Canadian High Interest Savings Bank Accounts

Banks and Government Collaborate in
$11 Billion Rip-Off of Canadians

Here is how the math works:

- Average Debt per Canadian Household: $90,700
Source: The Vanier Institutes Study: The Current State of Canadian Family Finances 2008 Report — issued January 2009 http://www.vifamily.ca/library/cft/famfin08.pdf
- Number of Households in Canada: 12,437,500
Source: Statistics Canada 2006 Census data:
- Minimum Interest Rate Increase Imposed by each Canadian Bank: 1%

Therefore:
($90,700.00 debt/household x 12,437,500 households x 1% )
$11.28 billion in increased annual revenue.
Benefit to Canadian Banks: Increased Annual Revenue – Forever
Benefit to Government:
- Political mileage garnered from taking credit for success of Canadian Banks.
- Avoid having to fund Bank Bail-out.
- Use hidden tax (increased interest rate) to allow Canadian Banks to return to business as usual as quickly as possible.
Background: As of March 2009, all Canadian Banks acted in unison to impose a 1% increase in the interest rate that Canadians pay on their existing, outstanding debts. For those who had historically been borrowing at prime, the new rate became prime plus 1 percent. If your loan rate was at prime plus 2, you are now paying prime plus 3 percent. This increase was announced at the same time as the government was aggressively cutting the bank rate in a desperate attempt to stimulate the economy and job creation. To rub salt into this wound, this interest rate increase on consumer loans was announced after the banks had already chosen not to pass on all of the rate reduction provided by the Bank of Canada.

Response:
The web site: http://www.SayNoToBanks.com and the blog post http://www.saynotobanks.wordpress.com were launched as of February 20th 2009 as a grass roots effort by a financial planner to help Canadians express their outrage, but more importantly to provide a focal point from which everyone can work together to bring a halt to this increase in interest rates.
The web site consists of a 4 minute video appeal that has been posted on YouTube. Those who log on to the web site can have a personalized letter composed and addressed to their Member of Parliament. They are also provided with the tools to broadcast the news of this unconscionable act by the banks, to everyone they know.

Status of the Project:
1. To date over 3,000 Canadians have visited http://www.SayNoToBanks.com to download a personalized letter to their Member of Parliament regarding the increase in bank rates.
2. The SayNoToBanks video has received a 5-star rating on YouTube.com based upon the frequency of visits to the video.
3. The media has begun to raise the profile of the story. To date SayNoToBanks has been featured on the radio and television by CBC Toronto and CBC Edmonton. I would like to give a special thank you to Ellen Roseman of the Toronto Star who continues to raise the profile of this campaign.
4. First quarter results of the financial performance of Canadian banks have been announced and profit results were much higher than anticipated.
5. The Federal Conservative Government has decided to take credit for the profitable status of our Canadian banks as a means to generate political mileage.
6. During the week of March 16th The US Government increased national debt by over $1 Trillion to purchase Treasury Bills and Government Bonds in an effort to bring mortgage rates down and to stimulate the economy. Meanwhile the Canadian Government allows banks to increase interest rates charged to Canadians.
7. Despite the stronger than anticipated profits, the Canadian banks continue to act collectively, to impose a 1% increase to the interest rate on our existing, outstanding debts.

We need to flood the MP with our letters. We have to push harder to get the roll backs on the credit lines. Please join in!

Its not about 'consumeristic feeding frenzy'

Its about intelligent investing with your HELOC. Revenue Canada acknowleges, that if you have a reasonable expectation of profit, then your interest expense is tax deductible. Writing off interest is a great thing come tax time!