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Hubert 2.3% Interest Rate, November 15th @ Midnight
November 14, 2011
9:34 am
Jenna
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July 13, 2011
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Just received this e-mail to my inbox, see below:

Good morning,

Our Happy Savings Account rate is changing. Due to recent fluctuations in the market, we would like to let you know that our Happy Savings Account rate will be adjusted effective midnight on Tuesday, November 15, 2011. The new Happy Savings Account rate will be 2.30%. Although slightly lower than your current rate, we are happy to report that as of today’s date, we are still providing you with the highest advertised online savings rate in Canada.

Why the change? Our Happy Savings Account rate is variable and adjustments are reflective of market fluctuations. Due to some recent changes within the marketplace, it was determined that a rate adjustment was necessary. And keep in mind that while our Happy Savings Account rate may have changed, our intention with Hubert is to consistently provide higher than traditional rates of return for savings accounts and term deposits. So far, so good!

Don’t forget! With Hubert, every penny of your deposits are 100% guaranteed without limit by the Deposit Guarantee Corporation of Manitoba. You can rest easy knowing that no matter what happens in the economy, your investments are safe and secure with Hubert Financial.

Questions? Give us a call or send us an email. We are happy to help. We can be reached by phone at 1-855-4HUBERT (1-855-448-2378) or by email at hubert@happysavings.ca.

Sincerely,

Hubert

November 14, 2011
10:22 am
Doug
British Columbia, Canada
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Thanks for the update, Jenna!

I, too, received this e-mail. While disappointing, there isn't really any competition for which to move my money in protest. That said, I'll probably leave my money with Hubert so long as their rates do not go below 2.25% then I would move back to Ally (and accept slightly lower returns at 2%).

I believe, however, that Hubert's GIC rates have not been lowered. What was their five-year rate before? I'm seeing 3.55% on their website and don't believe that's been lowered.

Cheers,
Doug

November 14, 2011
10:27 am
Jenna
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Hi Doug,

I did not make note of their previous GIC rate, unfortunately. For me to move back to ING, Hubert would have to drop down and match ING's rate. It is inconvenient for me that Hubert does not offer RSPs, and ING does.

Regards,
Jenna

November 14, 2011
11:20 am
NorthernRaven
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August 4, 2010
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It may not have been technically designed as a "teaser", but it was always unrealistic to expect that Hubert would indefinitely maintain such a large difference between its rate and the rest of the Manitoba CUs. Rising interest rates (which were generally expected when Hubert launched) would have allowed them to eventually let the gap close as much as they wished without having to lower the rate. Since the return of gloomier economic news meant that didn't happen, doesn't look likely to any time soon now, and Hubert has had a year to build a customer base, they likely decided it wasn't cost effective to continue to incur quite so high an additional cost.

The GIC rates appear to be unchanged, which makes sense, as they are generally comparable to other Manitoba CUs. If you are looking for Manitoba GIC rates within an RRSP, the other four online ones offer them, if you can't wait for Hubert to get around to it (Ally doesn't do RRSP yet, either). You might want to look at Achieva - I think they are the only ones other than Hubert that don't charge a fee to transfer the RRSP out.

November 14, 2011
11:32 am
Jenna
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Northern Raven, congratulations on becoming moderator! It is probably old news by now.

I am not surprised that Hubert rates have dropped, and knew that it would happen eventually. I am still glad for the higher interest rate, as opposed to ING Direct's 1.5% rate....and the better treatment at the hands of Hubert.

So, I will sit tight unless Hubert's rates fall more drastically. Or, until I must purchase a new house...at which time this will become a moot point (as most of my savings will be depleted).

November 15, 2011
7:53 am
Yatti420
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I just saw this.. Oh well.. Still the highest fees in Canada.. When this changes I will reconsider Hubert.

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