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Thread: No Fee Bank Accounts - Changes are brewing....

  1. #1
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    Default No Fee Seniors Bank Accounts - Changes are brewing....

    I watched something a while back on Marketplace how the big banks had varying and elusive discounts for seniors on banking fees. There's a graph for this here, and to watch the actual episode on the CBC website pertaining to this report in one of their "Busted" episodes, go here (to the 21 minute mark or so).

    Well it seems that TD is leading the charge to eliminate this. Time for all you retired folks - and I know there are "few" on this forum - to take charge.

    Up until now, Scotia and BMO seem to have the best senior bank account discounts and RBC the worst/most restrictive. Banks are constantly in competitive collusion to screw us over, and this is another one about to manifest itself imo. While I'm not a senior myself, it only gives me a hint of how I'll get the shaft later on as a tail end boomer.

    CALL YOUR BANK AND VOICE YOUR CONCERN/DISPLEASURE NOW!!!!





    TD Article in the Globe.....(in case the above link dies)



    The more seniors there are, the more expensive it is to give them freebies and special discounts.

    So with our aging population, it’s easy to see Toronto-Dominion Bank ‘s decision to stop opening no-cost bank accounts for clients aged 60 and older as a trendsetting move. As of March, TD Canada Trust branches have been offering three different account packages to older clients with a 25-per-cent discount off regular account fees. Other banks and credit unions still offer no-cost banking to seniors, but you can bet they’ll be studying TD’s move.

    Canada’s second-largest bank has forestalled a backlash by allowing more than two million current holders of its no-cost Plan 60 account to maintain the status quo. But clients who turn 60 now have to pay fees of $8.20 to $22.45 a month after discounts unless they maintain large enough balances to qualify for fees to be waived entirely. That takes a minimum $2,500 to $5,000 a month, depending on the account.

    TD spokeswoman Barbara Timmins said the free seniors account was chopped as part of a regular review of how the bank’s products mesh with changing demographics.
    “With an evolving boomer group, that means offering accounts to customers over 60 that reflect their diverse situations – whether that’s something basic, mid-range or premium,” she said. “We also have to balance those considerations with the bank’s longer-term needs for continued growth.”

    Statistics Canada estimates that the country’s population could exceed 40-million by 2036, and that as many as 10-million to 11-million people could be seniors. Offering free banking to that many people is a lost revenue opportunity of major proportions. Banks would be extra sensitive to that in today’s world, where low interest rates and treacherous financial markets have hurt other lines of business.

    But there’s another trend at work here. Bluntly put, many baby boomers don’t need banking discounts.
    “The seniors of today are quite different from what they were back when the senior’s plan was invented [decades ago],” said David McVay of McVay and Associates, a financial services consulting firm. “Many are still working, and many are better off than [seniors] were back then. The question at the banks is always, why are we discounting banking services for what turns out to be our wealthiest customers?”

    Other banks may be asking that question, but they still offer no-cost accounts to seniors. Bank of Nova Scotia’s Scotia Plus Program for Seniors offers cost-free banking for seniors with a refreshing lack of fine print or hidden fees. It also kicks in when customers turn 5 9, not the usual 60. Bank of Montreal and Canadian Imperial Bank of Commerce also offer free plans to seniors.

    A couple of other banks have also done away with dedicated seniors accounts, but they haven’t been so bold as TD in eliminating free banking for this group. Royal Bank of Canada offers a seniors’ rebate that offsets the monthly cost of a variety of accounts to varying degrees. Note: In some cases, the client may need to have certain RBC products to qualify for a full rebate. HSBC Canada offers a fee waiver on an unlimited chequing account to seniors.

    Credit unions are also an option for seniors seeking no-hassle, no-fee bank accounts. Here’s what Southern Ontario’s Meridian Credit Union offers to clients age 60 and older: Free unlimited debits, one free order of cheques a year, no charge for paper monthly statements, no charge for using a passbook (remember those?), free certified cheques and travellers cheques, a limited number of free money orders and discounts on safe deposit boxes.

    TD’s updating of its seniors accounts represents a modernization in more ways than one. With two of the three accounts, customers must pay $2 for a monthly paper statement and $2.25 for a passbook. Otherwise, they can use paperless recordkeeping, where you monitor your account online or download online statements. Both paper statements and passbooks are free to existing Plan 60 clients.

    The aging population may eventually put an end to free chequing accounts for people 60 and older, but seniors shouldn’t feel forsaken. Notice the growing numbers of financial planners in branches to help with retirement planning, and also the availability of sit-down teller windows and low ATMs. Wait a second – if seniors are such important customers, doesn’t that suggest they should insist on free banking? Just asking.

    Banking charges for seniors
    Toronto-Dominion Bank’s TD Canada Trust branches have stopped offering free chequing to seniors signing up for a new account. Options for the bank’s clients aged 60 and over now include three chequing accounts offered with a 25-per-cent discount.

    Graph from original cannot be rendered from original article.

