Manulife offers mortgage-based bank account

Money Digest, Nov, 1999

Together with American Express Canada and Intuit Canada, Manulife Financial Corp. has launched a new account called Manulife One. The product allows consumers to combine their debts (mortgage, credit card and loans) and deposits (chequing and saving) in one account.

To be eligible, you must have a minimum mortgage of $100,000 and other debt totalling $50,000 for inclusion into the account. Also, the mortgage must be transferred into the new account (you pay the transfer fee), your salary must be deposited in the account and you will be charged a $21 monthly banking fee.

On the plus side, customers will get an American Express card (no annual fee) and receive a copy of Quicken 2000 personal money management software. Interest on all debt will be calculated daily, so when your pay is deposited, your debt is reduced. Therefore, your interest charge on that day is less.

Target customers have minimum household incomes of $65,000-to-$75,000.