"We need more Canadians to closely examine these rising costs and think about how much this adds up to each month. Take this evidence to the bank and ask for your money back." - James Clancy, NUPGE National President.
Ottawa (19 Dec. 2011) - Customers have been getting major shocks when they examine their bank account statements lately. In the last six months, many major banks sent out notices informing customers of the major increases to everyday transactions.
Scotiabank, CIBC, TD Canada Trust, Bank of Montreal and the Royal Bank all increased banking fees from February 2011 - December 2011. Fees increased from almost $2.00 to $5.00 for customers holding bank accounts, while other transactions increased between $0.40 to $1.00. One justification for the increases has been increased costs to providing paper records, yet most banks provided no incentive to move customers to increased electronic banking. The Royal Bank was the only major bank to decrease its fees for electronic transactions, from $1.50 to $1.00.
"It's unbelievable that the banks are encouraging people to go paperless by increasing fees for printed material, yet at the same time, they are increasing charges for electronic transactions," exclaimed James Clancy, President of the National Union of Public Employees (NUPGE). "At the same time that TD records a 22 per cent growth in profits to $1.45 billion, they are raising their customers fees by 20 per cent. It's shameful."
Clancy continues, "Some banks even have the gall to decrease services despite jacking up prices. We need more Canadians to closely examine these rising costs and think about how much this adds up to each month. Take this evidence to the bank and ask for your money back. Or better yet, find your closest credit union and take their cash elsewhere."
Further banking fee details
Scotiabank was the first out of the gates with transaction increases. In Feb. 2011, customers received notice of new fees for most banking activities. For most chequing accounts, the fees increased by $2.00. For the most basic account, the fees increased by $1.95 yet the bank reduced the number of transactions allowed each month. Banking statements now cost $1.00 per month. Savings account fees went up $0.40.
The CIBC was up next in April 2011 increasing many account fees by $2.00 per month and increasing the fee for record keeping (returned cheques) from $3.50 to $4.50. The bank also increased fees by $0.65 for each transaction over the monthly account transaction limit (if applicable) which now includes transfers and payments such as transfers to another CIBC bank account, payments, including pre-authorized, to CIBC Personal Lines of Credit and/or payments, including pre-authorized, to CIBC credit cards.
In August 2011, TD Canada Trust issued a notice with a range of fee increases. Its Value Plus account was increased by $2.00 from $8.95 to $10.45 while the Infinity account was hiked from $12.95 to $14.95. The highest increase is found in the Select Services account which jumps by $5 each month, from $24.95 to $29.95.
But the increases don't stop there! For each additional transaction outside what is allotted in a customer's account package (ranging from 10 - unlimited) the fees jump from $0.65 to $1.00; printing a statement at a bank machine is now $1.00 rather than free and overdraft protection is increased from $3.00 to $4.00 per month.
For Bank of Montreal customers, they will see changes starting Dec. 1, 2011. Customers will have to pay $0.40 more for debit transactions and/or account history in excess of monthly transaction limits, depending on the type of account you have. There is an increase of $1.45 in monthly plan fees as well as an increase of $0.35 for other account transaction fees. Certified cheques will now cost $5 more and safety deposit boxes will increase by $5 for a small box and $25 for a large box.
The Royal Bank seems to be one of the least offensive in terms of fee increases. It actually decreased fees for e-transfers from $1.50 to $1.00. It did increase lesser used fees such as for cheques written in currency other than that of the account, increased by $5.00 per transaction and non-sufficient fund transactions from $40 to $42.50.
More information:
Smart Money: Consumer Self-Defence for Times Like These
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
Digg
Reddit
Facebook
Twitter
Google
