EQ Bank Launched - 3% Interest Rate (For now?) | Page 6 | EQ Bank | Discussion forum

dentgal said
Wow--11 online banks!! Do share--with rates, if possible!!

All of my accounts are ones listed on this website.

My reason for 11 banks is likely quite different. I needed to find at least 5 high-interest CUs that were deemed FATCA-exempt due to having a local client base (clients must be Canadian residents). I determined 8 or 9 possibilities from this site by scouring their websites. Then I contacted them about their FATCA reporting obligations. Not one, not even their FATCA-compliance managers, could answer the question prior to July 1, 2014, so I opened accounts in all of them with minimal deposits. It took up to a year to finally determine that AcceleRate, Achieva and Implicity are the only ones not reporting account holders to FATCA.

What is FATCA? If you see questions on bank application forms asking you if you are a US citizen, or were born in the US, had a US-citizen parent at the time of your birth, have US tax-reporting obligations, etc, as EQ has on their application, that's FATCA. The IRS has extorted financial institutions around the world into reporting all the personal and personal account information of any account holder who has even a hint of US "indicia" or face a 30% withholding from all transactions with the US. The big banks have reported that their cost of FATCA-compliance, totally _not_ reimbursed by the IRS, is about $200 million, each. The Harper government signed a possibly illegal agreement with the IRS that your personal information is first sent to the CRA, and then the CRA sends it to the IRS. The enabling legislation for this was crammed into an omnibus bill and passed. There is a court case against the government trying to overturn it. There is MUCH more to it than that, but hopefully nobody here is an "accidental American" or heaven help you, a US or dual citizen living outside of the US.

It took me over 3 years, but I succeeded in getting the US to agree that I gave up my US citizenship over 40 years ago. This means I'm free to use any of my 11 accounts now, not just the three CUs mentioned.

JustMe said
Having cheques at AR is not 'benefit'. Only one is free per month, for the rest you pay $1.

Sure, but it's a savings account. I keep my spending money elsewhere. I only need to ever write one check, and that's the cheque that moves the money to a higher-interest account elsewhere.

Bill said

Globe article on EQ Bank:

http://www.theglobeandmail.com.....e28326447/

Wow, no big surprise when you look at their parent companies GIC rates.
It is:
A promo
A well planned (<= maybe), market share move
Poor with not offering more of a variety of products and a definite poor showing with no Joint Accounts

Are they embarassed?

reality said

I don't think they are embarrassed kanaka, I think they have mastered a great media ploy. I'm still waiting for my account to be opened and I was one of the first to sign up. I bet that 3% rate disappears real fast. They are getting hundreds of thousands of dollars of free advertising and not paying out a dime in interest yet. Good scam, I wonder what the rate will be when my account finally gets opened lol.

Ha! Here is my prediction they will offer joint, GICs including non-registered and TFSA. At that time the daily savings account rate will only compare to Oaken, Accelerate and the likes.

reality said

Maybe mine might be open by then. I have already decided not to go over 100K, these guys are starting to sound more like snake oil salesmen than a reliable bank to deposit $$$ in.

I wonder how long it will be before the plug is pulled and some go elsewhere...how fast will your money move (be released from them)?

Shame on them for saying that it's not a promo rate on their website and then turning around and admitting to the media that it is - and before anyone's seen a penny of it. Misleading advertising.

It also doesn't inspire confidence that they'd be so.. well, stupid! ... as to admit this contradiction, in advance, no less! It doesn't look good on them.

What other ill-considered moves are they going to make while dancing around with our money?

I recommend that everyone who is interested in them open a $5 account, until they smarten up.

Coming from a rate-driven business, i think they are just being cautious to not say 3 percent will be forever......nothing is forever. Will be interested if and when they do lower rate and how it will still stack up against other banks.

Overall, isn't it nice to see some diff options and competition in Canada these days ? Unlike the telecom industry where things just suck , at least in my opinion.

file said

I signed up on Thursday of last week and have access as of this morning. The online banking interface is simple and pleasant, adding additional accounts was a breeze. Works pretty much as you'd expect. Linking another account requires contacting them which I need to do. Otherwise all is well so far. When doing an EFT in they specifically state:

Please allow 5 business days for your funds to be deposited.

So it's like Tangerine, just without a determined release amount. I'll never be EFTing in so *shrug* doesn't matter to me.

That means the account was opened on time, after 5 business days!

I hope that 5 business for an EFT means the hold period... the money should be there right away and start making interest in the same day.

How do you transfer funds in?