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Special 2%** HISA Offer
July 11, 2020
5:52 am
krwilson
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To qualify for this offer here is what you need:
- Have a valid Canadian Tire Bank Credit Card in good standing
- Be opted in to receive Canadian Tire Bank Emails
- Make a deposit into your HISA by July 31, 2020

https://www.ctfs.com/content/ctfs/en/retailbanking/hisa_vip_program_customers.html

July 11, 2020
6:25 am
Bill
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More details:
Annual interest rate quoted as of the date of this email and subject to change without notice. Interest is calculated daily at a daily rate which is equal to the annual interest rate divided by 365 days (or 366 as the case may be) and is based on the daily closing balance in your account and paid monthly. The 2.00% interest rate consists of the current standard rate of 1.8% and a bonus of 0.20%. The bonus .20% interest rate will commence on August 1, 2020. The standard rate is subject to change without notice. Excludes deposits made to a Canadian Tire Tax Free® High Interest Savings account. Canadian Tire High Interest Savings Account currently not available to residents of Quebec.

krwilson, it refers to email, did you get the offer via email?

July 11, 2020
6:53 am
krwilson
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No email, Bill. Just happened to notice this ad this morning when checking my CTC credit card. It says you must opt in to receive their emails. At the bottom it offers links to apply for the credit card and banking so I am assuming it is for everyone. BUT it says you must make a deposit to the CTC bank by July 31st.

I never like the rate may change any time without notice statement, wish ALL banking needed to inform us of rate changes like some do.

July 11, 2020
7:28 am
Doug
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Classic Canadian Tire Bank. Drop base rates dramatically by more than 50%, then offer time-limited, extremely short window GIC or HISA promotional rate offer. If this were a GIC offer for a 1-year GIC, with a 30 day rate hold, I'd say maybe. But it's a HISA offer and is typical with those, the legal language includes provisions that the offer can be changed after agreeing, at will, by the financial institution. In short, you have to trust your financial institution not to change the offer post-offer. If this were Tangerine, okay, yeah, I trust them. But it's Canadian Tire Bank, whom I don't trust.

Also, while bank risk ratings are a closely held secret, I strongly suspect that Canadian Tire Bank is, or was, one of the two banks in the CDIC's lowest category (that is, the most watched) in terms of risk. My reason for this is because of the analyst commentary regarding parent Canadian Tire Corporation's leverage ratio and debt ratings. As well, 100% of its lending portfolio is credit card receivables, half of which are funded by deposits and half of which are funded by the Glacier Credit Card Trust.

For those reasons, it's an avoid for me. Not a "strong avoid" like Motusbank, but an avoid nonetheless.

Cheers,
Doug

Disclosure: I am unitholder in CT Real Estate Investment Trust, which is majority owned by Canadian Tire Corporation, Limited, and which may be the landlord to Canadian Tire Bank in one or more of its contact centres (haven't checked the property list). I also own shares in Bank of Nova Scotia, which owns 20% of Canadian Tire Bank, but I wouldn't mind if they sold their stake in CTB back to CTC. 😛

July 11, 2020
8:12 am
Briguy
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@Doug I like these short term offers by FIs like Manulife or CT since they keep up the pressure on other FIs like EQ not to drop their rate.

Although we complain about our interest rate on HISA, it's even worse in UK and Europe. Goldman Sachs opened up an online bank in UK called Marcus which offered the extremely high HISA rate of 1.05% APY and they had to freeze any new accounts since they got 21 billion pounds of deposits in a short time. (Because once they hit 25 billion pounds Goldman would have to ring-fence Marcus as a separate legal entity which is costly.)

https://www.businessinsider.com/goldman-marcus-uk-pauses-new-accounts-2020-6

July 11, 2020
10:21 am
Dean
Slocan Valley, West Kootenays, BC.
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.
'Fill Yer Boots' if you want to Folks, but it's just another CT short-term Bait Rate.

I'll pass,

    Dean

sf-cool " Live Long And Prosper " sf-cool

July 11, 2020
10:47 am
savemoresaveoften
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Thanks OP for the tip. 0.2% to bump it to 2% and make it one of the highest rate available. It may be higher risk but as long as its under CDIC $100k cap, it will be fine.

July 11, 2020
11:11 am
Ed
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Good strategy to get people to apply for their credit card. If Peter included it as one of his High Interest Savings Cash Back offers, then maybe I’d consider it.

