangerine with my Orange Key – thank you for the support)

Step2. Setup all your payments such as credit cards and utility bills

Step3. Setup your email alerts if provided

Step4. Order your cheques (yes, you still need cheques in this world. Wait until you have kids …)

Step5. Once you are all setup with your cheques in both institutions, you can then change your pay deposit at the same time as you change your mortgage payment account.

As you can see, it’s pretty easy to switch. I am also not held hostage by keeping cash in an account to avoid fees.

Bank Fee Poll

If you have not answered the poll yet on banking fees, please do so.

Why Do You Still Pay Fees?

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Readers: What’s the most important feature you need from your bank? Is Tangerine interesting to you?

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8 Responses to "Tangerine – My Switch to NO Bank Fees"

  1. Liquid says:

    The most important feature I look for is convenience :) I’ve also noticed how the banks have really tightened their lending practices. I used to be able to get demand loans but now they won’t let me. But in my case I actually do have too much access to credit haha. I’m using over 90% of my available credit for some of my LOCs which is reflected poorly in my credit score. Ah well, I suppose the banks just want to be extra cautious. I might make the switch to Tangerine too in the future. I’ll keep your orange key in mind, thanks.

  2. henry says:

    Great summary and as mentioned before, there is no easier way to have funds in a saving account, generating a decent interest, then quickly get access to some of the funds with no costs when needed.

  3. I made my switch from RBC to ING a year ago. Never looked back. It great not having to pay monthly fees to the banks for holding your money.

    regards

  4. Bernie says:

    I made my switch from RBC to no fee PC Financial 13 years ago. I couldn’t have been happier. I went all in over the years with their credit card, mortgage, secured & non-secured lines of credit, etc. I’ve saved hundreds in bank fees while gaining many thousands in PC points and much higher interest on savings!

    • JP says:

      @Bernie,

      Did the same as you last year. Best part of PC Financial is their customer service reps are in Canada and answer the phone very quick. Will seriously be looking at switching mortgages when renew time comes around. I keep hearing mortgage rates are great there. I still hold TD Basic account making it easier to switch money to TD Waterhouse. Also planning to save $5000 for a free account and free TD Infinite travel card($150/yr) in Apr 2014.

      Always nice to hear what other people are doing. .

  5. Bernie says:

    Forgot to mention the much lower rates on loans, lines of credit & mortgage at PC Financial.

  6. RICARDO says:

    I am at CIBC
    Convenience for me as I live in a small town with only three options.
    I have “always” banked here nad the staff know me. I have my LOC here and it is as low as it can go (3%).
    Stock trades are $6.95 which is better than RBC where I have another RRSP.
    Aside from that the staff knows me and I can phone up just about any time and ask them to transfer money in to my account and there are no questions. One of the niceties of a small town.

  7. […] summary of my previous post on my transition to Tangerine, here is my money […]

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