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EQ TFSA Savings acc 2.3% GIC 3 mo 2.5 % Same for RSP
November 27, 2020
11:01 pm
miro
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Introducing the EQ Bank TFSA Savings Account.
2.30% interest*, tax-free
Zero fees
No minimum balance
No hassles, sign up in minutes
link

and

Meet the all-new EQ Bank RSP Savings Account.
2.30% interest* on every tax-deferred dollar
Zero fees
No minimum balance
No hassles, sign up in minutes
link

November 28, 2020
1:16 am
Loonie
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EQ Bank TFSA GIC terms & rates
Term Rate**
3 Month 2.50%
6 Month 1.80%
9 Month 1.65%
1 Year 1.50%
15 Month 1.05%
2 Year 1.05%
27 Month 1.05%
3 Year 1.15%
4 Year 1.25%
5 Year 1.50%
6 Year 1.60%
7 Year 1.70%
10 Year 2.00%

November 28, 2020
1:30 am
Loonie
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Compare with EQ's current non-registered rates:

3 Month 1.70%
6 Month 1.45%
9 Month 1.40%
1 Year 1.25%
15 Month 1.05%
2 Year 1.05%
27 Month 1.05%
3 Year 1.15%
4 Year 1.25%
5 Year 1.50%
6 Year 1.60%
7 Year 1.70%
10 Year 2.00%

So, the TFSA rates are only superior to the non-registered rates for periods of one year or less.
I think we should assume that the short term rates, including the HISA rate, will also be made to align with the non-registered rates within a few months.

Has anyone found if there is a transfer-out fee?

November 28, 2020
3:29 am
file
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The Service Fees page I found on the site map for both TFSA and RRSPs, and there *appear* to be no fees. "Balance transfers to another financial institution" is Free.

November 28, 2020
3:39 am
file
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Oh, I also agree that they're going to align with non-registered. This feels very much like a teaser/promo rate situation even if not stated as such to grab attention. In particular for TFSA it's great timing for the end of year TFSA shuffle that some people do, after which the rate can be dropped.

November 28, 2020
5:01 am
Loonie
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If you deposit into the HISA or short term for the higher rates, they will very likely offer better longer term rates when those expire or decrease, for a short while. When they have all the money the want, the rates will float back to same as non-reg'd.

While I am glad they are offering these things, it seems like a strange time given that borrowing seems to be down. What will they do with all this extra cash?

November 28, 2020
5:18 am
dougjp
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" The hook". Anybody tempted by the 3 month GIC rate or savings rate which undoubtedly will be dropped - my guess for them doing that is Feb 1 after grabbing early TFSA $$ (unethical if it happens ?), gets you trapped at EQ early next year due to the TFSA withdrawal rules. Or withdraw and lose the advantage of TFSA for 10-11 months. Not a problem though for people who have lots of TFSA contribution room left, so they can go in and out of FI's in the same year.

Mind you, rates and interest paid are so low these days, the TFSA is less of an advantage than before. I believe its necessary, for people who have contributed their max to TFSA, to compare tax sheltered yield vs. net of tax yield outside the TFSA, and then apply some factor to the comparison representing the TFSA 'lock in' effect. Also transfer out or withdrawal fees of course.

There are 3 kinds of people: those who can count & those who can't.

November 28, 2020
6:17 am
hwyc
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Loonie said
...
Has anyone found if there is a transfer-out fee?  

No TFSA transfer out fee. Search for the question "Will I be charged a fee to transfer my EQ Bank TFSA to another financial institution?" in their now expanded FAQ


... No RRSP transfer out fee also
...The 2021 TFSA dollar limit was announced just Wednesday Nov 25, 2020

November 28, 2020
6:20 am
Loonie
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You can still transfer it if there is no transfer fee; you don't have to get stuck, especially if on savings rate, although there could be a run on transfers, slowing them down. However, watch your messages closely for news of a fee introduction. I think, but not positive, that they have to give 30 days notice of fee changes, by law.

November 28, 2020
7:32 am
hwyc
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EQ promised at least 60 days - EQ Bank TFSA Savings Account Fees & Features

Notice of Fee Changes

If a fee is increased or a new fee is introduced, we will provide notice of any such change in writing to you through electronic means, which may include posting a notice on the Message Centre accessible through EQ Bank online or mobile banking applications, on our Website, or by any other method allowed by law as determined by us, at least 60 days before the change comes into effect.

