The two biggest banks in Canada go head to head on this one, and it is sure going to be an interesting comparison. The Royal Bank of Canada, aka RBC, comes out on top as the biggest dog in the yard regarding net revenue earning C$11.4 billion in 2020 and total assets of C$162 trillion as of 2020.
RBC has more than 15 million customers worldwide, with 80,000+ personnel working full-time and more than 1300 bank branches. In 1984, the bank first opened for business in Halifax and was known prior as the Merchants Bank of Halifax.
The Toronto-Dominion Bank or TD Bank has assets valued in 2019 at C$1.4 trillion and almost 90,000 employees. The bank is the result of a merger between Dominion Bank and the Bank of Toronto in 1955.
Comparing TD with RBC is like comparing Pepsi vs. Coke, Lion vs. Tiger, or Playstation vs. Xbox. Although these arguments hardly end well, read on to find out how these two behemoths stack up against each other.
The Royal Bank of Canada website is seamless and intuitive, with a menu on the upper left enabling customers to take care of their banking needs from accounts to credit cards and seamless solutions. The RBC website is easy to navigate and has the highest security protection to guard against hackers.
Customers can contact the bank directly, find a bank branch or ATM, or book an appointment through the website. You can also learn about loans, find the ideal account for your finances or explore mortgage options for those looking to buy a house. In sum, the RBC website has everything you’d ever need to carry out your transactions with ease.
The TD online platform looks more aesthetically pleasing to the eye with a green layout on a white background. The menu button sits on the upper right corner of the website and has features that include bank accounts, credit cards, mortgages, insurance, personal investing, amongst many others.
It isn’t shocking TD clients can carry out banking activities, including enjoying promotions and offers from the website. Both websites are almost on par with each other in terms of banking features, but TD slightly takes the edge because of the slide bar that allows users to go straight to the top.
TD and RBC have hundreds of banking products, and it will take ages to compare each with the other. The best solution is to compare the premium chequing account to see which one comes out tops. The premium accounts offered by both banks will cost you up to C$30 in monthly maintenance fees, and it’s a surprise that millions of customers still opt for these accounts.
The reason is the waivers in various expenses, including rebates on credit cards and safe deposit boxes. Before going into each account’s details, below is an overview of the benefits they provide to customers. A cursory look below shows many of the perks are standard across the board.
Clients of both banks will always receive unlimited free transactions. And this goes for the regular debit transactions, global or local ATMs, and Interac e-Transfers. Customers will also enjoy credit card discounts on premium credit cards, but the rebate amount rests solely on the bank.
|Account name||VIP Banking Chequing Account||All-Inclusive Banking Plan|
|Monthly Maintenance Fee||C$30.00||C$29.95|
|Minimum Balance Waiver||nil||C$5,000|
|Global & Local ATMs||Free||Free|
|Bonuses on other products||C$3 discount on Borderless Account||up to C$6.00 per month fee discounts|
|Credit card waiver fee||up to C$170.00 yearly||up to C$240 yearly|
|Safety deposit box waiver||C$60||up to C$60|
|Special perks||nil||Fuel savings at 3cents per litre at Petro-Canada|
|Potential savings||C$277 max||C$372 max|
The standout differences come from the various benefits provided by each account. These differences are grouped into three categories.
- Bonuses for other accounts and products
- Waivers on annual fees for credit card and
- Other special discounts and bonuses
TD All-Inclusive Banking Plan
The TD All-Inclusive Banking Plan doesn’t have many free features that RBC doesn’t have. However, you’d still have to fork over C$29.95 monthly to enjoy the regular perks you’d expect from a bank with the pedigree of a Big Five like free transactions and rebate potential.
Bonuses for other accounts and products
The only service that holds a promise of discount is the Borderless Plan, an account tailored for frequent US visitors that provides preferred foreign exchange rates on the USD up to $25000. The account maintenance fee is C$4.95, discounted to C$1.95 for customers operating the TD All-Inclusive Banking Plan. The prices are waivable for customers with a minimum balance of C$3000 monthly.
