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

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

Post by Koogie »

lacrosse905 wrote:Did anyone get a box of chocolates delivered today from Oaken. UPS delivered this gift today..... just a few days after 0aken notified us in an email that their HISA rate of 1.75 was going down to 1.50. It seems E.Q are holding at 2 percent, at least as of
today...frustrating....what are others planning .....I hate chasing yield and switching back and forth.
Yes. My wife got a box addressed to her. She no longer has an account or deposit at Oaken ! :twisted:

I've got to put a high 5 figure amount into a HISA in January and want to pick one that is likely to hold the rate for 6 - 12 months, even if it is not quite the highest. I am tempted by Alterna Bank at 1.95% as I already have a relationship with them and like them but might well just use the 1.50% at Oaken instead for simplicity... who says bribes don't work... :lol:
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by lacrosse905 »

Thx rhenderson i am going to CIBC at least until that rate finishes and the branch is just around the corner. I also like their prepaid u.s. Card.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by deaddog »

I'm still willing to chase for 1/2 %. Any time I can make over $100 per hour, even if it's only 4 hours per year, I take the job.

Moved from Oaken to Tangerine when Oaken cut the rate and am in the process of opening an Ideal Savings account so that I have some bargaining power with Tangerine when we renegotiate.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by SoninlawofGus »

Staying with Oaken for now. I'm currently doing a cash transfer, and the funds have been in process or "on hold" for a few days. I never like it when my cash funds are flying around, totally inaccessible to me. The more I chase yields, the more time my funds are in transit. That's mostly just a nuisance, but I still don't like it.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by BRIAN5000 »

lacrosse905 wrote:Did anyone get a box of chocolates delivered today from Oaken. UPS delivered this gift today..... just a few days after 0aken notified us in an email that their HISA rate of 1.75 was going down to 1.50. It seems E.Q are holding at 2 percent, at least as of
today...frustrating....what are others planning .....I hate chasing yield and switching back and forth.
Got it today addressed to me, wonder if the wife will get one?

Happy holidays
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Plant for your future (written on a box of chocolate's)? I thought it was a misprint at first.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by thegov »

Tang decided to offer only 1.6% -- lowest I can remember -- irritating as others were getting the standard 2.0% (per RFD).
Wasn't in mood to escalate so just said stuff it and told them to withdraw six figures. Enough games.
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Re: High interest rates for savings, GICs and MMFs (2016)

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Tangerine continue to piss off their clients with relatively large amounts - CDIC limits - whose money is mobile. And to what end? You have to wonder about the competency of the management orchestrating this. It takes a lot of clients with relatively small amounts at 0.8% to replace large deposit clients not to mention the cost of recruiting and replacing existing clients.
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Re: High interest rates for savings, GICs and MMFs (2016)

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I got a followup call from PCF today mentioning I could just leave my 2.25% money in after Dec 31 and get 1.5%. Said I could do better elsewhere and that was that.. Not even a question of how much and with whom. So adios PCF on Dec 30.
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Re: High interest rates for savings, GICs and MMFs (2016)

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CROCKD wrote:Tangerine continue to piss off their clients with relatively large amounts - CDIC limits - whose money is mobile. And to what end? You have to wonder about the competency of the management orchestrating this. It takes a lot of clients with relatively small amounts at 0.8% to replace large deposit clients not to mention the cost of recruiting and replacing existing clients.
Tangerine has just under $20 billion in non-registered individual deposits. That would include HISA and chequing (including a small lump of $USD), but not RRSP/TFSA/GIC. The number at the end of September 2016 (last available OSFI data) is about 4% higher than a year previous. It jiggles up and down from month to month by a percent or two, probably mostly due to the hot money froth and whatever promotions Tangerine and its competitors are offering.

I think there's a lot of overestimation of how much some internet indignation actually matters to Tangerine's very large deposit base. They will be willing to spend a certain amount on interest rate promotions. It seems they are using some of that to test actual customer behaviour. They aren't going to just give everyone 2% on existing balances, so it is either "new money promotions", or they are going to target individuals based on whatever criteria they are playing with. People who actually move money out, not giving people consecutive top-end offers, what external institutions are linked, what PCF is doing or likely to, random A/B to similar groups, whatever.
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Re: High interest rates for savings, GICs and MMFs (2016)

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AltaRed wrote:I got a followup call from PCF today mentioning I could just leave my 2.25% money in after Dec 31 and get 1.5%. Said I could do better elsewhere and that was that.. Not even a question of how much and with whom. So adios PCF on Dec 30.
Where are you going? I hadn't seen a better deal that that come along.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by AltaRed »

Back to Zag at 1.65% where I have an account. CDF (where I also have an account) at 1.50% is what I think PCF has decided to compete with. Those are the 3 online players I move around with (not chasing each new player* as it comes along).

* But if you want to chase, Alterna @ 1.95% and EQ Bank @ 2% are other CDIC banks people have been chasing. I just don't believe either of them will be there long...i.e. once they have met their deposit goals.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by rhenderson »

Tang at 0.80% and their great offer of 1.6% is IMO just jerking the uninformed around. :(

Even their parent,Scotiabank,a full service bank with brick and mortar branches to support, is offering 1.5%

http://www.scotiabank.com/ca/en/0,,1071,00.html
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Re: High interest rates for savings, GICs and MMFs (2016)

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rhenderson wrote:Tang at 0.80% and their great offer of 1.6% is IMO just jerking the uninformed around. :(

Even their parent,Scotiabank,a full service bank with brick and mortar branches to support, is offering 1.5%

http://www.scotiabank.com/ca/en/0,,1071,00.html
Well, Scotia is offering 1.5% only if you do no withdrawals in a 90-day window; otherwise only half that. That is a non-trivial distinction for them - they either get less churn, or don't have to pay out the bonus interest. There's also a $5 transaction fee, so you'd want another Scotia account to withdraw to, which might give them a bit of marginal client additions for other products.

