Canadian Banking System Gets A+

Good news if you do your banking in Canada – you are storing your money in what is accepted to be the safest banking system in the world, ahead, even of banking paradise Switzerland. This means that even in the current global financial crisis, there is no cause to worry about the safety of your banking deposits, and that putting your money into a Canadian bank is as close as you can get to a guarantee that it will be handled in the most efficient way imaginable. After the annual study by the World Economic Forum polled bankers worldwide, Canada came out on top – well ahead of near neighbours the United States, which came in 40^th.

The World Economic Forum polls its members every year, asking them to award marks out of seven for the soundness of a countries banking system. Canada polled a remarkable 6.8 out of seven, ahead of the previous leader as well as other notables such as Sweden, Luxembourg and Denmark, all of which are known for unshakeable fiscal probity.

This is news worth shouting about, as banks in many other countries have had to rely on government bailouts while others have gone to the wall. Canadian Finance Minister Jim Flaherty is a man with plenty of reasons to smile. As his counterparts in supposedly more prestigious economies flounder against a seemingly unstoppable wave of financial doom, Flaherty is presiding over a competitive economy with a lessening level of debt. As other governments borrow to escape the meltdown, Canada’s surefootedness is likely to reassure banking customers.

Canada has a progressive banking system too. It is a lot less stressful to try and get hold of your money here, with more Automated Bank Telling Machines per capita than any country in the world. Anybody who has ever spent time in a city or town with a dearth of ABMs can tell you that it’s a frustrating experience trying to withdraw money that you know you have. Sometimes it’s like they don’t WANT you to spend your money.

Electronic banking plays its own part in this most efficient bank system. Canada has the highest penetration levels worldwide of debit cards (enabling you to make use of your account even if you can’t find one of the country’s many branches or cash points), Internet banking (so if your bank doesn’t have one of the many branches nearby you can still conduct any transaction you care to name) and telephone banking. It’s a quite impressive story overall, to be honest. Knowing that your money is safe and that you face the fewest restrictions imaginable should you wish to make use of it means Canada should be in a position to ride out the crisis and come out the other side ready to compete.

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Are You Still Paying Banking Fees?

Today, I am going to review chequing accounts offered by Canadian banks. I have researched most of the banks offering chequing accounts in Canada; however, I was able to find only two institutions worth mentioning. I am not going to review any products offered by big players like Royal Bank, TD Bank, CIBC and so on, as they do not offer any free chequing accounts. My objective is to review products and services that make perfect personal finance sense, and if you are looking for chequing accounts with lots of features and no fees whatsoever – you have come to the right place.

My First Pick

President Choice No Fee Bank Account

Where on earth you will get free banking + free cheques? Yes, President Choice Financial offers that. Let’s look at some features they offer:

• Free online and telephone (automated and live) banking. 
• Unlimited free transactions at CIBC or PCF bank machines.
• Unlimited cheques come with free chequing account
• Unlimited free Interac^® direct payments
• Earn points towards free groceries

My second Pick

Citizen’s Bank of Canada Global Chequing Account

• Withdraw money globally without paying fees (terms and conditions apply. Visit their website for more info)
• Free online and telephone (automated and live) banking.
• No fees debit card purchases in Canada and US.
• Free access to over 2500 ATMs in Canada
• Overdraft protection up to $1000 if qualified

My Take

The only thing you have to give up to do free banking is the service of a brick and mortar branch. PCF offers Pavilion at Loblaws where you can meet a live person but it’s not like going to a branch. Citizen Bank does not have anything like Pavilion. Do you really need to meet a live person to do your banking? I have been with PCF for ten years and I never needed help from a live person to do any transactions.

if you travel a lot and use your bank card outside the country, you should consider Global Chequing Account. If you do not travel often and don’t need to use your bank card outside Canada, PCF No Fee Bank Account is what you should consider. PCF lets you use CIBC’s ATMs for free – which I find is very convenient.

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