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Another Bank of Canada rate hike, now 1.0%
September 7, 2017
9:08 am
rhvic
Victoria, BC
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The Bank of Canada yesterday raised key interest rates by another 25 basis points from 0.75% to 1%, the second increase in two months. The big five Canadian Banks quickly followed suit, raising prime rates by 0.25%. Not much word though about savings account interest rates also going up!

Once again the question is: How long will it be before the financial institutions announce increases to savings rates? And will they apply the entire 0.25% increase?

The first increase in July had little effect on savings account rates.

September 7, 2017
12:43 pm
Winnie
Ontario
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If I remember correctly, long time ago when savings account interest rate was high (3% to 6%), exact formula ING used to calculate savings account rate was: overnight key interest rate + 0.75% = savings account interest rate.

So, overnight key interest rate 1% + 0.75% = 1.75% savings account interest rate.

EQ rate right now 2.3%, which is above 1.75% already.
Tangerine will not increase savings account interest rate to 1.75% because they aren't ING anymore and because they have much more fun playing their Promo games every 90 days.

September 7, 2017
1:13 pm
Top It Up
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With the exception of Steinbach Credit Union moving to 2.0% on savings below $100,000 and 2.1% on savings over $250,000, the only moves I've seen in MB credit unions are 5-year GICs at 2.65%.

Course the lousy thing about SCU is the interest is calculated monthly AND paid yearly.

September 7, 2017
1:37 pm
Nehpets
Ontario
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As was pointed out elsewhere, the current high interest rate for a HISA
is Wealth One at 2.5% (CDIC insured).

September 7, 2017
3:33 pm
Loonie
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Another way of looking at it would be that since the bank rate has doubled, so should the savings rates! sf-laugh
It's all in how you arrange your arithmetic.

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