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Suggestion to add Steinbach Credit Union to HISA comparison chart
March 9, 2019
10:57 am
Doug
West Kelowna
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Hi Peter,

Although Steinbach Credit Union has been accepting members from outside of Manitoba without requiring an in-branch visit to complete the membership application for at least a couple of years now, I held off suggesting that we add them to the comparison to (a) make sure it was a sustaining change and (b) because they're the largest credit union by assets in Manitoba and thus didn't need the "help" that the smaller Manitoba CUs did. Nevertheless, both of those reasons have either been satisfied or were biased. So, it is with that in mind, that I now officially propose that we add Steinbach Credit Union to the HISA comparison chart with immediate effect (they've been accepting entirely online out of province members for years now). sf-cool

The following are the relevant details you'll need, some of which you may not need to note at all or only note in their "profile". (They should also have a profile and a forum of the same name be added, too.)

Name of Financial Institution: Steinbach Credit Union
Website: https://www.scu.mb.ca/
Name of Product/Account: Regular Savings Account
Product webpage: https://www.scu.mb.ca/personal-accounts/savings-accounts
Current Interest Rate (as at March 9, 2019):
- on balances below $100,000 - 2.60%
- balances between $100,000 and $250,000 - 2.70%
- balances over $250,000 - 2.90%
Other Details:
- one free debit transaction, of any type, per month; subsequent debits $1.00 each (same as Outlook Financial, AcceleRate Financial, MAXA Financial, Achieva Financial, and others)
TFSA Account: Yes, current rate is 2.85% on all balances
Product webpage: Same as above product webpage

You could also add them to the GIC comparison chart, if you wished. At this point, there does not appear to be a QC restriction (same as other Manitoba CUs).

Interestingly, this will now make Steinbach the second highest savings account rate in Canada.

Cheers,
Doug

March 9, 2019
3:07 pm
GR
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Doug,
As has been pointed out elsewhere on this forum, Steinbach's HISA is unlike any other financial institution and is not comparable to others on the HISA chart. The rate you indicate of 2.60% p.a. is for their "Regular savings account" which is calculated on the MINIMUM MONTHLY balance and is paid ANNUALLY. Their "Monthly savings account" pays 1.70% p.a. on the MINIMUM MONTHLY balance and is paid MONTHLY. Their "Plan 24" account" pays 1.20% p.a. on the DAILY balance and is paid MONTHLY. I believe that only this last account at 1.20% is comparable to others on the HISA chart.

March 9, 2019
3:18 pm
Doug
West Kelowna
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GR said
Doug,
As has been pointed out elsewhere on this forum, Steinbach's HISA is unlike any other financial institution and is not comparable to others on the HISA chart. The rate you indicate of 2.60% p.a. is for their "Regular savings account" which is calculated on the MINIMUM MONTHLY balance and is paid ANNUALLY. Their "Monthly savings account" pays 1.70% p.a. on the MINIMUM MONTHLY balance and is paid MONTHLY. Their "Plan 24" account" pays 1.20% p.a. on the DAILY balance and is paid MONTHLY. I believe that only this last account at 1.20% is comparable to others on the HISA chart.  

With respect, GR, that's not what their webpage that I linked to states. They do have a Monthly Savings Account that pays 1.70% (20 bps higher than Canadian Tire Bank and Meridian Credit Union). Additionally, there's no indication that the Regular Savings Account pays interest only annually, but even if it were, the interest is, at minimum, calculated monthly on one's balance and paid annually based on the balance tiered interest rates. We've never had a requirement that interest be paid monthly for our HISAs that we include, nor should we. Further, in regards to their tiered interest rates, that's never been a knock against inclusion (Motive Financial has a tiered interest rate and the HISA chart lists the lowest tier interest rate - we could always add a footnote for certain FIs that the account interest rate is tiered and to refer to the product webpage).

