How much money do you keep in your chequing account?

[joe1487]

How much money do you retain at a given time? Do you have overdraft protection? Do you micromanage your balance (e.g. transfer excess funds to your savings account, transfer it out the day before an automatic payment goes through, etc.)?

[Jucius Maximus]

1. I try to keep a nominal balance of $1250
2. $700 overdraft. Never used it.
3. Yes, I micromanage the balance.

[Insane_Pikachu]

200$

[dux]

100, with 1000 overdraft protection.

[nuberific]

$0 without overdraft protection and money micro. Should probably get overdraft protection of use a LOC though. Haven't gotten around to it.. yet.

[Octavius]

200 bucks.

[pitz]

-$6000 . (yes, that's a negative number).

Don't have a 'savings' account.

[UrbanPoet]

I keep $200.
I basically leave myself $200 to spend each week. The rest of my money goes to my savings account or investments.

-$6000 . (yes, that's a negative number).

Don't have a 'savings' account.

wow thats freaky. why such an overdrafT?
Your always the one blabbing in personal finance all the time too :O

[joe1487]

$0 without overdraft protection and money micro. Should probably get overdraft protection of use a LOC though. Haven't gotten around to it.. yet.

Wow, you must be really on the ball with your transfers. I'm willing to sacrifice a little interest for convenience. How do you make Interac purchases, if you have to?

-$6000 . (yes, that's a negative number).

Don't have a 'savings' account.

Wow, 6k of non-deductible overdraft. You're not paying overdraft rates (18%+), are you?

[pitz]

Wow, 6k of non-deductible overdraft. You're not paying overdraft rates (18%+), are you?

Its a LOC, its partially deductible (since most was used for investment), and the rate is a little over Prime.

If anything, given the way the markets have been in the past month, I probably should have made more aggressive use of unsecured credit to fund the portfolio, but that's just hindsight, lol...

[Cheap Cat]

Wow, you must be really on the ball with your transfers. I'm willing to sacrifice a little interest for convenience. How do you make Interac purchases, if you have to?

For regular pre-authorized withdrawals, just set up regular transfers from your savings account. It's no inconvenience at all. As for Interac purchases, I never make them. I use my CC for everything and then make one transfer to make the payment when the bill is due. By using the right CC, you collect points as well.

[red120]

$0

I send my money over from my margin to pay bills, etc.

[nuberific]

Wow, you must be really on the ball with your transfers. I'm willing to sacrifice a little interest for convenience. How do you make Interac purchases, if you have to?

Well I pay pretty much everything with credit card. The only interac payments I need to make I know beforehand (TTC Metropasses from school or local computer stores). I carry a bit of cash on me too, usually no more than $40. Where do you shop that requires you to use interac so often?

[hhh]

~$20, no overdraft...no joke.

[dasaylay]

~$20, no overdraft...no joke.

Got you beat. $16.xx, no overdraft. But the rest is all in savings accounts...

[iluvmikeharris]

very little if any, since it's a LOC

[Sepiraph]

~ 1-3k

[Kestral]

About $2K right now. BMO requires that customers keep at least $1500 or else they start charging transaction fees.

But I just opened a Canadian Tire savings account and moved $10K from the BMO account over there.

[jason9945]

Its always a minus number, thats for sure.

[joe1487]

Guess I didn't answer my own question ;). I used to keep only $100-200, then I gradually moved up to a few thousand when I started writing more cheques, performing more transactions, etc. Since I got my overdraft protection LOC, though, I'm back down to $500 or so. I check my accounts daily, so if I'm ever short, I cover it within a day with money from my savings accounts. ING transfers are really fast :D!

Its a LOC, its partially deductible (since most was used for investment), and the rate is a little over Prime.

If anything, given the way the markets have been in the past month, I probably should have made more aggressive use of unsecured credit to fund the portfolio, but that's just hindsight, lol...

Ah, I see, that's totally understandable. And you're right, if any of us could have foreseen the recent rebound, we would have all been maxing out our credit lines... I still got some good deals, but I should have invested a lot more.

For regular pre-authorized withdrawals, just set up regular transfers from your savings account. It's no inconvenience at all. As for Interac purchases, I never make them. I use my CC for everything and then make one transfer to make the payment when the bill is due. By using the right CC, you collect points as well.

Very good point about the auto-transfers, and yeah, CCs are accepted just about everywhere (including Tims and McDonalds now, hey?). I'd still be a tiny bit leery without Interac, though.

