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GIC Rates Increase and Decrease
August 24, 2022
8:20 pm
GR
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1 yr. increased to 4.60% (matching Tangerine's non-registered rate).

3, 4 & 5 yrs. decreased to 4.75%.

https://www.peoplestrust.com/en/peoples-trust/high-interest-accounts/rates/

January 5, 2023
6:59 am
GR
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Peoples GIC rates are changing today, some up, some down. Of note is the 2 year rate moving up to 5.30%, but longer terms decreasing.

Peoples Trust 1,000 5.1000 5.3000 4.8500 4.6500 4.5000

source: Cannex

January 5, 2023
7:24 am
canadian.100
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GR said
Peoples GIC rates are changing today, some up, some down. Of note is the 2 year rate moving up to 5.30%, but longer terms decreasing.
Peoples Trust 1,000 5.1000 5.3000 4.8500 4.6500 4.5000
source: Cannex  

I sure would never exceed CDIC for Peoples Bank. Looking at their financial statements for the first 3 quarters of 2022, I note they incurred a LOSS of 1,052,000. In contrast, Tangerine Bank incurred a PROFIT of 342,271,000 BEFORE taxes. This certainly points out what the purpose of CDIC was meant to be and why many of us would exceed CDIC for Tangerine.
In regard to Peoples Trust, a profit BEFORE taxes of 53,607,000 was achieved - still no match to Tangerine.

January 6, 2023
4:40 pm
dougjp
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canadian.100 said

I sure would never exceed CDIC for Peoples Bank. Looking at their financial statements for the first 3 quarters of 2022, I note they incurred a LOSS of 1,052,000. In contrast, Tangerine Bank incurred a PROFIT of 342,271,000 BEFORE taxes. This certainly points out what the purpose of CDIC was meant to be and why many of us would exceed CDIC for Tangerine.
In regard to Peoples Trust, a profit BEFORE taxes of 53,607,000 was achieved - still no match to Tangerine.  

Thanks for that detail. I always wondered about their decision to open a bank, meaning, how late in the game they did it, and how they did it. Obviously the motivation was to double up on the CDIC and get more money that way. However, when and how they did it resulted in failure of economies of scale, and doing nothing entirely different won't solve anything.

I have People's Bank HISA accounts in addition to Trust. I used Bank once, and considered a 'spill over' CDIC coverage place that I don't need.

Their problems, IMO, were, (a) too late doing this, (b) Separate Login, (c) lack of promotion. The main problem was the complete separation between Trust and Bank. There could have been a one time (saved after ticking having been read) 'disclosure' about the difference, and then had a common login with two sides on the lead page to pick, Trust and Bank. Opening accounts at one source. Then common expense resources, allocated by volumes either $ or activity or ?

I'm not sure if they can reinvent now, anyway its not at all up to me. However the numbers don't lie.

It's not so bad being senile; you get to meet many more people.

January 9, 2023
1:53 am
RetirEd
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PT tells me they have integrated somewhat - transfers between the two Peoples institutions are now much faster, usually the next day. They also allow links to both institutions to avoid having to go through a P-to-P transfer.

Peoples Bank is much newer than Peoples Trust, and much of their business goes through PT, leaving PB with startup costs and a more restricted marketplace.

The concern to consider now is what their new owner wants to do with them, and how profitable that will be.
RetirEd

January 9, 2023
9:44 am
Loonie
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I must have missed a step as I don't remember reading about Peoples being sold.
Details?

January 11, 2023
7:48 am
RetirEd
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Loonie: Sorry, early morning brain fart. Peoples has NOT been sold; my mind misled itself with the fact of PB being relatively new. The rest of the post is not impugned.
RetirEd

January 11, 2023
9:27 pm
Loonie
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Thanks for the clarification.
It was an interesting idea!

January 19, 2023
7:32 am
hwyc
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January 19, 2023
10:24 am
savemoresaveoften
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except 2y will take you to the possible rate drop cycle at renewal.
I rather prefer them to offer 4y or 5y at 5.4%

January 19, 2023
10:48 am
AltaRed
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savemoresaveoften said
I rather prefer them to offer 4y or 5y at 5.4%  

That cannot happen with the bond yield curve so inverted.

January 19, 2023
12:33 pm
hwyc
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hwyc said
2 yrs 5.40% is sweet sf-smile  

Got carried away … Peoples only offer annually compounded GICs … same as WealthONE? … To those who have the experience, no T5 till the end?

Oops ... I was wrong about that sf-embarassed Thanks savemoresaveoften.

January 19, 2023
1:03 pm
savemoresaveoften
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hwyc said

Got carried away … Peoples only offer annually compounded GICs … same as WealthONE? … To those who have the experience, no T5 till the end?  

It can be annually paid, I have some.

January 19, 2023
2:35 pm
Alexandra
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savemoresaveoften said

It can be annually paid, I have some.  

All my GIC's with People Bank/Trust have the interest paid out annually. I believe you must phone them to have this done.

January 20, 2023
1:02 am
Loonie
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WealthOne will do annual payout too if you ask, at least they did for me and I have received it.

January 20, 2023
5:00 am
savemoresaveoften
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AltaRed said

That cannot happen with the bond yield curve so inverted.  

That’s exactly why I wish they do !

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