Press Release
Hate being nickel and dimed by banks?
ING DIRECT launches www.fairfees.ca to challenge unfair bank fees
May 11, 2009, TORONTO - To help Canadians keep more of their savings during these tough economic times, ING DIRECT has launched a web site to challenge unfair bank fees and service charges. The site, www.fairfees.ca, encourages Canadians to pay close attention to the bank fees they pay and provides a means to challenge financial institutions to improve the fairness of Canadian bank fees and service charges. In many cases, bank fees wipe out the interest earned in savings accounts making Canadians' ability to save even tougher during these times.
"We've been astonished that some banks and credit card companies are choosing now to add to their customers' burden of fees and service charges," said Peter Aceto, President & CEO of ING DIRECT Canada. "Without much fanfare, some financial institutions are increasing the fees they've always charged and adding new ones where you wouldn't expect them. The charge for a single withdrawal on some savings accounts, for example, can wipe out months of earned interest."
At www.fairfees.ca, Canadians can learn more about how quickly fees cut into interest gains, compare what they spend on banks fees versus other common expenses, speak up about which fees are fair and take action against unfair fees by signing an online petition.
Fee Facts
- Of households that reported spending some money on bank fees, in 2007 the average household spent $185. This is more than the average reported household spend on movie theatres ($171), hair care ($149), deodorants and soaps ($134) and equal to what they spent on computer software.*
- Canadian households reported spending an additional $231 per year on "other financial services fees" in 2007.*
- North Americans pay higher fees for banking services than any other area surveyed. Canadian pricing for core retail banking showed the least variation between competitors of any of the 26 countries surveyed. **
- Fees charged by Canadian banks for non-client use of ATM's (cash withdrawals) are the highest in the world. ***
- Provincially, Quebecers pay lower service fees than the rest of Canada, while Albertans pay the highest fees. Residents of Yellowknife pay the highest banking fees among the cities surveyed.*
Aceto continued, "We feel it's our duty to draw attention to bank fees and service charges so that Canadians are empowered with information that could help them save more money. We realize that not every fee is unfair and we are encouraging Canadians to determine for themselves the fairness of the fees they pay and how these fees could be impacting their savings nest eggs."
* Source: Statistics Canada, Survey of Household Spending, 2007, Catalogue no. 62F0026M, no. 1, December 2008
** Source: 2008 World Retail Banking Report, Capgemini, ING Group and Efma
*** Source: 2009 World Retail Banking Report, Capgemini, UniCredit and Efma
About ING DIRECT
ING DIRECT is Canada's largest direct bank with over 1.6 million Clients and more than $23 billion in total assets. ING DIRECT gives the power of saving to all Canadians by offering high-value, simple products such as high interest savings accounts with no fees or service charges and low rates on mortgages. Low cost, index-based mutual funds are sold through ING DIRECT Funds Limited. ING DIRECT has been operating in Canada since 1997, and since that time Clients have earned more than $3 billion in interest. Clients can bank with ING DIRECT 24 hours a day, 7 days a week, at ingdirect.ca or by calling 1-800 ING DIRECT.
About ING DIRECT Funds Limited
Mutual funds are offered by ING DIRECT Funds Limited, a wholly-owned subsidiary of ING Bank of Canada. ING DIRECT Funds Limited offers mutual funds across Canada except in Quebec and the Territories.
About ING DIRECT Asset Management Limited
ING DIRECT Asset Management Limited, a wholly owned subsidiary of ING DIRECT, is the manager of the ING DIRECT Streetwise Funds.
