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Falling behind the competition?
June 10, 2022
2:25 pm
eclecticallyours
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Hi, I have moved $ into EQ over the past year as I thought they were aggressive on rates, but has anyone else noticed that they are falling behind competitors like Motive? No change in EQ's 1.5% rate even since Bank of Canada June hike announcement. Are other people moving $ out of EQ? Love this Hi Interest Savings site - Motive is now at 2% while EQ down the list still at 1.5. THanks.

June 10, 2022
2:45 pm
cgouimet
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eclecticallyours said
Hi, I have moved $ into EQ over the past year as I thought they were aggressive on rates, but has anyone else noticed that they are falling behind competitors like Motive? No change in EQ's 1.5% rate even since Bank of Canada June hike announcement. Are other people moving $ out of EQ? Love this Hi Interest Savings site - Motive is now at 2% while EQ down the list still at 1.5. THanks.  

Most HISA's are remaining low, not just EQ. EQ's GIC rates are good, very good in fact. But EQ don't do joint GIC's and that's why I'm not in there...

CGO
June 10, 2022
3:09 pm
Loonie
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They come and go. Motive too had a fairly long period of crappy rates before now.

The key is to be flexible. Forget "brand loyalty" unless you are getting exceptional service.

In my view, EQ's strategy has always been to attract customers with higher savings rates and move them into longer and longer GICs. They are not alone in this.

I used them when their savings rates were high, but not now. They have no joint GICs, no RIFs, and a mediocre savings rate, which doesn't leave much for me.

June 10, 2022
4:26 pm
Alexandre
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eclecticallyours said
No change in EQ's 1.5% rate even since Bank of Canada June hike announcement. Are other people moving $ out of EQ?

I've got Meridian CU promo at 3.15%, for me it was not a hard choice: EQ money moved there.
Still, I am keeping EQ account. Occasionally they offer good short term GIC rates, and also they might start hiking their HISA now that people like me move money out.

June 10, 2022
5:34 pm
AltaRed
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HISA rates, or lack thereof, depend on the financial institution's need for daily cash vs that for term deposits. EQ obviously has a higher need for 1-5 year money than it does daily money. Another FI might be in a different situation.

HISA cash is a highly unpredictable liability for a financial institution. It can disappear in a heart beat as Home Capital found out in 2017 when they ran into some mortgage underwriting issues and there was a 'run on the bank' by depositors. If I was a CEO of an FI, I would be employing rigorous risk management processes to match liabilities with my loan book and I would most likely minimize my exposure to HISA deposit funds in most cases.

June 12, 2022
10:57 am
Dean
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eclecticallyours said

Hi, I have moved $ into EQ over the past year as I thought they were aggressive on rates, but has anyone else noticed that they are falling behind competitors like Motive? No change in EQ's 1.5% rate even since Bank of Canada June hike announcement. Are other people moving $ out of EQ? Love this Hi Interest Savings site - Motive is now at 2% while EQ down the list still at 1.5. THanks.  

Welcome to the club, Eclecticallyours ❗

As you may have noticed, HISA rates can fluctuate quite often. EQ's HISA rate is on the low side now (by our standards here). But given their history and the present trends, it's not likely to stay low for much longer.

Besides, I tend Not to measure an FI solely by it's SA rate(s). Far more important to me (and many others here), is an FI's GIC Rates. And when it comes to GIC rates, EQ Bank continues to do just fine . . .

My Two Nickels sf-smile

    Dean

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

June 13, 2022
4:21 pm
rpotter28
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eclecticallyours said
Are other people moving $ out of EQ?

I just did today... I am really liking Hubert these days. Might not next month, who knows. But today I am very happy with them.

June 14, 2022
7:32 am
HISAhopper
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I locked in a GIC some 50k for 2 years at 1.95% in Dec 2021 thinking quantitative easing still, is EQ GIC redeemable and is there anyway I can redeem it?
Thanks

June 14, 2022
7:36 am
AltaRed
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Per their FAQ and the GIC agreement you entered into.... NO.

Unfortunately not. Once the cancellation period has passed, your GIC is non-redeemable, and your funds are locked in. For more information, please refer to the EQ Bank GIC Agreement.

June 14, 2022
7:47 am
HISAhopper
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AltaRed said
Per their FAQ and the GIC agreement you entered into.... NO.

