Comments on: My “Banking” System http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/ Tue, 07 Feb 2012 18:14:07 +0000 hourly 1 http://wordpress.org/?v=3.1 By: jody http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40508 jody Wed, 24 Feb 2010 16:54:32 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40508 Great post, Dave. Always interesting to read how non-rich others organize their financing. I have a similar setup but a bit more simplified (all with PC) - 1 checking - 1 line of credit (0 balance) - 1 credit card (always paid off - never paid interest) - multiple saving accounts for different purposes: vacations, annual RESP contributions, house renovations, car maintenance that could happen, etc. I recently consulted with Investors Group for some advice about maximizing savings for long and short-term goals: the interest on my PC savings is pathetic. I should at least use those new tax-free savings accounts, but IG thinks they can do better so I going to let them manage some short-term savings while I maintain a tax-free savings accoutn with PC - just to compare. Great post, Dave. Always interesting to read how non-rich others organize their financing.

I have a similar setup but a bit more simplified (all with PC)
- 1 checking
- 1 line of credit (0 balance)
- 1 credit card (always paid off – never paid interest)
- multiple saving accounts for different purposes: vacations, annual RESP contributions, house renovations, car maintenance that could happen, etc.

I recently consulted with Investors Group for some advice about maximizing savings for long and short-term goals: the interest on my PC savings is pathetic. I should at least use those new tax-free savings accounts, but IG thinks they can do better so I going to let them manage some short-term savings while I maintain a tax-free savings accoutn with PC – just to compare.

]]> By: dlm http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40507 dlm Wed, 24 Feb 2010 15:51:43 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40507 It's like shopping for food or anything -- might as well try a new store for a better price. See Gail Vaz-Oxlade's blog Jan 22 Entitled and Feb 8 Survey on Banks. One point for future use: CWB has good GIC RRSP rates but poor RIF policies: you cannot take a withdrawal the same year you convert to a GIC RIF; when you do, the interest is slashed -- the red big bank allows immediate withdrawals of any amount and does not lower interest for GIC RIFs (but I have many issues with them and am looking for a better FI) It’s like shopping for food or anything — might as well try a new store for a better price.
See Gail Vaz-Oxlade’s blog Jan 22 Entitled and Feb 8 Survey on Banks.
One point for future use: CWB has good GIC RRSP rates but poor RIF policies: you cannot take a withdrawal the same year you convert to a GIC RIF; when you do, the interest is slashed — the red big bank allows immediate withdrawals of any amount and does not lower interest for GIC RIFs (but I have many issues with them and am looking for a better FI)

]]> By: Dave http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40492 Dave Wed, 24 Feb 2010 02:11:52 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40492 @ Tim: Once I wrote it out, it seemed pretty complicated - I guess I didn't really notice because it's kind of evolved that way over the years. CIBC charges fees every time I use my card, which I don't like so I don't use that for spending. I read a lot of blogs and listen to a ton of podcasts - over the past year or two I've started to donate a bit of money every once in a while to support the creators. It's not a lot, no more then $5/month in total (I switch between sites every month), but I figure that if everyone donated $2 once in a while, it would really help the creator of the podcast/blog.....some of them have money processors that I don't know so I figure I'd limit my liability. @ dlm - I like the idea of scratch and win for extra money - I've never seen that in Ontario. @ Dana - I get frustrated about CIBC's fees every once in a while, especially since I really don't ask them for a ton of service every month - thanks for the tips around the credit card accounts and using the banks. @ Robert - I'll have to check out Ally.ca - might need to add another account at some point :) @ Financial Student - I'm trying to get up to 6 months expenses saved for an emergency fund, I just feel more comfortable having that for if me or my wife loses our job - it would take a lot of stress out of the situation vs. borrowing to make up shortfalls. Good luck on paying down your line of credit! @ Tim: Once I wrote it out, it seemed pretty complicated – I guess I didn’t really notice because it’s kind of evolved that way over the years.

CIBC charges fees every time I use my card, which I don’t like so I don’t use that for spending.

I read a lot of blogs and listen to a ton of podcasts – over the past year or two I’ve started to donate a bit of money every once in a while to support the creators. It’s not a lot, no more then $5/month in total (I switch between sites every month), but I figure that if everyone donated $2 once in a while, it would really help the creator of the podcast/blog…..some of them have money processors that I don’t know so I figure I’d limit my liability.

@ dlm – I like the idea of scratch and win for extra money – I’ve never seen that in Ontario.

@ Dana – I get frustrated about CIBC’s fees every once in a while, especially since I really don’t ask them for a ton of service every month – thanks for the tips around the credit card accounts and using the banks.

@ Robert – I’ll have to check out Ally.ca – might need to add another account at some point :)

@ Financial Student – I’m trying to get up to 6 months expenses saved for an emergency fund, I just feel more comfortable having that for if me or my wife loses our job – it would take a lot of stress out of the situation vs. borrowing to make up shortfalls.

Good luck on paying down your line of credit!

]]> By: Financial Student http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40484 Financial Student Tue, 23 Feb 2010 20:08:56 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40484 Just 1 bank account, 1 credit card, 1 line of credit for me. I use my credit cards all the time, but I consider it a method of payment, not a financing tool. I pay it off right away. The line of credit has a balance unfortunately, but I'm working on getting rid of it as soon as possible. It's also my emergency fund as I don't believe in large emergency funds. Doesn't make sense to me to have a large fund sitting there doing nothing. I use debit only when they don't accept VISA. As for tracking the amounts, I do that on the computer and not by separate accounts. For example, vacation savings go into the LOC. It doesn't make sense to earn 1% and pay 3.5% on the LOC. I put the money in the LOC, but track the amounts separately. Once I have more money to save, I'll open up a higher interest savings account. Like I said now though, it makes more sense to pay less interest. Glad you found a system that works for you though. Just 1 bank account, 1 credit card, 1 line of credit for me.

