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

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

Post by rhenderson »

2of3aintbad wrote: 16 Jul 2017 14:38 Appears to me that you will get the 2.15% only if you keep your transferred deposit untouched for 4+ months. It is more like a cashable GIC than an savings account.
Yes, it does seem to resemble a cashable GIC except that if I understand the terms correctly one may remove a portion of the funds and only lose the bonus interest on the funds removed, the untouched balance should still qualify.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by 2of3aintbad »

rhenderson wrote: 16 Jul 2017 16:05
2of3aintbad wrote: 16 Jul 2017 14:38 Appears to me that you will get the 2.15% only if you keep your transferred deposit untouched for 4+ months. It is more like a cashable GIC than an savings account.
Yes, it does seem to resemble a cashable GIC except that if I understand the terms correctly one may remove a portion of the funds and only lose the bonus interest on the funds removed, the untouched balance should still qualify.
Maybe, but that's not how I interpret the terms and conditions. Since there are other options that pay monthly, I'll use those.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by lacrosse905 »

Why not use E,Q. Bank @ 2.3% monthly. We have transferred there and no hassle, easy transfers, no need to shop around and funds are always available..
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by DenisD »

rhenderson wrote: 15 Jul 2017 07:21 I just noticed that RBF2010 is now paying 0.85%, an increase of 0.10
Ditto for TDB8150.
https://www.tdassetmanagement.com/solut ... eId=130268
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus »

It's odd that the five-year GIC rate at Peoples Trust has gotten rather poor -- 2.25% is less than I can get through TDDI, something I can't recall seeing previously. The short GIC rates are still relatively good, but the longer rates are disappointing.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed »

It is a sign certain institutions are not needing the deposits. Could part of it be less demand for mortgages in the Greater Vancouver area? Resale volume has even decreased in the Central Okanaagan. BC is a major part of PT's playground.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

As part of our commitment to making customers the first to know about our rate changes, please note that effective Thursday, August 3, 2017, we'll be decreasing our interest rates for the following terms:

1 Year GIC - 2.50% (currently 2.75%)
18 Month GIC - 2.60% (currently 2.85%)
2 Year GIC - 2.70% (currently 2.95%)
3 Year GIC - 2.80% (currently 3.05%)
4 Year GIC - 2.90% (currently 3.15%)
5 Year GIC - 3.00% (currently 3.25%)
All other Oaken rates will remain unchanged.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Money101 »

You'd think the recent BoC rate raise would have kept these rates where they were, at least. But I'm no expert.
Maybe they would have dropped them even lower without the BoC raise?
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Re: High interest rates for savings, GICs and MMFs (2017)

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They drop them when they don't need to attract that volume of inflows. IOW, it has everything to do with competitive rates, but little (or nothing) to do with BoC rates. They will optimize how much they have to pay against the volume of inflows they need. I am hoping they won't drop even further before I can renew a GIC in my RRSP circa Sept 1.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by ig17 »

Money101 wrote: 26 Jul 2017 16:57 You'd think the recent BoC rate raise would have kept these rates where they were, at least. But I'm no expert.
Maybe they would have dropped them even lower without the BoC raise?
The drop has nothing to do with the BoC rate. Home Capital repaid their obscenely expensive line of credit. The run on the bank has been stopped and reversed. I expect they will continue to bring their rates in line with the rest of the industry.

Home Capital Fully Repays $2 Billion Berkshire Hathaway Backed Credit Facility
As of July 25, 2017, the Company's aggregate available liquidity and credit capacity stood at approximately $3.59 billion including an undrawn amount of $2 billion under the Company's credit facility agreement with Berkshire.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

Probate/CDIC/GIC's

I/we have a fair amount of Gic's how do I keep them under CDIC limits and avoid probate? The ones which are joint pass directly to the wife what about the ones in her name and the ones in my name?
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Re: High interest rates for savings, GICs and MMFs (2017)

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BRIAN5000 wrote: 29 Jul 2017 11:35 I/we have a fair amount of Gic's how do I keep them under CDIC limits and avoid probate? The ones which are joint pass directly to the wife what about the ones in her name and the ones in my name?
I assume you mean joint ones pass to the survivor, whichever one of you survives. The rest go to the estate and thus through probate. Don't sweat the probate issue when the alternatives could be worse, e.g. being over CDIC limits. Probate is not a dirty word.
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Re: High interest rates for savings, GICs and MMFs (2017)

