Deposit Rates: ING etc. (2009)

Saving strategies, maximizing interest rates, budgeting.

Postby Arby » 24 Jun 2009 09:36

adrian2 wrote: So today I've decided to check the current yields on these money market funds:
TD US$ MMF = 0.45%
RBC US$ MMF = 0.14%


Adrian, thanks for the info. With the current low rates, I've been lax in making sure I'm getting the best rates on my US$ MMF. Also I found out that MIP511 is now available from TDWH, (but it can only be bought via phone). Today I switched from RBC US$ MMF at 0.14% to MIP511 at 0.6%.
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Postby AltaRed » 24 Jun 2009 11:48

That differential should be good for about 1 week if you are lucky. These things change monthly along with returns. It's a mug's game in this interest rate environment.
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Postby flywaysuzy » 24 Jun 2009 15:55

Well, I have a gic up for renewal next month, I don't think I need to buy another until next year, so maybe the 2% cdn tire bank account is where it should go...
Almost signed up the other day, but the clause about sending all my financial information offshore and sharing it with every sleazy salesperson on the planet made me push the eject button. I'd think about stuffing it all in the mattress, but we all know what happens to that! Never mind the lump factor.
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Postby 83_gemini » 24 Jun 2009 18:30

I'm tempted to renew my GIC at Achieva (they pay 2%). But no CDIC.
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Postby squash500 » 25 Jun 2009 01:07

83_gemini wrote:I'm tempted to renew my GIC at Achieva (they pay 2%). But no CDIC.


Isn't it awful how were all getting excited about earning 2% on a gic :?

I'm actually jealous. The best rate for a 1 year gic at tdw is only 1.65% :) .
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Postby rhenderson » 26 Jun 2009 00:31

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Postby Bylo Selhi » 26 Jun 2009 09:59

rhenderson wrote:ING now offering 1yr @ 3%

But only in RRSPs and only when you transfer an RRSP from somewhere else to ING. IOW this is a promotion to get you to switch. Then, once they have your money, they'll treat you exactly like the rest of their loyal customers by paying you a princely 1.25% on 1-year GICs.
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Postby IdOp » 26 Jun 2009 14:14

True there are limitations, but under the right circumstances I think this could be quite appealing. 1-year GIC rates today at RBCDI are 1.60% (best) and have been dropping, so if anything they might be lower next month. So that's at least a 1.40% bonus. If you figure 3 weeks interest lost (at 1.6%) transferring to ING, and another 3 weeks out, that's not quite 20bp. Assuming ING covers any transfer-out fee this year (I have not checked), you'd have a bribe of > 1.20% (asssuming you have an RSP, want a GIC, etc.). That beats the 1% bribe from RBCDI that some people were willing to take for one year (also knowing the target institution had its failings).

For me the ING offer is interesting in principle, but I have a LIRA, so that probably leaves it out. I also don't enjoy the switching process, but if it applied to me I'd think about it seriously, as my GIC's mature next month.
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Postby Shakespeare » 26 Jun 2009 14:17

I have a LIRA, so that probably leaves it out
Having gone through the LIRA transfer process once, I'm not going to go through it again without a good reason. Which means the rest of the accounts will stay where they are, too.
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Postby iluvnascar » 26 Jun 2009 14:22

Cdn Tire bank is offering GIC's from 1.2% (1 Yr) to 3.66% (5 Yr); with an extra 0.25% for amounts of $20,000+.

Their High-Interest Savings Account is still paying 2.0%.
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Postby adrian2 » 26 Jun 2009 14:24

IdOp wrote:but under the right circumstances I think this could be quite appealing.

IIRC the fine print gives you credit interest for the period from the date you start the transfer process until the funds actually arrive, provided the latter is before the end of July. A few more peanuts (not for me, in this case).
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Postby AltaRed » 26 Jun 2009 14:31

RBC DI is offering 3.7% today for a 5 year CDIC insured GIC with National Bank or People's Trust. That is all that interests me in my 5 year GIC ladder in my RRSP and I will automatically go there (5 year) when my renewal comes up in August. Maybe that will be less (or more) when renewal time comes.

