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EQ Bank savings accounts, TFSA, and RRSP rates dropping to 1.25%
May 25, 2021
12:28 pm
JenE
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To Jim Sherat
From a post by Alexandre in April:

..... as of Wednesday, May 26th, 2021, the interest rates on our TFSA Savings Account and RSP Savings Account will change from 2.30% to 1.25%.

Perhaps double check, Jim, maybe you don’t want to miss out on the 2.3% 90 day TFSA GIC.

May 25, 2021
12:33 pm
Alexandre
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Email just arrived:

To help you earn as much as possible on your hard-earned money, we’ve extended the deadline to lock in 2.30% on a 3-month TFSA or RSP GIC to June 2nd, 2021.

May 25, 2021
12:36 pm
JenE
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Thanks for the info Alexandre. I haven’t received that email yet.

May 25, 2021
12:51 pm
smayer97
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excerpts from recent email as of 20 mins ago...

"As indicated on our website, as of Thursday, May 27th 2021, the interest rates on our TFSA Savings Account and RSP Savings Account will change to 1.25%.*"

"To help you earn as much as possible on your hard-earned money, we’ve extended the deadline to lock in 2.30% on a 3-month TFSA or RSP GIC to June 2nd, 2021. "

May 25, 2021
1:13 pm
hwyc
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"Final on-boarding call" for funds not yet arrived at EQ today.
... It will be available Jun 2nd.

May 25, 2021
5:35 pm
Jim Sherat
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well there ya go ... proof positive that "the early bird doesn't necessary get the worm" in terms of May 24th (me) vs waiting till June 2nd (others).

however, to put things in perspective, using $100K for example the delta on the back end for 9 days, 2.3% vs 1.25% is only about $25. Oh well. 😉

May 25, 2021
6:27 pm
HermanH
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Not so fast. I don't think that everyone got the extension. My family never received the e-mail notification. Therefore, it was a good thing that we made our TFSA and RRSP purchases today, under the previously announced deadline. Otherwise, we would have missed the opportunity.

Of course, the extension message might still arrive tomorrow. 🙂

May 25, 2021
7:10 pm
smayer97
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Jim Sherat said
well there ya go ... proof positive that "the early bird doesn't necessary get the worm" in terms of May 24th (me) vs waiting till June 2nd (others).

however, to put things in perspective, using $100K for example the delta on the back end for 9 days, 2.3% vs 1.25% is only about $25. Oh well. 😉  

That is an incorrect analysis. First, it is only an extra 8 days. Also, the rate falls to 1.25% in 2 days. So the most you get is 1.05% (2.3-1.25) for 2 more days at best. On $100K that is only $5.75 + whatever the rate differential will be at the end of the 3 months vs 1.25% for the remaining 6 days. So no big loss.

May 25, 2021
7:39 pm
AltaRed
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Nor is it likely to be $100k in a TFSA to begin with.

May 25, 2021
8:19 pm
HermanH
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Concur with smayer97 and AltaRed. It is the same 90-day period for either GIC, just the starting date is different. Whether or not the period begins today or June 2, it is for the same 90 days. The account savings rate still drops on May 26 to 1.25%, in either scenario.

The only other known factor is 1.25% for the days 8 days in between May 25 and June 2. The unknown rate at the end for Aug 25 to Sep 2 is the other determinant. Unless the rate is significantly different than 1.25%, any loss will be negligible.

May 26, 2021
2:52 am
Jim Sherat
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smayer97 said

That is an incorrect analysis. First, it is only an extra 8 days. Also, the rate falls to 1.25% in 2 days. So the most you get is 1.05% (2.3-1.25) for 2 more days at best. On $100K that is only $5.75 + whatever the rate differential will be at the end of the 3 months vs 1.25% for the remaining 6 days. So no big loss.  

Ah yes, I see that now ... was focused on the 'extension to June 2' and read past the part where interest rate on the HISA will drop May 27. So point taken. 😉

May 26, 2021
3:58 am
2of3aintbad
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If you wait until June 1, you will be able to include the interest earned in May in the TFSA Savings Account, for a larger GIC (than if you buy before June 1).

May 26, 2021
9:32 am
Alexandra
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I purchased my2021 $6K TFSA with EQ. I did 3 months from 01Jan - 01Apr @ 2.5%;then 3months from 02Apr-02July @ 2.3%. From there, everything staying the same, I will do a six month term from 02 July - 02Jan2022 (currently @1.8%). Hopefully next January they will get back to a higher rate again. If not, I'll just leave it in the TFSA Savings account until they do.

May 26, 2021
10:55 am
HermanH
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Alexandra said
I will do a six month term from 02 July - 02Jan2022 (currently @1.8%).

Just realize that by going into the calendar year by 2 days, your money is committed to EQ for the rest of the year, unless you transfer it to another institution. Of course, a nice thing about EQ is that there is no transfer fee. However, you must still undergo the process and any delays.

May 26, 2021
12:03 pm
Bill
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Never committed, and transfer not the only option, can just withdraw it from TFSA. On a $6K or so amount to park it somewhere unregistered for a year, and maybe even earning a higher (though taxable, which might not matter much at all for lower income folks) rate, is no big deal. To me the process, delays, etc need to be considered in light of the amounts in question.

May 26, 2021
1:09 pm
annie
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HSBC transfers out of RRSP as fast as RBC.. It took 8 working days~ great to catch up with GIC 2.3%~sf-laugh

May 26, 2021
1:38 pm
LK
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Forgive me if this has already been mentioned, but what are the 3-month and 6-month registered GIC rates after May 26/July 2? I see the registered HISA rates as being 1.25%.

I also have not received an email, and nothing pops up when I log on. Is the July 2 extension a targeted offer (a la Tangerine)?

May 26, 2021
1:45 pm
LK
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HermanH said

Alexandra said
I will do a six month term from 02 July - 02Jan2022 (currently @1.8%).

Just realize that by going into the calendar year by 2 days, your money is committed to EQ for the rest of the year, unless you transfer it to another institution. Of course, a nice thing about EQ is that there is no transfer fee. However, you must still undergo the process and any delays.  

I agree with Herman. I wouldn't take an EQ GIC into 2022 (eg January 2, 2022) unless prepared to do a transfer out as of 2022. If we assume 2.3% for 3 month registered GIC (as of July 2, 2021), and then 1.25% for registered HISA until mid-December 2021, that averages to 1.775% for just under 6 months. Pretty darn close to 1.8%, and with the registered HISA (for TSFA), you then transfer within EQ to a non-registered HISA, and then do the December maneuver to another FI in late December.

May 26, 2021
8:35 pm
smayer97
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LK said
...

I also have not received an email, and nothing pops up when I log on. Is the July 2 extension a targeted offer (a la Tangerine)?  

I was wondering this myself too. Only 3 of 4 of us in our family received emails about this extension. When we check both the public site and logging in the 4th the 2.3% rate is still being offered but no mention of when this offer expires.

May 26, 2021
11:38 pm
smayer97
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Note that the 6 mon GIC has now dropped to 1.3%. 1.8% is no longer available.

Please write your comments in the forum.