High Interest Rates for Savings, GICs, MMFs [2012]

Saving strategies, maximizing interest rates, budgeting.

Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby Keithm » 09 Jul 2012 20:59

Hey Bylo
Want to split a "C" note :thumbsup:
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby sunkenradish » 12 Jul 2012 13:42

Bylo Selhi wrote:
optionable68 wrote:
Bylo Selhi wrote:ING Direct's is, by far, the least competitive HISA. That's quite a change from how they got established in Canada...
I agree that ING has lost its luster.

A sign of desperation?

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ING may have a good read on Canadian culture: as a whole, Canadians seem to focus on short term gains over long expenses. Witness the "free smart phone" offers that involve people signing up for three years of very expensive monthly cellular data plans. Our cellular costs are the highest in the world. Despite their kvetching, enough people sign up to keep the offers coming from the telcoms and ING, apparently. :sad:
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby Taggart » 15 Jul 2012 09:22

Peoples Trust Choice Savings Account is now paying an interest rate of 1.9%
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby freedom_2008 » 15 Jul 2012 11:39

Taggart wrote:Peoples Trust Choice Savings Account is now paying an interest rate of 1.9%


It is still 2.1% in https://thebestrate.peoplestrust.com/main/?mainhome# for existing clients?
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby Taggart » 16 Jul 2012 10:03

freedom_2008 wrote:
Taggart wrote:Peoples Trust Choice Savings Account is now paying an interest rate of 1.9%


It is still 2.1% in https://thebestrate.peoplestrust.com/main/?mainhome# for existing clients?


I find that kind of strange. Is it normal for a financial institution to keep it's former interest rates for existing customers and lower it for new accounts? How long can they keep that going?
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby like_to_retire » 16 Jul 2012 12:00

Taggart wrote:
freedom_2008 wrote:
Taggart wrote:Peoples Trust Choice Savings Account is now paying an interest rate of 1.9%


It is still 2.1% in https://thebestrate.peoplestrust.com/main/?mainhome# for existing clients?


I find that kind of strange. Is it normal for a financial institution to keep it's former interest rates for existing customers and lower it for new accounts? How long can they keep that going?

Weird - never heard of such a thing......
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby fundamental » 16 Jul 2012 12:08

like_to_retire wrote:
Taggart wrote:
freedom_2008 wrote:It is still 2.1% in https://thebestrate.peoplestrust.com/main/?mainhome# for existing clients?


I find that kind of strange. Is it normal for a financial institution to keep it's former interest rates for existing customers and lower it for new accounts? How long can they keep that going?

Weird - never heard of such a thing......


Isn't it usually the other way around ? (Entice new customer's and accomodate existing customers who squawk)
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby CROCKD » 16 Jul 2012 12:24

Just confirmed by telephone PT Savings Acct. rate is now 1.9% for all clients.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby Taggart » 16 Jul 2012 12:32

CROCKD wrote:Just confirmed by telephone PT Savings Acct. rate is now 1.9% for all clients.


Thanks for confirming. I'm in the process of moving our TFSA's to Peoples Trust and was thinking about moving the savings account there too, but now I think I'll just sit back a bit longer, and take a wait and see attitude.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby flywaysuzy » 16 Jul 2012 13:03

I had a $5k gic from cibc that was a tfsa, I think I should have transferred it to PT, where I am currently parking tfsa gics. Instead, I just dumped the money into a bank account and will send PT a check. I'm assuming I have lost the interest amount as something to put in to PT and am only allowed to send in the original 5k amount...anybody done this?

Thx
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby CROCKD » 16 Jul 2012 13:51

flywaysuzy wrote:I had a $5k gic from cibc that was a tfsa, I think I should have transferred it to PT, where I am currently parking tfsa gics. Instead, I just dumped the money into a bank account and will send PT a check.


This is a bit confusing. I assume you withdrew the money from a cibc tfsa - this would have been $5k+ interest. If it was withdrawn before Dec.31,2011 you are eligible to deposit $5k+int. into a PT TFSA this year. If it was only withdrawn this year (2012) you cannot put it back (5k+int.) into a TFSA until Jan.1, 2013 or you will pay a penalty.

Edited:

If you have not made a contribution to a TFSA for this year you are eligible to deposit $5k.
However any amount withdrawn from a TFSA is subject to the above rules for redeposit.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby flywaysuzy » 16 Jul 2012 18:57

Thanks, my fault for not checking the rules ahead of time..I'll send it in in January, along with next year's contribution!
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby freedom_2008 » 16 Jul 2012 19:40

CROCKD wrote:Just confirmed by telephone PT Savings Acct. rate is now 1.9% for all clients.


