LET’S TALK ABOUT MONEY / FEBRUARY 11, 2017
Switch to Tangerine:
Why I’m leaving my physical bank behind
Like a majority of people out there, I still have a physical bank, one I can go and visit. As I’ve learned more about personal finance, I’ve come to realize that maybe a physical bank isn’t worth it anymore. Between the high fees and the low interest rates, I’ve decided to switch to Tangerine, a mostly online only bank. Let’s talk about the pros and cons and moving from a physical bank to a virtual one.
If you are looking for a guide on how to actually switch from your current bank to Tangerine, check out my 2 part guide:
- Step-by-step: How to switch to Tangerine (Part 1) – Preparing to switch and becoming a client
- Step-by-step: How to switch to Tangerine (Part 2) – Opening a chequing account, switching automatic payments and finalizing
If you discover the information in this article helpful and wind up making the change to Tangerine, receive a $50 bonus and also help support this site using my Orange code 46415105S1 when registering.
What I currently use my bank for
I Have banked with TD Bank for so Several Years. It’s ingrained in my entire life I get paid right into it, my own invoices automatically come from it, I have investments, and I have savings. Every major financial trade in my entire life moves through this financial institution. So why is it that I wish to depart?
Why I need to change
There are quite a few reasons that I’ve decided that TD Bank doesn’t fit my needs anymore:
1. Account costs.
My chequing account charges me $3.95 per month and basically provides me . I’ve a Minimum chequing accounts which gives me 12 trades a month. I use my charge card to get nearly all my purchases rather than use my debit card. So I am basically paying nothing.
2. Wasted investment opportunities
I maintain $2,000 in my bank accounts to subtract the $3.95 accounts fee. I’ve written before about the return of keeping a minimum balance to waive bank fees. In the event you want to get an account which has charges, than utilizing the minimum balance to waive the charge is generally well worth it. However, if I don’t have any fees in any way, I could rather place that $2,000 to an account which will actually earn a little bit of cash accountable for sitting at a chequing account collecting dust.
3. Laughable interest rates
I really don’t understand the way the lender can predict 0.5% interest ‘High Interest Savings Account’,” but that is exactly what TD Bank does. TD Provides no workable way to conserve your money short duration with no losing reasons to inflation.
4. Being constantly upsold
As good as the folks in the bank would be for me, that they sadly do not hold my very best interest . They attempt to drive me into investments which make them cash rather than me (intentionally managed funds). They attempt to sign me up for credit cards which have annual fees and not as many perks compared to my present charge card. They signed me to get a costly field of Credit that in the moment, in my naivety, I did not understand how awful it had been. Regrettably, I simply don’t trust them .
What if I need to visit a bank in person?
Initially when I thought of switching to an internet lender, I thought”how do I bank when I can not physically move and accept out and deposit cash?” . I then asked myself”how many occasions have I had been in my own bank and spoke to some teller in the previous calendar year?”
The answer: 3 times!
- Once to deposit foreign currency
- Once to deposit some rolled coins
- Once to deposit a crumpled up bill that the bank machine didn’t like.
This was it! Besides that, I do all of my banking on the internet or in a bank machine. And all of these are basic transactions I can discover an alternate to beyond having a bank.
How good is the alternative?
After doing a little bit of study, Tangerine appears to be the thing to do if you would like to bank on line. Especially, it provides a remedy to this Four issues mentioned previously:
1. Account costs.
Tangerine supplies a no charge chequing accounts, together with 50 complimentary cheques, and accessibility to banking whatsoever ScotiaBank ATM’s. You earn a little bit of interest on your fee chequing accounts — it is just 0.15 percent, but that is far better compared to 0.00% which TD earns you into their chequing accounts.
2. No wasted investment opportunities.
Now I do not need to depart $2000 in my chequing accounts to subtract the monthly charges, I will rather invest this cash, short of extended term. It is not a good deal, but at 2 percent interest above a calendar year, that the $ 2,000 can make $40 curiosity — FOR FREE!
3. Good interest rates (if only for the short term)
Registering for a chequing and savings accounts because a new client with Tangerine can often provide you with a tax free savings accounts (or depreciation savings accounts ) with an rate of interest of north of 2% for a couple months ! 2 percent (or greater ) is amazing in contrast to TD’s 0.5percent ) . ) Unfortunately this is only going to last for 6 weeks, at which time I will search for an alternate high interest alternative (or negotiate using Tangerine to keep the higher speed ).
4. Being constantly upsold
I will need to see this one. I am not certain if telephone calls will probably come, but out of having previously reviewed Tangerine’s goods, I believe as lots of them really are a much better deal then that which TD provides (I use the Tangerine Credit Card) therefore that I feel comfortable being talked to concerning these.
5. Sign up bonuses
By making use of a referral Orange Key, I managed to find a bonus of $50 once I left my first deposit — and also whoever knew me got exactly the exact same.
Need a Orange Key?
Should you require a referral Orange Key and you also do not know anybody who’s currently banking with Tangerine, then you may use mine — 46415105S1. The bonuses vary based on if you join, however they frequently benefit both individuals; the individual registering and the individual referring.
6. BONUS: an extra percent on certain credit card purchases
Like I said, I now have a no charge credit card which supplies me 2% money back on two spending classes, and 0.5percent on all other purchases. Whenever you’ve got a savings account with Tangerine, they will provide you 1 extra category to make 2% money back on. It will not amount to lots of cash, but — FREE MONEY!
What about my investments
The something which I really enjoy about TD Bank? The TD e-Series indicator investment capital! I have talked about the many days before and I’d still suggest them. The TD e-Series funds nevertheless supply lower MER charge’s compared to Tangerine index fund equal.
Can I continue to invest with TD e-Series funds after switching?
Yes! When investing via a TD Mutual Fund, you are able to speak to TD Bank and then make them accept payments directly from the Tangerine account. When investing via a TD Direct Investment accounts, you may put your investment accounts for a charge payment, and move money for it that manner.
Time to switch to Tangerine
After taking a look at all this advice, it gets fairly clear: the opportunity to modify banks is currently! I can locate no actual drawback to going to an internet bank. The thing which may frighten people away is that the true procedure for changing banks. How are you able to do this readily and easily? Check back shortly for guides about the best way best to open new accounts using Tangerine, and also the way to change over all your banking effectively.