November 7, 2014
While 1 year GICs purchased directly from Meridian are @ 2.25% p.a., you can buy a Meridian 1 year GIC from an agent at 2.53% p.a. (e.g. Fiscal Agents $10k).
If you are aware of a better rate at a specific FI from a broker, the FI will often match the rate at their branch. I have done this at Meridian and with other CUs.
March 17, 2018
In my opinion, they seem to be carrying too much overhead and that may be limiting their ability to offer better rates right now. Opening up a useless bank must have cost many millions of (our) dollars. And then they spent over 30 million sponsoring a couple of prominent entertainment venues in Toronto recently.
I can't think of any good excuse for a dysfunctional bank. It clearly wasn't ready to launch and its market is ill-defined.
I can see that the entertainment sponsorships have promotional value if growth is your primary goal, which seems to be the case for Meridian. Unfortunately, their growth is not necessarily mine.
However, like all financial institutions, when they need our money badly enough, they will pay more for it. One has to be patient.
Kind of reminds me of what has been happening at Laurentian Bank with LBC Digital. They already had LBC Direct. (B2B has been around a long time with institutional investors.) I'm also puzzled why Peoples Trust opened Peoples Bank. Seems to be an unnecessary expense too.
I have a theory that the trend is to open separate digital BANKS, and get away from the current credit union and bank branches setup. This will save a lot of labour expenses and union commitments etc. by opening up new corporations.
October 21, 2013