TD Canada Trust Introduces Higher Banking Fees

TD Higher Bank Fees

Boy, consumers can’t seem to win these days! The lower loonie is taking its toll from the grocery store to the gas pumps. Now, the icing on the cake – TD Canada Trust, the second-largest bank in the nation, is hiking bank fees and introducing a few new ones – hardly the news consumers with squeezed wallets want to hear.

Also read: 4 Ways to Cope with Rising Grocery Prices>

I recently shared my tips for coping with higher bank fees on Global News – here are a few ways you can avoid paying more at the ATM.

TD’s New Banking Fees

Starting March 1, 2016, TD is introducing a slew of new fees, including a $5 fee to cancel an Interac e-Transfer, a $5 fee to hold a post-dated cheque to be deposited in-branch, and a $75 fee to transfer your TFSA to another bank.

If you’re in desperate need of cash and there isn’t any TD ATM in sight, you’ll now pay $2 to withdraw cash from a non-TD ATM – that’s up from $1.50. Keep in mind you could also be charged a fee by the financial institution that owns the ATM. With all the fees, it’s best to avoid using another bank’s ATM. A bank branch or ATM location that’s convenient to you should be an important factor when deciding on a bank to avoid situations like this.

The new fees come on the heels of the banks announcing record profits last year. Together the big six earned $34.88 billion in net income in 2015, up from $33.27 billion in 2014. However, the banks are worried. They’re facing a triple whammy this year: the lower loonie, weak economic growth and falling oil prices could put a dent in their profits. This is causing them to be even more conservative – some have even hiked mortgage rates slightly as a result.

How to Fight Back

The good news is, as a consumer you do have some pull at your bank – and they may be willing to fight for your loyalty. For example, If you’re thinking of transferring your TFSA to another financial institution, be sure to ask the bank you’re transferring it to if they’ll cover the transfer fee. If they really want your business, chances are they’ll be willing to cover it.

However, the best way to fight higher bank fees is to avoid them altogether:

  • Be sure to know the fee structure of your bank. Chequing accounts often come with monthly fees if your balance falls below a certain threshold like $2,500 or you exceed a number of transactions in a month. Banks often offer different plan tiers.
  • Take the time to look at your plan. If you’re not using all the features, consider downgrading to a lower plan with lower (or no) fees.
  • Shop around. There are a lot of banks that don’t charge bank fees. Tangerine and PC Financial are just two examples of no-fee banks. Switching banks can be a pain, but thanks to Tangerine’s Switch Assistant, changing bank accounts is a breeze.

And don’t underestimate the power of a consumer complaint; last year, when RBC introduced a host of new bank fees, consumers weren’t shy with their ire, prompting the bank to back down and remove some of their new pricing.

Are you annoyed by TD’s new bank fees? Tell us in a comment, or visit us on Facebook and Twitter.

Related Topics

Personal Finance / Personal Finance News / Your Budget

9 thoughts on “TD Canada Trust Introduces Higher Banking Fees

  1. These banks are not poor, introducing new fees at this time or any other time is wrong. the profits that these banks make go up every year after year. greed, I as an older person worry about our younger generation who just are not interested and are the ones that are paying and seem oblivious to it. dream land.

    • I been at the TD Bank branch in Etobicoke since they took over from Canada Trust since 1989, I believe, and have had nothing but problems with them. I was asked to open an account with no fees charged that required me to have a minimum of $5000.00 in the account and besides that I would qualify for 100 free trades and I also get a no fee credit card and if used would qualify for travel points among other benefits like travel cancel insurance if the fare was charged on the credit card. I had to cancel a Cruise because I had developed a kidney stone a few weeks prior to the trip last year and got a Doctors letter to say that I could not travel. When I claimed the amount the credit card personnel told me that that there was a technical issue that they could not refund me the amount of $2,200. that I paid for the cruise, but the TD bank at the branch could do something. I presented the claim to the Branch Manager was told that she would deal with it and nothing was done for over six months when she got transferred to another Branch. I then followed up and was told by the new manager that I did not qualify even as the mistake was their fault.
      Not only that, they did no honour the terms of the account where I was being charge service fees on both my Canadian chequing account and my U.S. savings account that did not even pay any interest on it. When I brought it up they reversed the charges and their excuse was that the system generated the charges automatically and they would reverse it when brought to their notice. How many customers do not even check their statements of even bother to complain whereby TD make all that additional money illegally so to speak..
      I transferred my RIF and LIF accounts to their Direct Investing accounts last year and it took them five months to do the transfer. Why? Because they lost the documents twice within their departments. After that I did a number of trades and I am still waiting for the last six months to have some of the trades fees reversed.
      Many years ago I was offered a line of credit which they said would not cost me anything to set up and that it was good for me to have in case of emergency cash needs. I never used it so asked them last year to cancel it as I never used the line of credit. The Manager at the branch asked me to leave it leave it with her and she would look after canceling it, only to find out now that a lien was put on my house to set up the line of credit and that they are not authorized to take the lien off. I have to pay $600.00 to a lawyer to have the lien removed. I am seeking measures to hold them responsible for the charges.
      So much for TD Bank! I have transferred my RIF and LIF account away from them and am seriously thinking of moving my other accounts from them. And, also that of my family members and some friends that I suggested they open their accounts there.

  2. I have recently been very angry at this move by the bank that I have been loyal to since 1998. I have given them approximately $60,000 in interest over the last 8 years by being faithful to make my mortgage payments and for my loyalty, I get a fee hike. To top it off, if my account gets below $4,000 at any time during the month, they reward me with a cool $14.95 service charge. What a smack in the face. I have already switched my credit cards over to Capital One and I am in the market for a new bank. TD needs to realize that if they continue to abuse their customers, they will lose them. They should be paying me to keep my money so they can use it to make more money. TD, I have one word for you if this nonsense does not get reversed. GOODBYE

    • Fight back banks by not giving loyalty..keep and account in tangerine or PC…make that your main bank and wait until banks start paying you to open accounts with them…take advantage of the offers and switch every year….and let the big banks pay u to do banking with them.

  3. It amazes me that people still actually pay a bank for the privilege of holding their money. I’ve been with PC FInancial since 1998 when I was in my twenties and realized how much money a bank was sucking out of me. Never again. Canadians need to wise up. In those few cases when I’m charged a bank service fee of some kind, I always call and politely have it reversed. You’re absolutely right Sean – they should be paying me since they just turn around and use it to lend out at a higher rate.

  4. I’ve moved my accounts over to BMO. They have a fast track program to move your monthly pre-authorized payments over.
    $5.00 to cancel an Interac e-Transfer?? Ridiculous!!
    Adios TD!!

  5. The best way to fight high or any bank fees is to do your banking with banks that don’t charge fees such as PC Financial or Tangerine come to mind. We have been banking with PC Financial since they started and are completely satisfied. We pay no charges and anything out of the ordinary can be handled over the phone or internet from your house as opposed to driving somewhere to wait in line to talk to someone if all the wickets are staffed and no one has gone to lunch.
    If you don’t like fees, don’t pay them. Simple

  6. Re TD increased Banking fees – you mention PC Financial and Tangerine as charging no fees. What about Achieva Financial (div. of Cambrian Crredit Union). Every dollar is guaranteed by Manitoba Province and they have the highest GIC, RRSP, RRIF and chequing account rates that I have been able to find,- and no fees! When you phone, you immediately speak to a human being, not some automated voice in China or India. I have been dealing wtih them for years and have had absolutely no problems. I can’t understand why magazines and internet financial sites don’t mention them.

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