I use my credit cards all the time, but I consider it a method of payment, not a financing tool. I pay it off right away.

The line of credit has a balance unfortunately, but I’m working on getting rid of it as soon as possible. It’s also my emergency fund as I don’t believe in large emergency funds. Doesn’t make sense to me to have a large fund sitting there doing nothing.

I use debit only when they don’t accept VISA.

As for tracking the amounts, I do that on the computer and not by separate accounts. For example, vacation savings go into the LOC. It doesn’t make sense to earn 1% and pay 3.5% on the LOC. I put the money in the LOC, but track the amounts separately.

Once I have more money to save, I’ll open up a higher interest savings account. Like I said now though, it makes more sense to pay less interest.

Glad you found a system that works for you though.

]]> By: Robert http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40477 Robert Tue, 23 Feb 2010 16:32:19 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40477 I have a similar setup but I use PCF chequing as my main account. For a bricks and mortar account, I have a basic account at Scotiabank where I get two free transactions per month (rarely used). But if I have rolled coins, or need a certified cheque, or US cash, etc. I go there. Whenever I travel to Europe I use the Scotia account as they have very good conenctions with other banks. Since I know in advance when I am vacation, I switch my account over to a 'regular' account with a $6 or $7 fee for that month and get all my foreign withdrawals covered. Works well and keeps bank fees to an absolute minimum - often $10 per year or less. I recently switched my online savings from ING to Ally.ca as well for the extra 0.8% interest. It adds up for no real inconvenience. I have a similar setup but I use PCF chequing as my main account. For a bricks and mortar account, I have a basic account at Scotiabank where I get two free transactions per month (rarely used). But if I have rolled coins, or need a certified cheque, or US cash, etc. I go there.

Whenever I travel to Europe I use the Scotia account as they have very good conenctions with other banks. Since I know in advance when I am vacation, I switch my account over to a ‘regular’ account with a $6 or $7 fee for that month and get all my foreign withdrawals covered.

Works well and keeps bank fees to an absolute minimum – often $10 per year or less.

I recently switched my online savings from ING to Ally.ca as well for the extra 0.8% interest. It adds up for no real inconvenience.

]]> By: Dana http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40471 Dana Tue, 23 Feb 2010 13:50:12 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40471 Like you, we were nervous about leaving the bricks-and-mortar bank because of the two or three times per year that we need US cash, a certified cheque or have a stash of rolled coin to cash in. But we did leave the bricks-and-mortar bank (and their fees). When we need a certified chq, foreign currency or someone to take our coin, we go to one of the banks that we have a credit card through (CIBC and BMO). We have also gone to the bank which is affiliated with our brokerage accounts. It's been over two years and we have never had a problem dealing with them without a primary account. Like you, we were nervous about leaving the bricks-and-mortar bank because of the two or three times per year that we need US cash, a certified cheque or have a stash of rolled coin to cash in.

But we did leave the bricks-and-mortar bank (and their fees). When we need a certified chq, foreign currency or someone to take our coin, we go to one of the banks that we have a credit card through (CIBC and BMO). We have also gone to the bank which is affiliated with our brokerage accounts. It’s been over two years and we have never had a problem dealing with them without a primary account.

]]> By: dlm http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40469 dlm Tue, 23 Feb 2010 12:53:32 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40469 We use PC Mastercard (and free grocery points about $20/month) and Savings, Chequing, ING as well. Will have to check into PC Line of Credit and Home Depot zero percent 6 months. We spend zero cents for any banking: savings, chequing, cheques, etc. For a downtown bank we've been using Canadian Western (they answer the phone with a live person and answer email; online banking and transfers and bill payments are instantaneous): we started when we had maturing GICs and their savings interest was higher than ING (but you need over $5000 for savings interest) and we got a CWB ATM/Debit Card for Costco till the Am Ex started, then found out you need to spend over $5000 on Am Ex before you get over 1%. We intend to end the Costco and Am Ex at the end of the first year. Canadian Western Bank has a branch in downtown Regina (their RRSPs have a scratch and win extra 1/8 up to I think 1 full percent). We use PC Mastercard (and free grocery points about $20/month) and Savings, Chequing, ING as well. Will have to check into PC Line of Credit and Home Depot zero percent 6 months.
We spend zero cents for any banking: savings, chequing, cheques, etc.
For a downtown bank we’ve been using Canadian Western (they answer the phone with a live person and answer email; online banking and transfers and bill payments are instantaneous): we started when we had maturing GICs and their savings interest was higher than ING (but you need over $5000 for savings interest) and we got a CWB ATM/Debit Card for Costco till the Am Ex started, then found out you need to spend over $5000 on Am Ex before you get over 1%. We intend to end the Costco and Am Ex at the end of the first year.
Canadian Western Bank has a branch in downtown Regina (their RRSPs have a scratch and win extra 1/8 up to I think 1 full percent).

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/02/23/my-banking-system/comment-page-1/#comment-40466 Canadian Dream Tue, 23 Feb 2010 11:56:52 +0000 http://blog.canadian-dream-free-at-45.com/?p=1398#comment-40466 Wow, I thought my kids were good at complicating things. They have nothing on you Dave! *grin* Just a question. If you rarely use your debit card, why not just pull money directly from your CIBC account? Also what do you buy online that is under $200? My last online purchase was about $380. Just wondering. Tim Wow, I thought my kids were good at complicating things. They have nothing on you Dave! *grin*

Just a question. If you rarely use your debit card, why not just pull money directly from your CIBC account?

Also what do you buy online that is under $200? My last online purchase was about $380. Just wondering.

Tim

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