# Looks like the big banks are finally going to offer low income seniors a break



## carverman (Nov 8, 2010)

Very decent of the big banks to waive the monthly charges they suck out of low income seniors accounts.
That's 7 million seniors that may benefit and have that $4 left in their bank accts at the end of the month to buy more....cat food. 
The big banks must be crying to lose that $28 million of pure profit.



> The budget promised the government would work with financial institutions to expand no-cost banking services for youth, students and low-income seniors who qualify under the guaranteed income supplement and the registered disability savings plan.
> 
> Under the new rules, which take effect on Jan. 15, 2015, banks will offer the financially vulnerable groups no-cost accounts with cheque-writing privileges, a minimum of 12 debit transactions per month and at least two in-branch transactions.
> 
> ...


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## Just a Guy (Mar 27, 2012)

I'm sure the loss will be offset by some form of tax write off. I doubt the banks will suffer in the least, in fact they'll probably profit in some form.


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## fraser (May 15, 2010)

We have had free chequeing at CIBC and RBC for the past 2 years. My understanding is that most banks already offer it for age 60 and up.


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## stardancer (Apr 26, 2009)

Both my mother (94) and my aunt (99) bank at CIBC; they are charged $3.90 at the end of the month and that charge is then credited back; both are on GIS


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## Letran (Apr 7, 2014)

fraser said:


> We have had free chequeing at CIBC and RBC for the past 2 years. My understanding is that most banks already offer it for age 60 and up.


This is my same understanding. I must be missing something? 

Is this just hoopla, grandstanding for elections. 

What is the actual benefit or difference of what is available now?


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## fatcat (Nov 11, 2009)

td bank eliminated the free chequeing accounts for 60+ just within the last 6 months
i was grandfathered in
the big banks are too smart not figure out how to make money from this


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## Synergy (Mar 18, 2013)

There's a loop hole. Just don't tell too many people. Set up a LOC, consider it free overdraft protection and use the account as a chequing account. No transaction fees, free cheques, etc.


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## Homerhomer (Oct 18, 2010)

Worked for one of the banks 25 years ago and free banking for seniors was offered then.

Some banks offer free banking for everyone, but they don't offer the opportunity to stand in line and chat with tellers, and some seniors are not computer savy enough to do online banking.


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## Beaver101 (Nov 14, 2011)

Synergy said:


> There's a loop hole. Just don't tell too many people. Set up a *LOC*, consider it *free overdraft protection *and use the account as a chequing account. No transaction fees, free cheques, etc.


 .. what about the interest charges? Is that free for seniors? :confused2:


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## carverman (Nov 8, 2010)

Beaver101 said:


> .. what about the interest charges? Is that free for seniors? :confused2:


Of course not..but they only charge 5.75% while they pay 1.035% on any savings the seniors may still have. 

The banks have it all figured out, for the $4 a month they don't charge on savings accounts, they will collect on health and life insurances that they have no plans on paying.

The Big banks: "Oh you want some life insurance to pay for funeral and final expenses..sure that will cost you $20 a month for $2500 of life insurance. Since you will pass on at some point,
that is a "pre-existing and known condition of your life"..we will not pay..good luck anyway, thanks for your business,


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## Beaver101 (Nov 14, 2011)

carverman said:


> Of course not..but they only charge 5.75% while they pay 1.035% on any savings the seniors may still have.
> 
> The banks have it all figured out, for the $4 a month they don't charge on savings accounts, they will collect on health and life insurances that they have no plans on paying.
> 
> ...


 ... that's why I'm questioning Synergy on the "free" part of the overdraft protection so what loophole is he/she talking about? 

Re insurance from the "banks", I would never purchase that kind of product from them as it's NOT their area of specialty, even an offset entity. The hassles of dealing with them are not worth any kind of savings, IMO.


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## fatcat (Nov 11, 2009)

except for students, adults need to be on guaranteed income supplement
to me, this falls under the public service component of banking


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## carverman (Nov 8, 2010)

Beaver101 said:


> ... that's why I'm questioning Synergy on the "free" part of the overdraft protection so what loophole is he/she talking about?
> 
> .


Lets say you have $5K LOC (like mine) and you haven't borrowed any money from it in a given month..the entire $5K is available.
If you deposit say $500 of your pension into a LOC, that is a surplus . But you would have to pre-arrange the deposit to go directly as an ETF from the gov't into the LOC and use that
as your working fund. Since a LOC is borrowing acct and you can write check on it, it stands to reason that you could use it as a working fund and there is no monthly charge, since
they charge you daily interest on any amount of the LOC that you actually borrow. If you deposit more than what the LOC is set up for, that is counted as a "surplus" but they
don't pay any daily interest (ASFAIK) on what you deposit. 

I sometimes transfer money from my checking or even TFSA if I have a big amount to pay and the merchant won't take a CC.


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## Beaver101 (Nov 14, 2011)

carverman said:


> Lets say you have $5K LOC (like mine) and you haven't borrowed any money from it in a given month..the entire $5K is available.
> If you deposit say $500 of your pension into a LOC, that is a surplus . But you would have to pre-arrange the deposit to go directly as an ETF from the gov't into the LOC and use that
> as your working fund. Since a LOC is borrowing acct and you can write check on it, it stands to reason that you could use it as a working fund and there is no monthly charge, since
> they charge you daily interest on any amount of the LOC that you actually borrow. If you deposit more than what the LOC is set up for, that is counted as a "surplus" but they
> ...


 ... so basically, the LOC is being used as a chequing account so as to not incur transaction fees - eg. withdrawals/chequing. But why fund an LOC with your "own" money which is kind of self-defeating and especially you're not getting any interest for the "surplus" - at least a savings account would give you 2c per month x 12 = 1/4 of a postal stamp. :biggrin: An LOC is definnitely not "free" overdraft protection by Synergy's loophole definition.


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## Addy (Mar 12, 2010)

Synergy said:


> There's a loop hole. Just don't tell too many people. Set up a LOC, consider it free overdraft protection and use the account as a chequing account. No transaction fees, free cheques, etc.


We've been doing this for over 15 years. The bank doesn't like it, I've even had tellers mention we shouldn't be using our LOC as a chequing account. I reply "I know, but I still do it".


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## fraser (May 15, 2010)

Some banks proactively reach out an tell customers, on their birth dates, that they are now entitled to the service. CIBC and I think Royal did this for me.

My understanding is the Scotia keeps it a secret, or used to, and does not say anything unless asked.

We also get a huge $5. discount on our safety deposit box!


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## fatcat (Nov 11, 2009)

Addy said:


> We've been doing this for over 15 years. The bank doesn't like it, I've even had tellers mention we shouldn't be using our LOC as a chequing account. I reply "I know, but I still do it".


i wonder how they would react if someone forged one of your loc cheques ? ... that smells like lawyer to me


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