GoFrugal.ca

If I had to create a get-rich-quick scheme, I would start a bank. Not only do banks charge you for holding your money (monthly fees and other transaction fees), they pay virtually zero interest on deposits, and they charge high interest on lines of credit and mortgages. They’re making money everywhere.

That’s why I refuse to pay for banking services.

If you’re a post-secondary student, TD Canada Trust waives the monthly fee on their Value Plus account.

For the rest of us, there’s PC Financial. I have been banking with them since 2005, and couldn’t be happier. Their no fee bank account, as the name implies, has no monthly fee, offers unlimited free transaction at PC Financial and CIBC bank machines, online and telephone banking and free cheques. To get that same level of service from another bank, you’d have to pay over $100 per year.

The catch? They don’t have branches or tellers, so all banking has to be done online or at a bank machine. But in this day and age, very few people really need teller services. If you can survive without a teller, I urge you to open a PC Financial bank account.

(If you’re hesitant, open an account, but keep your old banking services for a while. Give it a try; it’s free, so you have nothing to lose. Of course, there are fees for extraordinary things, like overseas withdrawals, stop payment requests, and bounced cheques, but they’re cheaper than other banks.)

PC Financial also offers a couple savings accounts, if you tend to have some spare cash lying around that you don’t want to tie up in other investments. As of this posting, they pay 3.05% interest on balances over $1,000. (For comparison purposes, TD Canada Trust’s best-paying savings account only pays 2.25%—and that’s on a minimum balance of $5,000.)

And while you’re at it, apply for their PC MasterCard. There’s no annual fee, and you collect PC Points on every purchase that can be used towards free groceries at Loblaws, Zehrs and other participating stores. The point system translates to a 1% cash-back, and can be redeemed as soon as you have $20 worth of points. (I charge about $2,000 to my card per month, which translates to $20 in free groceries per month. I pay my balance in full every month, so it’s a credit card that actually pays me to use it.)

So if you don’t remember the last time you used teller services, or think you can live without them, open a PC Financial bank account today. And start saving. (Sorry for the pun.)

“White label” or “no name” ATMs are bank machines not run by a major financial institution. They’re the bank machines you’ll find in independent convenience stores, bars, subway stations, and even some grocery stores.

Whereas the use of your bank’s ATMs is usually included in your monthly fee (up to a certain number of transactions), white label ATMs can cost $6.00 or more per transaction. A part of this is charged by the ATM operator, but another part is also charged by your bank for using this ATM. (Luckily, these bank machines are required to disclose their fee, and allow you to cancel the transaction.)

While usually less expensive than white label ATMs, using ATMs of bank other than your own is also expensive. Both your bank and the ATM’s bank will charge you a fee.

So when shopping with cash, it always pays to seek out your bank’s ATM. The transaction cost will be minimal, if not free. If you have to, leave early and swing by your bank. Or visit your bank’s website and find ATMs in the areas where you shop.