Outlook GIC rate increase Oct 30, 2018 | Outlook Financial | Discussion forum

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Outlook GIC rate increase Oct 30, 2018
October 31, 2018
5:28 am
Kidd
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https://www.outlookfinancial.com/products/rates

Outlook has passed .10% of BOC's .25% on to us.
Wow, that was nice of them. Maybe they should rebrand themselves as LookOut.

1 year Gic was 2.5%, now it's 2.6%

October 31, 2018
7:00 am
NorthernRaven
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But they were already at the top of the GIC market, partly for reasons unique to their funding crisis awhile back. This may just be them taking the opportunity to fold part of their umbrella without actually reducing rates. And unless their main competitors raise rates by that full 25 basis points, they may not lose much of the gap.

GIC rates are set by the needs and reach of the institution, and relative to the market; there's no ongoing guarantee of some specific relationship to the BoC rate.

October 31, 2018
8:56 am
Bud
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NorthernRaven said
their funding crisis awhile back.

what crisis?

October 31, 2018
9:21 am
Shawguy
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hotmony said

NorthernRaven said
their funding crisis awhile back.

what crisis?  

Maybe he is confusing outlook with oaken?

October 31, 2018
9:23 am
Shawguy
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Kidd said
https://www.outlookfinancial.com/products/rates

Outlook has passed .10% of BOC's .25% on to us.
Wow, that was nice of them. Maybe they should rebrand themselves as LookOut.

1 year Gic was 2.5%, now it's 2.6%  

Outlook is run by Assiniboine Credit Union, and they are practically a bank...they have tons of branchs (more than any other credit union in Manitoba), so they have huge over head, they offer ok rates to their ACU clients, and they haven't been overly competitive on the Outlook side in years in my opinion. Outlook and Achieva (run by Cambrian Credit Union) are practically the same product if you compare side by side.

October 31, 2018
10:07 am
NorthernRaven
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SG said

Maybe he is confusing outlook with oaken?  

Oops, yes indeed, I was flipping between things and thought this was an Oaken one. But the principle is still valid - Outlook may have been at a point where they didn't feel it necessary to pass the full 25 basis points along in their rates. Some of the established Manitoba CUs might be at the point where increasing rates for all their customers (many of whom might not be tempted to moved for small differences) costs them more than they might gain in additional business.

October 31, 2018
1:30 pm
Kidd
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In the past, I’ve usually been able to find a FI's historical savings rate chart in comparison to the BOC rate but that data seems to be eluding me today. SO… I’ll be using my old Outlook statements as a reference.

Outlook Savings rate July 14th 2015, 1.85% BOC 0.75%
Outlook Savings rate July 20th 2015, 1.7% BOC 0.5%
Outlook Savings rate Sept 11 2017, 1.85% BOC 1%
Outlook Savings rate Feb 02 2018, 2% BOC 1.25%
Outlook current Savings rate 2018, 2.15% BOC 1.75%

Outlook BOC
1.85% 0.75%
1.7% 0.5%
1.85% 1.0%
2.0% 1.25%
2.15% 1.75%

Looking at the above rate chart, you can clearly see how Outlook has risen their savings rates a mere fraction of the Bank of Canada rate increases.
boc.jpg

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