Credit Card Fee Waiver
TD provides customers with a few options on their credit card annual discounts, including an extra credit card covered in the bargain. Be mindful that you might have to contact customer service to enjoy this rebate. TD has some of the best credit cards in Canada, some of which include:
- TD Aeroplane Visa Infinite Card
- TD Aeroplane Visa Platinum Card
- TD First Class Travel Visa Infinite
- TD Platinum Travel Visa Infinite
- TD Platinum Travel Visa Card
- TD Cash Back Visa Card
RBC VIP Banking Chequing Account
The RBC VIP Banking Chequing Account is the top of its class and has everything you’ll ever need at a monthly price of C$30. The drawback of this account is that you’ll always have to pay a monthly maintenance fee. The chequing account has no minimum balance option, although customers can bring down the cost to C$19.95 when combined with other RBC products.
Bonuses for other accounts and products
Customers who sign up for the RBC VIP Chequing Bank Account may also get a monthly fee waiver on their US Personal Account, which cost C$2 and C$24 annually.
Credit Card Fee Waiver
RBC provides a 100% annual discount on its select premium credit cards, including rebates on additional cards. These credit cards include:
- RBC Avion Visa Infinite
- RBC Rewards Visa Preferred
- RBC British Airways Visa Infinite
- RBC US Dollar Visa Gold
- RBC Cash Back Preferred World Elite Mastercard
- RBC Cathay Pacific Visa Platinum
- WestJet RBC World Elite Mastercard
Customers can save up to C$165 yearly, which is a pretty decent perk.
While the TD All-Inclusive Account has no special bonus worth noting, the RBC VIP Banking Chequing Account has a unique feature that enables you to save money on gas when you patronize Petro-Canada. You get to shave off 3 cents per litre of fuel and an additional 20% bonus Petro-Points, which can be redeemed towards extra fuel savings. This feature is excellent for people who drive a long distance to work and a Petro-Canada station in their location.
TD and RBC have a broad selection of GICS designed to follow the stock market index like the S&P 500 index or the S&P/TSX 60. The investment return depends on the index being tracked, and even though the returns are capped at a specific limit, you won’t lose money if the market doesn’t perform well.
TD offers four GIC packages, while RBC provides five types for customers. TD Bank has a minimum investment of C$500 for RESPs, RRIF, and RRSPs. The minimum investment for non-registered accounts and TFSAs is C$1000. However, RBC has a threshold of C$1000 for all types of GICs, and these vary between two to five years.
RBC and TD have an envious selection of HISAs. Out of the lot, the RBC High-Interest eSavings Account and the TD High-Interest Account appear to be the best of their respective banks. While the TD HISA is tiered, RBC isn’t. Besides, TD Bank requires you to have a minimum balance of C$5000 to receive interest, while RBC offers the same rates no matter your bank balance.
The following are other benefits and drawbacks of the TD and RBC products and user experience.
- Has better customer service than RBC
- Needs a minimum of C$2000 for a no-fee chequing account with Visa Debit thrown in
- It has a better Cross Border package than RBC, costing C$100 for a US chequing account.
- Better customer service
- The TD bank app is not as good as the RBC bank app.
- Branches open later
- TD Direct Investing is not as good as RBC Direct Investing.
- Cross border integration is not as strong as RBC.
Royal Bank of Canada
- The RBC app is better than the TD Bank app with fingerprint login.
- RBC Direct Investing has a better user experience than TD Direct Investing
- Cross Border integration is better than TD with seamless transfer of funds.
- Has a Virtual Visa Debit Card
- Weaker customer service
- Less attractive Cross Border package
- Customers need a multi-package to enjoy a rebate in the chequing account.
There is hardly any difference between both banks, and you’ll be splitting hairs to distinguish one from the other. RBC and TD are both world-class financial institutions, and it isn’t uncommon to find people who use both banks for different products and services.