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Why is Canadian Tire @1.5% included in the HISA list?
February 11, 2020
11:47 am
canadian.100
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Just wondering why Canadian Tire Bank is listed in the HISA list with only a 1.5% rate?

February 11, 2020
4:49 pm
Dean
Slocan Valley, West Kootenays, BC.
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.
CT's HISA TFSA rate is 1.8%. Maybe that's why❓

The HISA Comparison Chart always has one entry that's the lowest. In this case, CT fills that spot right now.

This is the 'General Criteria' for the HISA Comparison Chart ⬇

    In general, for a bank account to be included in the comparison chart, it must be :

    - Accessible to all Canadians in all provinces and territories or, alternatively, all provinces and territories with the exception of Quebec (however, when they do exclude Quebec residents, this is indicated on the chart)

    - Must be able to be opened in-branch at any branch in all or the majority of the Canada’s provinces and territories or opened online through non-face-to-face account opening procedures without requiring a mobile mortgage or banking specialist to come to your home where the product will be sold in conjunction with a mortgage/home equity line of credit

    - Must not be held in broker “book-entry”/nominee form; must be held in one’s own name

    - The regular interest rate on the high interest savings account must be “competitive” (this is loosely interpreted)

Hope that ⬆ helps. sf-smile

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

February 12, 2020
11:30 am
Doug
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I've suggested one of two things need to happen:

* Either Canadian Tire's HISA and TFSA need to be removed; or, assuming 1.50% is the loosely interpreted bar,
* ICICI Bank Canada's HISA at 1.6-1.65% needs to be re-added.

If the latter, then we also need to add to the chart the following, which meet all our criteria:
* Niverville Credit Union's HISA (2.00%)
* Peoples Bank of Canada's e-Savings account (2.00%)

As well, we should be adding Peoples Bank of Canada's and Concentra Bank's chart-topping GICs to the GIC chart.

Consistency and adherence to policy matter. sf-cool

Cheers,
Doug

February 12, 2020
4:41 pm
3oakwest
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I certainly agree.

February 12, 2020
5:29 pm
Loonie
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Is it really all that difficult to have a set criterion for inclusion when the main point is the rate?
I think there is too much editorial opinion going into it.
The more editorializing, the less useful the chart. I rarely look at it.

The bottom line is that the chart rarely covers the best available rates and does include duds. Thus, it's not very reliable as a resource. It needs to have a way to include rates that may have restrictions but are still widely available and useful to forum members.

Having put my money where my mouth is, I currently have about 6% of our cash in HISAs that are listed on that chart.

February 13, 2020
6:21 am
canadian.100
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Loonie said

The bottom line is that the chart rarely covers the best available rates and does include duds. Thus, it's not very reliable as a resource. It needs to have a way to include rates that may have restrictions but are still widely available and useful to forum members.

Having put my money where my mouth is, I currently have about 6% of our cash in HISAs that are listed on that chart.  

Please share with us the FIs (not listed on the chart) you found preferable to have placed 94% of your cash.

February 13, 2020
11:14 am
Doug
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What do you guys all think about using either of:

- (a) the Bank of Canada's Policy Interest Rate (1.75% currently) as a benchmark minimum (note the HISA and TFSA rate must both be above this rate) for inclusion; or,
- (b) 25 bps above the Bank of Canada's Policy Interest Rate (1.75% currently), which would make the current minimum 2%.

I've proposed the latter in the past, to try and clarify that wishy-washy inclusion criteria.

If the community achieves consensus to one of the above, or something else, I suspect that'd go a long way toward Peter modifying that last criterion. sf-cool

And honestly, does a HISA/TFSA less than 1.75% even interest anyone?

Cheers,
Doug

February 13, 2020
11:17 am
Doug
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canadian.100 said

Please share with us the FIs (not listed on the chart) you found preferable to have placed 94% of your cash.  

I suspect what Loonie meant there is that most of their funds are in GICs, not that 94% of their funds period are with FIs other than those listed.

Does that help?

Cheers,
Doug

February 13, 2020
12:18 pm
canadian.100
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Doug said

I suspect what Loonie meant there is that most of their funds are in GICs, not that 94% of their funds period are with FIs other than those listed.

Does that help?

Cheers,
Doug  

Ok - if you suspect that is what he meant to say.

February 13, 2020
4:12 pm
Loonie
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canadian.100 said

Please share with us the FIs (not listed on the chart) you found preferable to have placed 94% of your cash.  

I meant what I said: cash, not GICs.

Alll the FIs I use have been mentioned in this forum, but they are not all on the chart because they are either promos or offer tiered rates or are only available locally. (I don't use LBC or B2B because I don't like how they operate.)
Sometimes I do have much more money at the FIs that are listed in the chart, but it is often promo rates, cashable GICs etc., not the rates listed on the chart. I am currently waiting (and waiting and waiting) for an account at Motive, and will move 100K into it if it ever gets approved.) I just came off 3% promo rates at DUCA and Meridian, which lasted quite a while.