Unfortunately not. Once the cancellation period has passed, your GIC is non-redeemable, and your funds are locked in. For more information, please refer to the EQ Bank GIC Agreement.

  

how about cancellation with penalty?

June 14, 2022
8:49 am
Norman1
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You'll have to contact EQ Bank and negotiate.

Your GIC maturing December 2023 has rate of 1.95%. Right now, the rate for an EQ Bank 15-month GIC is 3.90%.

To compensate, you'll have to take a "haircut" of at least 2.8% on the $50,000 face value of the 1.95% GIC for a buyer to get a 3.9% yield-to-maturity.

Accrued interest from December to now (about 6 months) is around 0.98%. So, just giving up the accrued interest won't be enough.

June 14, 2022
10:34 am
Bill
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Make EQ a sweet (for EQ) offer, I'd be curious to see if EQ's willing to let you break the contract you two agreed to.

June 14, 2022
11:19 am
HISAhopper
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AltaRed said
Per their FAQ and the GIC agreement you entered into.... NO.

Unfortunately not. Once the cancellation period has passed, your GIC is non-redeemable, and your funds are locked in. For more information, please refer to the EQ Bank GIC Agreement.

  

Norman1 said
You'll have to contact EQ Bank and negotiate.

Your GIC maturing December 2023 has rate of 1.95%. Right now, the rate for an EQ Bank 15-month GIC is 3.90%.

To compensate, you'll have to take a "haircut" of at least 2.8% on the $50,000 face value of the 1.95% GIC for a buyer to get a 3.9% yield-to-maturity.

Accrued interest from December to now (about 6 months) is around 0.98%. So, just giving up the accrued interest won't be enough.  

Thanks for the inputs, I will contact EQ to see what they say.

edit: an EQ gate keeper said no and h/she refused to escalate to the manager

June 14, 2022
11:42 am
LK
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My experience with EQ GICs is that once 24-hour cancellation period has passed, they will not negotiate a cancellation of the GIC, even if you offer to forgo interest or take a small penalty. I've tried.

June 14, 2022
12:12 pm
HISAhopper
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LK said
My experience with EQ GICs is that once 24-hour cancellation period has passed, they will not negotiate a cancellation of the GIC, even if you offer to forgo interest or take a small penalty. I've tried.  

Thanks for confirming

June 14, 2022
1:35 pm
AltaRed
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It is a reasonable conclusion given EQ would have, more or less, matched that GIC against a 2 year 'cheap' mortgage to someone. If institutions started to negotiate non-redeemable terminations, they'd need a cadre of expensive CSRs to deal with hordes of folks who now want to change their mind.

Most of us have some GICs today that are underwater. That is the nature of the beast.

June 14, 2022
2:07 pm
Bill
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Exactly, it's why I suggested a sweet deal offer, be interesting to see if in that case they would agree to tear up the contract.

And those csr's would have to be laid off when rates decline as I get the impression on here that in that case gic holders hold the fi's to their contracts.

June 14, 2022
11:55 pm
Greedy Guy
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Dean said

Welcome to the club, Eclecticallyours ❗

As you may have noticed, HISA rates can fluctuate quite often. EQ's HISA rate is on the low side now (by our standards here). But given their history and the present trends, it's not likely to stay low for much longer.

Besides, I tend Not to measure an FI solely by it's SA rate(s). Far more important to me (and many others here), is an FI's GIC Rates. And when it comes to GIC rates, EQ Bank continues to do just fine . . .

My Two Nickels sf-smile

    Dean

  

EQ HISA is now very low. 1.5% is only 0.25% higher than TD brokerage savings.

June 15, 2022
8:56 am
lifeonanisland
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Greedy Guy said

EQ HISA is now very low. 1.5% is only 0.25% higher than TD brokerage savings.  

Noticed this as well and not happy about it. My thoughts are that they are trying to push people into GICs NOW, no doubt because they think rates have a ways to go up.

June 15, 2022
10:22 am
Patch002
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Greedy Guy said

EQ HISA is now very low. 1.5% is only 0.25% higher than TD brokerage savings.  

For the client's best interest.

For me, it's move $$ out of EQ and into TING's 2.8% Promo HISA (to Oct 31). Simplii has a 2.75% Promo ending June 30th. Perhaps Simplii will up the ante in July. Duca and others have Promos too.

My point is... there are alternatives. EQ does not have to raise rates and I don't have to leave $$ there.

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