Expired Hot Deals

[EQ Bank] 2.30% EQ Bank interest rate increased

  • Last Updated:
  • Sep 13th, 2017 4:07 pm
[OP]
Deal Fanatic
User avatar
Nov 18, 2008
5272 posts
748 upvotes
Mont-Royal

2.30% EQ Bank interest rate increased

Deal Link:
Price:
2.3%
Retailer:
EQ Bank
Finally, it looks like the lottery finally worked for people who didn't get a Tangerine offer. Usually, people use lottery to deliberately deny someone an offer, just like the Colorado Avalanche selecting 4th overall for the 2017 draft.

iT IS NOT TARGETED.
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"Every marathon you run, your heart scars and you will die faster. If you think running a marathon is fitness, then you know NOTHING ABOUT HEALTH & FITNESS."
- Training 101
Thread Summary
FAQs:

1. CDIC covers $100k.
2. EQ limits new account holders to depositing $100k or less.
3. In the unlikely event of bank failure CDIC's target is to get your money to you in *3 business days* without any claim action necessary on your part at all.
215 replies
Newbie
Oct 27, 2015
44 posts
40 upvotes
Toronto, ON
Given the ongoing troubles at Home Trust and the doubts depositers have with Equitable Bank, this comes as no surprise.

2.3% is still cheaper than the bail out loan that Equitable Bank received.
Sr. Member
May 19, 2005
534 posts
26 upvotes
Toronto
It's a predictable rate increase while some rats are bailing.

A bigger red flag emerged when concerns about possible contagion appeared to have been justified Canada's Equitable Group, another alternative mortgage lender, said Monday it had started seeing “an elevated but manageable” decrease in deposit balances, traditionally a polite way by management to admit a bank jog is taking place. The company said that customers had withdrawn an average C$75 million each day between Wednesday and Friday, and while the withdrawals so far are modest, and represented 2.4% of the total deposit base, the recent HCG case study showed how quickly such a bank run could escalate. And while liquid assets remained at roughly C$1 billion after the outflows, the company also announced that it had taken out its own C$2 billion credit line with a group of Canadian banks, just in case the bank run was only getting started.

Having taken preemptive action, Equitable’s loans terms were more favorable than Home Capital’s, which as reported last week is paying an effective rate of 22.5% on the first half of the C$2 billion credit line that it tapped Monday from the Healthcare of Ontario Pension Plan.

According to Bloomberg, Equitable is paying a far more modest 1.25% interest rate on the drawn portion, and a 0.75% commitment fee and a 0.5% standby charge.

Trying to mitigate concerns, Andrew Moor, CEO of Equitable said that “the issues affecting the well-known trust company in Toronto are their issues alone, and it’s unfortunate the banking industry has been dragged into it." He spoke on a call to discuss earnings, which were published almost two weeks earlier than planned due to the Home Capital selloff.
Deal Fanatic
User avatar
Apr 9, 2006
7329 posts
8171 upvotes
GT-EH
So to be safe... don't deposit more than $100k right? :lol:
I just like to collect things! ¯\_(ツ)_/¯
Behold, true glory. #PCMasterRace!
Sr. Member
Nov 18, 2012
628 posts
216 upvotes
Longueuil
and here i was a few months ago stressing about tangerine and eq savings % and now im making those % almost everyday simply holding the 2 main crypto currency :>
Deal Addict
User avatar
Jan 23, 2006
1623 posts
486 upvotes
GiOBoY wrote:
May 4th, 2017 7:46 am
So to be safe... don't deposit more than $100k right? :lol:
This is RFD, nobody deposits less than $100k :D
iamalittlepepper wrote:
Aug 13th, 2012 2:55 am
Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote:
Jan 13th, 2015 12:56 pm
you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
[OP]
Deal Fanatic
User avatar
Nov 18, 2008
5272 posts
748 upvotes
Mont-Royal
so you are saying eq bank is not doing well?
"Every marathon you run, your heart scars and you will die faster. If you think running a marathon is fitness, then you know NOTHING ABOUT HEALTH & FITNESS."
- Training 101
Jr. Member
Dec 26, 2015
139 posts
76 upvotes
Ottawa, ON
will i get my money back if it goes under?
Deal Expert
Mar 25, 2005
20921 posts
1889 upvotes
Passing on this. I'll take 0.3% less at tangerine.
Deal Addict
User avatar
Dec 25, 2012
4169 posts
2438 upvotes
Toronto
Isn't there a very tiny chance that EQ might fail, and despite 100K being insured and policies to pay it out fast other factors may cause the money to be locked in for a while if that happens?

http://www.cbc.ca/news/business/equitab ... -1.4097010
Home Capital saw a flood of withdrawals from its savings accounts following the OSC news, which prompted the lender to get a $2 billion loan from a pension plan at an interest rate of between 16 and 22 per cent — high enough it's raising questions about the company's ability to stay in business.

Unlike bigger banks which raise money in a variety of ways, alternative lenders like Home Capital and Equitable primarily raise funds via savings accounts and GICs. They then take those funds and loan them out, making money in the process from the couple of percentage point gap between what they pay out in interest to savers, and what they charge borrowers.
Sr. Member
Jul 7, 2013
837 posts
358 upvotes
North York
Why does this feel more like an investment than a savings lol
Deal Fanatic
User avatar
Apr 9, 2006
7329 posts
8171 upvotes
GT-EH
zentro wrote:
May 4th, 2017 8:06 am
Isn't there a very tiny chance that EQ might fail, and despite 100K being insured and policies to pay it out fast other factors may cause the money to be locked in for a while if that happens?

http://www.cbc.ca/news/business/equitab ... -1.4097010
Ya, I would like to know how fast it's going to take to get our insured money from CDIC if they go under.

I would hate to wait YEARS and the thought it may be tied up in the courts before anyone is paid out!
I just like to collect things! ¯\_(ツ)_/¯
Behold, true glory. #PCMasterRace!
Deal Addict
User avatar
Dec 25, 2012
4169 posts
2438 upvotes
Toronto
systemdude wrote:
May 4th, 2017 8:00 am
will i get my money back if it goes under?
Yes, Equitable Bank is listed under CDIC, 100k is insured. But if alternative banks/lenders begin to fall like dominoes, it would be uncertain how long it will take to get your money out, because CDIC may need to borrow funds to cover the losses or there might be legislation and stuff that will have to occur. Maybe someone more knowledgeable can enlighten us, I think if it's just EQ, the resolution will be fast but if the entire economy is involved than who know how long it will take?

http://www.cdic.ca/en/about-di/what-we- ... fault.aspx
We insure eligible deposits at each member institution up to a maximum of $100,000 (principal and interest combined) per depositor per insured category.

To be eligible for deposit insurance, deposits must be payable in Canada and in Canadian currency. We do not cover foreign currency deposits including US dollars.

Eligible deposits include:

Savings accounts
Chequing accounts
Term deposits, (such as GICs) with original terms to maturity of five years or less
Debentures issued to evidence deposits by CDIC member institutions (other than banks)
Money orders and bank drafts issued by CDIC members
Cheques certified by CDIC members
http://www.cdic.ca/en/about-cdic/resolu ... story.aspx
Sr. Member
Oct 8, 2010
561 posts
78 upvotes
I just pulled money from EQ to TD yesterday, where TD is offering 2.2% for limited times when I open the savings account... now I see this. Still wouldn't risk for extra 0.1% with current EQ status...
Deal Addict
User avatar
Jan 31, 2004
2032 posts
274 upvotes
Montreal
F**k me!! Why is this bank still not available to QC!!!
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