February 13, 2020
4:38 pm
Loonie
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As to Doug's suggested revisions,
I agree that nobody wants anything less than 1.75% and probably 2%. The exception might be people who insist on only having their funds in CDIC-insured deposits, can't use joint accounts, and who have close to a million to deposit in savings accounts - if such people exist.

I don't think it's important that the minimum rate apply to both TFSA and non-registered. Personally, I rarely have any money in TFSA savings accounts and, if I did, would only put it in FIs that have no transfer fees, which is only 3 places.

The idea of pegging it to something like the BoC rate makes some sense as this would allow the minimum to change in an unbiased way when circumstances demand. However, interest rages do not always move in sync with BoC so perhaps another criterion might work, such as 'the best 10" or something like that. If so, locally applicable rates might need to be listed separately so as not to overwhelm the list. To me, it makes no sense to ONLY list exceptions for Quebec.

The problem is that the chart is not flexible enough to include promotional rates, tiered rates, and locally available rates. That's where most of the best deals are and probably always will be, so it is of limited usefulness until that problem can be solved. Further, it doesn't deal with RSP and RIF savings rates.
I think the column listing the name of the account could be eliminated to make room for more useful info.
I also think that extensive use could be made of footnotes to explain restrictions. The FIs do this. I think it's DuCA (or maybe Meridian) that has numerous footnotes, and I find it easy to follow.
LBC should have a footnote saying it's a pain in the rear to open an account and that you can't depend on the website. This is surely as important as knowing the rate.

I don't anticipate that my opinions will prevail. I will continue to keep my own lists. They are a nuisance to maintain but they tell me what I want to know. They are not in chart form, just lists. Spouse uses Excel but it is typically full of errors - probably a function of the operator! I prefer my own system although I'm sure most wouldn't. I haven't found anything better yet.

February 13, 2020
6:10 pm
smayer97
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Doug said
What do you guys all think about using either of:
...
I've proposed the latter in the past, to try and clarify that wishy-washy inclusion criteria.
...
And honestly, does a HISA/TFSA less than 1.75% even interest anyone?

Cheers,
Doug  

I agree that a clear consistent and defined criteria is best. As for the 1.75%, I think it is relative to what is available. Since there are plenty of better offers, it seems like a good cutoff but if it was the only thing available vs close to 0%, would you take it?

February 13, 2020
6:14 pm
smayer97
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Loonie said
...
If so, locally applicable rates might need to be listed separately so as not to overwhelm the list. To me, it makes no sense to ONLY list exceptions for Quebec.

The problem is that the chart is not flexible enough to include promotional rates, tiered rates, and locally available rates. That's where most of the best deals are and probably always will be,
...
  

What area are you from that are locally better? Is it Quebec? I'm in Ontario and have yet to see any local offers, especially ones better.

February 13, 2020
8:48 pm
Loonie
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You may be right about that. Now that I think about it further, it's actually GICs where I get better local rates rather than savings accounts.

I tend to think of DUCA and Meridian as local because I deal with them in-branch locally as they are local to me, but I realize they are more widely available. They have great promo rates.

Still, I would keep a look out for good local rates. You never know what might come up on a promo basis. And the chart will not be able to accommodate them in its current form.

February 14, 2020
6:01 am
Bill
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There are apparently over 700 credit unions in Canada, vs maybe about 80 banks, I think. Now I'm not sure how many of those credit unions are widely available (anybody know?), but if you're willing to regularly search for the best credit union HISA and GIC rates available at any moment in your area you might not have to deal much with banks at all.

More and more online banks and credit unions available in last few years, any merit in having separate charts on here now? Likely not, just wondering out loud.

February 14, 2020
9:10 am
Doug
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Bill said
There are apparently over 700 credit unions in Canada, vs maybe about 80 banks, I think. Now I'm not sure how many of those credit unions are widely available (anybody know?), but if you're willing to regularly search for the best credit union HISA and GIC rates available at any moment in your area you might not have to deal much with banks at all.

More and more online banks and credit unions available in last few years, any merit in having separate charts on here now? Likely not, just wondering out loud.  

I would also strongly support having two charts, one for provincial credit unions, including divisions of credit unions, and one for banks, federally-regulated trust companies, and federal credit unions. This would also eliminate the need for the cumbersome and useless "CU" column. Deposit insurance would be made clear by the chart on which the FI appears.

Suggested menu link names could be "HISA chart" (for the federally-regulated financial institutions) and "HISA chart (PCUs)" (for the provincially-regulated credit unions)

I, too, agree with Loonie's suggestion on making excepts to the minimum interest rate criteria for Quebec, and, even if we don't tie it to the BoC rate, it doesn't make sense to keep our minimum rate at 1.50%. No one would park money at least 1.50%, particularly when they can get 1.60-1.65% from the Big 6 banks in a discount brokerage trading account.

Cheers,
Doug

February 14, 2020
10:16 am
smayer97
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No need for a new chart...just add the qualifying ones... I have not found many that do.

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