Well I pay pretty much everything with credit card. The only interac payments I need to make I know beforehand (TTC Metropasses from school or local computer stores). I carry a bit of cash on me too, usually no more than $40. Where do you shop that requires you to use interac so often?

I didn't say I used Interac often; wherever I can, I use my credit cards. But I've encountered situations where, if I don't have cash, I can only pay by Interac - and in those situations, it's good to either have some money in my chequing account or an overdraft credit line. If you hate thinking about lost interest, the latter doesn't really cost you anything, and keeps you prepared; I'd feel fairly awkward asking to write a cheque or something if I didn't have enough cash. Plus, without a balance or overdraft protection, how does one obtain cash when it's needed (without cash advance interest)?

Just my two cents. I agree in that I plan out any big Interac transaction (currency exchange, for example) quite a bit in advance.

[DanielCarrera]

I normally keep my checking account at zero. Over the last year all excess funds were put toward my student loan or whatever balance I had on my credit card. Now that my student loan is paid, I plan to keep a small amount, say $100-$500, and put the rest on a high interest savings account or on investments. Yes, I have overdraft protection.

[nuberific]

I didn't say I used Interac often; wherever I can, I use my credit cards. But I've encountered situations where, if I don't have cash, I can only pay by Interac - and in those situations, it's good to either have some money in my chequing account or an overdraft credit line. If you hate thinking about lost interest, the latter doesn't really cost you anything, and keeps you prepared; I'd feel fairly awkward asking to write a cheque or something if I didn't have enough cash. Plus, without a balance or overdraft protection, how does one obtain cash when it's needed (without cash advance interest)?

Just my two cents. I agree in that I plan out any big Interac transaction (currency exchange, for example) quite a bit in advance.

I agree that's a pretty big hole in my plan that will come back to bite my ass one day. I promise I'll get it! Eventually..

[Bullseye]

Zero. I broke out part of my mortgage into a HELOC, and so every extra dollar goes to paying that down. Sort of like a Manulife One deal, without the $14/month fee.

Kestral - the $1500 monthly balance requirement IS your transaction 'fee', the lost opportunity of that amount sitting earning nothing.

[LarryLat]

about $119 today. Zero in a saving account, and has been like that for a few years now. Thanks to RFD.

Extra money go towards paying down bad debt ASAP.

[doobievibes]

I try to keep it at $88.88.

[Jungle]

I keep it at around $0 as well, no overdfaft, put extra money in savings, use CC for normal spending.

[texedomel]

Less than $700 in chequing account now; aiming to lower it to < $200

Everything else is in saving accounts and I transfer them to checking one day before it will be taken out (pre-authorized debit/cheques/CC payments). Use CC whenever possible.

I started to micro-manage my accounts now. My bank (RBC) does not waive the fee for holding a minimum balance in chequing, so I just love to stick it to the man trying to get my monthly fee back thru interests from saving accounts.

[Kestral]

Kestral - the $1500 monthly balance requirement IS your transaction 'fee', the lost opportunity of that amount sitting earning nothing.
For my own personal situation, I require the ability to have all the services that full service bank.

Give:

3.3% interest from Canadian Tire x $2K = $66
.5% interest from BMO = $10

I'm paying $56/year, or $4.67 a month for my transactions.

PC Financial account does not have all the services I require, so $4.67/month for a full service bank is an acceptable deal. If you have any suggestions on how I could cut that down, would definitely appreciate it.

[Centrecks]

I keep it at around $0 as well, no overdfaft, put extra money in savings, use CC for normal spending.

Exactly same as me, except I use cash for normal spending. I find it easier to limit my spending when I use cash.

[mgronqui]

0 as I'm 2-3 months away from finally paying off my student loans. Everything pretty much goes there.

[Lyrrad0]

$5000.01 and $0.01 (Used to be $1000.01 and $0.01)

[joe1487]

For my own personal situation, I require the ability to have all the services that full service bank.

Give:

3.3% interest from Canadian Tire x $2K = $66
.5% interest from BMO = $10

I'm paying $56/year, or $4.67 a month for my transactions.

PC Financial account does not have all the services I require, so $4.67/month for a full service bank is an acceptable deal. If you have any suggestions on how I could cut that down, would definitely appreciate it.

You could use PC Financial for most of your transactions and drop your BMO banking plan to one that only accommodates only a few transactions rather than a higher end plan. Then, you can lower your monthly fee and only do that which absolutely needs to be done at a full service bank with your BMO account. Money can be transferred back and forth within a couple of business days online.

It depends on which services of a full service bank you absolutely need, though.

