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July 6th, Rate decrease (2.05% to 1.65%)
July 3, 2020
12:15 pm
TheLobster
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Looks like LBC is dropping the rates again. As of July 6th, 2020 the HISA interest rate is decreasing from 2.05% to 1.65% for the first $500000.

Also dropping deposits over $500000 from 1% to 0.65%

Screen_Shot_2020-07-03_12_13_36.png

July 3, 2020
12:29 pm
hwyc
GTA
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... but on the other hand some LBC/B2B GIC rates are going up though.

GIC

Effective July 6, 2020, the annual GIC interest rates will increase:

Term Minimum Annual interest rate on July 6, 20201
1 year $100.00 2.10%
2 years $100.00 2.05%
3 years $100.00 2.05%
4 years $100.00 2.15%
5 years $100.00 2.30%

... Looks like they are shifting gear to the GIC(s). It is currently 0.60%, 0.85%, 0.95%, 1.10%, 1.20% respectively

July 3, 2020
12:41 pm
zooweemama
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Well, looks like I will be cancelling the account and moving all mine money to EQ bank. LBC is one of the worst online experience I dealt with.

July 3, 2020
12:43 pm
pianoman8849
Halifax, NS
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I just transferred the total amount of my two HISA's back to EQ. At least their 2% is pretty stable as well. As for GIC rates going up, I won't lock my money up.

July 3, 2020
1:02 pm
TheLobster
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I'm not really interested in locking my money in with them in a GIC. They seem a bit disingenuous, offering a good rate, and quickly decreasing it bit by bit over a couple months under the guise of Market Fluctuations or COVID.

I'm transferring out as soon as I get a new HISA set up - probably with Motive, they have been pretty stable for some time.

July 3, 2020
1:12 pm
Alexandre
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Moving money out of LBC on Monday. Don't want to do EFT on Friday. Just withdraw $3,000 from LBC with interac transfer - that is not a lot, but wanted to send a message right away that it is not cool to drop rates. Will do another $3K on Saturday and Sunday, so that message is loud and clear.
The rest (and majority) of money will leave LBC on Monday.

July 3, 2020
1:24 pm
Vatox
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Glad I never opened an account with them or B2B. I've just been cruising along with EQ. EQ was the fastest, simplest signup process I have ever experienced. I've been with them for a couple years and have had zero problems with them or the mobile app.

July 3, 2020
2:35 pm
rhvic
Victoria, BC
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This rate decrease is very disappointing! My money will be leaving on Monday, for greener pastures.

July 3, 2020
3:02 pm
pianoman8849
Halifax, NS
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With each post I read, many are doing the same as I did. Total withdrawal and account closing. LBC must have known that anything below 2% was going to cause this. Sure a lack of foresight on their part.

July 3, 2020
3:04 pm
Doug
British Columbia, Canada
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There goes the neighbourhood. My previous predictions are out the window. Motive Financial and Bridgewater Bank will follow to 1.55%-1.75%, and the others will follow in kind. With this move, expect Motus Bank to 1.00-1.10% in the next 30-60 days.

No financial institution will be above 1.80% on HISA and TFSA rates within 60 days, I can say with a > 90% confidence level. Bookmark this post and refer back to it when it happens. sf-cool

Big 6 banks will go to 0.00-0.10%, if they aren't already there.

Cheers,
Doug

July 3, 2020
3:06 pm
Doug
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zooweemama said
Well, looks like I will be cancelling the account and moving all mine money to EQ bank. LBC is one of the worst online experience I dealt with.  

EQ Bank is going to 1.50% in 30-60 days, I guarantee it, with 90% certainty.

Cheers,
Doug

July 3, 2020
3:12 pm
AltaRed
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I think EQ will do it's best to stay even with, or above, above Oaken and LBC, key competitors in the alternative lending market, albeit they are not doing that on GIC rates.

July 3, 2020
3:27 pm
Doug
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AltaRed said
I think EQ will do it's best to stay even with, or above, above Oaken and LBC, key competitors in the alternative lending market, albeit they are not doing that on GIC rates.  

Yeah, that would put them at about 1.65-1.80%, though, which is what I said? But yeah, there's absolutely no reason for them to stay at 2.0%.

It'll be interesting to see if we see the federal government talking to the major banks about extending the mortgage deferral period by another 3-6 months. Equitable and Home have certainly been on board with that and even the quasi-regulated lenders like First National and unregulated MICs are offering deferrals in some cases, but they don't have the diversified business model so they really see the cost pressures in doing that.