July 12, 2020
12:04 am
Loonie
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Doug said

Also, while bank risk ratings are a closely held secret, I strongly suspect that Canadian Tire Bank is, or was, one of the two banks in the CDIC's lowest category (that is, the most watched) in terms of risk. My reason for this is because of the analyst commentary regarding parent Canadian Tire Corporation's leverage ratio and debt ratings. As well, 100% of its lending portfolio is credit card receivables, half of which are funded by deposits and half of which are funded by the Glacier Credit Card Trust.

 

Where does one find this CDIC information, Doug?

July 12, 2020
8:21 am
Doug
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Loonie said

Doug said

Also, while bank risk ratings are a closely held secret, I strongly suspect that Canadian Tire Bank is, or was, one of the two banks in the CDIC's lowest category (that is, the most watched) in terms of risk. My reason for this is because of the analyst commentary regarding parent Canadian Tire Corporation's leverage ratio and debt ratings. As well, 100% of its lending portfolio is credit card receivables, half of which are funded by deposits and half of which are funded by the Glacier Credit Card Trust.

 

Where does one find this CDIC information, Doug?  

It's not public. Call it a "wild guess" and speculation on my part.

It's a penalty for a financial institution or a CDIC staff member to disclose their, or the financial institution's risk rating, but the full text of the Differential Premiums Bylaw is at https://laws.justice.gc.ca/eng/regulations/SOR-99-120/FullText.html.

There's four categories, and it's a closely guarded secret. CDIC only discloses the number of institutions per risk category, hence my need to speculate.

Edit: The 2019 annual report is out now. Page 34 lists the differential premiums each category pays, as a percentage of insured deposits. The 1 institution in category 4 from 2018 dropped off. So it probably wasn't who I thought it was. I'm guessing that was Street Capital Bank of Canada (now RFA Capital Bank of Canada), now that they've been recapitalized (at my and others' expense, but I digress!) and new owner RFA had to provide an additional equity capital injection. Again, speculation, but logical speculation nonetheless, I think. Three institutions are in category 3 (second from the bottom, or second highest risk) in 2019. Any speculation on who those were?

Link: https://www.cdic.ca/wp-content/uploads/cdic-2019-annual-report.pdf

Edit again: Oh, that's percent of members, not number of members, and it includes the foreign bank subsidiaries and trust companies, of course. Nevertheless, given that, 4% of what 115 members? That's a little better than 3 institutions, I think.

Cheers,
Doug

July 12, 2020
2:47 pm
Good
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Common sense when someone is paying a higher rate then most you know they are having a harder time attracting and keeping deposits.Example Manulife Bank when they run a offer. And before them B2B Bank and Laurentian Bank.

Always near the top is EQ Bank. Prime rate is 2.45%. They do not have to borrow at Prime rate if they get deposits at 2.00%. I closed my account with them years ago.

Exemption to this is when the BIG banks are running a promotion.Always safer and smarter to stick with them for a bit less.Your security is guaranteed along with the rate.Like CIBC at 2.40%.And if you did get a offer from Simplii at 2.00% which I did not.I would sooner take theirs over most of these other places because it is CIBC .

Canadian Tire Bank is 20% owned by Bank of Nova Scotia.

Bank of Nova Scotia has offer also that is paying 1.35% bonus tell August 31,20. Where I'm getting 2.10%.Tell end of August.Safe and secure with them.

As long as they are CDIC insured you get your money back in 3 days I think it is now. Bad part is that the higher rate they were paying you is gone.

No one needs to have a financial analysts of the institution.

July 30, 2020
9:09 am
krwilson
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Not posted on their site yet, maybe never, but I had applied for this account just to see. I applied online July 13th 2020 and just received their package today in the mail. Yes, this is another snail mail application to finish.

Anyway, they have increased this offer by a month till the end of August. I phoned in for it is impossible to send back my package and make a deposit by tomorrow, July 31st, the original end of this offer.

August 1, 2020
9:14 am
pwr1019
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krwilson said
Anyway, they have increased this offer by a month till the end of August. I phoned in for it is impossible to send back my package and make a deposit by tomorrow, July 31st, the original end of this offer.  

