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$500 bonus to new member opening chequing (conditions apply)
September 13, 2019
2:15 pm
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Scotia Momentum Savings account is not confusing now. It even says in Scotia on line banking about the 3.00% offer.

I realize now that the 3.00% only applies on a 1 year term with no withdrawals tell January 31,20.Then drops off to 2.00%.Cut off date for deposits is November 30,19.

Plus with the renamed Preferred Package Account previously called Scotia One Account you get a .05% bonus on momentum savings starting in November.

Makes your 90 day term with no withdrawals starting in November 2.55%. Plus any new deposits you make into the same term before November 30 will receive the same rate as long as you have no withdrawals.

Their is a regular savings part of the account also paying 1.00%. That will get a .05% increase starting November with the Preferred Package Account.

Easier to understand now then before. Therefore you have to assume their was a lot of confusion about the offer.Nice that people pointed out the flaws in the offer on here.

A lot less confusing now.

September 15, 2019
6:40 am
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Good offer hopefully when they go nationally they have it

September 20, 2019
5:12 pm
GICinvestor
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I don’t know if I have put this in the right spot.

So here it goes.

They are making fools out of themselves by going federal and not treating every customer the same.

In speaking with a real advisor he tells me that Coast Capital needs to get out there and get their funds built up.

Why?

Because they have numerous investors that have well over $100,000, $200,000, $500,0000 invested. And once their customers renew....they won’t renew, as Coast Capital no longer has UNLIMITED insurance. The customers and advisers will and have found alternative FI’s to move their investments to.

September 20, 2019
5:52 pm
Loonie
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GICinvestor said
I don’t know if I have put this in the right spot.

So here it goes.

They are making folks out of themselves by going federal and not treating every customer the same.

In speaking with a real advisor he tells me that Coast Capital needs to get out there and get their funds built up.

Why?

Because they have numerous investors that have well over $100,000, $200,000, $500,0000 invested. And once their customers renew....they won’t renew, as Coast Capital no longer has UNLIMITED insurance. The customers and advisers will and have found alternative FI’s to move their investments to.  

I think you must have meant "fools", not "folks"?

What you are saying makes total sense. Some of us thought of it as a kind of downgrade when they decided to forfeit their higher insurance but others may have thought CDIC superior if limited.
It's only natural that people would start moving out matured GICs. And it shows that people are paying attention.

But it doesn't explain why they are restricting the $500 incentive to residents of BC.

September 20, 2019
6:04 pm
Doug
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Loonie said

I think you must have meant "fools", not "folks"?

What you are saying makes total sense. Some of us thought of it as a kind of downgrade when they decided to forfeit their higher insurance but others may have thought CDIC superior if limited.
It's only natural that people would start moving out matured GICs. And it shows that people are paying attention.

But it doesn't explain why they are restricting the $500 incentive to residents of BC.  

As part of their communication with members, Coast Capital Savings estimated that, at the time, which was late 2017 (as I recall), 97.5-98% of customers' deposits would be within CDIC insurance limits. So, they estimated that only 2-2.5% of deposits would be in excess of CDIC limits. But, it's reasonable theory.

Also, you have to consider that Coast doesn't really need our deposits. They've got an established brokerage channel, where they're even hawking GIC rates at premiums to the branch channel (which is atypical!) - at least for the past 6-8 months or so. And, back in 2018, they did two institutional deposit note and/or bond placements paying 5-5.5% per annum with maturity in 2029 or 2030. And, even without GIC rate specials, their ability to raise deposits exceeds their ability to grow their loan book, so I suspect as GICs mature, they'll have a "take it or leave it" attitude. 🙁

Cheers,
Doug

September 20, 2019
7:13 pm
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Loonie said

I think you must have meant "fools", not "folks"?

What you are saying makes total sense. Some of us thought of it as a kind of downgrade when they decided to forfeit their higher insurance but others may have thought CDIC superior if limited.
It's only natural that people would start moving out matured GICs. And it shows that people are paying attention.

But it doesn't explain why they are restricting the $500 incentive to residents of BC.  

Thanks I fixed....no says fools.

Right why do they restrict? They need the deposits!

But on the other hand they may not have enough $500s to go around so there next step was Ontario? And everyone else has to wait there turn to be accepted by Coast Capital? Baloohee to that!

September 20, 2019
7:17 pm
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Doug said

As part of their communication with members, Coast Capital Savings estimated that, at the time, which was late 2017 (as I recall), 97.5-98% of customers' deposits would be within CDIC insurance limits. So, they estimated that only 2-2.5% of deposits would be in excess of CDIC limits. But, it's reasonable theory.

