Back to blog

How to avoid bank fees

Over the past few weeks, employees from all five of Canada’s big banks have broken their silence on pressures to meet sales targets at the expense of customer experience. In nearly 1,000 emails, and anonymous interviews, employees from RBC, BMO, CIBC, TD and Scotiabank have come forward with their stories of feeling pressured to upsell, trick and lie to customers to meet unrealistic sales targets and ultimately keep their jobs.

That’s not all – according to Statistics Canada, Canadians are paying an average of $216 annually in bank service fees*, which are hidden in the form of overdraft fees, monthly account fees, email transfer fees, etc.

People are starting to demand a better experience, and are turning to fintech companies for alternatives to traditional banking methods.

We can help with that.


1. Avoid account fees

If you're using your bank debit card for all your day-to-day spending, it’s super easy to go into overdraft if you’re spending aimlessly and not keeping dibs on your account balance. Overdraft comes with fees and can lead to a vicious cycle of spending and not saving. What you need is a spending account.

Your Mogo Spending Account comes with a Mogo Platinum Visa® Card. Like a debit card, you're using your own money so that you're only spending what you have. But, by separating out your spending money from your fixed costs, you’ll avoid blowing your budget and going into overdraft. Think of it as your dedicated Spending Account.

Oh, and the MogoCard is free with unlimited transactions and no monthly or annual fee.

(We're currently sending out invites for the Spending Account, so go head and request yours and get on the list!)


2. Get out of the revolving debt cycle

In December 2016, Canadians owed $569 billion in consumer credit like credit cards and lines of credit1—and that’s not counting mortgages.

Credit cards have this sneaky way of keeping us in debt; a big reason for that is they’re what’s considered revolving debt - meaning you can borrow back what you pay down.

And, if you’re like 46% of Canadians who carry a monthly credit card balance, that means you’re paying a bunch of interest and are stuck in the revolving debt cycle. The longer you stay in debt, the more interest the banks can charge, and the more money they make.

If you’re stuck, you can consolidate your credit card debt with an installment loan, like MogoLiquid. Unlike revolving credit, your personal loan has a term and requires you to pay back interest AND principal in every payment, which means you have a set deadline for paying it off and getting out of debt. You’ll actually end up paying less interest, and finally get out of the revolving debt cycle.


3. Be rewarded (not penalized)

Does your bank lower your interest rate when you make your payments on time? We’re gunna

We ACTUALLY want to get you out of debt faster. No joke.

With our Level Up Program on our MogoMoney loans, we reward you for making your payments on time by giving you a lower interest rate. We want to help you get in control of your financial health.

What about a mortgage experience that’s designed to get you mortgage-free faster? With your MogoMortgage, we break down your 25 year mortgage term into one-year goals that are more digestible and less intimidating, with rewards built into your payment progress - like dinner out on us to celebrate paying off that first year. We also help motivate you to make extra mortgage payments through your customized dashboard, so you can reach financial freedom faster.

Getting screwed by the banks? Create your MogoAccount now.


What are you looking for?

What are you looking for?