Messing with 10-30 basis points on less than 1 year money seems to me like chasing butterflies.
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Postby agraham » 26 Jun 2009 23:39

iluvnascar wrote:Cdn Tire bank is offering GIC's from 1.2% (1 Yr) to 3.66% (5 Yr); with an extra 0.25% for amounts of $20,000+.

Their High-Interest Savings Account is still paying 2.0%.


I can't understand why anyone would take the 1-year when the savings account is paying more.
If you make a 0.8% premium by _not_ having your money locked up, why wouldn't you? Even if the savings account dropped to a rate 0.8% _below_ the best 1-year GIC you could find six months from now, you'd still come out even after a year.
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Postby travesty » 27 Jun 2009 05:35

agraham wrote:
iluvnascar wrote:Cdn Tire bank is offering GIC's from 1.2% (1 Yr) to 3.66% (5 Yr); with an extra 0.25% for amounts of $20,000+.

Their High-Interest Savings Account is still paying 2.0%.


I can't understand why anyone would take the 1-year when the savings account is paying more.
If you make a 0.8% premium by _not_ having your money locked up, why wouldn't you? Even if the savings account dropped to a rate 0.8% _below_ the best 1-year GIC you could find six months from now, you'd still come out even after a year.


Because your scenario is far from the worst possible? Other, previously competitive, accounts are paying much lower - 0.75% in the one case I checked (RBC eSavings) - and I'd expect a drop for the CT account much sooner than later - six months is far too generous. Assuming CT dropped to 0.75% you're losing 45 bp for the rest of the year by not locking into the GC (of course, you'd be stupid to lock into CT's crap GC rates - the real loss would be more like 85 bp if you compared against competitive GC rates (such as the 1.6% available at RBC DI).
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Postby adrian2 » 01 Jul 2009 09:49

In addition to Bylo's alert about the 3% TFSA rate for savings accounts at ING, they have almost doubled the referral bonus for each new client, to $25 for any new accounts of a minimum $100. This works out for up to 25% for each friend or family member, both for you and her/him.

ING Direct wrote:We've made referring your friends and family even more rewarding.

Brace yourself. We want to give Cash Bonuses to you, your friends and your family.

Here's the deal: Tell your friends and family about the value of saving with ING DIRECT. Invite them to open an ING DIRECT Account using your Orange Key! We'll reward you by depositing $25 into your Investment Savings Account (ISA) for every person you refer who opens an Account with $100, or more. Woo hoo! It gets better. Each person you refer who opens any ING DIRECT Account, with $100, or more will also receive a Bonus of $25.

It's easy. Simply follow the Orange Key prompts on our website to start referring today.

The more people you refer, the more bonuses you earn! And, as shown on the chart below, you'll receive an Extra Bonus for every 10 people you refer, up to 50.

Remember to use your personal Orange Key.

Earn up to $2,000 by sharing the savings today!
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Postby Norbert Schlenker » 01 Jul 2009 12:49

adrian2 wrote:In addition to Bylo's alert about the 3% TFSA rate for savings accounts at ING, they have almost doubled the referral bonus for each new client, to $25 for any new accounts of a minimum $100. This works out for up to 25% for each friend or family member, both for you and her/him.

ING Direct wrote:We've made referring your friends and family even more rewarding.

Brace yourself. We want to give Cash Bonuses to you, your friends and your family.

Here's the deal: Tell your friends and family about the value of saving with ING DIRECT. Invite them to open an ING DIRECT Account using your Orange Key! We'll reward you by depositing $25 into your Investment Savings Account (ISA) for every person you refer who opens an Account with $100, or more. Woo hoo! It gets better. Each person you refer who opens any ING DIRECT Account, with $100, or more will also receive a Bonus of $25.

It's easy. Simply follow the Orange Key prompts on our website to start referring today.

The more people you refer, the more bonuses you earn! And, as shown on the chart below, you'll receive an Extra Bonus for every 10 people you refer, up to 50.

Remember to use your personal Orange Key.