... IMO - It's EQ's big bang for now. Then this goes either way, EQ may pull the other FI TFSA rate up for competitiveness or the others will pull EQ back down. We'll see

November 28, 2020
9:31 am
Vatox
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I would have preferred that the longer term rates were higher. Looks like I’m going with WealthONE for TFSA.

November 28, 2020
4:30 pm
rk
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No spousal RRSPs, though.

November 28, 2020
5:54 pm
Dean
Valhalla Mountains, British Columbia
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Vatox said

I would have preferred that the longer term rates were higher. . . .  

You, and everyone else here ... LOL sf-laugh

Sadly, EQ's Long term rates (now including 'Registered') continue to disappoint.

Best we carry on, and look elsewhere.

      Dean

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

November 29, 2020
9:49 am
Vatox
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A TFSA rate can now be entered on the HISA Chart, for EQ.sf-smile

December 1, 2020
2:22 pm
LK
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Weigh in if you think otherwise, but for those of us doing the "December shuffle", I see EQ offering (a) TSFA GIC for 3 months at 2.5%, then after that ends transfer to (b) TSFA savings at 2.3% (yes, could be a de facto promo rate, subject to change, etc) with (c) no TSFA transfer out fees (attractive if another FI has a promo on a few months into 2021). Seems not terrible to me for a few months at EQ depending on what their rates do a few months into 2021. Am I missing something?

December 1, 2020
4:55 pm
dougjp
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LK said
Weigh in if you think otherwise, but for those of us doing the "December shuffle", I see EQ offering (a) TSFA GIC for 3 months at 2.5%, then after that ends transfer to (b) TSFA savings at 2.3% (yes, could be a de facto promo rate, subject to change, etc) with (c) no TSFA transfer out fees (attractive if another FI has a promo on a few months into 2021). Seems not terrible to me for a few months at EQ depending on what their rates do a few months into 2021. Am I missing something?  

Nope. Except the (potential) change in transfer fees, IF they announce that 61 days prior to the first GIC expiry. Things just look far too suspicious to me here.

There are 3 kinds of people: those who can count & those who can't.

December 1, 2020
9:22 pm
Loonie
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I agree that the potential of a transfer fee is the only other risk. I think it's unlikely they would have the nerve to introduce it within the first 3 months, especially since they so proudly advertise "no fees", but you never know. I expect they will continue to offer some above-average rates in order to discourage transfers, and they will probably succeed at that in most cases.

Compare that to Tangerine. When they first took over from ING, they promised to continue the "no fees" rule. They maintained that for a while, perhaps a couple of years, and THEN introduced the fees, which, I'm sure, was their intention all along.

The safest strategy, to avoid fees, would be to keep the money in HISA, as you could transfer it as soon as a fee was announced and thus avoid it.
But you don't really want to have to do that as we don't yet know how quickly EQ will execute transfers, especially if there were a lot of requests at about the same time.

So I think the best thing is to make a decision based on how likely you think it is that they would introduce a transfer fee before, say, mid-April. Personally, I don't think it's too likely.

December 2, 2020
7:22 am
Winnie
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LK said
Weigh in if you think otherwise, but for those of us doing the "December shuffle", I see EQ offering (a) TSFA GIC for 3 months at 2.5%, then after that ends transfer to (b) TSFA savings at 2.3% (yes, could be a de facto promo rate, subject to change, etc) with (c) no TSFA transfer out fees (attractive if another FI has a promo on a few months into 2021). Seems not terrible to me for a few months at EQ depending on what their rates do a few months into 2021. Am I missing something?  

I transferred my TFSA and RRSP 9 times and discovered, that sometimes during the transfer I will not receive any interest at all for a few days and sometimes for a week and longer.
For that unpredictable reason I've decided not to do transfers anymore.

December 2, 2020
8:44 am
techno
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I tried transferring some funds to the new EQ RSP yesterday night but was getting a "This transfer could not be completed" message. I tried changing the date to next day and still getting the same message. Also, the site was slower than normal. Since it was pass midnight, online Chat was not available.

Today, I tried again. When I transfer some funds to the RSP, it logs me out with this message - "Sorry! Looks like something went wrong on our end." (similar to the problem with LBC when they were starting). After a few attempts of transfer (maybe 5 times), it logged out again and when I signed in, the money was finally successfully transferred.

I get inconsistent results when I tried to view my balance in RSP. Occasionally it will work and occasionally you'll get this message "Sorry! Looks like something
went wrong on our end." and you are signed out (similar to the problem when transferring fund to the RSP. sf-frown

December 2, 2020
8:59 am
techno
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I went to the EQ online banking site again today at around 11:45 EST and they were under maintenance. Hopefully they can fix the problem.

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