Personal Finance

The Official RFD thread for Savings Accounts! (Updated as of 09/20/2017)

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Sauerkraut wrote:
May 4th, 2017 6:41 am
EQ announced a rate increase to 2.3% (also posted in the EQ thread).
That's great! OP updated.
「もし、奇跡を起こせたら……」
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angel_wing0 wrote:
May 4th, 2017 8:33 am
That's great! OP updated.
Didn't EQ lose like most of its deposits recently as investors pulled their money out? They're on shaky ground as most of their assets are in lending money out for risky loans. Sure, $100,000 of your cash may be protected by insurance... but in the end, if you have a 6 month process to get the money out if the bank goes belly-up, you've lost money in LOC.

I'd keep the money you put into EQ to money that you don't NEED access to. Maybe I'm being overly cautious, but it's worth asking all the same.
I'd love to write history... in advance.
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atomiton wrote:
May 4th, 2017 3:33 pm
Didn't EQ lose like most of its deposits recently as investors pulled their money out?
Actually it was Home Trust (aka Oaken). EQB has seen some loss of HISA money but nowhere near the scale of Home.
They're on shaky ground as most of their assets are in lending money out for risky loans.
That's highly debatable as the other threads that discuss this clearly indicate.
Sure, $100,000 of your cash may be protected by insurance... but in the end, if you have a 6 month process to get the money out if the bank goes belly-up, you've lost money in LOC.
Where is the "6 month process" coming from? CDIC's target is 3 days. There's no reason to believe they can't achieve that, apart from unsubstantiated FUD.
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[OP]
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atomiton wrote:
May 4th, 2017 3:33 pm
Didn't EQ lose like most of its deposits recently as investors pulled their money out? They're on shaky ground as most of their assets are in lending money out for risky loans. Sure, $100,000 of your cash may be protected by insurance... but in the end, if you have a 6 month process to get the money out if the bank goes belly-up, you've lost money in LOC.

I'd keep the money you put into EQ to money that you don't NEED access to. Maybe I'm being overly cautious, but it's worth asking all the same.
As bylo said, you mixed EQ up with Oaken/HCG. I am not worried as most of my money is at Tangerine 3% promo atm.
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angel_wing0 wrote:
May 4th, 2017 4:28 pm
As bylo said, you mixed EQ up with Oaken/HCG. I am not worried as most of my money is at Tangerine 3% promo atm.
Thanks. I only quickly heard the news... you're right i was mixed up with Oaken/home trust.
I'd love to write history... in advance.
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bylo wrote:
May 4th, 2017 3:38 pm
Actually it was Home Trust (aka Oaken). EQB has seen some loss of HISA money but nowhere near the scale of Home.


That's highly debatable as the other threads that discuss this clearly indicate.


Where is the "6 month process" coming from? CDIC's target is 3 days. There's no reason to believe they can't achieve that, apart from unsubstantiated FUD.
It was an example... if a company went bankrupt. I know that it's insured and it's probably pretty safe, but chasing yields... sometimes may not be worth the effort.
I'd love to write history... in advance.
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atomiton wrote:
May 4th, 2017 5:17 pm
It was an example... if a company went bankrupt.
1. If it was an example the comment should have been qualified as such.
2. A "company" and a "federally regulated financial institution" are two different things. The latter is regulated by OSFI (et al, e.g. Bank of Canada) and insured by CDIC. These federal agencies do this to help maintain the stability of our financial system, especially in times of uncertainrt as is the case now with Home and even more so if Home has to cease operations. So it makes no sense to suggest that the failure of a FI like Home would proceed at the same snail's pace as an ordinary corporate bankruptcy.
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atomiton wrote:
May 4th, 2017 5:17 pm
It was an example... if a company went bankrupt. I know that it's insured and it's probably pretty safe, but chasing yields... sometimes may not be worth the effort.
If a BANK becomes insolvent, the CDIC's target is to have insured money in depositors' hands in 3 business days or less (without any 'claim' action required on the customer's part).
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ace604 wrote:
May 4th, 2017 7:09 pm
If a BANK becomes insolvent, the CDIC's target is to have insured money in depositors' hands in 3 business days or less (without any 'claim' action required on the customer's part).
Exactly - and here is the link showing that: http://www.cdic.ca/en/about-cdic/resolu ... tools.aspx
(not necessarily posting for you - but for others to help prove your point) :)


"Liquidation and reimbursement of insured deposits:

In certain cases, a failed bank is closed and insured deposits are reimbursed to depositors. The assets of the failed bank are distributed to the bank's depositors and other creditors through a court-supervised liquidation process.

In liquidation, the failed bank ceases to operate, all contracts are terminated and its critical financial services are no longer available, including access to accounts. CDIC automatically and rapidly reimburses insured deposits up to $100,000 (including interest) per insurance category. Depositors do not have to file a claim. CDIC aims to reimburse most accounts within three business days. Due to their complexity, deposits such as trusts and registered accounts could take longer.