Also, you have to consider that Coast doesn't really need our deposits. They've got an established brokerage channel, where they're even hawking GIC rates at premiums to the branch channel (which is atypical!) - at least for the past 6-8 months or so. And, back in 2018, they did two institutional deposit note and/or bond placements paying 5-5.5% per annum with maturity in 2029 or 2030. And, even without GIC rate specials, their ability to raise deposits exceeds their ability to grow their loan book, so I suspect as GICs mature, they'll have a "take it or leave it" attitude. 🙁

Cheers,
Doug  

Yes but I am dealing with on of those brokers for my mother in law. He always did Coast Capital 90% of the time but he too must now choose from a long list of other FIs. Sure a big network of brokers.....but same issue.....any maturing GICs will fall under CDIC. And the limits will be on at the brokers too.

And Doug think about it. It does not matter who brought the funds in. It is whoever is over $100,000 will move on to another FI. And they need to replace it plus more.

September 20, 2019
7:59 pm
Doug
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GICinvestor said

Yes but I am dealing with on of those brokers for my mother in law. He always did Coast Capital 90% of the time but he too must now choose from a long list of other FIs. Sure a big network of brokers.....but same issue.....any maturing GICs will fall under CDIC. And the limits will be on at the brokers too.

Right, but remember only 2-2.5% of all customers' deposits exceed CDIC limits, at least as at 18 months ago or so. So, CDIC limits aren't really a factor with Coast if most people aren't in excess of their CDIC limits.

When I close my accounts at the end of next year, I'll still get a Coast GIC if they're competitive but will do it thru a broker. Don't need to bother with the semi-incompetent contact centre. 😉

Cheers,
Doug

September 20, 2019
8:50 pm
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Lol. And when you go through a broker you will get a higher rate than the in branch no haggle rate. Yes higher!

In hindsight they may do ok if they get as many as possible brokers online from across Canada first.

September 21, 2019
2:28 am
Loonie
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Are you guys talking about deposit brokers or investment brokers?
I find it's not unusual for deposit brokers to offer rates better than the bank/CU directly, although not consistent. I wonder if some deposit brokers may have more leverage. Some of them deal with very large deposit sums from corporate entities who obviously find it worthwhile.

Thanks for the additional info, Doug, about CC's projections etc. Maybe they've lost more than they expected, not just due to change of insurance. Perhaps dissatisfied members are moving their money out at the same time. From what you and others have said, this sounds very plausible to me.

Are they really going to target Ontario next? It makes sense on some levels perhaps, but it might also make sense to start with a smaller province and see how it works out. That said, MB appears saturated with CUs, some with better rates than CC (and better service!) so not a good place to start.

Your stats are interesting, Doug. I somehow doubt that other FIs have larger GIC deposit totals. It's likely about the same across the board. And this presumably includes RSPs, where you expect people to have a larger portion of their cash than non-reg'd. No doubt a lot has gone to investment brokerages. The amount in GIC deposits may also depend on the popularity of other investments, which is something that ebbs and flows with the markets.
Once the next Recession hits, many "investors" will start running for the hills (or, in this case, "Escalators"sf-wink), beefing up GIC deposits.

It would be interesting, although probably inaccessible, to know how much Oaken is losing on registered GICs maturing due to their failure to offer savings accounts. Perhaps not (yet) enough to make them sit up and make notice. I have moved out one reg'd GIC so far, and will not be finished the transition until 2022. I imagine I'm typical of a certain kind of depositor. i stopped buying more
registered GICs from Oaken (with regret) when I realized the problem they were creating for me.

September 21, 2019
7:38 am
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I am talking about an investment advisor. He always gave us Coast Capital or who ever else was higher.....but usually Coast Capital. And think about how Coast Capital super screws their in branch customers as I was receiving higher rates than the in branch rate AND my advisor was also receiving .25% on top of that.

Stats can be designed to say this or that by stating inclusions, exclusions etc. Bottom line, not a company to be trusted. And who wrote the stats?

September 21, 2019
8:21 am
Doug
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In the case of Coast Capital, I was referring to both, but specifically, discount brokerages. Deposit broker rates may be more common to be higher than branch rates (depends on the FI, and if they offer a direct-to-consumer virtual banking division or not, in which case, the answer is no/not usually). In the case of Coast Capital, their discount brokerage GIC deposit rates have been higher, and often significantly higher, than their branch rates (which are sub-2%, barring 1-2 exceptions). This is an atypical situation. Thus, I see no advantage to Coast, especially since they charge $1.50 per e-Transfer, do not offer free cheques to all patron types, and do not have bank-to-bank (Me-to-Me™) transfers. 🙁

Cheers,
Doug

September 21, 2019
8:34 am
Doug
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Loonie said
Are you guys talking about deposit brokers or investment brokers?
I find it's not unusual for deposit brokers to offer rates better than the bank/CU directly, although not consistent. I wonder if some deposit brokers may have more leverage. Some of them deal with very large deposit sums from corporate entities who obviously find it worthwhile.

Thanks for the additional info, Doug, about CC's projections etc. Maybe they've lost more than they expected, not just due to change of insurance. Perhaps dissatisfied members are moving their money out at the same time. From what you and others have said, this sounds very plausible to me.

