RBC clients have to pay a monthly fee as a compensation for using (or holding) their debit card (client card). The amount varies depending on the plan you have chosen. In my case, I have to pay $4.00CAD each month. This allows me to perform up to 13 transactions. Other clients, with higher privileges, are allowed to execute more transactions and for that a higher fee is applied.
If you want to avoid this Monthly Fee, I suggest you to open a Tax-Free Savings Account (TFSA). For that, go to your near branch of RBC and ask for a banker (account manager). Tell this banker you want to set-up a Tax Free Savings Account. There is no minimum deposit to open this account; in my case I just put 10 dollars, which is a good idea if you don’t want to put much money in this investment.
By holding a TFSA you become an investor of the bank, which is why they refund you the $4.00CAD of your Monthly Fee.
The following picture was taken from my online banking account:
Notice a monthly fee of $4.00CAD applied on November 2nd (see red rectangle). Notice also on November 2nd, a deposit of $4.00CAD (see blue rectangle). The deposit, labeled MultiProduct Rebate, was made as a compensation for being an RBC investor; in other words, I was rewarded with $4.00CAD for having a Tax-Free Savings Account with RBC.
It’s easy to figure out that the difference between the monthly fee and the MultiProduct Rebate is zero. This means, you will be saving 4 dollars each month…it’s like avoiding your Debit Card Monthly Fee. You will save $48CAD annually.
Holding a Tax-Free Savings Account gives you more advantages, but I will talk about that in further posts. Feel free to ask any questions in the comments section, I will be glad to answer them if I can.
This is idiotic and RBC is making people believe they are saving 4dlls when they actually saving 2dlls, I'm switching to a real fee free chequing account.
ReplyDeleteThis is why you only saving 2, after you go over the 15 transaction limit you are charge $1 each transaction, considering that there is a "Monthly Fee" of $4 charged ($1 counts as 1 transaction) and then another transaction for multiproduct rebate $4 ($1 counts as another transaction).
So you are actually saving 24 and not 48 a year.
Don't want anything else to do with this guys switching over to a different institution to do banking.
SERVICE FEE
- 5EPMT/WD/TFR@$1.00