High interest rates for savings, GICs and MMFs (2017)

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
Wing
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Wing » 27 Feb 2017 04:32

gobsmack wrote:
BRIAN5000 wrote:
gobsmack wrote:That's correct. There is no insurance on USD deposits in Canada.
Unless you invest in a BC Credit Union don't know about other provinces.
Cool. I didn't know about that.
Hubert Financial in Manitoba is offering 0.75% for USD HISA, all covered under the Manitoba Province credit union. Not sure how secure that is comparing to putting USD HISA at TD or the other big 4, which is not covered by CDIC at all.

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SoninlawofGus
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus » 27 Feb 2017 13:28

SoninlawofGus wrote:The CPI rate just increased somewhat dramatically to 2.1%, and even 5-year rates through discount brokerages are now, momentarily at least, giving a negative real return (I have a rung that just matured). Does anyone know if GIC rates will respond to the CPI increase at all over the coming days? Rates have been falling for so long now that I have never really tracked the rates against CPI increases.
Answering my own question, in part because I can't say where my mind was at last week (I should have known the answer then)...

Of course, there have been no changes to GIC rates, bond markets, XSB, etc. (in fact, rates are still coming down). And, of course, GIC rates are loosely tied to GOC rates and expectations, most of which remain low with pretty much no expected increases on the horizon -- though a BMO economist is now predicting a more rapid rise in rates this spring. However you want to look at it, you're not going to be beating today's CPI with GICs through discount brokerages (excepting PT, Oaken, CT and other smaller players).

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Ken
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Ken » 09 Mar 2017 16:57

After reading all posts in this topic since Jan 2016 I just opened an EQ Bank account. Took a total of about 10 minutes including downloading their iPhone app and using that app to deposit a $1 cheque which they will use to link the new account to my chequing account for EFT transfers. Slick and easy to use. They say 7-10 business days to activate the account and they'll send me an email when it's done.

FYI: here is a list of online banks and current rates I created along the way. I was purely interested in daily interest savings accounts. Let me know if you see errors. Sorry about the bad formatting but you should be able to copy/paste into Excel.
Scotia is there just for comparison. And I don't care about promo rates... I can't be bothered arguing with them all the time.
And I didn't bother adding Ideal Savings https://idealsavings.ca/ with 1.75% because I think it's very new

Bank or Credit Union URL Owned by Deposit insurance rate Joint accts offered?
Scotiabank http://www.scotiabank.com n/a CDIC 0.05% Y
Presidents Choice Financial https://www.pcfinancial.ca/ Loblaw Companies Limited CDIC (via CIBC) 0.80% Y (max 2 people)
Tangerine Bank https://www.tangerine.ca/ Scotiabank CDIC 0.80% Y
Canadian Tire Bank https://www.myctfs.com/ Canadian Tire Corp CDIC 1.30% ??
ICICI Bank http://www.icicibank.ca/default.page ICICI Bank Limited, of India CDIC 1.35% ??
Peoples Trust http://www.peoplestrust.com/en/ Privately owned CDIC 1.45% ??
Meridian Credit Union (Ontario) https://www.meridiancu.ca/ ??independent?? DICO (Deposit Ins. Corp. of Ontario) 1.50% ??
Oaken Financial https://www.oaken.com/ Home Capital Group (Home Bank) CDIC (via parent bank) 1.50% ??
Canadian Direct Financial * https://www.canadiandirectfinancial.com Canadian Western Bank CDIC (via parent bank) 1.50% ??
Zag Bank https://www.zagbank.ca/ Desjardins Group CDIC 1.65% ??
Achieva Credit Union (Manitoba) http://www.achieva.mb.ca/ Cambrian Credit Union Deposit Guarantee Corp of Manitoba 1.70% Y
Bridgewater Bank https://bridgewaterbank.ca/ AMA (Alberta Motor Assoc.) CDIC 1.75% ??
Alterna Bank https://www.alternabank.ca/ Alterna Savings (a credit union) CDIC 1.95% ??
EQ Bank https://www.eqbank.ca/ Equitable Bank CDIC (via parent bank) 2.00% No
Concentra Financial https://www.concentra.ca/Pages/index.aspx n/a n/a n/a n/a
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Koogie
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Koogie » 09 Mar 2017 17:19

I opened my HISA with EQ in January. It took them a full week to get the account running. And about 3 days to pull in subsequent deposits from TDCT.

