Many large scale Canadian banks are enjoying lucrative deals however still they haven’t stopped charging customers a large amount for personal banking. Actually these deductions have become a crucial source of revenue in these banks.
More complicated and unavoidable conditions are being applied by banks day by day to charge their customers anyway. Due to this a general chequing account fee goes up to $30/monthly.
In most large scale banks, customers can avoid fee by maintaining a minimum balance of $1,500 – $5,000. Although the threshold amount is increasing gradually and at a fast rate by $500. Due to this, it is getting tougher for Canadian people to avoid bank deductions. They really trap their customers.
Scotiabank presently charges $9.95 to $14.95 for personal banking. Meanwhile they are planning t increase it by $1 per month. Two years ago, the bank increased the threshold balance by $500. For the minimum charge, Power chequing, the balance needed to increase the monthly fee have increased from $1,000 to $2000 this year that shows direct hike by double value.
To justify the hike, the bank told that it consistently works on improving customer assistance. Customers will receive new facility this year such as two free online transfers a month on all accounts.
Recently CIBC also increased the minimum bank balance value in its daily Chequing Account from $1,000 to $2,000 saying that bank has removed some fees and is also helping its customers to discover ways to decrease charges.
Hiked minimum balance values become problem for customers on two fronts. In case they try to maintain the balance, they are keeping a large amount of cash for nothing, even not getting the interest. So, it becomes meaningless to have high balance.
On the other others, customers should choose an economical account which offers few more free transactions and then applies fees if they cross the limit.
How to prevent these fees
- Discuss the fee trap with your bank. For example talk with financial consultant about closing your account due to increase in minimum balance value. You may get an option to switch to a student account that is free and offers higher count of transactions without any charges.
- Shift your account to a free one as offered by a digital bank. Alterna Bank, Tangerine etc offer to open free chequing accounts. However customers may be trapped in options like extra cheques or online transfers.
- Customers can choose the digital bank services and use as a bargaining chip during discussions with their existing bank.
- Act seriously in front of your current bank to ask for a better deal from them.
Although many customers accept the hike, but you should always negotiate for a more competitive deal.