    Existing customers of TD’s no-cost Plan 60 account can continue with that option.
    Last edited by Lost in the Woods; 06-19-2012 at 04:17 AM.
    Kevin

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    Default Re: No Fee Bank Accounts - Changes are brewing....

    Finally.

    Kudos to the banks.

    Mark

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    Default Re: No Fee Bank Accounts - Changes are brewing....

    I'd rather see everyone pay exactly the same rate .... for everything. Remember that "rate" and "amount" are not the same!! It costs the same rate (for effort expended) to run an account for a senior as for a kid as for a middle aged person. I've never understood the idea that once we get to be 55 or 60 or 65 years of age, we should start getting a free ride. I understand a reduction in auto insurance fees based on reduced use and increased safety awareness (generally speaking), but the idea of seniors discounts just because we're lucky enough to survive to 55+ ??? Why ??

    John

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    Default

    I never paid a single bank fee for normal account management before I moved here. It's all a great big cash grab.
    Cheers

    Tim

    www.timbowdin.com

    'If you can't fix it with a hammer, you've got an electrical problem'

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Interesting.... BMO looks like the best right now.

    First Point: It has been said that Canadian Banks don't loan money -- they buy equity (your assets). Right now it could well be that the Boomer group has the most assets.

    Second Point: The economy will turn around some day (maybe it has). When it does, people working desperately on the freedom 95 plan will continue to build their assets and deposit their paychecks.

    It might just work out for the winning bank -- if they stick it out.
    ---
    Will

    “There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.” —- Mark Twain

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Strangely, this is one of the areas where we don't complain along the lines of "you get what you pay for".
    In order to understand recursion, one must first understand recursion

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    Default Re: No Fee Bank Accounts - Changes are brewing....

    It probably costs a lot less to manage an account for a kid than it does for a senior. My kid (23) has not set foot in a branch since she opened an account at 16.

    The ones that need the actual branch, and all the maintenance costs that go with it, should pay for it.

    Mark

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Well the easy way out is to drop all those greedy banks and open an account with Presidents Choice Financial Bank.
    It treats all ages the same.................No fees for most used services. been a customer for many years, quite happy with the service. Their Mastercard program is great as well, points to allow purchases at Zehrs as well

    If Your concerned about paying service charges or having to have preset account levels, then PCF is the way to go. kiss the other banks good bye.
    Cheers............. Doug



    "Don't worry about old age - it doesn't last that long."

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by Doug in Woodstock View Post
    Well the easy way out is to drop all those greedy banks and open an account with Presidents Choice Financial Bank.
    It treats all ages the same.................No fees for most used services. been a customer for many years, quite happy with the service. Their Mastercard program is great as well, points to allow purchases at Zehrs as well

    If Your concerned about paying service charges or having to have preset account levels, then PCF is the way to go. kiss the other banks good bye.
    Thats an interesting response Doug. Do you realize that PC Financial is just a low fee-no branch delivery system for CIBC ?

    DISCLAIMER: this is my day job business - I have worked 25 years in the Banking/Credit Union system - Please feel free to discuss extensively; its like free consumer information LOL!!
    "every man is the maker of his own misfortune"

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by Greg in Caledon View Post
    Thats an interesting response Doug. Do you realize that PC Financial is just a low fee-no branch delivery system for CIBC ?

    DISCLAIMER: this is my day job business - I have worked 25 years in the Banking/Credit Union system - Please feel free to discuss extensively; its like free consumer information LOL!!
    I KNEW we had a spy in our midst.

    It's a conspiracy I tell ya!
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    Will

    “There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.” —- Mark Twain

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    I laugh at this thread...

    The fee's that you pay is for maintaining an account with below a specific threashold of money in the account. As a senior, is it the banks fault you are living from CPP payment to CPP payment and have ZERO money left over? They are asking for what $2000 balance to be maintained in the account for No Charges?

    This is an Optional Fee, in that you keep a large enough balance, you don't get charged. It's like saying that seniors should not have to pay interest on their ceditcard if they decide not to pay off the balance in full each month. Don't cry foul if you can't manage your money well enough.
    Matt

    People are like a box of chocolates. It's hard to tell initially which ones are nuts.

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    I bank with TD, and the thing that annoys me the most is the "paperless option." They've been pushing it for years, relentlessly asking me if I'd like to switch to paperless (i.e. every month a pdf is posted to my account that has my statement in it). I've always refused. I pay the monthly service fee, and I never go into the bank and use any service, so really that paper statement they send me is the only service I get for my money! I wanted my money's worth. Also, I simply prefer a paper statement. I file them away and store them. Sure, yes, I could print off the pdf every month and store that, but odds are I won't. And besides, why should I do that, when I'm already paying them to do it?

    But now just recently they entirely eliminated the paper statement! Well, unless you pay like an extra $5 a month or something. But paper statement used to be included with almost every account, and now it is not included with any of them. There is no option to keep with a paper statement, unless you add it on as a fee-for-service option.

    So now I'm officially getting no service for the service fee I pay. awesome. They're getting the same amount of money from me per month, while now giving less service. That's a sweet deal they worked themselves!

