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tfsa at 2.75%
December 29, 2011
8:45 am
jacks
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Is this just temporary or a sign that other virtual bank accounts are going to follow?

December 29, 2011
9:32 am
88kanaka
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jacks said:

Is this just temporary or a sign that other virtual bank accounts are going to follow?

Looks like bait and switch to gain market share hoping you will be too lazy to move your money elsewhere!!!

The ad says:
Count on an every day rate - not a temporary promotional rate
The fine print says:
*Current Rate subject to change without notice. Interest is paid monthly and is calculated daily based on the daily closing balance.

December 29, 2011
10:14 am
jacks
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It has already been sitting at 2.5% for a long time. I'm sure all the other banks have a similar disclaimer as well.

If they are trying to find these lazy people. Then I would assume they are not getting virtually no interest or (for example) seeing 1.25% from rbc high interest savings...

December 29, 2011
10:54 am
88kanaka
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jacks said:

It has already been sitting at 2.5% for a long time. I'm sure all the other banks have a similar disclaimer as well.

If they are trying to find these lazy people. Then I would assume they are not getting virtually no interest or (for example) seeing 1.25% from rbc high interest savings...

I guess time will tell. If the others don't follow.....don't be surprised if CT decreases their rate.

Parking money in a HISA until one finds a suitable term deposit to invest in, is an option. Interest rates for a HISA TFSA are irrelevant but that is all dependent on an individuals needs.

December 29, 2011
12:49 pm
edoorx
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88kanaka said:

jacks said:

It has already been sitting at 2.5% for a long time. I'm sure all the other banks have a similar disclaimer as well.

If they are trying to find these lazy people. Then I would assume they are not getting virtually no interest or (for example) seeing 1.25% from rbc high interest savings...

I guess time will tell. If the others don't follow.....don't be surprised if CT decreases their rate.

Parking money in a HISA until one finds a suitable term deposit to invest in, is an option. Interest rates for a HISA TFSA are irrelevant but that is all dependent on an individuals needs.

Which bank/CU gives better rate on term deposit than HISA TFSA at CDF?

December 29, 2011
1:23 pm
jacks
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Haven't checked the numbers (gic), but when I last did years ago wasn't much of a big deal. Unless your talking about multiple years term deposits vs the hisa. Then like you said, that depends on individual situation. I see it as Freedom/access vs locked in. Being a single person, really have to be careful about locking anything in...

I'm sure this discussion has been had many many times over previous threads :)

Personally, since the stock market did the craps this year and sure will continue on. Looking at my short term options. Then again, don't have that much money to play with either.

December 29, 2011
7:45 pm
88kanaka
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jacks said:

Haven't checked the numbers (gic), but when I last did years ago wasn't much of a big deal. Unless your talking about multiple years term deposits vs the hisa. Then like you said, that depends on individual situation. I see it as Freedom/access vs locked in. Being a single person, really have to be careful about locking anything in...

I'm sure this discussion has been had many many times over previous threads :)

Personally, since the stock market did the craps this year and sure will continue on. Looking at my short term options. Then again, don't have that much money to play with either.

Check here.... http://www.baystreet.ca/intere.....rates.aspx

I deal with Outlook Financial as they do have an early redemption for GIC's and with Accelerate that do not. Both are good to deal with. Look at putting a portion locked in and some not (either in HISA or redeemable with a penalty though). Invest in multiples of 1000.00 is another option too.

http://www.acceleratefinancial.....rates.aspx
http://www.outlookfinancial.co.....ucts/rates

There are lots of products offered at different rates and different redemption policies. Find what you need and make use of them!! Look at a 3 or 5 year ladder approach too. Watch out for the bait and switch institutions that should be coming out for 2012 TFSA season!! Bond ETF's in a TFSA are an option too if you have a brokerage account.

December 30, 2011
9:37 am
jacks
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Appreciate the advice. But since I am single, it's hard to decide what money if any I can afford to lock away for such a long time. I like the hisa because I had my cheque deposited into the account. Cdn tire is nice because and have sub accounts and set labels like rent, emergency, rsp contrib. Also pay almost everything with credit card and transfer money to sub account on a weekly basis.

Hey, it may only be a couple dollars a month, but not much effort for something didn't have before. Since the amount is so small and rates similar, don't have to keep transferring a pile of money from one account to another when rates change.

December 30, 2011
10:37 am
88kanaka
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jacks said:

Appreciate the advice. But since I am single, it's hard to decide what money if any I can afford to lock away for such a long time. I like the hisa because I had my cheque deposited into the account. Cdn tire is nice because and have sub accounts and set labels like rent, emergency, rsp contrib. Also pay almost everything with credit card and transfer money to sub account on a weekly basis.

