Meet local blogger, mom and Servus Member Hannah Kaup of Honey & Betts. Hannah and her young family are preparing for several big financial milestones in the next while, and we can’t wait to help them transition their banking for the next stage of their life together!
Matt and I have been with the same bank for the last 5 years, Servus Credit Union.
It was our first joint bank account as an engaged couple where we started the foundation of our finances, it was our first student credit card, and where we got our first cheque book that has both of our names on it.
Here's a funny, little tidbit - our chequing account is still labelled "Wedding" because that is the account we used to pay for our wedding.
If you've followed and watched our family grow over the last 4 years you know we are coming to an important time in our lives that concerns our finances.
You could say we have a lot on our plate at the moment between: turning 25 years old and needing to find the right bank account for our family's needs to switch to (like I said before, you turn 25 and everyone thinks you should have your ducks in a row by now), graduating post-secondary and needing to know what investment tools are right for us (these things should have been taught in high school... scratch parabolas from the curriculum), juggling the idea of business loans but we don't know where to start, and finally looking to buy our first home. Did I mention we have 3 daughters under 5 years old?
It's rare that you are dealing with all of these financial milestones at once, but the following information will be useful if you're experiencing any one of these.
Thankfully, a Servus Credit Union financial advisor answered our most pressing questions. Here is what I found helpful:
What bank account options are available for people over 25 years old?
From 19 and engaged to 24 and laying down roots, we had the 17-25 Be Free Account. It has no fees, unlimited transactions, 2 free e-transfers, $1.50 non-Credit Union ATM withdrawal fee, free in-branch bill payments, and a no charge monthly paper statement.
Now we can choose from 6 different accounts available to people over 25 at Servus Credit Union.
- Personal Pay-As-You-Go: No monthly fee, account transactions are $1.25 each, $1.50 e-transfer fee, $1.50 non-Credit Union ATM withdrawal fees, $1.50 in-branch bill payments and no monthly paper statement included (members view statements online).
- Personal Plan 30: $9.95 monthly for balances under $3,000, includes 30 free transactions then they're $1.25, $1.50 e-transfer fee, $1.50 non-Credit Union ATM withdrawal fees, 3 free in-branch bill payments then after they're $1.50 each, and no monthly paper statement.
- Personal Plan 60: $11.95 monthly for balances under $3,500, includes 60 free transactions then they're $1.25, $1.50 e-transfer fee, 1 free non-Credit Union ATM withdrawal per month, then they're $1.50, 3 free in-branch bill payments and then all bill payments after are $1.50 each, and there is no monthly paper statement
- Personal e-Plan 60: (for people who prefer mobile or online banking, including the Servus app) $10.95 monthly for balances under $2,500, includes 60 free transactions then they're $1.15, $1.50 e-transfer fee, 1 free non-Credit Union ATM withdrawal per month, then they're $1.50, in-branch bill payments are $1.50 each, and there is no monthly paper statement.
- Personal Unlimited Plan: $13.95 monthly with balances under $4,000, unlimited transactions, 5 free e-transfers and any additional is $1.50, 2 free non-Credit Union ATM withdrawal per month, then they're $1.50, free in-branch bill payments, and there is no monthly paper statement.
- Personal Premium Unlimited Plan: Monthly fee of $25.00 for balances under $5,000, unlimited transactions, free e-transfers, 10 free non-Credit Union ATM withdrawals per month then they're $1.50, free in-branch bill payments and monthly paper statement at no charge. This plan also includes unlimited personalized cheques, $20 discount on safety deposit boxes, free official cheques, and a $200 credit towards mortgage appraisal fee when applying for a Servus Mortgage.
Now that I have graduated school and will be working, what is best to invest in first: RRSPs, TFSAs, or other?
The benefit of an RRSP is that it brings down your taxable income and is a great savings plan for higher income earning years. TFSAs are an amazing savings plan that is available to anyone over the age of 18 and is a great way to save money for a down payment and for any income replacement. If you are a young professional who is in the lower income earning years you ought to focus on maximizing your TFSA first and saving the RRSP contribution room for higher income earning years.
What are the options for a small business loan for a young person just starting out?
The answer will vary depend on your financial merits (credit rating, net worth, financial contribution into the business) along with the strength of their business model (to be supported by an appropriate business plan & tangible financial projections, typically backed by an accountant). Once the information has been analyzed, Servus Credit Union can then determine what options that person has.
We're looking to buy a house soon, what options does Servus Credit Union offer?
Servus is able to offer Conventional (over 20% down payment) and High Ratio (19.99%-5% down payment) mortgages in fixed rates from 1-5 years and a 5 year variable rate (this option coincides with prime rate).
There are many new changes and decisions for us to make this year, and we know any further financial questions we have Servus Credit Union will be able to help us with. I trust their advice and look forward to working with them to make our accounts as financially fit as possible!
This blog post has been sponsored by Servus Credit Union. All opinions are 100% my own.