The Hidden Costs of Traditional Banking
Let’s face it, traditional banks can be costly. We noticed this firsthand when converting USD to Canadian dollars. For example, when we needed to convert $8,514.23 USD, the amount we received from our regular bank was noticeably less than what we could get elsewhere. We found that we were losing money due to hidden fees and less-than-ideal exchange rates. It felt like we were paying for convenience, and not getting much in return.
Testing Canadian Payment and Banking solutions
We decided to explore alternatives, and what we found was eye-opening. Here's what we did:
- Wise: For currency conversions, Wise became our go-to. It offers transparent fees and much better exchange rates. We saved a significant amount on every USD to CAD conversion.
- Venn: For Canadian dollar and USD electronic payments, Venn is our top choice. Their fees for EFT payments within Canada are much lower than Wise's, and they offer monthly plans with unlimited local payments. It's more cost-effective for electronic payments within Canada. We switched from Plooto to Venn because of the cost savings.
- EQ Bank: We moved our primary banking to EQ Bank. It’s a completely digital bank with no monthly or transaction fees, and it pays us 3% interest on our operating funds. That’s a huge win compared to the zero interest and fees at RBC and other traditional banks.
- Wealthsimple: An alternative to EQ Bank for 2.75% interest on business savings accounts but with the added option of investing in their managed stock portfolios. Self directed investment accounts are coming soon.
- RBC: We still maintain an account with RBC for legacy reasons, to receive payments from long-term customers who have been using it for 15 years. However, we transfer our RBC receipts daily to EQ bank to earn that 3% interest.
Why This Matters to You:
You might be thinking, "What does this have to do with me?" Well, the same principles apply to everyone. Whether you're a business owner or just managing your personal finances, you can benefit from:
- Saving money: By using platforms like Wise, you can get better exchange rates and avoid hidden fees.
- Earning more: Digital banks like EQ Bank offer higher interest rates, allowing your money to work harder for you.
Our Experience is Your Benefit
At Interlock IT, we've seen firsthand how these changes can make a real difference. We’re not just talking about saving a few dollars; we’re talking about significant savings that add up over time.
Want to Try It Yourself?
We’re so happy with these services that we’re sharing our referral links. We’re sharing these links because we truly believe these platforms are beneficial.
- Wise: https://wise.com/invite/dic/blairc78 (Use this link to save on your first transfer, and we'll receive a small bonus.)
- Venn: https://app.venn.ca/signup?referral=4h38zhwc&utm_source=app&utm_campaign=referral
- EQ Bank: https://join.eqbank.ca/referral;code=SBLAIR6182
- Wealthsimple: www.wealthsimple.com/invite/RDEZHG
We want to be clear that these referral fees are not our main motivation. Our primary goal is to share useful insights. If our guidance has proven valuable to you, we see no reason to decline them.
Key Takeaways:
- Don’t settle for high bank fees and poor exchange rates.
- Explore other banking tools to save money and simplify your finances.
- Every little bit of savings adds up.
