Low Investment – High Return

Last week I dropped by my local RBC branch, which also happens to be my home bank. I wanted to get a bank draft made up to pay off an extra condo assessment 2012 (yeah, I’m not happy about it). After expressing my desire for the draft and having the money pulled out my account, the bank teller notifies me that there will be a $5.oo service fee. I couldn’t believe it, 5 bucks for a piece of paper. So, I threw a bit of a fit, in a good way of course. I was certain that I had two or three bank drafts per year included in my monthly service fee, however that did not seem to be the case. So, the head teller for the branch walks over and joins the conversation.

Basically to make a long story short, she said my monthly service fee did not include any drafts. However, she would be happy to provide me with a free draft this time only. In the same breath, she said “You should pickup an investment (RRSP or TFSA) with us and you will get your monthly fee waived, you already have a credit-card product and the mortgage with us.” She made me think for a second. So, I replied “I already have a TFSA and RRSP with another institution.” She leaned in and in her soft voice said: “Listen, just open up another TFSA, put $10 into it and your monthly fee will automatically be waived, you don’t have to put anymore money into it ever again or simply add monies again when you’re ready.” Now, she had my attention. Actually, that’s a lie, she already had my attentions because she was pretty attractive and I liked her smile.

So, thinking fast on my feet, like always, a few minutes later I was in one of the back offices  in the branch talking to an Investment Advisor. I went ahead and opened up another TFSA account. I had nothing to lose and everything to gain. Instead of paying a $10.95 monthly fee every month for my bank account, I won’t have to pay anything going forward. I will save $131.40 annually every year, as long as I hold three products with RBC. Pretty sweet!

Furthermore, by having another TFSA account, it will encourage me to contribute to it. Even if it’s a small contribution. I’m better off to have money saved versus possibly spending it elsewhere.

Now, I’m just hoping that the TFSA maximum annual contribution allotment will be raised. Fingers crossed. However, I am happy about it either way. For a low $10 investment I got a solid 1,204% return.

Oh and the icing on the cake was me suggesting to the attractive teller : “I think I owe you a drink, you’ve been super helpful,  it’s the least I can do.” And she replied with: “Sure, let’s figure something out, here is my #.”

I love getting two for one deals. Life is good.