  13. #13
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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by matt.mackinnon View Post
    I laugh at this thread...

    The fee's that you pay is for maintaining an account with below a specific threashold of money in the account. As a senior, is it the banks fault you are living from CPP payment to CPP payment and have ZERO money left over? They are asking for what $2000 balance to be maintained in the account for No Charges?

    This is an Optional Fee, in that you keep a large enough balance, you don't get charged. It's like saying that seniors should not have to pay interest on their ceditcard if they decide not to pay off the balance in full each month. Don't cry foul if you can't manage your money well enough.
    I see your point, to a degree, but I do think it's highly unfair to conclude that every senior who is living CPP payment to CPP payment is doing so only because they did not manage their money well enough. There's plenty of seniors who managed very well and responsibly what little money they had, they just didn't have enough of it.

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    has anyone done similar research on credit unions?
    Nothing is ever as straightforward as it seems.

    Glenn from Winnipeg

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by callee View Post
    I see your point, to a degree, but I do think it's highly unfair to conclude that every senior who is living CPP payment to CPP payment is doing so only because they did not manage their money well enough. There's plenty of seniors who managed very well and responsibly what little money they had, they just didn't have enough of it.
    Take a look at history. My parents have just entered into retirement. In the late 70's the cost of houses where we live were in the $25~45k. The interest rates were at 13~18% so invested money got your something but borrowing cost more. Since then (40 years later) the same houses now cost 750k to 2.5mil. and interest rates are at 1%.

    EVERY person who is in retirement now had the golden opportunity to make the 3000% or more ROI in the housing market. If they could not save $2000 in the past 40 years. then yes I am saying they do not deserve to get their banking for free. They do get free health care, and drugs. Sorry, but why should I pick up the tab for their banking as well. Somebody needs to pay for it.
    Matt

    People are like a box of chocolates. It's hard to tell initially which ones are nuts.

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by matt.mackinnon View Post
    Take a look at history. My parents have just entered into retirement. In the late 70's the cost of houses where we live were in the $25~45k. The interest rates were at 13~18% so invested money got your something but borrowing cost more. Since then (40 years later) the same houses now cost 750k to 2.5mil. and interest rates are at 1%.

    EVERY person who is in retirement now had the golden opportunity to make the 3000% or more ROI in the housing market. If they could not save $2000 in the past 40 years. then yes I am saying they do not deserve to get their banking for free. They do get free health care, and drugs. Sorry, but why should I pick up the tab for their banking as well. Somebody needs to pay for it.
    I probably agree with you on the banking -- I've never quite understood the rationale for the senior's discount myself. But I still differ with you on the notion that every senior who is poor right now is so because they didn't manage their money well. Sure, if they had bought a house back in the day then by now they would have a great return on investment. My grandfather did just that, managed well, and now my grandmother has all she needs to live on. But not every person was so lucky or fortunate as to be able to buy a house back then. Not so different from today, really.

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Glen I haven't had to pay for cheques or any other services at a Credit Union for over ten yrs. now. Also the $25 fee to join 25 to 30 yrs. ago has paid dividens now accumulted to over $1,100.
    Matt the golden opportunitys haven't gone anywhere start investing. 400 thu. houses will be double before you know it.

    Bill R

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    The article deals with 'apparent discounts' for seniors but people who are not seniors should look at the monthly service charges their banks, etc. are charging ..... and then investigate lower cost and "no cost" options elsewhere.

    Glen's example of credit unions is one avenue.

    I banked at a local/regional bank in southern Ontario for years - prior to being a senior - and for maintaining a $2000 balance in my chequing account had no charges for cheques, statements, cheque books. When that local bank (Municipal Savings and Loans) got incorporated into the National Bank of Canada, the new bank "grandparented" ALL the existing customers in terms of service charges and even extended "no charges" for things like bank drafts.

    I recall reading that prior to perhaps the 1970s bank service charges were minimal or non-existent and there wasn't something called "monthly service plans". I suspect that since that time many banks are relying of people not "paying attention and not shopping around" while fees have shot up much more than cost of living, etc. Automation and paperless statements have reduced the cost to banks of servicing accounts in the mean time.

    And no, I don't believe, outside of some clear cut "community/charitable" endeavors that banks give discounts to particular groups because they are somehow morally more deserving.... seniors do have money and banks want young people as future 'big time' customers and may offer incentives for their initial business...... just ask for a better deal and shop around .....same like the car and house insurance issue discussed here a few weeks ago.

    good luck

    michael

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    Quote Originally Posted by matt.mackinnon View Post
    ...EVERY person who is in retirement now had the golden opportunity to make the 3000% or more ROI in the housing market. ...
    Wrong! It depends on multiple factors with the prime one being location.
    billh

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    Default Re: No Fee Seniors Bank Accounts - Changes are brewing....

    If I ever hear anyone else telling us that health care is free I swear my blankety blank response could get me banned from this forum for life!! Start using your head for more than a hat rack!
    "Do it Right!"

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