Actually if you look at the offer the deposit deadline is September 30th

https://www.ctfs.com/content/ctfs/en/retailbanking/hisa_vip_program_customers.html

Doug said
My reason for this is because of the analyst commentary regarding parent Canadian Tire Corporation's leverage ratio and debt ratings. For those reasons, it's an avoid for me. Not a "strong avoid" like Motusbank, but an avoid nonetheless.
Cheers,
Doug 

Actually Doug is correct if you look in the management notes of their latest quarterly report they disclose that their credit rating was being lowered from BBB+ to BBB. If anyone is interested its bottom page 6 under significant Covid events affecting company this quarter

https://mma.prnewswire.com/media/1165089/CANADIAN_TIRE_CORPORATION__LIMITED_Canadian_Tire_Corporation_Rep.pdf?p=original

All that said......my understanding is this 2% does not currently have an expiry date and since Canadian Tire Bank rarely updates their rates....I'm in up to the CDIC limit. If anyone has a better HISA offer I'd love to hear it.

August 20, 2020
10:40 am
krwilson
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Followup: I finally received my papers back from CTC bank in the mail today. You must call in to get a password to access your account online. They also asked me questions which are the same as the credit reporting items asked online by other banks to verify it's me. Both times I have called I must say the customer service was pleasant and efficient for me.

Note: I asked if I was getting the 2% offered, entire reason I started this, and was told that the 2% rate does not start until October 1st, 2020. So I hope I enjoy the 1.8% till then and get the better rate for a few months?! Seems odd going this far into the future as all other institutions are lowering their rates.

August 20, 2020
4:31 pm
Loonie
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pwr1019 said

All that said......my understanding is this 2% does not currently have an expiry date and since Canadian Tire Bank rarely updates their rates....I'm in up to the CDIC limit. If anyone has a better HISA offer I'd love to hear it.  

CIBC is still offering 2.1 for 120 days if you haven't had an eAdvantage savings account before. The base rate of .1 is subject to change but the rest is solid, it seems. CIBC has a better credit rating, I believe.
https://www.cibc.com/en/special-offers/fall-savings-promotion.html?utrc=S232:100&&gclid=EAIaIQobChMIvJim0PWq6wIVGq_ICh2jEg-LEAAYASAAEgLQ6PD_BwE&gclsrc=aw.ds

There is a thread on these CIBC promos that you should probably read if interested in the offer. It''s best to sign up in branch, with an appointment, and have a cheque ready to deposit as the clock starts ticking right away. If you don't already have a CIBC account and card, you will encounter unwelcome delays with online appllication.

August 20, 2020
4:49 pm
Loonie
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krwilson said

Note: I asked if I was getting the 2% offered, entire reason I started this, and was told that the 2% rate does not start until October 1st, 2020. So I hope I enjoy the 1.8% till then and get the better rate for a few months?! Seems odd going this far into the future as all other institutions are lowering their rates.  

I think I would be more inclined to trust the footnote at the bottom of the page:
"**Annual interest rate quoted as of the date of this email and subject to change without notice. Interest is calculated daily at a daily rate which is equal to the annual interest rate divided by 365 days (or 366 as the case may be) and is based on the daily closing balance in your account and paid monthly. The 2.00% interest rate consists of the current standard rate of 1.8% and a bonus of 0.20%. The bonus .20% interest rate will commence on August 1, 2020. The standard rate is subject to change without notice. Excludes deposits made to a Canadian Tire Tax Free® High Interest Savings account. Canadian Tire High Interest Savings Account currently not available to residents of Quebec."

August 23, 2020
9:01 pm
Bud
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to get 2% u gotta have cdn tire credit card right? if not 1.8

August 24, 2020
2:26 am
smayer97
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@Bud yes but the card is free and if you qualify for the WE version (min $80K personal annual income) you also get free Gold Roadside Assistance (250 kms towing, etc).

P.S. one feature of the card that is little talked about is that you can set up to automatically pay for MANY recurring services and earn 1%, e.g. utilities, property taxes, insurance, etc., many that normally do not accept credit card payments or that may charge extra for it but CDN Tire sends payments as if it were from a bank account so the recipient does not see it as a credit card payment (the ONLY card to provide this service). This is a free way to earn CDN Tire points for which you would otherwise not earn anything anywhere else.

August 24, 2020
5:05 am
krwilson
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This service is great for you get something for bills you must pay anyway.

It was 0.8%, but as of August 2020 it is down to 0.5%.

August 24, 2020
6:04 am
Bud
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Is cdn tire roadside as reliable as caa

Card is not cash back all points earned goes toward cdn tire money has to be spent in store

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