This is a tool that would likely only be used in the case of small to medium-size banks, not domestic systemically important banks (D-SIBs)."


-------------------------

In case you are wondering what a "D-SIB" is (Basically RBC, TD, Scotia, BMO, CIBC, National Bank):
http://www.cdic.ca/en/about-cdic/resolu ... ution.aspx
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Shawguy wrote:
May 4th, 2017 7:33 pm
Exactly - and here is the link showing that: http://www.cdic.ca/en/about-cdic/resolu ... tools.aspx
(not necessarily posting for you - but for others to help prove your point) :)


"Liquidation and reimbursement of insured deposits:

In certain cases, a failed bank is closed and insured deposits are reimbursed to depositors. The assets of the failed bank are distributed to the bank's depositors and other creditors through a court-supervised liquidation process.

In liquidation, the failed bank ceases to operate, all contracts are terminated and its critical financial services are no longer available, including access to accounts. CDIC automatically and rapidly reimburses insured deposits up to $100,000 (including interest) per insurance category. Depositors do not have to file a claim. CDIC aims to reimburse most accounts within three business days. Due to their complexity, deposits such as trusts and registered accounts could take longer.

This is a tool that would likely only be used in the case of small to medium-size banks, not domestic systemically important banks (D-SIBs)."


-------------------------

In case you are wondering what a "D-SIB" is (Basically RBC, TD, Scotia, BMO, CIBC, National Bank):
http://www.cdic.ca/en/about-cdic/resolu ... ution.aspx
This is very optimistic. It actually says on it's site it will be a immediate payout once they get the correct information or something to that effect. In reality it probably will take weeks and possibly months depending on how the bank kept records. Days if they kept good records that are easily accessible.
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User230 wrote:
May 4th, 2017 7:54 pm
This is very optimistic. It actually says on it's site it will be a immediate payout once they get the correct information or something to that effect. In reality it probably will take weeks and possibly months depending on how the bank kept records. Days if they kept good records that are easily accessible.
It "actually says on the site" exactly what you just quoted about 3 days. Not "something to that effect".
It was a quote from the CDIC.
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Shawguy wrote:
May 4th, 2017 7:33 pm
Exactly - and here is the link showing that: http://www.cdic.ca/en/about-cdic/resolu ... tools.aspx
(not necessarily posting for you - but for others to help prove your point) :)


"Liquidation and reimbursement of insured deposits:

In certain cases, a failed bank is closed and insured deposits are reimbursed to depositors. The assets of the failed bank are distributed to the bank's depositors and other creditors through a court-supervised liquidation process.

In liquidation, the failed bank ceases to operate, all contracts are terminated and its critical financial services are no longer available, including access to accounts. CDIC automatically and rapidly reimburses insured deposits up to $100,000 (including interest) per insurance category. Depositors do not have to file a claim. CDIC aims to reimburse most accounts within three business days. Due to their complexity, deposits such as trusts and registered accounts could take longer.

This is a tool that would likely only be used in the case of small to medium-size banks, not domestic systemically important banks (D-SIBs)."


-------------------------

In case you are wondering what a "D-SIB" is (Basically RBC, TD, Scotia, BMO, CIBC, National Bank):
http://www.cdic.ca/en/about-cdic/resolu ... ution.aspx
Not much relief though, if one of the system forming bank goes insolvent, it will take years, and by that time CAD might be worth fraction of its value ( perhaps 1 US cent for 1 CAD ). I know that is highly unlikely to happen, but so thought my dad who lost his life savings in Soviet bank.
---
Hopefully it won't happen.
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ukrainiandude wrote:
May 4th, 2017 8:52 pm
Not much relief though, if one of the system forming bank goes insolvent, it will take years, and by that time CAD might be worth fraction of its value ( perhaps 1 US cent for 1 CAD ). I know that is highly unlikely to happen, but so thought my dad who lost his life savings in Soviet bank.
---
Hopefully it won't happen.
In Soviet Russia... things are different.
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Just got PC 2.5% offer at login screen. Will have to go Tangerine > PC > EQ as promo rates expire.

OP why don't you update EQ thread linking to new non-locked thread?

I like how you can use EQ as almost like a chequing account. Only real downside is no ability to get cash out of ATM, so you need to maintain 2nd account with Tangerine or PC.
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ferniebc wrote:
May 7th, 2017 8:01 pm
Just got PC 2.5% offer at login screen. Will have to go Tangerine > PC > EQ as promo rates expire.

OP why don't you update EQ thread linking to new non-locked thread?

I like how you can use EQ as almost like a chequing account. Only real downside is no ability to get cash out of ATM, so you need to maintain 2nd account with Tangerine or PC.
I just got a targetted 2%... quickly clicked sign up, but didn't read the fine print as to how long it applied for. Anyone know where to find these details?
I'd love to write history... in advance.
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