Nevertheless, as one of the original members of this forum who helped to co-author the inclusion criteria and also helps to co-edit the "free chequing" comparison chart, I would say I am very conservative when it comes to recommending HISAs for inclusion (and also for recommending their removal as well). By all metrics, Steinbach meets, if not exceeds, the criteria for inclusion and they should be immediately added. The fact that prior discussion may have occurred - if I'd seen it and had a chance to reply, I would've recommended including them then. sf-cool

I looked into adding Casera Financial as well, to be fair, but to get the 2.25% rate, you need to have $100,000+ on deposit. We exclude many of the "Big 5" banks that have similar high balance requirements. Their lowest tier interest rate is 1.55%, which could get them added as we currently include Meridian and Canadian Tire Bank at 1.50% each, but even they should be reviewed for removal later this year.

Cheers,
Doug

March 9, 2019
4:28 pm
GR
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With respect, Doug, that is what their website states. See website extract below:

Regular Savings
Competitive Interest Rate from dollar one
No minimum monthly balance required
Interest calculated on minimum monthly balance
Interest paid annually
Tiered rates starting @ $100,000
First monthly withdrawal free
Fee: up to $1.00 per subsequent withdrawal

Monthly Savings
Competitive Interest Rate from dollar one
No minimum monthly balance required
Interest calculated on minimum monthly balance
Interest paid monthly
First monthly withdrawal free
Fee: up to $1.00 per subsequent withdrawal

PLAN 24® Account
Competitive Interest Rate from dollar one
No minimum monthly balance required
Interest calculated on daily balance
Interest paid monthly
Great holding account
First monthly withdrawal free
Fee: up to $1.00 per subsequent withdrawal

Regular Savings less than $100,000 2.60%
Regular Savings $100,000 - $250,000 2.70%
Regular Savings more than $250,000 2.90%

Monthly Savings 1.70%

PLAN 24 Account 1.20%

Peter, let's compare apples with apples.

March 9, 2019
4:52 pm
Doug
West Kelowna
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I noticed that afterward, GR, but still, that doesn't change things. The fact that interest may instead be paid annually instead of the usual monthly is not significant. We can add a footnote, if considered appropriate. Alternatively, we could add the Monthly Savings Account, paying 1.70% and besting at least the bottom two savings accounts in the chart, and within Steinbach's "profile" page, note that they also have a Regular Savings Account that pays interest annually based on the lowest balance for each month (that is, it pays interest on a tiered balance basis but, since it's calculated on the monthly instead of daily balance, if your balance drops below a certain threshold in the month, the lower rate applies).

Bottom line: whether we add the Regular Savings Account, possibly with a footnote noting the interest calculation and payment frequency, or the more standard Monthly Savings Account (which is not tiered, too), we should be adding Steinbach - at least one of their accounts as they qualify. Moreover, they're larger than all of the existing Manitoba CUs and Oaken Financial, Canadian Tire Bank, and EQBank in terms of direct-to-consumer deposits.

Cheers,
Doug

March 10, 2019
6:37 pm
Vatox
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The interest calculated on minimum monthly balance would not attract my business.

March 10, 2019
7:23 pm
Doug
West Kelowna
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Vatox said
The interest calculated on minimum monthly balance would not attract my business.  

It's not a problem if your balance stays the same throughout the whole month. For example, if you went with the Regular Savings Account, and had enough funds to generate 2.60%, you would earn that rate so long as your balance stayed above that threshold for the full month. At the end of the year, you would be the 2.60% rate on that balance. sf-cool

Cheers,
Doug

March 10, 2019
7:46 pm
Vatox
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Doug said

It's not a problem if your balance stays the same throughout the whole month. For example, if you went with the Regular Savings Account, and had enough funds to generate 2.60%, you would earn that rate so long as your balance stayed above that threshold for the full month. At the end of the year, you would be the 2.60% rate on that balance. sf-cool

Cheers,
Doug  

For high rollers with that kind of dough, sure. Not for me though.sf-smile

March 10, 2019
8:29 pm
Peter
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For now I have added a Steinbach Credit Union profile page and created a forum to hold all previous and future threads.

March 10, 2019
8:37 pm
Vatox
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Cool, a Forum now.sf-cool

March 11, 2019
8:48 am
Doug
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Thanks, Peter. We can work with this for now. sf-cool

Cheers,
Doug

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