Earn up to $2,000 by sharing the savings today!

Why not! I invite any member to send me their own Orange Key by PM before midnight PDT today and I will randomly select two to open TFSAs (maybe four if I open a couple of ISAs too) for my wife and myself. Somebody may as well get $25 for no work.
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Postby Bylo Selhi » 01 Jul 2009 13:10

Norbert, the ING "Orange Key" process asks for the prospect's e-mail address. Unless you want to post yours here that mechanism won't work directly.

Here's a workaround for those who want to participate. Login to your ING account and complete the form using any e-mail address you like, then click the Preview E-mail button. That will show something like:
From: friends@ingdirect.ca on behalf of: xxx [xxx@gmail.com].

To: Norbert [xxx@xxx.com].

Subject: xxx xxx wants you to become a Saver.
-------------------------------

Your friend xxx xxx wants you to save your money with ING DIRECT. What does this mean? It means that when you open an ING DIRECT account - be it an Investment Savings Account, RSP, or GIC with a minimum of $100 we'll start you off with a $25 bonus! Or if you are looking for a mortgage, why not get an unmortgage with ING DIRECT and get a $25 bonus too!

All you have to do is enter xxx xxx's Orange Key 12345678S9 and you're set to go.

Visit www.ingdirect.ca/referafriend to learn more, or ingdirect.ca to start saving today!

P.S. Don't forget to include your friend’s Orange Key 12345678S9 when you open an account to get your $25 bonus!

Copy the Orange Key number into a PM and fire away. You can quit the regular Orange Key process without sending an e-mail.
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Postby adrian2 » 01 Jul 2009 13:13

Bylo Selhi wrote:Norbert, the ING "Orange Key" process asks for the prospect's e-mail address. Unless you want to post yours here that mechanism won't work directly.

Here's a workaround for those who want to participate. Login to your ING account and complete the form using any e-mail address you like, then click the Preview E-mail button.

Your Orange Key also shows when you view your ING accounts list.
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Postby Norbert Schlenker » 02 Jul 2009 12:55

The winners of the ING lottery are Bylo and broke. I'm not sure when you'll get your $25, as it appears we have inadvertently run out of cheques, so I have to wait for that new order to arrive in order to get the TFSA accounts funded.

According to ING phone personnel, I am only eligible for one $25 rebate for opening any combination of accounts but it's not clear how they will deal with a different referral code on the other side. So, when I get my new cheques, I'll also open two new ISAs at ING, with adrian2's and Waskasoo's referral codes, as you two came 3rd and 4th in the lotto. I won't get the $25 but you two may.

Thank you all for playing. :)
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Postby Pickles » 02 Jul 2009 17:15

I notice that People's Trust has reduced its interest rate to 2.25% (although RedFlagDeals still lists the rate as 2.5%)
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Postby queerasmoi » 14 Jul 2009 10:53

Another drop. Citizens is down to 1.00% from 1.10, and ING Direct is down to 1.20% from 1.35.
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Postby Bylo Selhi » 14 Jul 2009 12:26

queerasmoi wrote:Another drop...

Sheesh. The newspapers can't keep up with the rate of change, e.g. yesterday's $5,000 goes in – a lousy 50 bucks comes back.
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Postby Shakespeare » 14 Jul 2009 12:28

$5,000 goes in – a lousy 50 bucks comes back.
Money [s]is[/s]should be put into a so-called high interest savings account for safety, liquidity, and convenience, not return.
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Postby jeebuz » 14 Jul 2009 14:25

This might be interesting for those who have kids: Children's Savings Account (CSA)

Introducing the new ING DIRECT Children's Savings Account (CSA) - a great financial learning opportunity for any child whose parent has an ING DIRECT Investment Savings Accounts.

Open an account with $100 or more and get a $25 bonus.


How quickly can you withdraw the $25 after

- Jeebuz -
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Postby ward » 14 Jul 2009 14:52

Someone reported up thread:

RBC has announced a product similar to the Renaissance/CIBC savings account "fund"... will launch by mid-July. No interest rates mentioned...


Any recent news on this possibility?
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