Maximize interest earned, minimize interest paid

November 20th, 2018

Growing your savings while managing your day-to-day expenses can be a challenge. Old habits can drive you to manage your bills from your chequing account and move what’s left at the end of the month to your savings account, however, between the monthly chequing account fees that eat into your balance and the low (if any) interest on that chequing account, it leaves considerably less for savings. And if you have a credit card bill to pay, it’s a careful balance between holding your money to earn interest and paying off the card by the due date, to avoid big interest charges or a negative effect on your credit score.

An EQ Bank Savings Plus Account + Your Favourite Credit Card= Everything You Need

What if there were an easy way to increase the interest you earn on your balance, eliminate those monthly fees, and minimize the interest you pay on your credit card balances? Wouldn’t that make it easier to save? And what if that way was flexible, convenient, and you didn’t have to worry about those big interest charges that come with missing your credit card payment?

Consider this. If you haven’t already, opening an EQ Bank Savings Plus Account will help you eliminate monthly fees. Switching your direct deposit to this account can offer greater returns – you’ll earn high interest on every dollar from the moment your paycheque is deposited to your account. This means all of your hard earned money is growing, even if some of it only sits there for a short while (because sadly, we all know that credit card payment due dates always come around).

Don’t get caught by high interest charges

Next, set up your credit card to automatically withdraw funds directly from your EQ Bank Savings Plus Account each month, on or before the due date. Although credit cards from all of the big five banks, as well as American Express and MBNA are eligible, it might be a confusing process - so we’ve compiled a reference guide to help you get started. Doing this will help maximize the amount of interest you earn by keeping your money in your EQ Bank Savings Plus Account until it is needed to pay off your credit card, while ensuring that you don’t get caught paying those high credit card interest charges. Keep in mind that carrying a balance on your credit card from one statement period to the next, may incur significant interest charges.

Each bank has its own process to set up the automated payments, but once you’ve set it up, you’ll never have to worry about missing a payment again. Flexible – check. Convenient – check. And once it becomes effortless to pay off your credit card balance, you’ll want to use your credit card for all of your day-to-day transactions to maximize your credit card reward points.

Here’s how to get started:


Step One: Open your no-monthly fee EQ Bank Savings Plus Account, if you haven’t already.

Step Two: Move funds into your EQ Bank Savings Plus Account, and start earning high interest right away.

Step Three: Set up your credit card(s) to be automatically paid out of your EQ Bank Savings Plus Account.

It’s a simple way to maximize your savings while avoiding interest charges on your credit card for your day-to-day transactions. Now that’s Money Well Banked.

This quick reference guide could help you set up your credit card for pre-authorized payments.

 
Credit Card Issuer Offer Pre-authorized payment?  Helpful link What do you have to do?
 RBC  Yes  RBC Visa Card Call 1-800-769-2512 or email Customer Support within online banking
  1. Provide the following information:
    • Payment account number
    • Choose the type of automatic payment
Can take up to 2 monthly cycles to take effect
 TD  Yes  TD Credit Card Pre-authorized Payment Form
  1. Download and complete the pre-authorized debit form
  2. Print a void cheque from EQ Bank - sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’, click on ‘Generate void cheque’ and then ‘Print’
  3. Send the form and void cheque to TD by:

Going to your local TD branch OR faxing it to  1-888-295-4835 OR mailing it to:

TD Canada Trust

P.O. Box 337 STN A

Orangeville, ON L9W 9Z9
 BMO  Yes  How to set up a pre-authorized payment
  1. Go to BMO online banking
  2. Go to My Account, then go to Pre-Authorized Payment, and fill out the short form
Have your EQ Bank account information handy: sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’ and take note of the Account#, Transit number, and Institution number
 SCOTIA  Yes  Easy ways to pay your credit card
  1. Go to your local Scotia branch
  2. Fill out the pre-authorized form
  3. Bring a void cheque from EQ Bank - sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’, click on ‘Generate void cheque’ and then ‘Print’.
 CIBC  Yes  How to make credit card payments
  1. Contact CIBC Customer Support
  2. Have your EQ Bank account information handy: sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’ and take note of the Account#, Transit number, and Institution number
 MBNA  Yes  Authorization form
  1. Print and complete the authorization form
  2. Print a void cheque from EQ Bank - sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’, click on ‘Generate void cheque’ and then ‘Print’
  3. Fax it to 1-800-871-0994 OR mail it to:

MBNA      

P.O. Box 9625 STN T 
Ottawa, Ontario K1G 9Z9

 AMEX  Yes  Amex electronic payment enrollment form
  1. Download and complete the Enrollment Form
  2. Print a void cheque from EQ Bank - sign in to your EQ Bank account from a trusted computer, hover over ‘Pay and Transfer’, click on ‘Generate void cheque’ and then ‘Print’
  3. Mail the form and void cheque to:                

Amex Bank of Canada
P.O. Box 4030 Station A Industrial Park 
Markham, ON L3R 9Z9

TANGERINE     At this time, pre-authorized payments to a Tangerine credit card can only be debited from a Tangerine account.