Accelerate financial drops rate to 1.80% | AcceleRate Financial | Discussion forum

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Accelerate financial drops rate to 1.80%
March 7, 2013
8:41 am
moneysaver
Ontario
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The race to the bottom continues. Accelerate financial drops rates to 1.80% from 2% today March 7/13 on their savings sf-yell

March 7, 2013
10:02 am
doc
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this is really disappointing, this is a substancial drop of a .25%

March 7, 2013
4:21 pm
James
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Kudos for picking up the rate change so quickly. Thanks moneysaver. I have already initiated a transfer to another bank.

I know there are other considerations when looking at banking options, but I would really encourage everyone not to reward this rate-lowering behaviour by keeping substantial sums of money with the banks whose interest rates are below 2 percent. Maybe if we all pull our funds out when they lower the rates, the banks will get the message.

March 7, 2013
5:08 pm
maxi
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I certainly understand the concerns over these recent rate drops, however, 1.80% is still among the highest in the industry and significantly higher than the banks, ING & PC. Given the BoC's long term low-rate policy and the banks' recent moves to press mortgage rates lower, it was/is inevitable savings and term deposit rates were moving down.

If all you're doing is keeping your money short (I.e. in daily savings), you are really punishing yourself more than the individual banks (one guy's opinion). Since 2010 I've been taking most of my savings and laddering them across many term deposits that are now beginning to renew monthly. By doing this, my overall yield has held well above the 2% savings rate. I've set my terms to renew back into my savings and then I look to either re-invest or maintain liquid. While I haven't used Accelerate for my terms, I have used Achieva, as I've found they have had the longest history with high term deposit rates.

Just another strategy for you to consider.

March 7, 2013
5:28 pm
GS1
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James said

Kudos for picking up the rate change so quickly.

[snip]

If anyone wants to be kept in the know about changes to anything on the web look here at http://www.changedetection.com.

I have a number of alerts set up with them including one for the Cannex chart.

Greg

March 7, 2013
7:18 pm
James
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I had to post again to thank you both for the replies. Greg: very interesting website. Thanks for the link.

On another topic, I use Cannex too but I'm wondering if there is anything more comprehensive on the web (for example, Cannex leaves out many institutions, including Implicity - which is on the comparison chart of this website).

Maxi, thanks for your input. I'm aware of the strategy of laddering GIC deposits. In fact if any of our readers are interested, Peter has written a great article on the topic here http://www.theblog.ca/ladderin.....definition

In my opinion, this is the worst time to buy GICs unless you are buying the longest terms available. I don't want to lock up my money, nor do I believe I should have to do this for the 'privilege' of a rate over 2%. Banks are making record profits and I don't believe we should reward them for trying to squeeze every last nickel from us. If banks lost millions of dollars in accounts every time they lowered a rate like this, I'm sure they'd consider the decision more carefully.

March 7, 2013
8:01 pm
maxi
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I hear ya James, but whether you're laddering GICs or other fixed income (AA+) type bonds, the overall yield is roughly the same, along with similar tax treatment. I simply ladder with GICs based on I can source similar rates, with no trade charges and a better hedge (I.e deposit insurance). Given I have an extensive number of terms maturing each year (between 12 to 18), all my money is never fully tied-up. At the end of the day, I likely improved my overall returns by more than 50% since 2010. Now I also moved more funds towards a select blue chip US preferred shares, which have had exceptional returns as of late--- however, we all know the risk these investments come with!

March 27, 2013
9:56 am
GS1
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GS said

[snip]

If anyone wants to be kept in the know about changes to anything on the web look here at http://www.changedetection.com.

[snip]

Another site that will alert you to changed web pages is http://www.followthatpage.com which is here. The free version has a once per hour setting for one page.

Greg

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