After paying the customary ¼% x 5 = 2% deposit brokerage commission, PC Bank would earn a spread of ¼% per year. That spread would end up back at Equitable Bank or EQB Inc. after the PC Bank acquisition closes.

All mergers and acquisitions do/should/typically have terms in the agreements to prevent the 'to be' acquired company from going rogue, making making material commitments that would conflict with acquiring company strategies and the expectations the acquiring company has at time of the initial M&A agreement. It is the nature of the business.

AltaRed said
FIs adjust their rates to attract the term of funds they are looking for. There is no other magic about it. EQ obviously is looking for 5 year money.  

You mean PC Financial. The deal has not closed yet. PC Financial has a very different funding structure, which includes a mix of deposits and a credit card securitization trust. It will be interesting to see the changes planned post-closing.

TDDI is continuing to bump their own TD rates up to the top of their 1 and 2 year charts, but stay down in the lowly reaches with their Big6 brethren on 3-5 years.

BMO must be awash in cash right, or scorn alien customers - they've dropped themselves distinctly below the rest of the Big6 on the TDDI charts, but offer better rates than the Big5 on their own BMOIL sheet (I have temporary access to a dormant BMOIL account). BMO 3-year is 2.50% on TDDI, other Big6 including TD are 2.85%, but on BMOIL the BMO rate is 3.30%. Home field advantage!

Even longer if EQB decides to keep President's Choice Bank going as they have with Concentra Bank.

I think liquid deposits are separately insured for 180 days after any consolidation but may be wrong on that.

Koogie said
I see today that PC Bank is offering 4.0% on a 5 year GIC (thru TDDI) same as EQ.

Maybe a sign they will be more competitive under new ownership ?  

Unlikely. Likely a temporary promotion, either for customer and deposit acquisition, or for liquidity purposes.

The transaction hasn't yet closed, but it is close to doing so (likely expected in June 2026). Integration into the EQ Bank platform should happen between July and December 2026, much quicker than everyone (myself included) expected.

I also suspect EQB Inc. will begin downsizing the number of CDIC member subsidiaries. They're a paying a lot of extra funding costs and administrative, legal, and compliance costs. They will likely begin with President's Choice Bank, amalgamating it into Equitable Bank most likely, making the deposits subject to merged deposit insurance rules.

Maybe a sign they will be more competitive under new ownership ?

Dean

https://www.theglobeandmail.co.....financial/ [login required]

countysaver said
I like the 2.75% interest on my Daily Cash and Savings accounts. Haven't made a deposit in more than a decade and withdraw cash from an ATM less than once a year. Also have a bricks&mortar bank that pays 0% on the spending account and 0.2% on Savings; 1.8% if I shuffle the funds to its investment savings brokerage account. I'm not into switching FIs every ninety days chasing bonus interest rates.  

I use EQ Personal as chequing and other FI's with promotional interest rates as savings. This way I get the benefit of the better-than-typical interest rate (the EQ payroll bonus rate) on my "chequing" balance while not having to switch FI's for banking activities to get the best interest on the rest of my savings (I DD my paycheck into EQ Personal and keep approximately how much I might need to spend in a month in it (so a good balance of time that would have been required transferring funds before spending it and the interest on all the money I own)). Just some ideas as trying to keep it simple like you but trying to get more interest.