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Email this12:29 pm
December 29, 2009
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just wondering if peoples trust is changing there tax free from 3 to 2.5 percent .. if so when and where did u here this?
1:44 pm
November 4, 2014
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Doc, there is no official news of a rate change from Peoples Trust about their 3.00% TFSA savings account rate being cut from 3.00% to 2.50% but someone on this forum said other forums are talking about this could be happening in the new year, 2015.
My spouse's friend said that a person from Peoples Trust told her that a rate drop was coming from 3.00% to 2.55% in the new year, 2015 for TFSA savings accounts but I can't verify if this is 100% true and reliable.
It just seems that this is probably coming but who knows if this happens, how much and when?
Refer to TFSA at 3.00% for Long? on this forum to see much more information and opinions about this, Doc.
3:47 pm
December 29, 2009
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thanks greg for info. does anybody know the other names of other forums out there just to check.
4:20 pm
April 6, 2013
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A Google search returned this Red Flag Deals thread: TFSA - best alternatives for savings accounts.
Jamis1979 wrote in Message #7 (Dec 18th) that he called Peoples Trust and was told the 3% rate would be falling to 2½% on January 5.
7:17 pm
February 17, 2013
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Kinda funny how 35000.00 @ 3% pays pretty close to the same monthly interest as 40000@ 2.5%. Like giving them an extra 5500 for no extra return. Oh well. Still the best rate on a savings account I can find.
8:32 am
November 4, 2014
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Rick and others, not to put 2015 on a down note but Peoples Trust is looking at becoming a Bank and maybe they are getting ready to be sold off to another financial institution like one of the 5 Canadian big banks or some other bigger Canadian financial institution.
Royal Bank did this with Ally Financial that was paying 4.00% 5 year GIC, RRSP rates back in 2009 that I could remember and now Royal Bank is paying much lower GIC rates at 2.20% through a local branch compared to the competition.
Scotia Bank did this with Maple Trust maybe 10 years or more back that was one of the highest paying GIC financial institutions for many years.
I remember back in 2000, they had a 6.45% 5 year GIC that paid monthly interest. This was when most other competitive financial institutions were paying 6.00% to 6.35% for annual interest paying 5 year GIC's.
We all know what happened now with ING Direct. This is all just a guess on my part of what will happen to Peoples Trust but I have never seen a financial institution being taken over and it being a good thing rate and fee wise for consumers, depositors, fixed rate investors.
The larger financial institutions like to eliminate, buyout the truly competitive higher GIC and savings account payers.
8:55 am
February 17, 2013
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GregFranklin; Could be. They have been around for 25 years so hopefully they aren't looking at selling out. I think it is more of an adjustment to compensate for additional deposits. Especially in the last year there has been a slight downturn trend in rates. There are a few exceptions, generally no upward movement in savings rates. All my funds in Peoples are totally liquid, so if they do get bought up ala Ally/ Tangerine, it won't be hard to move it out. I, and I expect a lot of others, got my money out of Ally so fast after they got absorbed into the collective, I'm sure it left a shadow for a few seconds after it was gone. Bottom line; so far all we know for sure is rumors they are changing rates. I'll make a decision if/when they actually do adjust them.
10:39 am
August 28, 2013
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Not as of today (1.1). Nevertheless, I initiated double transfer of 5.5K and am not going to hold my breath on until Monday.
If you know better tax free liquid vehicle, plays say or shut up for the end of 2015.
If they lower the rate, I will send them such nasty letter Not because of the rate but because of the leak. Banking staff are not suppose to discuss future rates with customers.
10:55 am
December 23, 2011
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Lots of good reasons to sell off as perhaps the owners have peaked out in age and interest?
Here is another thought if all their TFSA customers add 5500 in January and then Harper is re-elected and allows another 4500 this year......perhaps they can no longer afford to pay 3% from then on?
11:28 am
August 4, 2010
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Here's a link to PT's TFSA growth over the last few years. They save around $1 million by reducing to 2.5%, probably lose very little in current deposits, and sacrifice a certain amount of growth in those who are less motivated to move for 2.5% than 3%. PT is probably fairly confident they can do better things for their business with $1 million... 
Folks, interest is a cost, which banks hope to be able to get into a position to reduce!
5:23 pm
December 29, 2009
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I thought interest rates are going up why are they dropping there rate. they should make decision before the end of the year so I can move money into different banks
6:43 pm
October 21, 2013
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You can still move your money. You just have to do it by direct transfer. Peoples doesn't charge for transfers (yet).
What I see is a flattening of interest rates. Savings rates are going up but GIC rates, especially longer term, are going down. It could be the first stage in a reversal, where the longer term rates are about the same or lower than shorter term rates. This does happen once in a while, historically. I don't see it as a good sign.
11:38 am
November 4, 2014
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Most times in history when shorter term interest rates are higher than longer term interest rates, it usually follows with a recession or some type of economic, financial downturn.
This happened in 2007 to 2008 and even in 2000 and 2001 but the difference was rates were much higher than today.
Please write your comments in the forum.