[cutesnoopydoll]

$5200-$5300 (basically the bank requires me to have minimum $5k in the chequing account. No fee+Goldcard+deposit box+CAA type of benefits.

[Spidey]

Ive got old school accounts Ive had for decades.

My chequing is just that, chequing. I write cheques on it and have auto withdrawels from it (mortgage, life insuraqnce, etc) So I only have enough money in it to cover my auto withdrawels. So right now I have .01 in it because I just had my mortgage come out. If I have to write a cheque I just transfer money into it when needed. I never use it to take money out of ever.

I have a savings where all my direct deposits go, etc. Thats the account I use for everday stuff. Easier to keep my chequing account balanced that way

[kasm]

I'd be interested to see what monthly fees people are paying with your response.

I usually keep a couple thousand. It's my main account that paychecks deposit to and all bills and debit card transactions come out of. Also pay credit card balances from this account. If I maintain a balance of $1000, there are no fees what so ever.

[pitz]

I'd be interested to see what monthly fees people are paying with your response.

I usually keep a couple thousand. It's my main account that paychecks deposit to and all bills and debit card transactions come out of. Also pay credit card balances from this account. If I maintain a balance of $1000, there are no fees what so ever.

I figure, with $6k, and paying an extra 1%/annum (over the cost of secured credit), its costing me $60/year for the LOC.

Don't know if that's a fair comparison though, since I didn't have to pledge any assets to get the unsecured LOC, so the banker should demand a higher rate for the risk.

[untaka]

I have a gf so $0

[Kestral]

You could use PC Financial for most of your transactions and drop your BMO banking plan to one that only accommodates only a few transactions rather than a higher end plan. Then, you can lower your monthly fee and only do that which absolutely needs to be done at a full service bank with your BMO account. Money can be transferred back and forth within a couple of business days online.

It depends on which services of a full service bank you absolutely need, though.
That's an interesting thought, and something I have considered.

My situation is similar to Spidey's in that I have a lot of automatic deposits and direct payments that flow in and out of my BMO Chequing account. It would take quite a few hours to open the account and get it all sorted out, and my time is worth more than $56 an hour, let alone $56 a year.

Plus, I have a very long term relationship with my local BMO, to the point where the bank manager calls me from time to time to check up on how I'm doing and if there's anything he could do for me, and I'm on a first name basis with at least 5 staff at my local branch.

[Just Confused]

I have a gf so $0

:lol: :lol: Wait until you have a wife, then you have to put more in to keep it at $0

That's not very nice to say about my wife but I couldn't resist!

[joe1487]

That's an interesting thought, and something I have considered.

My situation is similar to Spidey's in that I have a lot of automatic deposits and direct payments that flow in and out of my BMO Chequing account. It would take quite a few hours to open the account and get it all sorted out, and my time is worth more than $56 an hour, let alone $56 a year.

Plus, I have a very long term relationship with my local BMO, to the point where the bank manager calls me from time to time to check up on how I'm doing and if there's anything he could do for me, and I'm on a first name basis with at least 5 staff at my local branch.

That's the way I feel. I use BMO and have benefited enormously from knowing the staff of my local branch, and feel that I have saved far more than a mere $56 a year when one considers the concessions I have received from my bank. But some do feel like the self-service of PC Financial is sufficient, so there are definitely cheaper alternatives. Lots of people bank with PCF and retain lines of credit with B&M banks.

[Spidey]

What would the interest bee if you kept your money in an account that you got the fees waved.

Examples:

1. If you keep $1500 a month in an account, they wave the $15 fee for unlimited transactions but you get no interest

or

2. You take that $1500 and keep it in an account that nets you 5% per year but you end up paying service fees

Which one is the bigger money maker at year end

[brucemeng]

$200-300, i have automatic insurance withdrawal from my chqing account, this is to cover that + any surprise cash withdrawals needed during the month.

the rest sits in savings, until i find a good investment, then it goes into my investment account

[brucemeng]

What would the interest bee if yo8u kept youtr money in an account that you got the fees waved.

Examples:

1. If you keep $1500 a month in an account, they wave the $15 fee for unlimited transactions.

or

2. You take that $1500 and keep it in an account that nets you 5% per month.

Which one is the bigger money maker at year end

$15 fee on 1500 is 1%.

So keep it in the 5% account. *edit... you have an account that nets you 60% interest...?

[kasm]

2. You take that $1500 and keep it in an account that nets you 5% per month but you end up paying service fees


I'd be interested in any investment that makes 5% a month! Most GIC's or term deposits make 3-4% a Year. 8% through stock investment is a reasonable goal.

