Personal Finance

RBC lowered my LOC interest - I'm shocked!

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  • May 24th, 2020 8:25 am
[OP]
Member
Jun 28, 2011
438 posts
128 upvotes
VANCOUVER

RBC lowered my LOC interest - I'm shocked!

No, that's not a typo. I have been moving my business away from RBC for the past few years and just have a basic day to day savings account, LOC and a credit card with them. (oldest credit card so I'd like to keep it)
Every so often, I'll do a transaction just so they don't de-activate my accounts. I looked at the interest rate for my LOC and I was surprised to see they reduced it. I don't know when they reduced the rate but it went from over 8% to 5.94%. Not that I'm complaining and I have a zero balance on my LOC and no, I didn't ask them.
Has anyone else had a bank lower the LOC interest rate without asking ?
25 replies
Sr. Member
Nov 22, 2012
738 posts
834 upvotes
NS
travelandshoppingwoman77 wrote: No, that's not a typo. I have been moving my business away from RBC for the past few years and just have a basic day to day savings account, LOC and a credit card with them. (oldest credit card so I'd like to keep it)
Every so often, I'll do a transaction just so they don't de-activate my accounts. I looked at the interest rate for my LOC and I was surprised to see they reduced it. I don't know when they reduced the rate but it went from over 8% to 5.94%. Not that I'm complaining and I have a zero balance on my LOC and no, I didn't ask them.
Has anyone else had a bank lower the LOC interest rate without asking ?
Yes. TD lowered my LOC interest rate one year but than raised it the following year. CIBC has also lowered my LOC interest rate.
Deal Fanatic
Jun 24, 2015
6851 posts
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i havent checked mine in a while but arent they suppost to notify you some how like send you a online message or email or letter in the mail?
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[OP]
Member
Jun 28, 2011
438 posts
128 upvotes
VANCOUVER
jevonb wrote: Yes. TD lowered my LOC interest rate one year but than raised it the following year. CIBC has also lowered my LOC interest rate.
Interesting. I fully expect RBC will raise the rate at some point. I checked my CIBC LOC and it's still the same.
[OP]
Member
Jun 28, 2011
438 posts
128 upvotes
VANCOUVER
GoodFellaz wrote: i havent checked mine in a while but arent they suppost to notify you some how like send you a online message or email or letter in the mail?
I never received a letter or notification online.
Deal Addict
Nov 8, 2017
1556 posts
882 upvotes
Last April, BMO lowered mine down to prime(3.95) for a year.

Came in handy cause I had some hefty car repairs in May
Deal Expert
Aug 22, 2011
37239 posts
23244 upvotes
Center of Universe
Welcome to the club.
Mine was actually 4% a few years ago and gradually increased to 5.95%.
I've never used a dime of it and was never sent a notification for each rate change... somewhere in the fine print, it says it can change without any notification.
Deal Fanatic
Jan 21, 2018
6871 posts
7287 upvotes
Vancouver
LOC interest rates go up and down over time with the general interest rate. You may have noticed that interest rates are going down lately. They usually don't adjust LOC rates as quickly as savings rates, and usually there's a lag in favour of the bank if interest rates are going down.
Sr. Member
Aug 17, 2013
696 posts
604 upvotes
Toronto
Same but i'd rather be debt free. Haven't used my LOC for a long time. Not interested into going into debt again like my 20's
Deal Fanatic
Jun 24, 2015
6851 posts
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thanks but can they do this for my Line of Credit too? or do i have to call in and ask
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Member
User avatar
Mar 27, 2010
480 posts
122 upvotes
Montreal
Yep. I got an email from BMO June 20 stating that they're lowering my LOC from 7.22% to 3.95%. I haven't used it in years and only twice since inception decades ago.
Newbie
Jan 11, 2017
41 posts
43 upvotes
RBC gave me a one year promotional rate of 4.94% which expired last month and its now back up to 8.94%. Ive had the LOC for years and havent used it once.
Deal Addict
User avatar
Jul 16, 2012
1556 posts
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Vancouver, BC Canada
Gurkha9 wrote: Yep. I got an email from BMO June 20 stating that they're lowering my LOC from 7.22% to 3.95%. I haven't used it in years and only twice since inception decades ago.
Wow that is even lower than my HELOC which I’ll be needing to use pretty soon for our condo’s special levy Disappointed Face
Deal Addict
Mar 22, 2010
3367 posts
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LOC is variable based on prime rate. We are consistently getting under pressure on overnight rate from BoC so that's why. Your rate is on par with my rate or people I have talked with.
Member
User avatar
Mar 27, 2010
480 posts
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Montreal
canucks4life wrote: Wow that is even lower than my HELOC which I’ll be needing to use pretty soon for our condo’s special levy Disappointed Face
It's only for 12 months but better than nothing I suppose.
Jr. Member
Feb 20, 2017
102 posts
81 upvotes
Hamilton, Ontario
my unsec LOC with RBC is 10.16%. Have had it for about a year and never used it. Hopefully, wont ever have to use it. But would still like the rate lowered just in case.
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Mar 17, 2006
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UrbanPoet wrote: I guess once in a while life throws you a bone.
life still looks at you like a dog
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Deal Addict
Aug 17, 2012
1696 posts
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Windsor
travelandshoppingwoman77 wrote: No, that's not a typo. I have been moving my business away from RBC for the past few years and just have a basic day to day savings account, LOC and a credit card with them. (oldest credit card so I'd like to keep it)
Every so often, I'll do a transaction just so they don't de-activate my accounts. I looked at the interest rate for my LOC and I was surprised to see they reduced it. I don't know when they reduced the rate but it went from over 8% to 5.94%. Not that I'm complaining and I have a zero balance on my LOC and no, I didn't ask them.
Has anyone else had a bank lower the LOC interest rate without asking ?
I just checked after reading this post and mine in decreased to 5.94 ..

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