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The average Canadian pays $185 a year in bank fees. Simple banking transactions such as using your debit card at the store, sending money to a friend via email or writing a cheque can add up, not to mention that most chequing accounts don’t pay any interest. It’s not much better when you consider investment options, such as mutual funds. A recent report by Morningstar gave Canada’s mutual fund fees a failing grade, the only country out of 22 to receive an “F”. On average, Canadians pay 1.31% for a fixed–income mutual fund, regardless of whether or not the fund makes any money. What’s more alarming, almost half of Canadians aren’t even aware of the annual management expense they are paying for their mutual funds, which means fees are costing Canadians more than they realize.

Constantly being nickled and dimed when trying to save money can be frustrating, Whether you’re trying to invest for retirement, or simply conduct daily banking transactions, you shouldn’t have to worry about your money being eaten away by fees. Thankfully, consumers have options. Canadians who are looking for no fee, low–cost, simple products now have more choices than ever before.

How to keep more of your money in your pocket:
1. Opt for a no–fee chequing account: Paying your bills and making purchases with your debit card can sometimes add up to several transactions a month. No–fee chequing accounts, like Thrive Chequing, a new account from ING Direct, give you unlimited transactions and bill payments with no fees and no minimum balances.

2. Find an account that makes it easy to move your money: A tax–free savings account (TFSA) and RSP are great tools to help you save for the future and your retirement. But be cautious of financial institutions that charge you a fee for transferring your TFSA or RSP accounts to another bank.

3. Shop around for your investments: Choosing a mutual fund shouldn’t be like picking out your socks in the morning. It requires a little bit of research, but it doesn’t have to be complicated. Fund fact sheets provide information on the cost of owning a mutual fund, a summary of the stocks and bonds your fund holds, and a breakdown of fees. Online comparison tools allow you to put two mutual funds side–by–side and see which ones are providing the best value for your money.

DISCLAIMER: The is for informational purposes only, and are authored and produced independently. As such, it is possible that certain inaccuracies or inconsis- inconsistencies may occur. The informational content may or may not accurately reflect the research, ideas, opinions or views of the authors or any other featured individual. VERICO Financial Group Inc. assumes no liability whatsoever for any action taken in reliance on the information contained in this newsletter, or for direct or indirect damages resulting from use of this newsletter, its content, or services.