High interest rates for savings, GICs and MMFs (2016)

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
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AltaRed
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by AltaRed »

Will be moving my money out of PCF tomorrow (or Thursday) and back to Zag since PCF wouldn't offer me more than 1.5% to continue to end of March. I know PCF seems to be dropping their old way of promotions but one never knows for sure and better safe moving the balance before month end just in case they change their minds.
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Re: High interest rates for savings, GICs and MMFs (2016)

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schmuck wrote:
CROCKD wrote:Just called Tangerine (previous offer expired yesterday) and was given a new offer of 2% for 90 days.
Interesting!
Called Tang Dec 19, when the 2% rate expired in 3 accounts (my own, wife, and joint). Waited about 15 minutes to speak with a supervisor, and was told that the best they could do for all savings accounts was 1.6%. Promptly withdrew $100k and passed the phone over to wife with same instructions. Called back 2 more times for additional withdrawals and transferred the funds into our Zag accounts with the intention of switching back to Tang in case they come up with a more generous new promo. Feel a bit guilty for stooping to their level, but will certainly call Tang again after the holidays for more withdrawals if they can't come up with a better deal.
Is there a reason you are not transferring to EQ currently at 2%? Just curious.
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CROCKD
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Re: High interest rates for savings, GICs and MMFs (2016)

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schmuck: I was on hold about 15 minutes instead of opting for a call back. Based on what has been reported here and elsewhere I was prepared for the usual hassle. I was going to move the money over to ZAG even if they offered me the same rate as ZAG. They asked me if I had another offer elsewhere and I mentioned EQ bank. Of course I did not mention that I have a large amount at EQ already so really do not have the room.
I think there is a lot of randomness to the way they are operating. As Deadog reported 10 days ago he got the same treatment as you for a large amount. Maybe they realized that by taking a hard line there are a lot of large depositors bailing. Like a lot of people I have been a client of their forerunners ING since the 90's
NorthernRaven has offered what he considers a logical basis for their behaviour but I don't buy it!
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Re: High interest rates for savings, GICs and MMFs (2016)

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good4u wrote: Is there a reason you are not transferring to EQ currently at 2%? Just curious.
Already max'd out at EQ
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Mordko
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Re: High interest rates for savings, GICs and MMFs (2016)

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AltaRed wrote:Will be moving my money out of PCF tomorrow (or Thursday) and back to Zag since PCF wouldn't offer me more than 1.5% to continue to end of March. I know PCF seems to be dropping their old way of promotions but one never knows for sure and better safe moving the balance before month end just in case they change their minds.
Why Zag? Why not something like Alterna?
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Re: High interest rates for savings, GICs and MMFs (2016)

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Mordko wrote:Why Zag? Why not something like Alterna?
If you had been reading upthread, you would find that I no longer chase rates by opening new accounts. I originally was with PCF and then chased to PT, and then to CDF and then to Zag. Once I realized the game was simply to offer promtional rates to attract deposits...and then to quickly lower rates, I quit that game. Besides, I do not want my eventual POA and/or Executor to hate me too much. I have some empathy for people in those positions, having been there myself. IOW, be kind to those you eventually unload your affairs too.

I will keep my PCF, CDF and Zag accounts for now but will close PT. They haven't been competitive for some time and my current balance is $0.00 with them. I will watch CDF and Zag throughout 2017 and then make a decision which one of those I also close. I do not keep enough cash around to need to be anywhere but in one HISA account anyway.
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BRIAN5000
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Re: High interest rates for savings, GICs and MMFs (2016)

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but will close PT. They haven't been competitive for some time
I find Peoples competitive but right now the best seems to be Oaken. I don't keep these around just for HISA but mainly for multiple GIC deposits.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by AltaRed »

BRIAN5000 wrote:
but will close PT. They haven't been competitive for some time
I find Peoples competitive but right now the best seems to be Oaken. I don't keep these around just for HISA but mainly for multiple GIC deposits.
Even more of a headache for a POA or Executor, :wink: but to each his/her own.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by izzy »

Anyone come across THIS variation on a cashable GIC?
Seems too good to be true so it probably is!The ingenuity is intriguing though!
https://www.happysavings.ca/1-year-term.aspx
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Re: High interest rates for savings, GICs and MMFs (2016)

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I have seen those before from a number of institutions....but usually based on a 5 year "stepped up" GIC where the GIC is cashable on any given anniversary but only earns interested in the various steps that apply for the period held. At least some of the major banks offer these from time to time along with a few second tier banks (e.g. Manulife Bank I think).

The difference here is that it is based on quarters, rather than years... so is a short term vehicle. I don't believe it is 'too good to be true' but the rates are attractive.

Added: As a side comment, these kinds of GICs may not be transferrable to a discount brokerage. I remember when my mother had a few of those with Royal Bank and when we tried to move them to RBC Direct Investing, RBC DI wouldn't accept them. An administrative nightmare I suppose.
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Re: High interest rates for savings, GICs and MMFs (2016)

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Step-ups were fashionable some years ago. I think James trashed them somewhere in Prefblog.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by CROCKD »

I have 2 GICs with Hubert (Happy) and consider them short term 3 month vehicles. So far I have collected interest on the first two quarters and am into my 3rd quarter. You can terminate them at the end of any quarter.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by 2of3aintbad »

CROCKD wrote:I have 2 GICs with Hubert (Happy) and consider them short term 3 month vehicles. So far I have collected interest on the first two quarters and am into my 3rd quarter. You can terminate them at the end of any quarter.
Actually, you can terminate them any time, but get paid interest only to the last quarter. This is a somewhat unique vehicle, and I think the optimum strategy is to make 3 investments, in 3 consecutive months, so every month you can cash in (if necessary) with minimal interest loss.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by BRIAN5000 »

Got a birthday card from Oaken yesterday with a Mcdonalds gift card worth $5.00, huh!
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by izzy »

BRIAN5000 wrote:Got a birthday card from Oaken yesterday with a Mcdonalds gift card worth $5.00, huh!
Sh-sh! You're not supposed to tell anyone else :lol:
You are a special customer obviously
:wink:
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