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With Wealthsimple’s cash card, you can withdraw money from any ATM and get reimbursed for the fees. Giordano Ciampini/The Canadian Press
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A couple of months ago, I took the plunge and finally got rid of my Big Six bank account.
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I was paying $4 a month for no real reason – most of the Big Six banks charge a fee unless you’re a student, senior or have a minimum balance. I’ve since switched to Tangerine and Wealthsimple as my only bank accounts, and my banking experience is simpler and less cluttered.
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There are other companies that offer some of the benefits I’m about to talk about: EQ Bank and Simplii are two notable ones, while Questrade and Koho are moving toward getting a banking licence.
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If you’re wondering: Yes, you can speak to a real person by phone when you need help with your online banking. And often it is faster than heading to a physical bank and waiting in line.
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I don’t like to have a bunch of my money parked in a chequing account just to save on fees, especially when that money could generate better interest elsewhere. I also don’t have the kind of savings that would get banks to waive my fees – and I’d rather keep my investments elsewhere.
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So I was always going to have to pay that $4, and it was getting frustrating – especially when I forgot to top up my account and had to pay an overdraft fee.
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Online banks simply have a better user experience.
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Whether you’re with a bricks-and-mortar bank or not, you probably do most of your banking online. And I find the apps and websites for my no-fee accounts much better.
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The way Tangerine shows me all my different savings accounts – which I use to divvy up my money for mortgage payments, vacation savings and other expenses – looks a lot better and makes it easy for me to see exactly where I’m at.
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Both Tangerine and Wealthsimple process my paycheques a day earlier. It’s not a huge deal, but it helps me get organized before expensive weekends.
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Wealthsimple’s cash card allows you to withdraw money from any ATM and reimburses the fees. It was why I first took a chance on the card, and it is now one of my favourite features. EQ Bank is another institution that reimburses domestic ATM fees.
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There are workarounds for some of the concerns
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Two things that gave me pause about ditching my Big Six bank account was whether I could receive wire transfers and quickly get bank drafts.
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But now, money transfer companies such as Wise allow you to do wire transfers for cheap. And, with enough planning, you can get a bank draft couriered to you from an online bank.
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Reader callout
Are you a landlord in a university area that caters to students? Or are you a student looking for a rental for the coming school year? I’m looking into whether declining college populations are shaking up the student rental market. To share your personal story, e-mail me. |
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