Personal Finance

Official RFD thread for High Interest Savings Accounts (See Thread Summary for Updates)

Deal Expert
Jan 7, 2002
29710 posts
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Waterloo, ON
Shawguy wrote: Apologies, with all the Covid-19 issues
Stay well. Updating this thread should be your lowest priority.

After all we know what direction rates are going. It's not hard for people to check a few FI websites to see who's offering what. Besides, no matter what you update on Sunday it's bound to change within a day or two.
veni, vidi, Visa
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Jan 23, 2018
1136 posts
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The Dawg Pound
The TDDI ISA rate has now been slashed to 0.55% -- I haven't checked them all, but I'm going to assume that the other BigBank ISAs are the same

Just a wee bit of disruption out there at the moment
Deal Fanatic
Oct 7, 2007
9404 posts
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threadhead wrote: The TDDI ISA rate has now been slashed to 0.55% -- I haven't checked them all, but I'm going to assume that the other BigBank ISAs are the same

Just a wee bit of disruption out there at the moment
Let's hope the rates stay positive. I can only imagine if there becomes no floor on the bottom. Yikes!
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May 7, 2007
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Shawguy wrote: Apologies, with all the Covid-19 issues, I was made essential at work and have been super busy. I work in a company with over 500 people. I'm one of about 20 still working, the rest are off for a couple weeks for safety reasons.

I will update it by Sunday!
Ya ... The rest are safe, while they sacrificed you to the Virus ... )))
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May 7, 2007
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choclover wrote: Let's hope the rates stay positive. I can only imagine if there becomes no floor on the bottom. Yikes!
If the rates are going to 0% or into negative territory .. -- I'll take all out ... in cash ... and keep it at home, under the mattress .... :D
Deal Expert
Jan 7, 2002
29710 posts
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Waterloo, ON
bylo wrote: Today is Friday. By the time your money gets to today's highest payer (probably Tuesday) you can be almost certain that their rate will have dropped. And if next week some other FI offers higher rates you won't be able to move your money there for another week while your money is on hold.

Might as well sit tight and enjoy (or not) the ride until things stabilize and the highest rate payer emerges.
Good thing I said "almost certain" and "enjoy the ride" on the interest rate roller coaster...

This just in from Oaken. This week rates are going up ⬆
Please note that effective Thursday, March 19, 2020 we will be increasing the interest rates of all of our long-term GICs (registered and non-registered) as follows:

Long-Term GICs
• 1 Year GIC – 2.50% (currently 2.40%)
• 18 Month GIC – 2.70% (currently 2.45%)
• 2 Year GIC – 2.75% (currently 2.50%)
• 3 Year GIC – 2.80% (currently 2.55%)
• 4 Year GIC – 2.85% (currently 2.60%)
• 5 Year GIC – 2.95% (currently 2.70%)

These new rates will be applied automatically for all corresponding GICs booked on Thursday, March 19, 2020 or later.
veni, vidi, Visa
Deal Addict
May 21, 2004
3000 posts
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GTA
bylo wrote: Good thing I said "almost certain" and "enjoy the ride" on the interest rate roller coaster...

This just in from Oaken. This week rates are going up ⬆
Hmmm... That's an interesting turn of events for Oaken given the current environment. I'd bet they lost a lot of deposits because their GIC rates aren't great.
Deal Addict
Apr 27, 2015
3051 posts
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Mississauga
now I'm in doubt , buy those GICs or leave money until summer for 2.85% with Tangerine
"All animals are equal but some animals are more equal than others" George Orwell
Deal Guru
Jan 30, 2012
10043 posts
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multi city dweller
Britex wrote: Hmmm... That's an interesting turn of events for Oaken given the current environment. I'd bet they lost a lot of deposits because their GIC rates aren't great.
... from what i've heard, many are moving their funds away from "smaller" outfits into the "more secure" big 5 as they are afraid of having their fund tied up in case of "liquidity" event like happened about 10+ yrs ago ...
.. maybe that's why some smaller players must offer higher rate as the perceived higher risk ...
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Sep 10, 2009
1289 posts
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Montreal
LOL808 wrote: ... from what i've heard, many are moving their funds away from "smaller" outfits into the "more secure" big 5 as they are afraid of having their fund tied up in case of "liquidity" event like happened about 10+ yrs ago ...
.. maybe that's why some smaller players must offer higher rate as the perceived higher risk ...
But deposits and interest are insured by CDIC
Deal Expert
Jan 7, 2002
29710 posts
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Waterloo, ON
cmoibenlepro wrote: But deposits and interest are insured by CDIC
Yabbut people are afraid that if a small bank goes bust it will take CDIC weeks or months to make them whole, during which time their funds will be frozen and not earning any interest. This unwarranted fear is despite the CDIC's commitment to automatically make funds available within days of a bank's failure--and their record of actually doing so. Also it's rather rare for a small player to fail such that CDIC has to make payouts. More often a larger bank is "encouraged" to take them over.

