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Savvy Savings now 4.10%
April 17, 2023
2:26 am
hwyc
GTA
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Motive Savvy 4.10% today!

... sticking it here, I'm sure Peter will update the chart leader soon enough (after sunrise in BC?) ... Savvy's now beating my TD ISAs, ha

April 17, 2023
6:35 am
JohnnyCash
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hwyc said
Motive Savvy 4.10% today!

... sticking it here, I'm sure Peter will update the chart leader soon enough (after sunrise in BC?) ... Savvy's now beating my TD ISAs, ha  

Wow! I was planning on moving funds to Motive for 3.8% at the end of the month as I have a Tangerine promo expiring. Thanks for the heads-up.

April 18, 2023
5:41 am
Patch002
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Good for Motive in upping the rate 30 pts to 4.10%.

On the other hand, our funds are earning 4.35% at ISAs (with cdic), so no go on transferring back. Maybe next time.

p.s. FI's are charging "inactivity fees", so it's a good habit to transfer in or out $1.00 every 6 months for activity, i.e. Canada Day & New Years

April 18, 2023
9:27 am
Rail Baron
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Patch002 said
...

p.s. FI's are charging "inactivity fees", so it's a good habit to transfer in or out $1.00 every 6 months for activity, i.e. Canada Day & New Years  

That's a pretty broad statement. Some FIs charge and some do not. It might be helpful to identify which ones place this charge on accounts.

April 18, 2023
10:42 am
HermanH
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Patch002 said p.s. FI's are charging "inactivity fees", so it's a good habit to transfer in or out $1.00 every 6 months for activity, i.e. Canada Day & New Years  

I've heard of accounts being declared inactive by the bank after 6 months, but I have not yet encountered one trying to levy an dormant penalty before at least one year of inactivity. Can you specify which bank(s) are so extreme as to start the process after 6 months?

April 18, 2023
10:53 am
mustang
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I hadn't had occasion to look at my Motive account for quite some time
This news caused me to have a look
Discovered that my checking account was gone!
When I called, they told me it was closed in February, after 24 months of inactivity
(Actually, I'm not sure when I used that checking account, just opened it up for potential convenience, to get money in and out of the Savvy Savings account)
I inquired what happened to money in the account
I was told the would have taken $20.00 out for dormancy fee-- but there was no money there to take
(I actually thought I had a dollar in there-- but maybe not. )
I never got any kind of notice, or warning
I have received such warnings from a few fi's-- Laurentian, and Manulife
I'll take this as a lesson to not leave any money behind, as I have been wont to do in the past.
Try to keep them from getting their $20.00 out of me, at least

April 18, 2023
11:19 am
Patch002
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HermanH said

I've heard of accounts being declared inactive by the bank after 6 months, but I have not yet encountered one trying to levy an dormant penalty before at least one year of inactivity. Can you specify which bank(s) are so extreme as to start the process after 6 months?  

I don't track which FI's levy charges or closes accounts for inactivity. I don't care. I am suggesting that one gets in the habit of transferring $1 every 6 months or so in order to stay active.

April 18, 2023
1:24 pm
Jon
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It is kind of interesting CWB is willing to offer such a high interest rate when we have peaked out on this interest rate cycle.
Is this the side effect of the bank run in US, consider most deposit of CWB is probably not coming from retail banking, but from companies that have far above what CDIC cover.

April 18, 2023
2:28 pm
Dean
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.
As in most such cases Jon (post #8), it's all about 'Supply And Demand'.

When an FI needs more $$$ to lend out, they raise their SA &/or GIC rates
to attract more funds.

Banking 101 sf-wink

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

April 18, 2023
7:51 pm
Norman1
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Also, in Canada, when a financial institution finds money flowing into savings accounts and other demand deposits faster than the money can be used, the financial institution lowers the rate of interest on those deposits to slow the inflow.

That's in contrast to Silicon Valley Bank in the US that supposedly, instead, put all the extra demand deposit money into higher yielding long-term US government bonds.

April 19, 2023
5:48 am
Jon
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I certainly undestand the basic of supply and demand, this is too simple for anyone on this forum.
Is just that there are potentially cheaper sources of funding, such as inter bank lending, that can do the job.
I am wondering have other FIs hold back lending to CWB in light of their unique situations of having most of their deposit uninsured out of fear and caution.
Of course this is just speculation.

April 19, 2023
7:03 am
mechone
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I just bought a 100k Gic this month at Motive @4.95% for 7 years paying monthly
412.50 and another one 2 months ago @5.10% for 10 years paying 425.00 monthly into savings account earning another 4.10 %

April 19, 2023
1:05 pm
Loonie
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I would imagine that a lot of people whose mortgages are due for renewal are choosing variable for short term as BoC etc are forecasting lower rates to come.

June 14, 2023
6:20 am
hwyc
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Motive TFSA Savings Account also 4.10% (was 3%) sf-smile Effective 12-June-2023

… note that some FI place TFSA under the investment category. Motive is one

June 14, 2023
11:20 am
fat_dog
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Please explain Jon or some one so G.I.C. are not insured at CWB ?

how do banks raise uninsured money ?

June 14, 2023
11:31 am
Dean
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.
This one's for Fat_Dog ...

FYI https://www.cwbank.com/en/personal/banking-services/canada-deposit-insurance-corporation sf-cool

    Dean

P.S.
Welcome to the Club sf-smile

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 14, 2023
12:38 pm
Bob
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fat_dog said
Please explain Jon or some one so G.I.C. are not insured at CWB ?

how do banks raise uninsured money ?  

Both TFSA & GIC's are CDIC insured at CWB

June 14, 2023
2:16 pm
Jon
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What I want to say is CWB mostly deal with bigger businesses that have far more than 100000 CAD CDIC limit.

June 14, 2023
8:00 pm
Norman1
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Banks can raise uninsured money by issuing notes that specifically don't come with CDIC coverage or by issuing the same GIC's in amounts that exceed the $100,000 CDIC limits.

For example, the Royal Bank Prime-Linked Cashable one-year GIC is eligible for CDIC coverage. However, amounts above $100,000 in total do not qualify for CDIC coverage.

The GIC will pay Prime minus 2.45% = 4.5% for under $100,000, fully covered by CDIC. The GIC will pay Prime minus 2.0% = 4.95% for $1 million or more, with only the first $100,000 covered by CDIC.

An example of uninsured deposit notes is the $500 million offering of 1.8-year 2.753% and four-year 3.362% deposit notes by Equitable Bank in February 2022.

June 15, 2023
6:52 am
COIN
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Does CWB have a physical branch in Toronto now?

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