Yep, looks like they just updated the saving rate on "Valued Customers" page today. But their GIC rates are still very different between their public page and the "Valued Customers" page (e.g. 5yr GIC 2.4% vs 3.25%). If I remember correctly, you can only get the better rate if you have an account with them already and buy GIC on-line, not via phone.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby sunkenradish » 16 Jul 2012 22:02

Taggart wrote:Peoples Trust Choice Savings Account is now paying an interest rate of 1.9%


As of today, Canadian Direct Financial still pays 2% and 3% interest on their KeyRate Saving and KeyReach TFSA, respectively.

Interestingly, they upgraded their online banking system recently. Transfer between account can be done without placing a phone call to them and are instantaneous. (TFSA<->savings)

There's a review of the CDF online interface, here: http://www.highinterestsavings.ca/2011/ ... ce-review/

We'll see if they lower their rates to follow People's Trust.
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MIP710 at TDW

Postby sydney2 » 17 Jul 2012 17:09

Today I placed a buy order to add funds to my MIP710 at TDW...a messsage came up that the order could not go through and to call TDW. As of June 1st, TDW will not sell MIP710's, the alternative is a TDW investment @1.25% they explained that my existing MIP710 which is paying 1.3%. can still exist, but I cannot purchase additional units.

I guess they feel it is better to keep this investment in house. :?
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Re: MIP710 at TDW

Postby AltaRed » 17 Jul 2012 17:27

This is covered in considerable detail in this thread viewtopic.php?p=469525#p469525

I suspect most, if not all, discount brokers have discontinued the practice of offering competitor HISA products.
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Re: MIP710 at TDW

Postby sydney2 » 17 Jul 2012 18:13

Thanks for your reply Alta Red I didn't check far enough in the other posts, I should have known this site would be right up to date.
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Re: MIP710 at TDW

Postby optionable68 » 17 Jul 2012 19:17

I own both the MIP and TDB ISA accounts.

I wouldn't worry too much about 5 bps, but if the spread widens materially, then other options may need to be considered.
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Re: MIP710 at TDW

Postby CROCKD » 17 Jul 2012 20:13

AltaRed wrote:I suspect most, if not all, discount brokers have discontinued the practice of offering competitor HISA products.


BMOIL still offers 7 products from IBN100 to DYN500 and incl.MIP710

The big drawback. There is a $25,000 minimum.
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Re: MIP710 at TDW

Postby AltaRed » 17 Jul 2012 21:06

CROCKD wrote:The big drawback. There is a $25,000 minimum.

Plus most likely a minimum 90 day hold to avoid penalty provisions (intended no doubt to ensure the broker gets one trailer fee out of the transactions).
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Re: MIP710 at TDW

Postby CROCKD » 17 Jul 2012 21:24

AltaRed wrote:Plus most likely a minimum 90 day hold


No minimum hold. You can put it in one day and take it out the next. I checked by telephone before I parked my RRIF withdrawal money.
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Re: MIP710 at TDW

Postby AltaRed » 17 Jul 2012 21:31

CROCKD wrote:No minimum hold. You can put it in one day and take it out the next. I checked by telephone before I parked my RRIF withdrawal money.

Perhaps limited to registered accounts? If not, it seems odd they would be a charitable organization incurring expense on behalf of their clients. :P No wonder BMO has not raised their dividend since 2007,
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Re: MIP710 at TDW

Postby Taggart » 18 Jul 2012 09:29

CROCKD wrote:
AltaRed wrote:I suspect most, if not all, discount brokers have discontinued the practice of offering competitor HISA products.


BMOIL still offers 7 products from IBN100 to DYN500 and incl.MIP710

The big drawback. There is a $25,000 minimum.


Does anyone know of an option for a bit less than $25,000 with BMOIL? Also need to be able to apply "automatic" monthly withdrawals for a RRIF.
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Re: MIP710 at TDW

Postby AltaRed » 18 Jul 2012 09:54

Taggart wrote:Does anyone know of an option for a bit less than $25,000 with BMOIL? Also need to be able to apply "automatic" monthly withdrawals for a RRIF.

No, but it is probably BMO's own product. When you do find out, it would be good to include something here http://www.finiki.org/wiki/High-Interes ... s_Accounts
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Postby Shakespeare » 18 Jul 2012 10:05

BMOIL:

RRSP: http://www.bmo.com/home/personal/banking/rates/rrsp looks like savings account is .25% :roll:

TFSA: Tax free savings account | Bank accounts | BMO Bank of Montreal - 1.15% available

I note that Fund Quote - The Globe and Mail yields .1%.

Added: iShares CMR http://ca.ishares.com/product_info/fund ... ew/CMR.htm may be a possibility but isn't CDIC insured.
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