Tuesday Jul 29, 2014

CIBC and Scotiabank adjust Bank Fees

9 February 2011

435300495 1c51aa37ee b 150x150 CIBC and Scotiabank adjust Bank FeesScotiabank and the Canadian Imperial Bank of Commerce (CIBC) are on a path to bringing big changes in the way they charge fees on personal accounts. The changes occurring at both of these banks are in response to a growing migration by Canadians to online banking, however the bigger issue lies as Canada’s big banks are bracing for competition from low cost rivals, which includes credit unions and of course ING Direct

ING Direct has been offering low rate saving accounts for many years, and just last year they introduced their first chequing account. The chequing account that was introduced was the THRIVE Chequing account; it is a free online chequing account that gives exactly what customers have been asking for.

With that in mind, the changes that will occur at both CIBC and Scotiabank have been noted that only a small portion of their customers will be affected; both seniors and students who receive free banking will continue to do so. As it stands, it is impossible to say exactly how the new fee schedules will affect individual customers, however it does depend entirely on how often you visit a branch, use a bank machine and access your funds.

The most expensive change you will find yourself facing is that if you do not have an account that offers unlimited transactions, then exceeding the number of free transactions result in a higher charge due to the new charges.

What are the new changes?

At CIBC, the changes are the following:

    • Some accounts will have a $2/ month charge for paper bankbooks, which are currently free
    • Other accounts will carry a return fee of $4.50 for returned cheques; this is an increase from the current $3.50 fee
    • You no longer have to deposit at least $100 or the amount overdrawn; instead accounts  must now be in a positive balance for at least one full business day every 90 days.
    • Any payments and transfers to another CIBC bank account are not considered to be “chargeable” transactions. If you exceed the monthly limit, it will cost you 65 cents per transaction. (this includes pre-authorized payments to CIBC lines of credit and credit cards)

At Scotiabank, the changes are the following:

    • To receive mailed statements for your chequing accounts will now cost you $1
    • The interest rate for overdraft protection rises to 19% from the current prime plus 5%
    • The monthly fee for the Scotia One Account increases to $11.95 from $9.95; the minimum monthly balance to receive free transactions falls down to $3,000 from $3,500
    • The monthly charge for the basic banking plan increases to $8.95 from $7. The account balance needed for free transactions falls to $2,000 from $2,500.
    • INTERAC email money transfers will drop down to $1 from $1.50; extra charges for branch transactions have been eliminated.

Charging for paper statements is definitely not a bad idea seeing as it has slowly become unnecessary in the majority of lives. With the increase of mobile banking and online banking we are slowly seeing the need for it disappear completely.

Both of these banks will go out of their way to help customers manage their monthly costs, either by changing to a different account plan, or how they currently bank. Scotiabank is offering a 90 day satisfaction guarantee; if a customer is not satisfied with these changes within 90 days, then Scotiabank will help them select an alternative account and refund the difference paid on their existing account plan compared to the new account.

Despite the adjustment in fees, I do feel that it will not make too much of a difference on the lives of customers. I find that more people tend use accounts that offer unlimited transactions, allowing them to be worry free when it comes to excess charges. For those who will be affected by the account changes, they can always speak with their respective bank and discuss their options and find the best account to suit their needs.

What do you think of the bank fee changes?

image source: Betsssssy

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (8 )



Another reason the big banks lost my business years ago. PCF, aside from having no branch to use, has my loyalty 100%.

[Reply]

Bank Guru Wrote:

Why didn’t you go to ING Direct, they don’t have branches either and provide a majority of what PCF does?

[Reply]

Bank Guru Wrote:

lol Don’t mean to probe just curious why everyone likes PCF

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Thanks for keeping on top of these fees. They can really add up. The banks seem to have all sorts of under-the-radar ways of plucking the feathers off the Canadian chickens who give them their money to hold.

[Reply]

Bank Guru Wrote:

@Larry… I like that saying “plucking the feathers off the Canadian chickens”. I don’t like how banks are nickling and diming us. Especially when they are posting multi-million dollar profits each quarter.

How about giving us some breathing space banks? I’d like to pay off some more debt

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Canadian all the way Wrote:

Virtual banks are not always the best idea, PCF and the foriegn ING. Have a problem and deal with a 1-800# no thanks.
I will stick to one of our 5 big CANADIAN banks- with people on site to help me, and in turn keep people employed- I buy Canadian and will stay Canadian. I will pay the small monthly fee gladly to keep Canadian businesses in business.

Yes they make a ” profit”- so purchase some of their shares and be part of that profit.

Who are Canadian bank owners- SHAREHOLDERS

[Reply]

Gordon Holmes Wrote:

It would appear that Scotiabank is exceeding any interest rate guidelines,19% is miles above any even those charged by money houses. They likely also have a minimum rate charged.

[Reply]

AP Wrote:

That overdraft rate of 19% is big bank industry standard, clients were getting and excellent deal when it was P +5 for overdraft protection…

PCF over ING any day, great that it is Canadian and so many more bank machines (CIBC branches)!!! accessibility and convenience is so valuable

[Reply]

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