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Motive Financial GIC rates are movin' on up
May 3, 2019
3:07 pm
Doug
British Columbia, Canada
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The increase appears to be incremental, but at least they post their upcoming GIC rate changes in advance:

Non-Redeemable Motive™ GICs (Rates effective 2019-05-06) Rates
12 Month Term 2.59%
24 Month Term 2.68%
36 Month Term 2.73%
48 Month Term 2.79%
60 Month Term 2.93%

Non-Redeemable Motive™ RSP GICs (Rates effective 2019-05-06) Rates
12 Month Term 2.59%
24 Month Term 2.68%
36 Month Term 2.73%
48 Month Term 2.79%
60 Month Term 2.93%

Motive™ TFSA GICs (Rates effective 2019-05-06) Rates
12 Month Term 2.59%
24 Month Term 2.68%
36 Month Term 2.73%
48 Month Term 2.79%
60 Month Term 2.93%

Assuming GIC comparison chart on HighInterestSavings.ca is accurate, and I believe it is as these look right...the 12-month is going up 3 bps; 24-month is going up 4 bps; 36-month is going up 6 bps; 48-month is going up 8 bps; and 60-month is going up 9 bps.

Rate changes are effective May 6, 2019. If I banked with Motive Financial, happy birthday to me! sf-cool

Link: https://www.motivefinancial.com/Rates/

Cheers,
Doug

May 3, 2019
4:04 pm
bpwest
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Yes, I have noticed Motive (new customer) adjusts rates virtually every Friday, later in afternoon, & dated effective the following Monday. Incremental is an apt description, similar to parent Canadian Western Bank, bricks & mortar, who adjusts interest rates often.

The difference between Motive & CWB, is Motive rates are .20% higher, as a rule, and CWB only posts their rates on the Monday they change, not the Friday before.

May 3, 2019
4:07 pm
Doug
British Columbia, Canada
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bpwest said
Yes, I have noticed Motive (new customer) adjusts rates virtually every Friday, later in afternoon, & dated effective the following Monday. Incremental is an apt description, similar to parent Canadian Western Bank, bricks & mortar, who adjusts interest rates often.

The difference between Motive & CWB, is Motive rates are .20% higher, as a rule, and CWB only posts their rates on the Monday they change, not the Friday before.  

Yep, I definitely noted the 20 bps difference between CWB and Motive GIC rates; didn't know CWB adjusts theirs on Mondays, though.

I do like how Motive and CWB seem to keep their GIC rates the same across non-registered and registered plan types. 🙂

Still, at a time when Tangerine, EQ Bank, some of the Manitoba CUs, and Habib Canadian Bank are going down, it's nice to see Oaken and Motive bucking the trend.

Cheers,
Doug

May 3, 2019
8:38 pm
AltaRed
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Maybe CWB rates are meant to coordinate with their posted rates in discount brokerages where a 25bp commission is paid.

May 3, 2019
11:24 pm
Rick
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bpwest said
Yes, I have noticed Motive (new customer) adjusts rates virtually every Friday, later in afternoon, & dated effective the following Monday.

Yeah...I was able to open my last GIC with them on Sunday before the rate dropped Monday. Kind of short, but at least it's SOME advance notice.
More due in June. Be nice to see the 5 year back over 3.

May 4, 2019
8:44 am
Doug
British Columbia, Canada
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AltaRed said
Maybe CWB rates are meant to coordinate with their posted rates in discount brokerages where a 25bp commission is paid.  

If that's what the deposit broker commission is, then yes. It's unlikely the commissions are that generous, so I think part of it is in lieu of paying deposit broker commissions (5-15 bps) and part of it is a customer premium (5-10 bps) to encourage customer acquisition. sf-cool

Cheers,
Doug

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