Hey, it may only be a couple dollars a month, but not much effort for something didn't have before. Since the amount is so small and rates similar, don't have to keep transferring a pile of money from one account to another when rates change.

No problem. I have been doing close to what you do for the past 40 years although the process is a bit different to yours. I do everything on credit too, for the Air Miles or Cash Back.....I have no idea how to use a debit card except at an ATM...lol!!! I then set the spent money aside every week to pay the credit cards off in full every month. I see you are making good use of your banking institution. It is good to know what is out there and use it to your advantage.

December 31, 2011
10:06 am
Blair
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88kanaka said:

jacks said:

Is this just temporary or a sign that other virtual bank accounts are going to follow?

Looks like bait and switch to gain market share hoping you will be too lazy to move your money elsewhere!!!

The ad says:
Count on an every day rate - not a temporary promotional rate
The fine print says:
*Current Rate subject to change without notice. Interest is paid monthly and is calculated daily based on the daily closing balance.

Canadian Tire does not have the best reputation for maintaining their rates. This is clearly evident in reviewing their rate history. Just prior to the end of the year their rates increase to an attractive number. Shortly in the new year the rate drops regardless of what the market is doing.

Late 2010 Canadian Tire raised their TFSA rate to an enticing 3.5%. Early in 2011 the rate dropped a full 100 basis points to 2.5%. This was in spite of the fact that they were advertising as not a not a promotional rate and not a temporary rate.

I spoke with Canadian Tire after the drop and asked why the drop in light of how it was advertised. I was told that it was advertised as not a promotional rate to inform the consumer that the rate could change. I asked for an explanation and was told that if it were a promotional rate they would have to honor the rate for a specific time.

I also asked why it was advertised as not being a temporary rate. My response was "it is still a good rate isn't it?"

I would be very surprised if their current rate would remain past the first few months of 2012.

December 31, 2011
10:30 am
88kanaka
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Blair said:

88kanaka said:

jacks said:

Is this just temporary or a sign that other virtual bank accounts are going to follow?

Looks like bait and switch to gain market share hoping you will be too lazy to move your money elsewhere!!!

The ad says:
Count on an every day rate - not a temporary promotional rate
The fine print says:
*Current Rate subject to change without notice. Interest is paid monthly and is calculated daily based on the daily closing balance.

Canadian Tire does not have the best reputation for maintaining their rates. This is clearly evident in reviewing their rate history. Just prior to the end of the year their rates increase to an attractive number. Shortly in the new year the rate drops regardless of what the market is doing.

Late 2010 Canadian Tire raised their TFSA rate to an enticing 3.5%. Early in 2011 the rate dropped a full 100 basis points to 2.5%. This was in spite of the fact that they were advertising as not a not a promotional rate and not a temporary rate.

I spoke with Canadian Tire after the drop and asked why the drop in light of how it was advertised. I was told that it was advertised as not a promotional rate to inform the consumer that the rate could change. I asked for an explanation and was told that if it were a promotional rate they would have to honor the rate for a specific time.

I also asked why it was advertised as not being a temporary rate. My response was "it is still a good rate isn't it?"

I would be very surprised if their current rate would remain past the first few months of 2012.

As shown on the comparison tab on this web site.

mm-dd-yy
01-31-08: 4.00%
02-01-08: 3.85%
03-01-08: 3.75%
03-12-08: 3.35%
05-01-08: 3.05%
12-04-08: 2.75%
================
01-23-09: 2.50%
04-29-09: 2.25%
05-22-09: 2.00%
07-09-09: 1.75%
07-30-09: 1.50%
09-09-09: 1.20%
12-18-09: 1.35%
================
08-01-10: 1.50%
12-03-10: 2.00%
================
04-09-11: 1.75%
06-30-11: 2.00%

December 31, 2011
10:42 am
Peter
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Blair said:

Canadian Tire does not have the best reputation for maintaining their rates. This is clearly evident in reviewing their rate history. Just prior to the end of the year their rates increase to an attractive number. Shortly in the new year the rate drops regardless of what the market is doing.

Late 2010 Canadian Tire raised their TFSA rate to an enticing 3.5%. Early in 2011 the rate dropped a full 100 basis points to 2.5%. This was in spite of the fact that they were advertising as not a not a promotional rate and not a temporary rate.

I spoke with Canadian Tire after the drop and asked why the drop in light of how it was advertised. I was told that it was advertised as not a promotional rate to inform the consumer that the rate could change. I asked for an explanation and was told that if it were a promotional rate they would have to honor the rate for a specific time.

I also asked why it was advertised as not being a temporary rate. My response was "it is still a good rate isn't it?"

