Tuesday, February 21, 2006

A Frugal Focus Saving Event - Bank Fees

As a logical conclusion to my review of banking options, I followed through on my assessment and opened a new President's Choice Financial account for my everyday banking. I do want to thank everyone that provided feedback on this - I'm glad it was pointed out, for example, that CIBC really doesn't service PC Financial for in-bank services. As suggested, I will keep my existing TD Canada Trust saving account for those requirements.

While I don't like to needlessly apply for additional credit (i.e. as its just one more account to manage and has an adverse effect on my credit score), I also requested a PC Financial Mastercard. As I calculated, the benefit of PC points (redeemable for groceries) really only becomes material if I start to substitute some of my current debit usage with credit purchases. As always, this naturally requires balances be paid off monthly (if not daily, when they are made).

Total Annual Savings: Up to $155.40 in bank fees (12 X $12.95) and $213 in grocery rebates for a total net savings of up to $368.40!

What this means: About two winter month's worth of natural gas, or an entire 'back to school' shopping trip for my kids.

Not bad, considering this was still a relatively small change, and I still enjoy a similar level of overall benefit.

2 Comments:

Anonymous Dave said...

How do you get the grocery points? How did you arrive at that figure? I have a PC card but I do not have a PC credit card...

2/22/2006 5:47 PM  
Blogger Humble Investor said...

Hi Dave - this is an annualized, estimated gain based on the change. I didn't actually get any points per se, but rather I'm factoring in the net impact as I determined using the spreadsheet I published in an earlier post.

Cheers ...

2/22/2006 8:52 PM  

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Disclaimer: These articles are for information only, and are not to be construed as financial advice, legal advice, or a solicitation to buy or sell securities.