How Banks Work

Essentially, banks function by collecting their account holders’ money and lending it out to others. They take the money that you deposit, put it into a big pool with other client dollars, and use it to make more money. Banks collect interest on loans and the other products they provide. Again, they basically they take your money, loan it out to others, and collect interest from it.

A bank fee randomly appeared on my transactions 

This was quite annoying, given the fact that I hadn’t always had to pay this fee. A kind lady on the other end of a desk had said if I signed up for a visa and master card we could swing this deal. She stated that since I was paying automatic contributions into my TFSA I would just need to secure some other products in order to do this. So I welcomed 2 new pieces of plastic into my wallet. Anyways that fee we agreed I didn’t have to pay started showing up and every month and I was getting a little pissed off.

So here’s what I did:

Firstly, I must give Ramit Sethi over at creds for this. I learned this from his book (Great read, especially if your an American citizen).

I pulled out my bank card and phoned the 1-800 number on the back. Determined I went through the automated bullshit and pressed the corresponding numbers to speak with who I needed to speak with (It might have just been “0” come to think of it). After briefly being put on hold I was put through. On the other line was, for this example let’s say “Cynthia”.  Here’s how the conversation sort of went:

Cynthia: Hi my name is Cynthia, thank you for calling how may I help you today?

Me: (Writes down name of person and date of phone call) Hello Cynthia. I am calling today because I no longer wish to pay monthly fees to bank with ‘Bank

Cynthia: Umm I’m not sure I understand. You would like to make some changes to your account?

Me: Yes, It’s quite simple really. I’ve been a loyal client for quite some time now. I have a few products with you, I have always paid the full balance on my credit cards on time, and I never used to have to pay any fees.  I don’t understand why I am paying them now.

Cynthia: Well your account is set up for unlimited transactions and if you make changes to that balance you will no longer have that option.

Me: Okay here’s the thing. I’ve looked elsewhere and found out that I can in fact get an account with no monthly fees. What can you do to keep me here as a client.

Cynthia: Hmm let’s have a look here. Okay you do have some products with us and you qualify for no fees, but the only thing is that now your only limited to 10 transactions a month. If you go over that you will have to pay a fee.

Me: That works. (I don’t do a lot of chequing transactions)

Cynthia: Okay I went ahead and made the changes. But remember if you go over 10 transactions a month you will be paying fees thereafter. (I think it’s like $1 a transaction)

Me: I understand, Thanks.

Now that took less than 5 minutes and was rather painless. I’ve saved $12.95 per month by doing this. I have a feeling that if I pushed harder I could have kept the unlimited transactions for no fees, but it was just easier to leave it at that. I don’t make that many transactions with that bank. Most of my banking is done through Tangerine.

On a side note

Now that I have brought up Tangerine, I may as well throw this out there. I signed up back when they were still ING Direct. This also was an urge to get rid of my fees, because with Tangerine there are none. I gain interest on my chequings account which I thought was very cool considering I was paying a fee to use one of the big five. No, I am not putting money into an orange. These guys are legit. There are numerous advantages to banking with them, but I think I will save that for another post in itself. They do have a referral program which will get you $25 for opening up an account with them. Sooo yes, I am going to throw my Orange Key Code out there: 41391120S1 Copy that and use it over at It’s free money so it’s worth having a look. I wouldn’t recommend something if it was crap. Tangerine = so awesome


I want to know if other’s have used a similar approach. How did it go over? Mostly I’d like to know if you did get unlimited day to day banking with no fees. Comment Below!





2 Responses to How to get rid of your banking fees

  1. Michelle Mercer says:

    This article is helpful in so many ways. The monthly fees for many things add up and I know that I need to be better at honing in on a few of them!

    Great read. Thank you! 🙂

    I love this blog

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