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Direct-only banking market saturated?
June 5, 2018
1:04 pm
Top It Up
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Hey Bill, that's me. I average 3 transfers-in per year to my BIG5 account when I should probably be doing 6, but I just can't be bothered with that kind of diligence. #obviouslyleavingsomethingonthetable

June 5, 2018
2:26 pm
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What ticks me off about the 2 online only accounts I have are little things like wanting to use Interac e-Transfers for which they want to charge me $1.50 per transfer, really, when my BIG5 account charges me $0.00 per transfer and all I need to do is keep $3,000 minimum in my chequing account. I have a hell of a lot more money at the onlines and they want to charge me.

Further, one of the onlines offers 1 free cheque per money and the other doesn't even offer cheques - so, while they may offer HISAs they're along way from being my everyday bank.

June 5, 2018
4:06 pm
tcharger67
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Topitup. I couldn't agree more. I hope a few are reading that and take a hint.

June 5, 2018
5:01 pm
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My complaining about the limited fee-free options at my 2 current online only FIs had me looking to possible options. To get me pointed in the correct direction, I checked the handy HIS Comparison Chart and noted EQ Bank's current HIS rate. Then I found this on their website -

Does EQ Bank have cheques, debit cards, and ATMs?

Instead of using personal cheques, a debit card, or accessing an ATM, you can move your money between your EQ Bank account and Linked accounts. Alternatively, you can send Interac e-Transfers or set up EQ Connections to make EQ to EQ Transfers.

So, if I were to use this online bank, as my everyday bank, how is it exactly that I can draw out a couple a hundred bucks spending money? I'm sure there's a trap door but I wasn't able to find it.

June 5, 2018
5:58 pm
Norman1
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Top It Up said

Does EQ Bank have cheques, debit cards, and ATMs?

Instead of using personal cheques, a debit card, or accessing an ATM, you can move your money between your EQ Bank account and Linked accounts. Alternatively, you can send Interac e-Transfers or set up EQ Connections to make EQ to EQ Transfers.

So, if I were to use this online bank, as my everyday bank, how is it exactly that I can draw out a couple a hundred bucks spending money? I'm sure there's a trap door but I wasn't able to find it.  

There's actually no trap door for cash on EQ Bank's Savings Plus account.

One would have to use one of those five free Interac e-Transfers each month to send oneself the money.

About ½ hour later, one will receive the e-Transfer e-mail. One will then deposit the e-Transfer into an account elsewhere that has ATM or branch access.

June 5, 2018
6:20 pm
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In other words, EQ Bank would put me in an even "worse" position than I currently am with my existing online FIs!

June 5, 2018
7:06 pm
Norman1
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I don't think Equitable Bank ever wanted to compete with the Big 5 Banks and be one's everyday bank. Their business is really alternate lending and not retail banking.

I think their EQ Bank Savings Plus account is intended to be an souped up savings account and not a chequing account replacement.

Higher interest from not having an ATM network and branches. Pension and payroll money could be direct deposited in. Billers could be paid through bill payment. Billers could also debit what is owed through pre-authorized debits.

June 5, 2018
9:28 pm
Joe
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Top It Up said
My complaining about the limited fee-free options at my 2 current online only FIs had me looking to possible options. To get me pointed in the correct direction, I checked the handy HIS Comparison Chart and noted EQ Bank's current HIS rate. Then I found this on their website -

Does EQ Bank have cheques, debit cards, and ATMs?

Instead of using personal cheques, a debit card, or accessing an ATM, you can move your money between your EQ Bank account and Linked accounts. Alternatively, you can send Interac e-Transfers or set up EQ Connections to make EQ to EQ Transfers.

So, if I were to use this online bank, as my everyday bank, how is it exactly that I can draw out a couple a hundred bucks spending money? I'm sure there's a trap door but I wasn't able to find it.  

Top it Up....try Tangerine.... free ATM withdrawals throughout Europe, and a FX of 2.5%....not 3.5% like TD has, plus free cheques if you actually still use those....no need to leave a 3k balance......come on over to the dark side.

Tangerine....Canada's best bank. LBC.............Canada's 2nd best bank.
Hubert.....worst bank in Canada.

June 6, 2018
5:53 am
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Agreed, you pair EQ Bank with another online bank. If you don't need free cheques then Alterna Bank is another option. Debit card, free Interac e-Transfers, and still a good interest rate if you want to sit a bit of cash there for use.

June 6, 2018
8:55 am
Londonguy
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Regarding practical alternatives to Big 5 accounts, no one has mentioned Simplii yet.

I know a lot of people have a hate on for Simplii and yes I know they're owned by CIBC, but I quite like their features. No-fee chequing and free Interac, plus they also have free cheque printing which is a significant saving to me. Another hidden benefit is that they don't put holds on electronic transfers-in, whereas EQ for example sits on those for anywhere from 5 to 8 business days before releasing the funds. As for cash access, you are issued a Simplii access card with your account that enables you to use CIBC ATMS for free.

If I have a complaint, it's that their posted savings rate is not very competitive (although their temporary offers can be very attractive), and their one-day delay on movements out of your savings (if you have a savings account there) can be annoying. I too have a Big 5 account that is technically free with a $3000 minimum balance, but at a 2.50% lost opportunity cost it's really costing me $75 PA, whereas the Simplii account doesn't cost anything at all.

I don't have an axe to grind or a finder's fee to earn, just sharing information

June 6, 2018
9:11 am
Bill
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Londonguy, your lost opportunity cost is less than $75, subtract income tax.

June 6, 2018
9:19 am
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Londonguy said
Regarding practical alternatives to Big 5 accounts, no one has mentioned Simplii yet.
 

Do they offer a credit card?

June 6, 2018
9:24 am
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Joe said

Top it Up....try Tangerine.... free ATM withdrawals throughout Europe, and a FX of 2.5%....not 3.5% like TD has, plus free cheques if you actually still use those....no need to leave a 3k balance......come on over to the dark side.  

After reading all the threads relating to Tangerine - they do come off as the dark side - and they too charge for Interac e-Transfers.

The only thing I could actually nail down on that 3.5% foreign transaction fee is that it seems to only apply to foreign DEBIT card transactions and not to credit cards? but maybe I just couldn't find the correct information link.

---------------------------------------------

So having given the various options available a cursory view, I think I'll just stay with my current set-up - keep the cash over in the current online only HISAs and move it over to the BIG5, on an as need basis - it ain't perfect but neither were many of the alternatives.

June 6, 2018
10:10 am
Londonguy
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Bill said:

Londonguy, your lost opportunity cost is less than $75, subtract income tax.

True, point taken

June 6, 2018
10:12 am
Londonguy
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Top It Up said:

Do they offer a credit card?

Not that I'm aware of

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