Umm.. you do realize all that kind of information is maintained at another forum dedicated to HISAs ?

https://www.highinterestsavings.ca/chart/
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Ken
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Ken » 09 Mar 2017 17:22

Koogie wrote:Umm.. you do realize all that kind of information is maintained at another forum dedicated to HISAs ?
https://www.highinterestsavings.ca/chart/
Nope. Didn't know that. Thanks.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Arby » 10 Mar 2017 12:25

My previous promotional rate of 1.6% at Tangerine expired yesterday. With virtually no negotiation, the Tangerine agent offered me a new promotional rate of 2% for 90 days. That's a very competitive rate, so I accepted.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by optionable68 » 12 Mar 2017 17:14

Arby wrote:My previous promotional rate of 1.6% at Tangerine expired yesterday. With virtually no negotiation, the Tangerine agent offered me a new promotional rate of 2% for 90 days. That's a very competitive rate, so I accepted.
Do you have other business with Tangerine which would encourage them to offer 2% with "virtually no negotiation" ?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Arby » 12 Mar 2017 20:53

No other business with Tangerine. I simply called and said I would move my money if they could not match a competitor's rate. The agent immediately offered 2% for 3 months.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Hopetoretire » 13 Mar 2017 10:36

If I have $80k GICs in a non-reg account with Cdn Tire Bank directly, and $60k GIC's with Cdn Tire Bank via non-reg at RBCDI, am I covered for $100k only with CDIC or am I covered for $140k?

Can't seem to find any info with this example on CDIC site, so assurance would be appreciated.

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Koogie
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Koogie » 13 Mar 2017 13:35

I stand to be corrected but as I understand it, 100K. The CDIC coverage is provided by the deposit taking institution on the deposit you have placed with them. In both your instances that is Crappy Tire Bank. RBC is only acting as a discount broker and not the deposit taker.

This might be a good topic to add to the Finiki.

edited to add: it would also be different if one of the accounts was registered.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by IdOp » 13 Mar 2017 14:16

I'm not at expert but FWIW, Koogie's answer sounds correct to me. The closest link at CDIC's site that I can find says:
CDIC wrote:In the event of a member institution failure, a depositor's chequing account, savings account and any unregistered term deposits with a term to maturity of 5 years or less would be considered as deposits held in one name and would therefore be combined for a maximum coverage limit of $100,000.
(my italics)

I think the wording there would be clarified a bit if instead of "would be" they had written "at that member institution would be". The member institution being CTFS in Hopetoretire's case.

Earlier this year I found myself in a similar situation. I had GICs at discount brokers and a HISA held directly with a member institution. Total was a little above $100k. Finally it dawned on me that this is probably not covered. Fortunately it was not all GICs, so I could drain part of the HISA and put it elsewhere.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Hopetoretire » 13 Mar 2017 14:55

Thank you! That means I have to move my HISA's somewhere. I thought different account types e.g. HISA vs chequing would be covered separately from GIC's. Pity about the TFSA limit reduction - else could have parked some there.

How many different banks do people normally deal with to keep CDIC-safe?

What is the sequence of events in times of a crash? Example:
1. Bank A goes bunk - small bank, so I claim from CDIC (do I?) - how long to pay out
2. Shortly after Bank B goes bunk - medium size bank - so I claim from CDIC - how long to pay out
and so on and so on.
3. Pay out chequing, then savings, then 1 year GIC, then 2 year GIC a year later, etc?

