Recently, I received an e-mail from an upset reader. She wrote in part: “Could you do a story about bank charges for seniors? I have just turned 65 and am shocked to learn that [my bank] does nothing for seniors. I have their basic banking account, which pays absolutely no interest and also charges me for dealing with the bank tellers.”
I posted her comment in the Q&A section of everythingzoomer.com, asking readers who had found good deals at their banks or credit unions to write in and tell me about them.
Given the level of response, I asked the six major banks to provide me with details of the incentives and discounts they offer to boomers. Here’s what the Big Six offer.
RBC offers seniors (65-plus) a full rebate on a basic day-to-day chequing account (regular monthly fee is $4) and a partial rebate on other personal banking account products, upwards of $4 a month. For example, on a No-Limit Account, the fee for seniors is $6.95 a month compared to a regular price of $10.95. Seniors with an active credit card and investments receive a full rebate on the monthly fee. For a Signature No-Limit Account, the fee for seniors is $10.95 a month compared to $14.95. For a VIP Account, seniors get a $7.50 discount from the regular fee of $30.
The seniors’ rebate is automatically applied to an eligible client’s account, and the rebate will appear on the monthly statement. If a client qualifies for two rebates, they automatically receive the greater of the two.
The CIBC Smart Account for Seniors (65-plus)offers a $4.95 monthly fee discount. The account pays no interest but allows up to 12 free transactions a month and a $10,000 capped fee for unlimited monthly transactions. Seniors with a Smart Account get a $3.90 monthly fee discount on a CIBC Everyday Chequing Account and a $4 monthly fee discount on a CIBC PremierService Account. There is also a CIBC Premium Growth Account that pays interest at a rate of 0.05 per cent and has no monthly fee. But you are only allowed two free transactions a month. As well, seniors are offered $5 off the annual rental charge for a safety deposit box.
Seniors who are 60 years of age or older can receive 25 per cent off the monthly fee for personal chequing accounts. Some conditions apply depending on the type of account held by the customer. For example, a senior customer who holds a TD Unlimited Chequing Account can get a rebate of 25 per cent against the monthly fee of $15.95, bringing it down to $11.95. They qualify for free banking if they hold a $4,000 minimum monthly balance. Account benefits include unlimited transactions, no TD ATM fees in Canada and free Interac e-transfers.