Thanks for the reply, Loonie. Since I replied to your first part (above) already, I won't repeat my answers.

Are they really going to target Ontario next? It makes sense on some levels perhaps, but it might also make sense to start with a smaller province and see how it works out. That said, MB appears saturated with CUs, some with better rates than CC (and better service!) so not a good place to start.

According to @Shawguy, they have enabled the Ontario version of their full website, so it seems likely. I suspect they will go to Ontario first, then Alberta (I'd have that they'd go Alberta second and move east), then Saskatchewan, and then Manitoba. I suspect Quebec and the Maritimes will be at least 5 and more likely 10 years out from getting Coast actively targeting them virtually and certainly with branches.

I'm wondering if Coast is biding their time, hoping a provincial credit union will propose to wed, so they too can go national (albeit under the Coast banner)? If they don't have any "takers," I think they may go with their "backup" (and original) plan of launching 1-2 branches per year in one province per year and then roll out gradually. In tandem with those 1-2 branches per year, they would also roll out their full website and begin paid marketing campaigns in each province. What do you think?

Your stats are interesting, Doug. I somehow doubt that other FIs have larger GIC deposit totals. It's likely about the same across the board. And this presumably includes RSPs, where you expect people to have a larger portion of their cash than non-reg'd. No doubt a lot has gone to investment brokerages. The amount in GIC deposits may also depend on the popularity of other investments, which is something that ebbs and flows with the markets.
Once the next Recession hits, many "investors" will start running for the hills (or, in this case, "Escalators"sf-wink), beefing up GIC deposits.

I like Escalating GICs too. I'm not opposed to them...it all depends if they work into my GIC maturity profile and if they offer as good, or better, return than conventional GICs. Similarly, I'm also not completely opposed to stock market-linked GICs, so long as there is a minimum rate of return that is equal to the BoC Policy Interest Rate at the time of purchase (1.75%), per annum, or better.

That said, Coast has grown their deposit book by fully 25% in the past 3 years or so. So, even if GICs are rolling off their books, they've got plenty of deposits rushing in the doors, so to speak. In fact, I wouldn't be surprised to see Coast top Vancity as the largest credit union by assets (which would be historic and for which they'll expend great sums lauding this "achievement") by next year if not by year's end. Sadly, Vancity, despite being so large, is ironically, more closely rooted to the credit union ethos of putting people before profits. Coast, meanwhile, is a credit union by letters patent only. 🙁

It would be interesting, although probably inaccessible, to know how much Oaken is losing on registered GICs maturing due to their failure to offer savings accounts. Perhaps not (yet) enough to make them sit up and make notice. I have moved out one reg'd GIC so far, and will not be finished the transition until 2022. I imagine I'm typical of a certain kind of depositor. i stopped buying more registered GICs from Oaken (with regret) when I realized the problem they were creating for me.  

I hate to say it, but sadly, I think not much. Well, not anything that is material and not picked up elsewhere. I don't know why they don't offer a registered HISA, even at a 0.25% discount to the non-registered HISA, as I think there'd be some good take up and deposit "stickiness". It's not like it would add much cost since it would be marketed and branded as the registered version of an existing product.

Cheers,
Doug

September 21, 2019
11:56 am
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I don't really have an opinion as to where this is all going and how fast. I do wonder where all the business will come from, in any province, as there seems to be a proliferation of options, both online and in-branch. Meridian is expanding all over the place here, for example.
Do you remember, a couple of years ago, some expert said that alternative banks would never grab more than about 3% of the market? (I think). I doubted this low limit at the time and I doubt it now, but I do wonder how they will all get market share when Canadians are so lethargic about seeking better FIs.
Maybe it's just me, but I find that people are not very responsive when I suggest they could get a better return elsewhere. I was an early adopter with ING and managed to convince precisely one person to set up an account there - back when it was worthwhile. I tell friends and relatives that I have some expertise on interest rates and even sometimes tell them the deals I've gotten,b ut it seems to go right past them so I don't bohter any more.

You're probably right about Oaken.

September 23, 2019
3:25 pm
hwyc
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hwyc said
What a twist !!! sf-surprised Now their screen says "The Offer applies to residents of BC only." in bold. ... stirring confusions to BC outsiders who've applied in the last few days.  

To bring closure ... I read about confirmations (#2267, #2283, #2286) on RFD regarding Ontarians who applied during the 1st days now received the $500 bonus.

September 25, 2019
7:38 pm
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From their FAQ:

Q: If I live outside of B.C. and applied before the eligibly was changed only to B.C. residence, will I still be approved?

A: All applications prior to the change will still go through our approval process and must meet the other eligibility requirements.

September 27, 2019
6:37 am
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You are correct about the lower coverage. People will not keep with them like before when they had unlimited coverage. Back stopped also by the province.

With the CDIC limit of 100,000 most people will not go over.Unless it is in a large Bank. Not worth the risk for 1/2%.

That is why Hubert is good .Manitoba has unlimited coverage also on US funds.

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