Clarification on waiving chequing account fees | Motive Financial | Discussion forum

Peter said

Hi everyone,

I e-mailed these questions to Canadian Direct Financial regarding their chequing account a few days ago and have not gotten a response back. Does anyone here know the answers?

1. If you hold a minimum monthly balance of $5,000 you get unlimited free transactions. Does that also waive the monthly fee?

2. If you have a KeyReturn GIC of $5,000 you also get unlimited free transactions. Can that be split across multiple GICs?

3. Also regarding the GIC requirements, do TFSA and RSP GICs also apply?

hey Peter,

#1 - I think that's just a misleading wording on their site. The impression I read is that it waives all regular and monthly transaction fees. Surcharges charged by the ATM owner or Canadian Direct Financial would still apply, clearly, but as far as monthly fee/transaction fees go, I'd say it's clearly waived.

#2 - I'd assume yes, but again never really considered it as $5000 is such a small amount for a GIC anyway.

#3 - I would say most definitely yes, but again I'm just assuming so (based on their competition being Ally and ING, which offer the same (or better) rates on registered GICs).

Cheers,
Doug

Peter said

Actually, I just found a reply in my spam folder!

Hi Peter,

In order to remain competitive with this product, we’ve began offering no fee KeyDirect accounts.

There’s no minimum balances and the monthly fees are waived.

Please let me know if I can be of any further assistance.

Best regards,

Manager Canadian Direct Financial

Thanks for the update from CDF, Peter. It's nice to have the 'scoop' that they've supposedly begun offering no-fee KeyDirect Chequing Accounts. With that 'big' of an announcement, I'm surprised their product literature and online product website haven't been updated to advertise this feature as this would essentially make the account "on par" with ING Direct's THRiVE Chequing Account. There could even be some "marketing maneouvres" by stating that with Scotiabank's takeover of ING Direct Canada, and likely disaffiliation with The EXCHANGE Network and new utilization of Scotiabank's slightly larger Canadian ATM network, they are not owned by a "Big 5 Bank" and are the best & only no-fee chequing account with access only to The EXCHANGE Network and open to any Canadian (some credit unions offer no-fee chequing and savings accounts that offer dual Exchange/Acculink ATM network access, making for slightly larger ATM network coverage but their downside is they aren't open to all Canadians, including in some cases, Quebec residents).

Before you posted the update, though, Peter, I did want to draw your attention to one line near the top of the KeyDirect Chequing Account product page - "Take advantage of low fee transactions or maintain a minimum account or GIC balance and never pay fees!" I think that does say it all, that if you maintain a minimum balance or a GIC balance, all transactional and monthly fees are waived (surcharges for Interac ATM or e-Transfer use would be excluded, obviously).

Cheers,
Doug