TD Bonus – Stage 1
About two months ago I wrote about my plan to get a TD bonus of $250 for opening a new chequing account. The chequing account in question is TD Canada Trust’s extremely expensive “Select Service” account. I described how I planned to open the account, earn the bonus, and minimize fees paid. I’ll now call this “Stage 1″ of my TD bonus plan.
Stage 1 has actually gone better than I previously guessed. My original plan included the expectation that I’d pay $10 in fees when I opened the account — but I haven’t paid a cent. I think this was because, on the day that I opened the account, I deposited the minimum balance of $5,000 to waive the exorbitant $29.95 monthly account fee. Further, I’ve completed all of the other tasks necessary to earn the TD bonus: I set up my direct deposit and completed two bill payments. Now I just need to wait another two months, get the bonus, and close the account. My expected bonus (after deducting the opportunity cost of having $5,000 sit in an interest-free chequing account) stands at about $200. OK, so I’m winning already.
TD Bonus – Stage 2
When I opened my Select Service account near the end of May, TD heavily pushed one key ‘benefit’ of the package: they’d waive the fee on their ‘exclusive’ TD First Class Travel Visa Infinite Card (yeah, that’s the longest credit card name ever). The fee on this card is $120 a year. I already get amazing cash-back on gas and groceries from my fee-free MBNA Smart Cash MasterCard card. I don’t derive any of my self-worth from having an ‘exclusive’ credit card (if I did, I’d get a Centurion Card). Thus I declined TD’s ‘generous’ offer when I opened the account.
But a new TD bonus offer just made me change my mind. I was told I’d get 40,000 free TD Rewards points if I opened a TD First Class Travel Visa Infinite Card. As TD points out in its promotional literature, that’s enough for $200 in free travel. Travel, however, is a fickle way to spend rewards points (especially if I don’t want to travel before I cancel the card). These reward points can, however, be used to obtain things other than travel. For example, 40,000 TD Rewards points can get two $50 gas cards from PetroCanada or two $50 grocery cards from FoodBasics. A TD bonus that will put gas in my Malibu or put food on my family? (Sorry for the silly Bush-ism reference). Sign me up!
OK, so don’t sign me up just yet. I called to ask a few questions:
- If I open the Visa card, will TD waive my fee (by virtue of my Select Service account) immediately? Or do I need to pay it and get reimbursed later? Answer: it’s waived from Day 1.
- Are there any fees to close the Visa account? Even if I close it within a month of opening it? Answer: there are no closing fees.
- Do I get the points immediately or do I need to wait some amount of time? Also, do I need to do anything besides opening the account (e.g. make a purchase) to get the points? Answer: The points will be awarded during the first statement period. Opening the account is the only requirement to get the TD bonus points.
After the nice lady had answered all of my questions, I applied on the same phone call and was immediately approved. I’ll spend the points in August. Since the card is free for a year, even after I close my Select Service account, I might actually keep the card to enjoy its other benefits (e.g. free travel medical insurance) and mark my calendar to cancel the card in July 2013. Thus my $250 TD bonus has turned into a $350 TD bonus (or about $300 after accounting for the opportunity cost on my Select Service account balance of $5000).
This TD bonus doesn’t really “add up” if you’re not going to get the fee waived. Paying a $120 fee to get $100 in gift cards is obviously money-stupid. Paying $120 in cold hard cash to get $200 in ethereal “free travel” could be smart — but only if you need to travel anyway and you’re sure you’ll actually get $200 in real value. Even still, I wouldn’t touch this offer with a 10-foot pole if my fee wasn’t waived.
How do I plan to spend my reward points? I must admit that I was tempted by this Fossil watch. I’m leaning toward getting $100 in gas cards. Yes, PetroCanada is overpriced — the Ultramar gas stations in my area are consistently cheaper than the nearest PetroCanada locations. But still, gas margins are thin. Even at a price that’s inflated by 5%, $100 is enough for several weeks of our average fuel consumption (barring any non-local travel). But if you see a better idea while perusing TD Rewards, let me know!
$100 is enough for several weeks of fuel consumption?! This month I spent $37 on gas, $0 in June, and $77 in May. I’m going to have to fill up on Saturday though since I’m going on a non-local trip.