It all doesn't bode well for deposit rates over the short-, medium-, and long-term, I think.

Cheers,
Doug

July 3, 2020
8:16 pm
picassocat
Québec
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Has far as I’m concerned, it’s a bad decision on their part. I’m a Québec resident and there isn’t much out there for me in a full service bank. There is LBC and Alterna (and maybe Motus, but I don’t know if I can pay all my bills with them, say municipal taxes, SAAQ etc?). If LBC digital had stayed at least even with Alterna at 1.69% the exodus would have been much less. Beside, the Alterna banking platform is much easier to use and much more stable. Initially, LBC said they wanted their rates to remain competitive, but being 3rd from last in the list is hardly competitive. Anyway, coming Monday at 00h00 all my money is going to Alterna. Maybe in the near future Alterna will reduce their rates and thus I’ll end back with LBC, but for now, I’ll stick with the better rate in a full service bank.

July 3, 2020
10:16 pm
Jon
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Reduction of interest rate is a long term trend, and it is a product of aging population which reduce the growth in consumption, investment, and productivity that leads to slower economic growth. The disease only speed up this process.

On the side note, it is somewhat frustrating that I only get this email after I transfer my saving to B2B, I guess I am going to transfer out the money again and move to Hubert instead.

July 5, 2020
9:19 pm
picassocat
Québec
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For now, the Laurentien group is over for me, all my money is presently in transit thowards Alterna Bank. Que sera sera.

Again, bad decision to reduce interest below Alterna's offering.

July 6, 2020
10:58 am
rhvic
Victoria, BC
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I just tried buying a GIC at Laurentian for 50K (the 2.1% for one year). Twice the system would not let me do so. I called their number and was told that due to a website error, one cannot currently purchase a GIC above 10K. And that it might take a week for the problem to be solved! And at the end of that time they could not guarantee the rates would still be available. What a farce.

So I tried again, this time hoping to buy 5 GICs at 10K each. The first time I tried this, I got this cryptic error message:
" Transaction aborted due to request count and response count doesn't not matched"

Yeah, I just don't speak that language.

Called the service number again, this time was told by a different agent that the problem will be fixed in a day or so, and try again then.

LBC has become quite a joke.

July 6, 2020
3:05 pm
picassocat
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Will they ever get it right?

Recently I paid a bill using their platform…not easy. There is no obvious way to find how to pay a bill. The home button has no «payment» item in its menu, but there you can manage your payees (go figure). Therefore, if you want to pay a bill, there is two non-obvious way to do it: either go to quick transfer or click on your chequing account icon (the one with the $ sign). You can find numerous functions there (including payments), but there not explicitly found.

The site is still slow and sluggish to use, I only came upon one error message (please call bla, bla, bla) but going back to the home button cleared the error.

Where is the Laurentian bank headed?

Poor banking platform
Recently reduced dividends (and that’s a big NO-NO for a Canadian bank)
Low or poor credit rating
Closed all branches outside Québec
Closed some branches in Québec
No more tellers assisted in branch service
No longer a leader in offering the best or next to the best interest rate
Their president just resigned.

Where is the Laurentian bank headed?

July 6, 2020
3:44 pm
Briguy
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rhvic said
I just tried buying a GIC at Laurentian for 50K (the 2.1% for one year). Twice the system would not let me do so. I called their number and was told that due to a website error, one cannot currently purchase a GIC above 10K. And that it might take a week for the problem to be solved! And at the end of that time they could not guarantee the rates would still be available. What a farce.

So I tried again, this time hoping to buy 5 GICs at 10K each. The first time I tried this, I got this cryptic error message:
" Transaction aborted due to request count and response count doesn't not matched"

Yeah, I just don't speak that language.

Called the service number again, this time was told by a different agent that the problem will be fixed in a day or so, and try again then.

LBC has become quite a joke.  

That's really absurd ! And it says on website that you have to purchase the GIC online, not through an agent.

Rates as of July 6, 2020. All rates are subject to change at any time without prior notice. Interest rates are per annum. Interest is either compounded annually (paid at maturity) or paid annually to the LBC Digital account of your choice. Interest rates and initial investments are applicable for LBC Digital GICs purchased via onlinebanking.lbcfg.ca only.

July 6, 2020
4:49 pm
Alexandre
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Today, I've got another email from LBC, this time with subject line "We’ve increased our GIC interest rates." It simply reiterated GIC rates from previous email, but talks nothing about HISA interest rate decrease.

My guess would be, the purpose of that email is to emphasize attractive GIC rates as a way to slow down money drain from HISA, which must have started already.

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