I would be very surprised if their current rate would remain past the first few months of 2012.

So the wording "count on an everyday rate — not a temporary promotional rate" is purposely used to make it seem to the customer that this is a good thing. However, it is in fact more up front when it's a promotional rate, because then the customer knows that the rate is going to drop at a specific period of time. When it's an everyday rate, the financial institution can drop the rate at any time, making it the opposite of something you can "count on".

There ought to be some legislation against this deceiving practice, especially in a TFSA, and especially because Canadian Tire charges a $50 TFSA "transfer out" fee if you want to move your money to another financial institution without having it affect your contribution limit.

January 1, 2012
1:29 pm
Blair
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It is one of the worst examples of manipulating the language to infer something quite differnt from what it acctually is.

As far as stating that it is "not a temporary rate", that would seem to be a blatant untruth.

January 1, 2012
5:30 pm
88kanaka
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Blair said:

It is one of the worst examples of manipulating the language to infer something quite differnt from what it acctually is.

As far as stating that it is "not a temporary rate", that would seem to be a blatant untruth.

I certainly appreciate every ones opinion here. I would take it that if there was a forum here listing an institutions service, rates and creditably that Canadian Tire Bank WOULD NOT be considered an institution to consider to be loyal to?

It would be nice to see a forum here that could rate institutions by asking pertinent questions along with some comments to support your rating. I realize we all have different levels of experience, age, and education but the results would be interesting. I have found this site to be so helpful and informative. Thanks to all. Happy New Year!!!

January 6, 2012
4:36 pm
Jason
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Never never trust Canadian Tire. They are masters at bait and switch. The silly games they play on pricing in their stores means you don't know where you stand with them. If they were the last bank (an extreme abuse of the word) on the planet...I would keep my cash under a coconut tree.

Obviously any TFSA rate they advertise that is above the market will be adjusted as soon as they have sufficient victims on board.

It is really quite hard work maximizing your income based savings. I have accounts at Hubert, Outlook, Acclerate, Peoples and PCF. I have parked my cash in PCF until about mid Jan and then will disperse most of it to the highest paying institution. If they all pay the same interest rate I will split my funds in Hubert and Accelerate.

My 2cents worth.

Cheers.

January 6, 2012
5:21 pm
88kanaka
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Jason said:

Never never trust Canadian Tire. They are masters at bait and switch. The silly games they play on pricing in their stores means you don't know where you stand with them. If they were the last bank (an extreme abuse of the word) on the planet...I would keep my cash under a coconut tree.

Obviously any TFSA rate they advertise that is above the market will be adjusted as soon as they have sufficient victims on board.

It is really quite hard work maximizing your income based savings. I have accounts at Hubert, Outlook, Acclerate, Peoples and PCF. I have parked my cash in PCF until about mid Jan and then will disperse most of it to the highest paying institution. If they all pay the same interest rate I will split my funds in Hubert and Accelerate.

My 2cents worth.

Cheers.

Exactly. They tag products with yellow tags to make it "look like" they are on sale. Flip the yellow tag up.....you will see the price on yellow tag is REGULAR PRICE. Sooooooo why bank at a deceptive retailer!!!

January 6, 2012
5:26 pm
kilarney
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88kanaka said:

Jason said:

Never never trust Canadian Tire. They are masters at bait and switch. The silly games they play on pricing in their stores means you don't know where you stand with them. If they were the last bank (an extreme abuse of the word) on the planet...I would keep my cash under a coconut tree.

Obviously any TFSA rate they advertise that is above the market will be adjusted as soon as they have sufficient victims on board.

It is really quite hard work maximizing your income based savings. I have accounts at Hubert, Outlook, Acclerate, Peoples and PCF. I have parked my cash in PCF until about mid Jan and then will disperse most of it to the highest paying institution. If they all pay the same interest rate I will split my funds in Hubert and Accelerate.

My 2cents worth.

Cheers.

Exactly. They tag products with yellow tags to make it "look like" they are on sale. Flip the yellow tag up.....you will see the price on yellow tag is REGULAR PRICE. Sooooooo why bank at a deceptive retailer!!!

ya I noticed that about CTC, they put stuff in a sale flyer and make it look like its a special but it is regular priced....seems strange tactic.

January 7, 2012
9:16 pm
Peter
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88kanaka said:

It would be nice to see a forum here that could rate institutions by asking pertinent questions along with some comments to support your rating. I realize we all have different levels of experience, age, and education but the results would be interesting.

I could create individual profile pages for each institution with commenting / rating functionality if we could come up with a list of generic questions and categories to ask commenters.

Please write your comments in the forum.