Typically, students aren’t exactly known for being flush with cash – especially when a new term is just around the corner, bringing with it a slew of start-of-year expenditures. Many students work part-time, which means that while in school, college or university-related expenses are almost certain, there might not be certainty of income to cover those expenditures.
So, what’s the best strategy for students to deal with such situations? Start saving early AND regularly!
Finding a Good Deal: Tangerine Online Banking
When you start looking around for a good savings vehicle, you often come across student savings accounts with high minimum balance requirements, and even higher fees. As a student with a meager income (if any at all!), that’s not a good deal!
So where can you turn to?
One great choice for students is a NO FEE savings account, and no one offers a better deal than Tangerine! With their Savings Accounts:
- You get reasonable interest on your savings
- There are no fees or service charges
- You don’t need to maintain a minimum balance to qualify for No-Fee banking
- You may even qualify for higher interest and bonus rates – depending on incentive programs they regularly offer
- You have the flexibility of moving your money – without fees! – into various other Tangerine saving and investment products (RRSPs, TFSAs, RESPs)
- Your savings can be put on auto pilot with their Automatic savings Program (ASP)
As a student, you’ll likely need the flexibility of accessing your savings, possibly on a regular basis, to pay for things like books, transit, boarding and lodging – and even the occasional movie or concert! With a Tangerine No Fee Daily Chequing account, you have unlimited access to your funds through a vast national network of Scotiabank ATMs (over 3,500 of them!), as well as globally through their Scotiabank Global ATM Alliance.
Signing up for a Tangerine-backed credit card may also be a great way for students to start building their credit history, while earning points and rewards on everyday spending. In the process, students also learn invaluable credit and money-management lessons that will serve them well in later years.
But the one question for students, while dealing with an online bank, is: Is my money safe, and is it insured?
Tangerine CDIC Insurance De-mystified
The answer to both those questions is a resounding YES!
Students saving with Tangerine are afforded the same Canada Deposit Insurance Corporation (CDIC) protection as other account holders enjoy. All Tangerine funds, including those held in Savings Accounts, TFSAs and RRSPs are entitled to CDIC insurance coverage.
So, what does this mean to you, as a student?
It means that your balances, up to a maximum of $100,000, are insured and protected by the CIDC – a Federal Crown Corporation (a fancy name for the Government of Canada!). In the event that your funds are misappropriated (due to no negligence on your part), you’ll be entitled to full restitution (up to the specified maximum $100,000) of your account balances.
I know, you’re probably asking: What if I have more than $100,000 in various accounts with Tangerine? Don’t worry, you have nothing to lose. CIDC insurance applies to each Tangerine “Name Registration” (or account). So, if you have balances exceeding $100,000 across multiple Tangerine accounts, they’ll all be insured.
In the above example, even though Jane has $300,000 saved with Tangerine, it’s ALL insured!
Tangerine also offers additional ways to maximize your CIDC coverage. Students can opt for a strategy of “joint” Tangerine accounts (with a parent, sibling or a friend) to benefit from even greater CIDC insurance.
In the above instance, not only do Mary and John enjoy full insurance protection on their individual “named” accounts, but their joint Tangerine Savings Account qualifies for additional protection too!
But there’s more protection that Tangerine offers!
As a student, using Tangerine products such as their Debit and Credit cards, you have additional layers of protection offered through Tangerine’s alliances and network partnerships. For instance, fraud or theft (because of circumstances beyond your control) occurring as a result of using your Tangerine Interact Card is 100% protected. Students can therefore responsibly use their Tangerine Credit and Debit cards without fear of being “on the hook” for misappropriations or losses from such legitimate use.
Choosing The Right Product
While Tangerine offers a wide range of insurance and protection on all accounts and products offered to students, the onus of choosing the right Tangerine product ultimately lies with you – the student.
For instance, while owning and managing your own credit card can be a great asset while you are a student, no amount of insurance will protect you from getting into debt if you aren’t prepared to use those cards responsibly. There are many online resources that show you how to avoid credit card traps and other financial missteps. Carefully reviewing such content before choosing an investing or savings product might help you make the most of deposit insurance and protection. See our complete Tangerine review for a complete look at Canada’s online banking leader.