Whether the credit card is better depends on your spend, with the recent changes the 4% grocery and 4% recurring bills 2% gas 1% everything else, Scotia does come out ahead for me, but TD's 3% gas 3% grocery 3% recurring bills 1% everything else is still pretty good! I just switched from TD All Inclusive to Scotiabank Ultimate and I can’t be happier. Their credit cards are much better than TD’s and CIBC’s. You can consider Scotiabank Ultimate Package as well. After all, 10 years is a long time, right? But 2009 was a market low point, and we haven't had a serious crash in those 10 years. So I could easily be misled into thinking I can't go wrong with this strategy. It's been up and down, but over 10 years it has been reasonably stable and it has performed about twice as well as a pure interest-bearing investment. I've been putting money into a TFSA in a balanced fund since TFSAs launched in 2009. The market continued down for 4 years and wiped them out too. Then they put their money back in after the crash because that's the smart thing to do, buy low / sell high. I always keep in mind something I read about the market crash of 1929: Savvy investors were not wiped out in the crash, because they saw signs of a coming downturn and pulled their money out of the market before the crash. Those who haven't lived through a few downturns can be overconfident that the future will be like their experience of the past, and sometimes that just isn't so. With $110k, keep adding to your portfolio to reduce this risk significantly. So it probably is prudent to have at least $110k in your portfolio to avoid this kind of situation. The minimum balance is $100k so if we were to ever see a small downturn, this could mean paying the monthly fee. Remember 2008-2009 crisis, we saw balanced funds drop over 20% and all equity funds dropping sometimes 30-40%. While $100k in investments will allow you to get the chequing account for free, keep in mind the risk of downturns. One cautionary note for passive investors: I'm currently with TD, so I do not qualify for their $300 welcome offer. I'm curious as to which of these two banks other people would prefer and why? Just want to make sure I'm not overlooking something significant. Seems to have more branches in the GTA (couldn't verify scientifically) ATMs can dispense $5, $10 in addition to $20, $50, $100 bills. General advantages of TD (not account-specific): Lower Minimum balance (by $1000) to waive monthly fee Lower fee to receive wire transfers (by $2.50) Premium credit card fee rebate for primary account holder and 3 additional supplementary cards New EMT recipients can be added on-the-fly. Can display any historical date range of transactions. I'm weighing the general convenience of banking with CIBC or TD.Ĭonsidering if one maintains the respective minimum balances to waive the $30/month fee associated with both accounts, I've narrowed down the following advantages (relevant to my lifestyle and routine) of going with one vs the other:
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