People LOVE to hate the big five Canadian banks. If you read through their corporate twitter feeds or read the comments after the CBC Market Watch show on bank fees – you’ll read people’s rage. Other personal finance “talking heads” have been getting in on the action by tweeting about increased overdraft fees and other pain points that rally the unhappy customer rage.
I, on the other hand love when the banks increase fees. When they buy another bank like ING. When they add another ATM charge. Because I make sure not to pay these fees with some quick and easy steps AND I get my increased dividend payouts by owning all of the big five banks. Win win for me!
The BMO big five banks ETF that I own symbol ZEB did 14.71% in 1 yr. That’s probably better than any of the mutual funds that all of those banks sell. BMO ETF Equal Weighted Banks
Here is how I keep the dividends without paying the fees!
1. Keep the minimum balance in your account to waive the fee: I keep $1,000 to waive the $4 fee in my 10 transaction a month account.
2. Limit your transactions: I charge my gym, cell, insurance, internet, TV, groceries, gas etc. to my card and have it paid off at the end of the month with one transaction automatically. ( call your credit card company to do this).
3. Automatically have your retirement, mortgage/rent and debt payments come out of your account fixed: Make sure all of your necessities are automatic and set for your success. Max out on paying back debt and building up retirement vs. maxing out cards and lines of credit.
4. Take out weekly miscellaneous spending amount ONCE a week: Things like hair cuts, coffee, dinning out, gifts, clothes, and movies. This will keep your transactions to 4 or 5 a month plus they’ll stop you from using other bank machines. If you’re good with your credit cards you can make payment for the weekly amount and then charge away until it’s gone. But be good!
Keep getting the big 5 banks dividends without paying the fees!
Dave
