Need to remove B2B Bank from the HISA chart | Page 2 | B2B Bank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Need to remove B2B Bank from the HISA chart
January 7, 2020
8:31 am
mustang
Member
Members
Forum Posts: 239
Member Since:
January 7, 2020
sp_UserOfflineSmall Offline

Just noticed on b2bbank site (and same on laurentian digital) that they are now capping the 3.3% rate at 500K. After that, it is 1.25%

January 7, 2020
1:45 pm
picassocat
Québec
Member
Members
Forum Posts: 275
Member Since:
December 29, 2018
sp_UserOfflineSmall Offline

mustang said
Just noticed on b2bbank site (and same on laurentian digital) that they are now capping the 3.3% rate at 500K. After that, it is 1.25%  

Up to 500,000 it's 3.30 % and over that amount it's 3.30% + 1.25% = 4.55% !!

January 7, 2020
2:41 pm
Canadianbull
Member
Members
Forum Posts: 389
Member Since:
December 26, 2018
sp_UserOfflineSmall Offline

@picassocat please read below. Only 1.25% interest rate applies to deposits above $500,000.

Capture.PNG

January 7, 2020
6:43 pm
picassocat
Québec
Member
Members
Forum Posts: 275
Member Since:
December 29, 2018
sp_UserOfflineSmall Offline

You are correct, I misinterpreted the following:
$500,000.01 +
I thought it was 3,30 PLUS 1,25
I am wrong.

January 7, 2020
7:17 pm
Canadianbull
Member
Members
Forum Posts: 389
Member Since:
December 26, 2018
sp_UserOfflineSmall Offline

It's Ok. We all make mistakes sf-cool

January 8, 2020
4:55 am
Taxpayer717
Member
Members
Forum Posts: 23
Member Since:
November 5, 2015
sp_UserOfflineSmall Offline

picassocat said
You are correct, I misinterpreted the following:
$500,000.01 +
I thought it was 3,30 PLUS 1,25
I am wrong.  

I am just wondering if announcing this thing about 1.25% would indicate that they have enough money to afford reduction of the 3.3% rate? sf-surprised

January 8, 2020
9:20 am
Doug
British Columbia, Canada
Member
Members
Forum Posts: 4269
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

Taxpayer717 said

I am just wondering if announcing this thing about 1.25% would indicate that they have enough money to afford reduction of the 3.3% rate? sf-surprised  

No, it's not really about needing deposits in the case of Laurentian Bank so much as it is about growing market share and building a customer base, particularly outside of Quebec, on which to market additional products. (They need to up their game in credit cards and discount brokerage, particularly, if they aim to cross-sell.)

Most likely, the reason for these caps is to limit the amount they have to pay to each customer and broaden their depositor base. If they're paying $30,000 in interest expense to a depositor with $1 million in deposits, on an annualized basis, versus $15,000 for $500,000 deposits, they can attract a much larger base of customers paying the same in interest expense. sf-cool

It's why Motive Financial can afford to keep offering 2.8% on their HISA when they (a) only have ~$500 million in total deposits, half of which is in term deposits and a good portion of the remainder being in chequing accounts and (b) they cap the 2.8% rate at $1 million across all the depositors' Savvy Savings and Savings accounts, which MapleOne, Norman, others, and I noted elsewhere.

Cheers,
Doug

January 8, 2020
10:54 am
picassocat
Québec
Member
Members
Forum Posts: 275
Member Since:
December 29, 2018
sp_UserOfflineSmall Offline

Taxpayer717 said

I am just wondering if announcing this thing about 1.25% would indicate that they have enough money to afford reduction of the 3.3% rate? sf-surprised  

Makes me wonder if their «regular rate» should be 1.25% and the 3.30% is but a «temporary special»?

January 9, 2020
5:45 am
savemoresaveoften
Member
Members
Forum Posts: 2966
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

capping deposit amount at promo rate is normal practice at most banks. $100k, $500k or $1MM is the current bar on most if not all.

