Monday, January 7, 2008

pc financial - (andy)

As promised I have enlisted the help of a guest poster to cover off some topics that are of interest to him. I'm not certain how many posts I will be able to get out of him, but the more the better as he is a financially smart individual. Let's just say when it comes to personal finance and the road to wealth I believe he 'gets it'. Without further adieu, let me introduce this thirty-something man named Andy (not his real name).

With the major Canadian banks constantly competing for everyone’s business, I’ve decided to use PC Financial as my preferred financial institution, and below are the main reason why:

  • No Fee Chequing Account - With the major banks offering various personal chequing accounts with monthly fees ranging from $3.95/month up to $24.95/month, it’s hard to believe that more people aren't switching over to a PC chequing account. With zero fees, a person can make as many transactions as they wish and not pay a single penny for them. I recently purchased a DVD from a major electronic store with a Christmas gift card and unfortunately the DVD cost 12 cents more than the amount available on the gift card. I had absolutely no cash on me and there were about 10 people in line behind me so the option of running out to the car to find loose change was out of the question. Luckily I had my PC banking card with me; swipe the card, punch in my code, and out the door I walk with my DVD and I never had to worry about a transaction fee.

  • High Interest Savings Account - With an interest rate of 4.10% it’s a great place to park my money while I decide which stocks or ETFs I want to purchase through my discount brokerage account. All I need to do is hold a daily balance over $1,000.00, and I receive one of the highest interest rates available on the entire amount, plus a bonus interest amount on my balance on each annual anniversary date.

  • Low Cost Personal Line of Credit - The cost of borrowing money is only prime + 1.25% (currently 7.25%). This is an incredible rate when comparing it to the major bank’s lines of credit.

  • Low Initial Cost for Secured Line of Credit - Most banks charge a one time cost of up to $450.00 to set-up a secured line of credit. PC charges only $150.00. I personally do not have a secured line of credit as I do not believe in paying the fee, since a personal line of credit costs nothing to set-up.

*PC Financial did not compensate Andy or I for this post.


FinancialJungle said...

I bank with PC as well due to the high interest saving account. However, I'm not fond of their HELOC, as they wouldn't increase the limit without closing and reopening the account. This was problematic because I'd have to sell all my investments to pay the balance AND pay for the setup fee the second time.

KeepUpTheGoodWork said...

This post doesn't really jive with an earlier post of yours about relationship banking. Every advantage that PC financial has, can be had through forming a relationship with a regular bank, but it is impossible to for PC financial to form relationships with customers. Ask anyone who has a banking product besides a basic deposit account with PC financial what their opinion is and it is almost always negative.

As an aside, I think you should stick with posting your own thoughts rather than Andy's. He is not very insightful, the post reads like a pamphlet for PC financial.

MG said...

Thanks for the comment. I had several people comment on my 'relationship banking' post basically saying that the concept does not exist. I'm not 100% sure the concept exists although I'd like it to. I don't fee like I've ever been given a 'deal' by my bank even though I've always been a good client of theirs.

Aside from FJ's comment above I have not heard anyone say anything negative about PC.

mcjm73 said...

I have been with PC banking for a couple of years now and for an every day chequing account it is great! I can't comment on any of their other services but I do recommend to everybody who wants no fees to deal with them. I was very sceptical at first but I have no regrets leaving my old finiacial institution and there ever changing rules and fees.

Anonymous said...

To add my wife on an additional account it was a pain. So much so that it hasn't been done yet 2 years later. I agree that PC is great for basic banking but can be a hassle for other things.

That said regular banks are not perfect either, yet they charge you many more fees? I overall like PC and won't be switching any time soon.

My biggest knock against PC is a lack of pavillions in smaller cities and non existant in towns.


Anonymous said...

I've been with PC Financial for over 10 years, and I've had no major issues. I enjoy their full range of products chequing, savings, LOC and PC Mastercard. Relationship banking really is a thing of the past. The reason I moved on to PC banking were all the fee accounts that started up in the mid 90's. Before that my bank of 5 years wouldn't bring a loan that I was applying for down .5% to compete with another bank. They said I didn't do enough business with them at the time. So I packed up and went elsewhere.