While earning a regular income, never had these concerns - but living off retirement savings is a new game to me, so cashflow is becoming more important.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 13 Mar 2017 15:38

Based on past practices (history), in the event of an insolvency, CDIC looks for another insitution to take on the deposits (and perhaps good loans). Other than perhaps a 'short' hiccup, the change is almost seamless to the investor. Back in the '80s, I had GICs in a RRSP with a trust that went bankrupt. I received a letter from the 'new' institution who took on the deposits and then a statement on new letterhead with a new account number. IOW, relatively seamless to me. Don't know what kind of interruption (or time period) would occur with active accounts.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by DenisD » 20 Mar 2017 22:35

My interest rate at Tangerine will be 2% for the next 90 days. Up from 1.6%.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by adrian2 » 20 Mar 2017 23:09

DenisD wrote:
20 Mar 2017 22:35
My interest rate at Tangerine will be 2% for the next 90 days. Up from 1.6%.
Have you called or was the offer available online for the taking?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by DenisD » 20 Mar 2017 23:23

I called. The previous offer expired yesterday. It was the usual drill: What will you do if we don't give you an offer? Let me put you on hold while I see what I can do ...

The last time I called, three months ago, they reduced the offer from 2% to 1.6%. So I withdrew a substantial portion of my money.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by adrian2 » 20 Mar 2017 23:30

Thanks, I'm preparing for a similar drill two weeks from now.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus » 21 Mar 2017 08:02

adrian2 wrote:
20 Mar 2017 23:30
Thanks, I'm preparing for a similar drill two weeks from now.
As am I. My wife was offered 3.25% through March. Her account had something like $57 in it. My account had $600 but I did not get the offer. Both accounts were essentially dormant.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Koogie » 28 Mar 2017 19:17

Forgot this was posted elsewhere and might be of use to users here.

GIC rates list
http://dollarguide.ca/index/products/3/

- not exhaustive but includes options that the newspaper lists don't. Same site also does a HISA list.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by 2of3aintbad » 28 Mar 2017 20:39

Not sure what the 'Cashable' column means. For example, for Hubert what are the details of cashing in a 5 year GIC? Also, Luminus Financial offers 2.10% for a 1 year GIC. I think that is the best rate for that term.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by ig17 » 28 Mar 2017 21:11

DenisD wrote:
20 Mar 2017 22:35
My interest rate at Tangerine will be 2% for the next 90 days. Up from 1.6%.
Got this done last week. There was no push back from the agent.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by optionable68 » 01 Apr 2017 21:53

DenisD wrote:
20 Mar 2017 23:23
I called. The previous offer expired yesterday. It was the usual drill: What will you do if we don't give you an offer? Let me put you on hold while I see what I can do ...

The last time I called, three months ago, they reduced the offer from 2% to 1.6%. So I withdrew a substantial portion of my money.
What were your exact words when you called?
I doubt any agent will ask "What will you do if we don't give you an offer?" without some provocative language on your part
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by DenisD » 02 Apr 2017 00:26

optionable68 wrote:
01 Apr 2017 21:53
What were your exact words when you called?
I doubt any agent will ask "What will you do if we don't give you an offer?" without some provocative language on your part
I don't remember my exact words. But I'm not usually a very provocative guy. :wink: They usually ask what I'll do or what interest rate I can get somewhere else.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by rhenderson » 02 Apr 2017 16:36

optionable68 wrote:
01 Apr 2017 21:53
DenisD wrote:
20 Mar 2017 23:23
I called. The previous offer expired yesterday. It was the usual drill: What will you do if we don't give you an offer? Let me put you on hold while I see what I can do ...

The last time I called, three months ago, they reduced the offer from 2% to 1.6%. So I withdrew a substantial portion of my money.
What were your exact words when you called?
I doubt any agent will ask "What will you do if we don't give you an offer?" without some provocative language on your part
I guess that you've never called Tangerine in order to make a statement like that. :lol: When I used to do the TING two step, that was the first question that was asked simply because I had to phone them in order to transfer out more than 50k.

I no longer bother because there are just too many other options available without having to beg/ grovel every 90 days and jump through their hoops.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus » 03 Apr 2017 08:01

rhenderson wrote:
02 Apr 2017 16:36
I no longer bother because there are just too many other options available without having to beg/ grovel every 90 days and jump through their hoops.
So, do you just set up multiple accounts (right now, looks like EQ is offering 2.0%) and then transfer your money to the highest bidder? If so, I'm curious what amount people feel comfortable transferring around at any point in time. While it theoretically makes no difference, I tend not to transfer more that 20K on any given day.

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