Last fall, TD Canada Trust offered up to $250 cash for new clients opening chequing accounts and fulfilling certain conditions. I had then recently moved our discount brokerage accounts to TD Waterhouse and found the idea of consolidating all accounts under one roof really attractive. Many readers had pointed out that TD’s Select Service Chequing account offers one of the best banking deals around as long as you are careful not to let the balance drop below $5,000. The Select Service account offers unlimited monthly transactions, chequebooks, US dollar chequing account, bank drafts, fee waivers on selected Visa credit cards and a small safe deposit box. So, I took advantage of the offer and have been very impressed with TD Bank so far (our previous bank was Royal Bank). The bonus cash was nice but what I find very convenient is moving money from the brokerage and bank account at the click of a button and integration with ePost, which allows you to view and pay bills through the bank account.

The cash offer must have been very successful because TD Canada Trust is bringing it back. There are two bonus levels available: $250 for opening an Infinity or Select Service account and signing up for one of the Visa credit cards or $150 for opening an Infinity or Select Service account. Some readers have been successful in getting the monthly fees for an Infinity Account waived even if a monthly balance of $3,000 is not maintained but I haven’t tried negotiating free banking just yet. It may not make much sense to open bank accounts with TD Bank just to get the cash but if you are considering consolidating all accounts in one place, this offer is a nice incentive to do so. Details of the latest cash offer are available here.

This article has 15 comments

  1. I switched over my accounts to TD last year and was promised a $150 bonus for switching over. I never received anything despite opening up every account they asked me to and following all of their rules (automatic transfers and such). I was planning to switch to them anyways, but it would have been nice for them to follow through with their promise.

    • Canadian Capitalist

      @Kim: I would follow up with the branch where you opened your account as to why the $150 bonus was not given to you. In fact, if I were you, I’d demand an explanation. Our cash bonus was deposited into the chequing account automatically in mid-March.

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  4. TD Waterhouse has gone Fee nuts ,over on the adviser side….i feel sorry for the widows ,$125 here , $250 there…never mind the corner stone rip off

  5. I would be careful about overvaluing a “Free” account where you have to keep a minimum balance.
    For example you said you switched from RBC, the have an account that offers the same things you mentions in your post for $13.95 per month with no minimum balance, or $167.40 per year. Basically you are investing your $5000 to save $167.40. This means you are getting a 3.35% rate of return on your money. I personally would rather pay the fees and invest the $5000 because I should be able to get a better return then 3.35% even in a very conservative investment.

    • Canadian Capitalist

      @Ryan: Actually, that’s not quite true. The RBC Signature No Limit Banking is comparable to TD’s Infinity Account, which requires a $3,000 balance, which works out to about 5.5%. It’s easy to figure out the value of TD Select Service which costs $25 per month without the $5,000 balance, working out to a 6% yield.

      Even this calculation isn’t right because you have to calculate the average balances you keep in your chequing account anyway whether or not you need to maintain a minimum balance. If you tend to keep a large bank balance, the benefit from the TD Select Service account is even larger.

      However, I do agree with you that “free” isn’t really free and to carefully consider whether the account would be worth the opportunity cost of keeping a balance of $5,000.

      Nevertheless, I

  6. @Canadian Capitalist
    The RBC signature no limit account offers unlimited monthly transactions, chequebooks, bank drafts, fee waivers on selected Visa credit cards and a small safe deposit box($35 discount toward any box which covers the cost of a small box), everything you listed except the US chequing.
    If you are going to keep a large balance in your account anyways, then of course the math does not work out so simply. I just wanted to make sure people were aware that the account is not free, but giving you a return on your $5000.

  7. Sometimes the fine print is the key… I have found that if you meet the requirements for the bonuses the banks pay them.

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  9. Nice to know. It would be great if they offered this incentive deal on their investment accounts but I guess paying the transfer out fees for me so I can consolidate is great too.

    I have the TD Select Service account too and one of the bonuses not listed here is the $25 discount that you get with TD Waterhouse each year. All things considered it is much higher than a 5.5% yield when you can do everything at one place.

  10. Does anyone know what the trasfer fees of an RSP account from TD bank would be?

  11. Well “ME”…i transfer an RSP from sun life to TD an there was no fees to pay,but i have been told by my Waterhouse adviser,that if i want to transfer My Rsp under his salesmanship back to TDDCB….it will cost me $125…..upside is RBC will cover the cost (fees) if i transfer to them.

    • Canadian Capitalist

      @ME: To add to what dj said, transfers typically cost $125 to $150 plus HST. Look up TDW website for the actual transfer fees. You can typically get the receiving institution to refund you the transfer fees but you have to arrange it before you initiate the transfer. Make sure you note down the name of the CSR who offered to refund the transfer fee. I’ve had some institutions (which shall remain nameless) try to back out of the promise to provide a refund.