|
|
|
|
 |
|
|
|
According to Detective Mike Earl of Toronto's holdup squad, when it comes to bank-robbers verses good guys -- "We're getting clobbered." There have been 71 robberies just from the beginning of August to the end of September. Then again, maybe they're all just disgruntled customers. Consider this. In days gone by, every bank transaction was performed by a teller. This teller would write numbers into a book. From here, the numbers were transcribed into another ledger, and, probably, to another after that. For this service, the customer was charged a minimal fee and sometimes even given a toaster. Today, through the wonders of electronic technology, the customer can withdraw money (automatically debiting the amount in the electronic record), transfer funds, and even pay bills -- all without involving a single bank employee. Actually, the customer has become the bank employee. The customer's reward is a service charge anywhere from forty cents to $1.25 or more per transaction. And nobody gets toasters any more. To help students understand these banking fees I did some comparison shopping. From each of the major banks I picked up a pamphlet purporting to explain these fees in an easy to understand fashion. The Royal Bank's "Pricing Options That Give You More Control Over Service Fees" offers a clear chart showing the various options on fees for using the Automated Banking Services, such as Royal Bank Banking machines and Interac Direct Payment purchases. On the left are options and on the right, fees. These fees range from $2.95 to thirty cents, but a couple of options are accompanied by the word "Free" spelled out in large, flowing script. For instance, there is no charge for Royal Bank Banking Machine withdrawals if you you have a Bankbook Chequing account. Looking more closely, however, what at first appears to be a tiny smudge next to the words "Bankbook Chequing Account" turns out to be a superscript 3. In the tiny-print endnotes it turns out that "3" means "this account is no longer offered." Okay. The "CIBC's Service Fees Clear & Simple" has a foldout that explains their fees very clearly and very simply. First, all fees are sixty cents. Second, with CIBC Rewards you can save 25% on these fees. Third, these Rewards come in three different options: a 10-pack, 20-pack and a 30-pack. Here's how it works. If you buy a 10-pack option at $4.00 a month you get ten transactions at a 25% reduction. A 20-pack option gives you 20 reduced transactions for $8.00, and the 30-pack gives 30 for $12.00. In each case, all transactions past the preordained limit are charged at the regular price of sixty cents. You can also take out these points either in interest, or Club Z points. (No, I didn't just make that up.) Rather than continuing with all the options from these banks, let us instead concentrate just on the various Student Accounts. CIBC The CIBC Student option is a straight-across 50% reduction on the fees of whatever account you may have. This means that if you choose the 10-pack option (for $4.00 a month) then your 25% reduction on their regular sixty cent transaction fees is further reduced by 50% to twenty three cents. As far as I could discover, there is no monthly fee for this account, you need merely be a student in a post-secondary institution. Scotiabank For $1.00 a month, the Scotiabank Student Account allows eight free non-teller transactions which include any Scotiabank ABM, Internet or phone banking. Anything beyond this is reduced by 50% of the regular fee. Royal Bank The Royal Bank offers a special Student Price Card Symbol that provides discounts of between 10-25% on purchases from 1,500 stores. The first 25 self-service transactions are free, after this you pay regular price which is fifty cents. You are also allowed two free full-service transactions (that's where you actually get to talk to a teller), and for each payroll you have deposited directly into the bank you get another free full-service transaction. The monthly fee for all this is $3.50. Bank of Montreal Like the Royal Bank, the Bank of Montreal gives students 25 free self-service transactions. It also offers two free transactions from ABMs belonging to other banks. If there is a monthly charge for this it is very cleverly hidden. Toronto Dominion Bank The TD bank charges $2.50 a month for its Student plan, plus $1.00 for "maintenance fees." For this you get unlimited free access to TD ABMs and unlimited free direct payment, such as going to a grocery store and paying with your card. It also allows two free transactions on other ABMs per month. In several of the options, Internet banking and phone banking are listed as "free." This, of course, doesn't mean that they are actually free but that there is no monthly charge merely for the privilege of being connected (normally this is in the neighbourhood of $5.00). Each transaction, however, still costs money, although sometimes they allow you to make several transactions at once while paying for only one. The one exception, as far as I can tell, is the Bank of Montreal which not only doesn't charge students a monthly connection fee, but also waives the fees on bills paid through Telephone Banking Service or NetBanking. Naturally you should never make a financial decision based upon something you read in a newspaper. Before making any move, pick up the literature yourself, look through it carefully and be sure to follow all the little footnotes. Furthermore, you should become well acquainted with all the terms, many of which change from bank to bank. Remember, it is not only your duty to do the work of the bank, but also to educate yourself in complex financial matters. After all, isn't that what you're paying them for? Reprinted from The Strand, Oct. 7, 1998 |
Slightly heated, crusty, and ready to pop -- this is how banks like their customers. |
