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CDF Rate Drop
March 13, 2015
6:43 am
swifty
Ontario
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March 13, 2015
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Hello,

Great forum and information.

CDF has dropped the rate on the TFSA to 1.75%

March 13, 2015
9:23 am
Peter
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May 15, 2007
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Thanks for the tip! They've also dropped their savings account interest rate from 1.90% to 1.75%

March 13, 2015
5:42 pm
frank888
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Seems we savers can't win. I've shuffled from Tang to Ally to CDF to get the best rate yet they all drop
their rates once I'm in. Now I have shifted most of my TFSA to People's ( even tho' they dropped too)
and have left a small amount in CDF. Guessing we will have to hope that sanity returns to the regular
market rates of several years ago, but I won't hold my breath!

March 14, 2015
6:58 am
Loonie
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On the bright side, frank888, you're in a good position to take advantage of the next temporary offer from Tang, PC, etc.

March 15, 2015
5:42 pm
mechone1
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Really disappointed with this. Don't know if I should open an account at one of the 1.95 offerings or I am just wasting my timesf-cry

March 16, 2015
8:06 am
Bill
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CDF's been pretty good at being at or near the top (we'll see if that changes due to the downturn in oil prices) but I don't see any point wasting time over a tenth of a percent. I'm no expert but we've had historically low rates for an unusually long time now, economies are not roaring back, so something's obviously up. I could be out to lunch but I personally don't expect rates to go up in the foreseeable future, so I don't see a lot of sense spending time trying to make an extra buck or two via interest.

March 16, 2015
9:32 am
Loonie
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I agree with Bill in general, for most people.

With regards to the TFSA in particular, I think it's probably worth moving to People's. They have been far in the lead for savings rate TFSAs since the beginning. Currently at 2.5, so that is a difference of .75%. Most of us will have TFSAs that are worth less than $40,000 at this time. .75% of 40,000 is $300. Thus, $300 is probably the most you could gain if you had 40,000 and left it there and rates did not change again this year. Deduct 50 for transfer-out fee, and you have $250. I think this is worthwhile, but if you have less money in the account, then the manoevre is less valuable.

With regular savings accounts, it again depends on how much money you have in the account. The spread between CDF rate and best rate is much smaller than for TFSA, only .2% if you went with Accelerate or Hubert- assuming you are comfortable using MB credit unions. If you want a CDIC bank, Peoples is again best bet right now but only .05% better than CDF, so not really worth it.
If you went with, for example, Accelerate, and you have a lot of money in the account, it might be worth your while, but only if you are prepared to move it again when a better offer comes along.

So, if you have (a) a lot of cash, (b) time on your hands, and (c) minimal income, then you should probably consider moving the savings account. Otherwise, no.

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