PC Financial has re-entered the banking sector with its innovative PC Money Account. Unlike conventional digital banks that often emphasize high interest rates, the PC Money Account features a distinct approach by offering no fees along with the benefit of earning PC Optimum points. Thus, instead of accruing interest on your savings, you collect points for every transaction made using your PC Money Account.
While you might instinctively perceive the PC Money Account as a typical bank account and compare it to some of the premier high-interest savings accounts in Canada, it actually functions more like a prepaid credit card, packed with enhanced benefits. For an in-depth look, check out my comprehensive review of the PC Money Account.
- Benefits of PC Money Account
- Welcome bonus for PC Money Account
- Comparison of PC Money Account with others
- Conclusion
Benefits of PC Money Account
- No monthly fees
- Welcome bonus of up to 50,000 PC Optimum points
- Unlimited transactions
- Earn 10 PC Optimum points for every dollar spent anywhere
- Earn 25 PC Optimum points per dollar spent at Shoppers Drug Mart
- Free Interac e-transfers
- No fees on cash withdrawals at PC Financial ATMs across Canada
- Ability to set personalized savings goals
- Optional Overdraft Protection available
- CDIC coverage on eligible deposits
- Round-the-clock fraud detection and support
Following the split from CIBC, it was anticipated that PC Financial would re-enter the online banking space. The launch of the PC Money Account is intriguing as it enables users to accumulate PC Optimum points for every purchase made using the associated Mastercard.
Funds can be added to the PC Money Account by connecting an external bank account or through Interac e-Transfers. Once your account is funded, you’re free to spend using the PC Money Account Mastercard.
This setup effectively transforms the PC Money Account into a prepaid Mastercard that allows point accumulation on all expenditures. With this earn structure, spending at Shoppers Drug Mart earns you 25 PC Optimum points per dollar, while all other purchases yield 10 points for every dollar spent, translating to effective earning rates of 2.5% and 1% respectively.
It’s noteworthy that although the PC Money Account resembles a prepaid credit card, overdraft is still permissible, resulting in a $40 Non-sufficient funds (NSF) charge if overdrafted.
Although the PC World Mastercard and PC World Elite Mastercard feature superior earning rates, the PC Money Account caters to those who prefer not to use credit cards or who may not qualify for them.
Free Interac e-transfers are now commonplace among digital banks, and with the PC Money Account, cash withdrawals at any PC Financial ATM in Canada incur no fees. However, withdrawing from other ATMs results in a $1.50 charge in Canada or $3 for international ATMs (plus a 2.5% currency conversion fee).
The PC Money Account is managed by PC Financial, operating under President’s Choice Bank. As a member of CDIC, your deposits are secured up to $100,000 per eligible account.
Welcome Bonus for PC Money Account
- Receive 10,000 PC Optimum points upon linking an external account
- Earn another 10,000 points after making your first purchase over $50
- Get 25,000 PC Optimum points by setting up direct payroll deposit for a minimum of 3 months
- 1,000 PC Optimum points for each of up to five bill payments of $50 or more to unique payees monthly
All in all, you can earn a maximum of 50,000 PC Optimum points as a welcome bonus, which has a tangible value of around $50. While this may not compare favorably to some of the leading travel credit cards in Canada, it’s important to note that this is a no-fee banking option.
Comparison of PC Money Account with Others
It’s natural to compare the PC Money Account to offerings from Tangerine or Simplii, given their statuses as online banking platforms with debit cards; however, the products differ significantly.
Instead, I would argue that the PC Money Account should be compared with KOHO and STACK, which provide features that closely mirror its own.
| PC Money Account | KOHO | STACK | |
|---|---|---|---|
| Fees | None | None / $84 annually for premium | None |
| Earn rate | Up to 2.5% in PC Optimum points | 0.5% cash back / Up to 2% premium | None, only special offers |
| ATM fees | Free at PC Financial | Fees between $2-$3 | ATM vendor fees apply |
| Forex fees | 2.50% | 1.50% / none for premium | No fees |
From a preliminary comparison, it’s evident that the PC Money Account stands out due to its base earn rate of 1% in PC Optimum points, surpassing KOHO’s 0.5% cash back. Meanwhile, STACK offers incentives through merchant bonuses rather than a fixed earn rate, proving particularly advantageous for travelers and those making currency exchanges, thanks to their absence of forex fees.
A critical point to consider with the PC Money Account is that the earned points are redeemed exclusively for groceries or goods at designated stores. Conversely, KOHO’s cash back can be utilized anywhere. While this may not be a significant drawback for everyone, it is worth noting.
Conclusion
My review of the PC Money Account is favorable. Though you won’t gain interest on your savings, this account isn’t built for that function. It is well-suited for individuals who prefer not to use credit cards but still wish to earn rewards, particularly if they are already accumulating PC Optimum points.