Last issue, we looked at five
of Canada's major banks and showed you which of their
plans are the least hazardous to your wealth. Here, we
continue our rundown, so you can arm yourself with this
knowledge then head to your bank and get yourself a better
deal. Here are the rest of the major banks:
RBC
Royal Bank
Through RBC's business professionals banking services,
physicians have access to lending and banking plan options.
You just need to work with a relationship manager to
choose specific personal and business borrowing options
best suited to your needs. Teresa Pagnutti, from the
bank's corporate communications office, explains that
the relationship managers or financial advisors are
available to physicians to "meet anytime, anywhere
to help doctors save time." She adds that they
provide financial solutions to meet the unique personal
and practice-related needs of doctors; use their access
to the broad network of financial experts within RBC
to help build holistic financial plans, for both personal
and practice banking; work through every stage of a
doctor's career from student to residency to his or
her practising years through to retirement.
Personal banking
Doctors have access to the RBC Royal VIP Service, described
as a comprehensive personal banking package that includes:
- Unlimited transactions on up
to three Canadian and one US dollar bank accounts
- A premium RBC Royal Bank Visa
card and co-applicant card
- Online and telephone access
to your accounts
- Overdraft protection up to $5,000
- Discount on a safe deposit box
- RBC Royal Bank Gold Client Card
$30 monthly fee
Practice banking
Doctors can get
- Up to 100% funding of their
practice purchase price, start-up, or expansion costs.
- They have access to lease financing
on 100% of equipment value — for amounts $5,000
and up. The bank offers flexible options for building
financing, including a business line of credit.
- Doctors can draw up to 75% of
the value of their home through a combination of mortgage
and personal line of credit segments.
- They can also choose from five
premium Visa cards.
Extras Med students can
get student lines of credit of up to $150,000 with interest
at prime. There are no restrictions on how much they
can borrow annually and there is an option to defer
principal payments until 12 months after completion
of one's residency. Students who aren't required to
complete residency have the option to defer principal
payments until 12 months after graduation.
For more information visit their
website www.rbcroyalbank.com
Scotiabank
Scotiabank has had a relationship with both national
physician colleges. They've been working with the College
of Family Physicians of Canada since 1994 and with The
Royal College of Physicians and Surgeons of Canada since
1997. "This relationship should continue on in
the future," says Diane Giard, the bank's vice-president
for business services. These relationships with the
colleges usually lead to extra benefits for members.
Scotiabank offers a plan to physicians,
but it is currently in review. The information will
be updated this year. Some of the services offered to
doctors are outlined below. Please note that many changes
are being considered. The best way to find out more
about the bank's updated MD plan as details emerge is
to contact the bank directly. But in the meantime, here
are some of the services offered now:
Personal banking
A 0.5% reduction off competitive interest rate (adjusted
for credit risk) for all consumer loans of at least
$5,000.
- Doctors can also get a free
gold preferred Visa card, which usually costs $95.
The card's benefits include trip insurance, a 5% rebate
on travel from participating agencies and all the
insurance from gold card.
- Physicians also have the chance
to get a preferred rate on all mortgages based on
the value of their relationship with Scotiabank. The
more business a doctor has with the bank the higher
the rate reduction.
Practice banking
Physicians can get up to 100% of the cost of practice
financing needs (including equipment financing) at very
attractive rates and terms They can amortize the loan
over a 7-year period at as low as prime + 0.5%.
- Scotiabank also has a parental
leave program for either parent that allows them to
vary principle payment on term loans for eight months.
- Loan rates are guaranteed to
be 1% lower, on average, than rates for comparable
business loans, sometimes it's even lower than that.
- Operating credit is offered
to physicians at prime.
Extras Scotiabank offers
med students a line of credit at prime with a 12-month
moratorium on capital repayment after graduation. Med
students can also get a cash-back Visa that offers as
much as a 1% rebate on purchases.
The Bank of Nova Scotia also offers
a slew of investment services to physicians. They get
a preferred interest rate on all new and re-invested
Scotia Non-Redeemable Guaranteed Investment Certificates
(GICs) with a minimum one-year term to a maximum five-year
term. They get a preferred interest rate bonus for new
and renewed term investment RRSPs of at least one year.
Doctors can also explore what's
available through the bank's wealth management arm.
They also offer physicians a complimentary
financial plan crafted by a financial consultant. This
includes a free of charge will and estate review, a
free portfolio review and it waives the annual fee for
self-directed RRSP and spousal account combination of
all investments.
For more information visit www.scotiabank.com
or check in with your local office of the College of
Family Physicians of Canada or the Royal College of
Physicians and Surgeons of Canada.
TD
Canada Trust
Presently, TD Canada Trust doesn't advertise any services
especially for doctors. However, the bank's media director,
Jeff Keay, says physicians who are interested in starting
a professional banking relationship with TD should speak
to a representative from the bank. See www.tdcanadatrust.com
for more information.
Additional research by Craig
Sebastiano
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