Chequing account $4000 balance to avoid fees or savings account at 1.1%?

Wondering if it is better to keep a balance of $4000 in my chequing account to avoid the fees of $11.95/month ($144/year savings) or to put the money into a savings account at 1.1%. Any thoughts? Thanks :)

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  • Initial thought: Find a checking account that doesn't charge fees. If you are in the US there are plenty out there, both brick and mortar and online only.

    Like 4
    • Khaki Storm
    • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
    • Khaki_Storm.1
    • 5 mths ago
    • 1
    • Reported - view

    Is there any interest in checking? Overall, I'd find another bank. 

    Like 1
  • It's TD and I've had this account forever. Linked to my mortgage etc. I've thought about changing but I think it's a big hassle with all my DDs. Have other people with success? :)

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    • Hi Purple Foal !

      That does seem like an unusually high account fee. Are there any other hoops you can jump through that allow you to skip the fee - such as having direct deposit or making a certain number of purchases each month? It seems like a high price to pay to avoid the fee.

      If you decide to choose another bank, as others have suggested, just imagine paying yourself $11.95/month for the one-time hassle of switching your DDs. :)

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    • Faness It is high! And this is with the $4 senior rebate since my Mom is still linked to my account from years ago, shhhh. I do wonder if I mentioned leaving to my bank if they'd waive the fees...

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 5 mths ago
      • Reported - view

      Purple Foal https://itsamoneything.wistia.com/medias/8q266ppray

      Funny little video, obviously favoring credit unions. I don't know if credit unions are available in your area. 

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    • Khaki Storm hilarious!

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 5 mths ago
      • Reported - view

      Purple Foal glad you liked it. Obviously not all credit unions are great and not all banks are terrible. Just shop around, maybe the total benefits you get for the while relationship are worth the monthly fee, I'm not going to pretend to know the full situation. 

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    • Purple Foal It never hurts to ask! Especially with fees that high.

      Khaki Storm I very badly wanted the piggy bank to oink 😆

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      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 4 mths ago
      • Reported - view

      Khaki Storm 

      Are you the one who linked to all of these videos?  They are awesome.  I'm going to show them all to my kids; trying to figure out if they would be willing to watch them on an annual basis until they're mid teens and hopefully more serious about budgeting.  

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      • Khaki Storm
      • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
      • Khaki_Storm.1
      • 4 mths ago
      • Reported - view

      Technicolor Cheetah Yes. My credit union advertised them. but I doubt they made them. I'm showing them to my teens also. Glad you liked them!

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    • Superbone
    • YNAB convert since 2008
    • Superbone
    • 5 mths ago
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    Your topic question has an easy answer. Keep the $4000 minimum balance. That is a $144 yearly savings over a $44 a year interest payment. Or $100 in favor of keeping the minimum balance.

    But I'm with the others for switching banks to a more favorable situation. I recently switched banks and it took me a couple hours of transferring DDs but I will now have many years of a much better banking situation with no fees and actually making a little money on my checking balance.

    Like 3
  • Thank you all. I'm now considering Tangerine since I have set up TFSA investments & savings there already. I emailed them saying I was considering opening and if there were any incentives/offers since I've been offered them in the past. It's amazing, the more I use YNAB, the more I am now getting in control of my money and dissecting every aspect, daily really. It's a rush. Empowering.

    My goal is to squash my LOC before the 3 year renewal.  I refinanced in Aug, and the paperwork said at the end of term, I will still owe $22k and have paid $2k in interest. Ouch!!! That is a ski trip to Whistler!! I had just accepted it with my mortgage, until reading Mr Moustache and that LOC is just consumer debt that I've already spent! Time to attack it hard. 

    Like 2
  • Switch to a more competitive checking account. Might as well dump the savings account, too, as 1.1% is rather poor.

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  • I decided to stay with TD since they're phone banking is superior to Tangerine in my experience. I did transfer savings from an account only getting me $3/month interest into my chequing so now my balance will be way above the $4000 limit to save $12/month in fees. Easy win. I will think about a no-fee account in the future when there is an incentive but for now my time is best spent learning, meal planning, and being frugal. :)

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