But people don't act rationally at the best of times, never mind in the midst of a crisis.

So on reflection I suppose it's not that surprising that Oaken has had to raise rates in order to keep attracting deposits.
veni, vidi, Visa
Sr. Member
May 24, 2018
799 posts
757 upvotes
Ontario
ukrainiandude wrote: Tangerine offers 2.75% on first saving account for five months.
In cad or usd
FYI - the *first* Savings Account deal on the landing page now says 2.50% (no longer 2.75%)
Capture-tangering.JPG
Last edited by hwyc2007 on Mar 19th, 2020 9:16 am, edited 1 time in total.
Deal Addict
May 21, 2004
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hwyc2007 wrote: FYI - the *first* Savings Account deal on the landing page now says 2.50% (no longer 2.75%)
Perhaps they fixed it, but, I just checked and it still says 2.75% on the insights. It also states 2.75% when I go to view the account details. Am I looking at something different than what you're referring to?
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May 21, 2004
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bylo wrote: Yabbut people are afraid that if a small bank goes bust it will take CDIC weeks or months to make them whole, during which time their funds will be frozen and not earning any interest. This unwarranted fear is despite the CDIC's commitment to automatically make funds available within days of a bank's failure--and their record of actually doing so. Also it's rather rare for a small player to fail such that CDIC has to make payouts. More often a larger bank is "encouraged" to take them over.

But people don't act rationally at the best of times, never mind in the midst of a crisis.

So on reflection I suppose it's not that surprising that Oaken has had to raise rates in order to keep attracting deposits.
CDIC covers both principle and interest. However, no one wants to be stuck when they need to use the funds. They also say releasing the funds will be quick but again it's the fear of the unknown.
Deal Expert
Jan 7, 2002
29710 posts
29128 upvotes
Waterloo, ON
Britex wrote: Perhaps they fixed it, but, I just checked and it still says 2.75% on the insights. It also states 2.75% when I go to view the account details. Am I looking at something different than what you're referring to?
I went to their website in Incognito mode so as to appear as a potential new customer. I get "Your peace of mind is our top of mind. Earn 2.50%* interest for 5 months** in your first Tangerine Savings Account."
veni, vidi, Visa
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May 21, 2004
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bylo wrote: I went to their website in Incognito mode so as to appear as a potential new customer. I get "Your peace of mind is our top of mind. Earn 2.50%* interest for 5 months** in your first Tangerine Savings Account."
Ah, now I see. So it's the rate for new customers but old customers who received the previous 2.75% get to keep it.
Deal Expert
Jan 7, 2002
29710 posts
29128 upvotes
Waterloo, ON
Another anomaly: Five-year mortgage rates that are lower than 5-year GIC rates. So now the FI is actually losing money on a core business.

This makes no sense in a rational world because the GIC deposits are used to fund the mortgages. Thus 5-year mortgage rates are normally higher than 5-year GIC rates to compensate the FI for administrating the transactions, taking on the risk of default, etc.

Here's one example: Peoples Trust - Today’s Rates shows 2.55% for 5-year GICs but 2.39% for 5-year mortgages.
veni, vidi, Visa
Deal Fanatic
Oct 7, 2007
9404 posts
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Darkman wrote: If the rates are going to 0% or into negative territory .. -- I'll take all out ... in cash ... and keep it at home, under the mattress .... :D
Hope your mattress is fireproof. :)
Deal Addict
Sep 3, 2005
2370 posts
717 upvotes
Toronto
simplii is still 0.7% they will adjust soon for sure

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