January 9, 2020
5:56 am
Bill
Member
Members
Forum Posts: 3999
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Taxpayer717, to avoid disappointment I'd operate on the expectation the 3.3% won't last long, it's so out of line with everybody else and that rate appears to have been chosen flippantly. And who would they lose if they dropped it to 2.85%?

January 9, 2020
8:29 am
Doug
British Columbia, Canada
Member
Members
Forum Posts: 4269
Member Since:
December 12, 2009
sp_UserOfflineSmall Offline

Bill said
Taxpayer717, to avoid disappointment I'd operate on the expectation the 3.3% won't last long, it's so out of line with everybody else and that rate appears to have been chosen flippantly. And who would they lose if they dropped it to 2.85%?  

True, Bill, but I tend to think this rate will last at least till the summer, especially now that they've capped it. I could see them further lowering the cap to $100,000 and have $100,000.01+ earn 1.50% and they'd still lead Motive Financial. This allows them to pay a high rate and grow their customer base, while capping the outsized deposit interest they're paying to each customer.

And, if you want to buy the dogs of the Canadian banking sector, CIBC and Laurentian Bank would be the way to do it. I don't necessarily think they'll be the best performing bank stocks this year, but they will outperform the likes of National and Scotia over the next 5-10 years. I don't understand Scotia's strategy—exiting business lines and most of its overseas operations whilst wildly overpaying for declining wealth management assets.

Cheers,
Doug

Full and Fair Disclosure: I own BNS, CM (CIBC), HSBC, and TD, directly in non-registered accounts. I may own other Canadian and U.S. banks indirectly through my holding XIC and XSP.

January 9, 2020
10:54 pm
picassocat
Québec
Member
Members
Forum Posts: 275
Member Since:
December 29, 2018
sp_UserOfflineSmall Offline

Doug said

Full and Fair Disclosure: I own BNS, CM (CIBC), HSBC, and TD, directly in non-registered accounts. I may own other Canadian and U.S. banks indirectly through my holding XIC and XSP.  

I only have limited exposure to banks, but my ZPR (preferred share) has many Canadian banks and XLB is a bond fund which includes the Scotia. So I lend to banks with interest and get dividends from them at the same time ! sf-laugh

(ps Doug: if you like tech funds, look into XIT, HQU & TLF ! Cheers)

January 10, 2020
6:04 am
Bill
Member
Members
Forum Posts: 3999
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

I hope you're correct, Doug, about the rate staying for a while. I'll tell them to consult with you first if they ever get the notion to lower the rate!

February 11, 2020
10:50 am
smayer97
Member
Members
Forum Posts: 874
Member Since:
September 29, 2017
sp_UserOfflineSmall Offline

gicjunkie said

If you are looking for good service, avoid all Laurentian Bank companies, imho.  

Well, I have been using the LBC Credit card for over 5 years and and jumped on board B2B last Nov. Though their systems are a little quirky, I have always had excellent customer service all this time.

And I really like their Dollar VISA product since I have lots of recurring charges so can maximize my 3% cash back.

February 11, 2020
1:53 pm
gicjunkie
Ontario
Member
Members
Forum Posts: 658
Member Since:
November 7, 2014
sp_UserOfflineSmall Offline

smayer97 said

Well, I have been using the LBC Credit card for over 5 years and and jumped on board B2B last Nov. Though their systems are a little quirky, I have always had excellent customer service all this time.

And I really like their Dollar VISA product since I have lots of recurring charges so can maximize my 3% cash back.  

As I reported somewhere else in this forum a while back, LBC first gave us problems by not paying annual interest on the anniversary date of our GIC and then they seemed to misplace the maturing funds of our GIC for a number of days. It was a major amount. They then balked at giving us additional interest on the time delay in sending us our money, because they weren't open on weekends. I asked the CSR if they charged interest to borrowers on weekends. He didn't understand the analogy. That's why I issued the "buyer beware" notice. Seems to me, after reading the numerous experiences people have had since, that I was justified in my assessment of the situation. I remain convinced of the inadequacies of this institution.

No permission to create posts

Please write your comments in the forum.