8% of 1500 is $120, divided by 12 months is $10, so if your fees are more than $10 a month, you may be better off keeping the minimum balance and waving the fees. If you're dealing with interest instead of investing in stocks, drop that threshold to $5 (assume 4% return).

[comicbookguy]

i always keep enough for two months' worth of my pre-authorized payments (car lease, insurance, rent). the rest is there for emergency, and i micromanage every pay day.

[brucemeng]

I'd be interested in any investment that makes 5% a month! Most GIC's or term deposits make 3-4% a Year. 8% through stock investment is a reasonable goal.

8% of 1500 is $120, divided by 12 months is $10, so if your fees are more than $10 a month, you may be better off keeping the minimum balance and waving the fees. If you're dealing with interest instead of investing in stocks, drop that threshold to $5 (assume 4% return).

TD's 5 yr GIC rate is 3%... overnight term deposits at 2.95%

And, yes you keep your 1500$ in the 60% interest rate account... in fact, get a HELOC and any other LOC and borrow borrow borrow and put it all in the 60% account.

(and tell me where to get it too :D)

[Spidey]

I'd be interested in any investment that makes 5% a month! Most GIC's or term deposits make 3-4% a Year. 8% through stock investment is a reasonable goal.

8% of 1500 is $120, divided by 12 months is $10, so if your fees are more than $10 a month, you may be better off keeping the minimum balance and waving the fees. If you're dealing with interest instead of investing in stocks, drop that threshold to $5 (assume 4% return).

As I said an example, and actually I meant to put year, not month

[thezone]

pretty much whatever the minimum is to keep my account free but now TD doesn't require a minimum on my student account so i keep no more than $500 in the account to pay for my monthly credit card bills and random needs. Otherwise it's all set in a savings or brokerage account.

[Efx]

pretty much whatever the minimum is to keep my account free but now TD doesn't require a minimum on my student account so i keep no more than $500 in the account to pay for my monthly credit card bills and random needs. Otherwise it's all set in a savings or brokerage account.

You only need $500 a month to survive??

[f00kie]

I have $0 on my chequeing; haven't had anything it since a few years ago. That's at PCF.

All my money is at HSBC. Savings account + ability to make INTERAC purchases for free + ability to withdraw money from a BMO ATM for free + competitive savings rate = no need for a (usually non-free) chequeing account from a big 5 bank.

[thezone]

You only need $500 a month to survive??
I think you misunderstood my initial posting. I keep approx. $500 in chequing to take care of random needs which can't be paid by credit cards and require cash and to cover regular charges I make on my cc each month eg cell phone bills. Anything extra i pull from savings but it only takes a day to transfer over to chequing. So I defiantly spend more than $500/month to survive since I spend around that much on rent alone but I don't keep that kinda money in chequing when I could have it collecting interest for me until needed.

[little-fish]

$5200-$5300 (basically the bank requires me to have minimum $5k in the chequing account. No fee+Goldcard+deposit box+CAA type of benefits.

Who do you bank with?
What types of benefits do u receive?

[Rehan]

Who do you bank with?
What types of benefits do u receive? Sounds like cutesnoopydoll has the Select Service from TD Canada Trust. Details are at http://www.tdcanadatrust.com/accounts/select.jsp ... The "CAA type of benefits" are included with the TD Gold Elite Visa (http://www.tdcanadatrust.com/tdvisa/elite.jsp), which is free with the Select Service.

(I do the same... keep at least $5000 in the account, so the $25/month fee is waived.)

[aZnRYcEbOi]

Sounds like cutesnoopydoll has the Select Service from TD Canada Trust. Details are at http://www.tdcanadatrust.com/accounts/select.jsp ... The "CAA type of benefits" are included with the TD Gold Elite Visa (http://www.tdcanadatrust.com/tdvisa/elite.jsp), which is free with the Select Service.

(I do the same... keep at least $5000 in the account, so the $25/month fee is waived.)

same here, i've got a TD select service, gold elite visa, and i also have
- td visa infinite card (fee waived too)
- borderless USD account (free with SS)
- USD visa (free with borderless acct)

i find that TD's USD-CAD conversion rates are quite competitive once you have a borderless account with them. it's even better than going with xetrade.com

i've been thinking of cutting down to the bare minimum TD chequing acct + PCF savings, but it'll make things more of a hassle...

[joe1487]

Wow, that's not bad. The waived fee on the Visa Infinite is already like a $120 return (2.4% on your five grand), right? Not to mention the safety deposit box, the potential interest bonus on GICs and the RSP fee discount...