The Case for Internet Banks

Disclaimer: I’m currently a Tangerine client but I am not being compensated by Tangerine for writing this.

What does it cost you to be a client of one of the big 5 banks? What are the potential savings of banking with an internet bank?

If you bank with one of the big 5 banks (TD, Scotiabank, RBC, BMO, or CIBC), odds are you’re paying either monthly account fees between $11-16, or, you’re maintaining a minimum balance of a couple thousand dollars to have that monthly fee waived.

With the developments of internet banking and smartphone banking apps the last 5-10 years especially, it is now possible to do all of your banking without ever needing the assistance of a teller or going into the bank. Today, the only find I find myself going to the bank is if I need cash, and even then, I find myself using a bank machine instead of a teller. I am able to regularly check my account balance, transfer money, pay my bills all from my computer or phone. In the last couple years, if not the last year, mobile banking apps have added and refined a cheque deposit feature integrated with phone cameras that is, in my opinion, now functional (My recollection is that my big bank app had the mobile cheque deposit feature but that there were enough bugs in the system that I had to fight with it to the point that it was no longer convenient.  The mobile cheque deposit function seems to work great now.) With a banking app, you can deposit cheques by taking pictures of the front and back of the cheque.

With internet banking and mobile banking apps, physical brick-and-mortar branches are no longer necessary the way they were even 5 years ago, and internet banks have become a much more viable option for everyday banking. Tangerine and Simplii are the two digital banking options out there for Canadians right now that this post is focused on. Continue reading The Case for Internet Banks