[dackle]

Also, $16.95/month is $203.40/year, which divided by $4,000 is 5.09%. If you can earn more than 5.09% then you are better off paying the fee and investing your $4,000 elsewhere.

It is also pretty much impossible to keep precisely $4,000 in your account because of the lumpiness of day-to-day inflows (paycheques) and outflows (bills). If you keep say $10,000 in your chequing account to (a) avoid the $16.95/fee, and (b) provide a buffer against unexpected expenses, then the breakeven return on your money is $203.40 / $10,000 = a paltry 2.03%.

[doubled112]

Sure, you could pop it into a TD High Interest Savings Account and earn your high interest rate of 0.050%.

Wait, its 0.000% on $4,000

High interest, indeed!

[dackle]

Yes, and while TD is paying you 0.050%, they are loaning out your $4,000 in the form of a mortgage on which they earn 6.79%!

[scarface_74]

There are plenty of reputable banks that still pay 3-5%. Amex savings accounts are now 3.8%