This is how Achieva Financial justifies NOT raising they're HISA interest rate | Achieva Financial | Discussion forum

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This is how Achieva Financial justifies NOT raising they're HISA interest rate
September 12, 2017
2:52 pm
Top It Up
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Here’s how a Higher Interest Rate could mean a Lower Return

by Achieva Financial, September 11, 2017

"At first glance, you may think a higher interest rate on a Savings Account would generate the best return for your savings. But this is not always the case. In fact, you could easily receive a lower return on a higher interest rate.

It all depends on how the Savings Account is set-up to calculate your interest.

Some Savings Accounts calculate interest based on the minimum monthly balance held in the account each month end and will only pay interest annually. While some institutions may call this “Regular Savings”, the reality is this type of savings account operates more like a redeemable 1 year GIC. As a an account holder, your interest is calculated based on the lowest level held in your account each month-end, even if it had a higher balance for the 29 days leading-up to the last day of the month. Worse than that, these type of accounts will not maximize your savings, as they do not flow the interest back into your savings to compound each month.

For example, if you maintained a $50,000 balance for 29 days out of the month, and then a $100 balance for the remaining two days, the interest is calculated for the entire month is based only on the $100 balance.

Here at Achieva, we believe you should be maximizing your savings and having direct access to the interest you earn each month. Our Daily Savings Account offers a 1.70% interest rate that is calculated on your daily closing balance, and paid monthly. This type of calculation offers you the highest return available for your savings, while also allowing your interest to compound each and every month.

When it comes to savings, it is always worth taking a closer look to how interest is being credited to your account."

September 12, 2017
4:17 pm
rhvic
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I think all of the institutions I keep my savings at do pay interest (monthly) based on the daily closing balance, and their rates are equal to or much better than 1.70%.

I would not keep money in an institution which calculates interest on the minimum monthly balance.

September 12, 2017
6:29 pm
AltaRed
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Not sure what the headline has to do with the Achieva quote. It is simply a statement on what they do and how much better it is than calculating on a minimum monthly balance.

September 12, 2017
6:35 pm
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While other CUs are raising their HISA rates, Achieva posted that yesterday, on their website, trying to tell potential investors why they're the better option @ 1.70%.

https://www.achieva.mb.ca

Comprehension can be difficult sometimes, but hang in there.

September 12, 2017
7:07 pm
GoJetsGo
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Thanks for the post TopItUp. I would never have seen this on their website although I have noticed they haven't raised their rate. It is shocking how a financial institution could allow an employee/manager to approve such a post that is so clearly misguided and/or unaware of their competitors rates and calculation policies. They were the first Manitoba Credit Union that I became a customer of but I haven't been using them for a few years due to their rates not being at the top. It appears they will be the first credit union account that I close.

September 13, 2017
6:34 am
Norman1
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The article was probably for their bricks-and-mortar Cambrian Credit Union customers rather than their online-only Achieva Financial customers.

Those minimum monthly balance savings accounts are not common. But, they are still around. Carpathia Credit Union's Xtreme Savings Account is an example. 1.75% on minimum monthly balances of $10,000 and over.

In contrast, Carpathia's online-only Ideal Savings Account pays 2% on the closing daily balances.

September 13, 2017
7:02 am
Top It Up
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I think it was a direct reaction, by Achieva, watching money roll out to Steinbach CU - a MB CU that calculates on minimum monthly balance and pays out annually - Steinbach was the 1st MB CU to raise their HISA interest rate.

September 13, 2017
12:40 pm
AltaRed
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Top It Up said
I think it was a direct reaction, by Achieva, watching money roll out to Steinbach CU - a MB CU that calculates on minimum monthly balance and pays out annually - Steinbach was the 1st MB CU to raise their HISA interest rate.  

Fair enough, but it would be better for all of us if it was stated as speculative assumption, or a question, not fact as your headline suggests.

September 15, 2017
5:30 am
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Because Achieva is lagging in moving up the HISA interest ladder as their peers are, I wrote an Achieva cheque to myself yesterday, for 6 figures - then used my iPhone to make an eDeposit to another MB CU - the cheque cleared overnight. Very slick.

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