Changing your bank can be your path to financial success
Fist of all this is not a sponsored post, I am not in anyway compensated by Tangerine for writing it.
The only way I would make money off this is if you use my “orange key” aka referral to sign up for an account. This would until May 27th give both of us (you and I) $50 for free. If you after reading this would like to sign up, my referral link is at the bottom.
One of my keys to success is ensuring free banking. This is such a simple, low effort way to save between $30-$400 a year depending on your current account type. Even more if you add credit cards and other accounts on top of that!
Tangerine's chequing account is a no-brainer. It's completely FREE. So are their savings accounts and even their AMAZING cash back credit card. (I'll get to that in a bit). You also get your first cheque book for free and after that you can get them for the low cost of $12.50. I know banks that charge at least $50 for a cheque book.
So what's the catch? Well, Tangerine does not offer a physical bank location, while you can use Scotiabank ATM's when you need cash you won't be able to go to a teller. For help, you simply have to use phone support. They have Cafe's in Toronto, Vancouver, Calgary & Montreal. I definitely recommend visiting one if you live in one of those cities as it's an extemely easy way to confirm your identity. They will also be happy to help if you have any problems. I started out with PC financial which operates similarly and I've used them for about 4 years now. It's never really been an issue to not have a physical location and the only times I ever enter a bank are the rare times I take out cash.
So, onto the Credit Card. Tangerine only just released it, it's a free credit card that offers 1% cash back on everything and 2% cash back on 2-3 categories of your choice! Chose between bill payments, groceries, restaurants, gas and so on. You get to chose 2 categories if you want to put your cash back towards paying off your credit card and 3 if you put the money right into savings. Obviously I picked savings and you should too! You can move it to whatever account you want after that, TFSA, chequing or to pay of your Credit Card.
I first opened an account with Tangerine for a different reason, simple investing. Tangerine is a great low MER (management expense ratio) investment tool for anyone with a small portfolio (under 50k) and little to no knowledge about investing. Tangerine has 4 different portfolios depending on your risk tolerance and once you've picked one, you can just put your money straight in and Tangerine will invest them for you. Tangerine will also re-balance your portfolio for you making the whole process a set it and forget it kinda deal.
You can view the portfolios and the average returns through Canadian Couch Potato (who actually have a similar model for investing) here consider that versus depositing your money in a savings account and getting less than 1% a year. You're not putting any more effort in.
My orange key is: 43117837S1 use this when signing up at https://www.tangerine.ca/ or when visiting one of the Tangerine Cafes before May 27th to get a $50 bonus for signing up. After May 27th you'll still get a $25 bonus!