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AltaRed wrote: 29 Jul 2017 12:00
BRIAN5000 wrote: 29 Jul 2017 11:35 I/we have a fair amount of Gic's how do I keep them under CDIC limits and avoid probate? The ones which are joint pass directly to the wife what about the ones in her name and the ones in my name?
I assume you mean joint ones pass to the survivor, whichever one of you survives. The rest go to the estate and thus through probate. Don't sweat the probate issue when the alternatives could be worse, e.g. being over CDIC limits. Probate is not a dirty word.
Yeah I hear you but it's $7000 on 1/2 mil in BC if either one of us dies that's a few cases of beer for my wake if it's me.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed »

I'll suggest $7k is a non-issue on $500k. Heirs/beneficiaries won't even blink. They'll likely spend a good part of it on vacations and boats and cars and such....after hopefully paying off their mortgages first. We cannot steer from the grave. On the glass half full side, just think what your 'donation' will mean to the taxpayers of this province. We will be forever grateful. :P

We can always vote with our feet and move to AB or any one of another 4-5 provinces with very low fees. Course it will cost tens of thousands to re-locate too.

Added: I recognize I will likely make a sizeable donation of my own some day... probably in the 5 figure range. i wonder if I could get my name on a bench outside the BC Legislature?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by kcowan »

We have some name openings for you. They stick a rock in front of a tree and add a brass plaque. It is not deductible and only good for 10 years! Should I reserve one for you?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

I have lots of ideas and once in a while I actually have a good one not sure if this counts or not.

I was thinking today a couple, for CDIC purposes, with current rates at Oaken could have $600,000 deposited and get 2.93% average yield on a 5 year monthly payout roller $1465 month all CDIC, 3.03% compounded ( interest on the compounder not CDIC protected) that's about $1500 a month, huh.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by fundamental »

DenisD wrote: 17 Jul 2017 23:04
rhenderson wrote: 15 Jul 2017 07:21 I just noticed that RBF2010 is now paying 0.85%, an increase of 0.10
Ditto for TDB8150.
https://www.tdassetmanagement.com/solut ... eId=130268
Tangerine base ISA rate is 0.90% as of Aug 1 2017 (first increase since August 2010)
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by amphitryon »

The following fresh in from PC:

''Great news. You’re already enrolled and are currently enjoying 2%* interest on new deposits into your President’s Choice Financial® Interest PlusTM savings account until August 31, 2017. As an added benefit, you will earn 2.5%* interest on those deposits plus any new deposits from September 1 until October 31, 2017. ''
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by IdOp »

PC Financial Interest Plus savings account rate up to 0.90 %.

(eagerly following suit with the excessive skyrocketing rates of the competition)
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

TORONTO — CIBC is launching a new direct banking brand that will absorb some two million customer accounts currently with Loblaw-owned President’s Choice Financial.

Toronto-based CIBC (TSX:CM) has provided the back-end banking services for PC Financial for nearly 20 years but the companies said Wednesday they are going their separate ways.

...........and shift all clients over to the Simplii brand on Nov. 1.
http://www.moneysense.ca/save/banking/c ... financial/
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by IdOp »

Here is the GlobeInvestor article about CIBC's PCF --> Simplii move:

CIBC to cut ties with President's Choice, unveils own digital bank

I'm thinking posts on this topic should probably be split into a new thread?

ADDED: CIBC press release
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by bill2009 »

I was surprised to find Alterna Bank offering 1.9% savings accounts and TFSA's. This would be a compelling alternative to tangerine.
https://www.alternabank.ca/
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

bill2009 wrote: 27 Aug 2017 17:23 I was surprised to find Alterna Bank offering 1.9% savings accounts and TFSA's. This would be a compelling alternative to tangerine.
https://www.alternabank.ca/
NIMHO, with 2 CDIC insurers* and pretty good rates Oaken with it's slightly lower rates would be my choice. Their online software is a bit clunky but others may have better luck with a browser other than Chrome.

*($600,000 CDIC protected for a couple and 1.2 million for a trio)
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Koogie »

I am both an Alterna and Oaken customer. But, FWIW, I would go with EQ Bank at the moment (where I am also a customer).

2.30% HISA, great interface, speedy transfers and CDIC coverage.

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

Post by bill2009 »

Oaken also has a good range of products - rsps,rifs,tfsas etc. I was surprised at alterna because i knew them as the cs coop and their rates were never much good.

Would anyone recommend oaken as a replacement for Tangerine? Just a place to stuff cash with individual and joint acounts?
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