Again, Tangerine is never again going to be universal high-interest provider - their deposit base is too large now. They will have to target their offers in some fashion or other, and won't lose sleep if some people pout when they don't come out ahead. Just once I'd like someone to come up with a "If I were Tangerine's CEO this is what my rate policy would be...", and come up with anything that isn't an obvious non-starter.
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Re: High interest rates for savings, GICs and MMFs (2016)

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Renewed Tangerine rate at 2% for 90 days today. It was previously 2.5% (I didn't call again when I heard some were getting 3%).
I don't know what criteria they use. I've been with them for about 10 years. 6 figures in HISA. YMMV, clearly.
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Re: High interest rates for savings, GICs and MMFs (2016)

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I think I'll just go with inertia and stay at PC for the 2.25 for however long it lasts. The only part I hate is how you have to call in to "enroll". What the heck, guys, you're an internet bank, give me a way to enroll online.
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Re: High interest rates for savings, GICs and MMFs (2016)

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Just cleared out all my Tangerine 2.95% cash for the last 2 weeks of the month, as I expect them to offer a new deal for "new money" sometime within the next 2-3 weeks
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Re: High interest rates for savings, GICs and MMFs (2016)

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optionable68 wrote:Just cleared out all my Tangerine 2.95% cash for the last 2 weeks of the month, as I expect them to offer a new deal for "new money" sometime within the next 2-3 weeks
Let us know what happens please. I have been debating with myself if someone holding the CDIC limit with them would automatically get an extension offer, or have to call in to see what they will give, or else move funds out to prove the point to them.

Last time I called in and got a good rate for 3 months and the agent helpfully told me not to hesitate to call in again when that promo expired. About $400 in extra interest over 3 months for a 10 minute phone call. :)
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by Garthd »

The yield on XDV.TO is currently 4.05% and pays monthly. Unless you have a near term need for the money why lose to inflation with GIC's?
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Re: High interest rates for savings, GICs and MMFs (2016)

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Garthd wrote:The yield on XDV.TO is currently 4.05% and pays monthly. Unless you have a near term need for the money why lose to inflation with GIC's?
There are many, perhaps a majority of, investors who wish to protect capital, or at least not risk capital to any material amount. XDV, which saw a 50% decline from its 2007/2008 top to its 2009 bottom, does not fit that category. It is simply not fixed income.
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Re: High interest rates for savings, GICs and MMFs (2016)

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Garthd wrote:why lose to inflation with GIC's?
Many GICs available even on the short end of the spectrum offer returns above CPI. Are you using a different measure of inflation? Limiting yourself to the worst GIC offerings? Please explain as your premise appears false, to say nothing of the peculiar dividend ETF to CDIC backed GIC comparison.
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Re: High interest rates for savings, GICs and MMFs (2016)

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AltaRed wrote:
Garthd wrote:The yield on XDV.TO is currently 4.05% and pays monthly. Unless you have a near term need for the money why lose to inflation with GIC's?
There are many, perhaps a majority of, investors who wish to protect capital, or at least not risk capital to any material amount. XDV, which saw a 50% decline from its 2007/2008 top to its 2009 bottom, does not fit that category. It is simply not fixed income.
I think Garthd addressed the risk of losing capital by expecting to keep the money invested long term?
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Re: High interest rates for savings, GICs and MMFs (2016)

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Garthd wrote:....Unless you have a near term need for the money why lose to inflation with GIC's?
yes agree
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Re: High interest rates for savings, GICs and MMFs (2016)

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Near vs medium vs long term is in the eyes of the beholder. Investors with a 10-20-30 year horizon can no doubt get by without 'guaranteed' fixed income (and I did essentially that up to the time i was about 50 yrs old) but as one nears withdrawal stage AND will have to tap into capital, that is no longer a viable strategy. Point being, a dividend stream from equity is not fixed income. At best, it is a surrogate for a fairly reliable income stream.
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by Descartes »

I can't even.
..But I'll give it a try:

XDV neither guarantees rate (the dividends of the underlying stocks may increase or decrease according to their management) nor return of principal (the stock price when you need your money back may be higher or lower than when you purchased it).
This lack of certainty is why people will allocate some of their funds to GICs or savings account.

Offensive language removed - Mod W
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Re: High interest rates for savings, GICs and MMFs (2016)

Post by ig17 »

Descartes wrote:Renewed Tangerine rate at 2% for 90 days today. It was previously 2.5% (I didn't call again when I heard some were getting 3%).
I don't know what criteria they use. I've been with them for about 10 years. 6 figures in HISA. YMMV, clearly.
YMMV is right. I have 2.5% expiring on Sunday. I called today and ask for an extension. Their best offer was 1.6% for 90 days. They refused to go higher even though I made it clear that 1.6% is not good enough and that I would transfer the entire balance out. And yes, I've been with them for 10+ years. 6 figures in HISA.

Moving to PCF on Monday. 2.25% until January and then we shall see.
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