Sounds like you’re getting a really good deal from this checking account
Thanks! Yeah it’s the first real deal that I’ve seen at a Canadian bank. Usually they offer something dumb like just $100 in gift cards (making it near impossible to turn a significant profit after the opportunity cost of the minimum balance).
On the point of bank bonuses, and on the price of gas, “must be nice to live in America!”
Loving this sweet deal and the LOLs-worthy drawing! Did you draw it yourself?
Yes, sir. In MS Paint. YOLO, amirite?
This TD bonus reminds me a ton of the amazing bonuses that Americans enjoy. Maybe when the housing bubble pops, the banks will need to compete for retail customers and we’ll see more of this. One can only dream…
NIce! I really wish I didn’t already have an account with TD so I could take advantage of all this free (ish) money. Why do companies never care about retention? It’s all about that next customer. They just assume that once you are there you won’t switch which is ridiculous considering all their new customers took the time to switch to them. *grumble*
Which reminds me! My cell phone contract (currently with Telus) runs out in 2 months. Do you have any recommendations or insight on a good company/deal whatever?
No pressure.
I’m with Telus, too. I pay $50 a month (plus tax) for 200 mins local, 100 mins LD, free local after 6pm, “My10″ unlimited talk, unlimited texting, 1gb/month of data, caller ID, and voicemail 3. My phone cost a bit under $113 with tax and my contract ends in 2015. Telus, in my experience, was by far the most willing to negotiate — since you’re with them, you should EXPECT a majorly better deal than what all the new kids will get (they’ll tell you you’re getting a ‘great deal’ for being a loyal customer but – just like TD – they’ll turn around and give the best stuff to new customers). Modern companies, because their #1 concern is growing market share, actually reward DISloyal customers. Loyal customers get royally screwed.
I’m with Virgin. I’ve had contracts with Telus and Bell before, and both times ended up paying to break them early because I couldn’t deal with the crappy customer service (for current customers). I picked Virgin because they offered the cheapest phone I could find ($60, if I recall correctly) and the cheapest plan ($26 for 100 minutes plus free evenings and weekends, and unlimited texting). I hardly ever use my cell phone though, so this is definitely not for everyone. So far, though, I like Virgin – no hassles.
Sorry, forgot to add … I’m on a month-to-month plan, because I didn’t want to be tied down again. The phone was the cheapest option out there ($60 is the full price, not the contract discount price), and it’s only payable once you quit Virgin altogether.
Would it be terrible to admit that, based on stereotype, I totally would have guessed you’d be toting an iPhone around in your (presumably stylish and expensive) clutch?
Haha! It’s not an unreasonable expectation given what we all know about Canadians’ consumption. But remember Dave Chilton’s “areas of indulgence”? So, yeah, I carry a $60 phone in a $2,000 purse. [Don't worry, I didn't pay that much for it.] As a bonus, I do it while riding the LRT (metro/subway/whatever) because we’re a one-(used)-car family. I’m a walking contradiction
Koodo! Koodo! Koodo!
I switched to them last year. And now I don’t hate my cell phone provider anymore.
It’s all month-to-month, no contracts. You can use your own phone, switch whenever you want, and if you want to get one of their phones there’s still no contract – they put it as a debit on your bill that slowly gets paid down over time. It’s almost like a contract, but you’re only ever paying off the cost of the phone if you leave, not 20 months of $50 data plans (and eventually the amount owing on the phone goes to 0 anyway).
Plus, no long distance fees.
Plus, unlimited phone calls to other members on your koodo bill. So I can call my wife (also on Koodo) and my mother (shoot, that reminds me, I haven’t called Mom in a bit) unlimited, no charge.
And the data plans, I take the minimum plan. When I use more than the minimum, they automatically bump me up to the next level plan to cover my useage, then back down again the next month.
But most importantly – no contract. Can’t wait until the contract for my kids’ phones are up. They’ll be moved over to Koodo tout-suite.
I was actually with Koodo before Telus. I liked the cheap $25 talk and text plan. I hear that isn`t available anymore but that doesn`t matter much to me since I like to use data now.
The reason I left Koodo was because they gave me horrible service. Maybe I was just unlucky but I constantly didn’t get calls through and texts would show up a week later if at all.
I’m considering Virgin but you and Joe will both have to yell at me because I want a cool phone. lol Not an iPhone mind you. I couldn`t handle being called a hipster for owning such an expensive phone.