Wealth One Rate Decrease to 2.00% | Wealth One Bank of Canada | Discussion forum

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Wealth One Rate Decrease to 2.00%
December 6, 2017
9:20 am
gicjunkie
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Wealth One high interest savings account rate reduced to 2.00% (from 2.50%). All good things must end.

GIC rates now as follows:

WealthONE GICs - 6 Months 1.10%
WealthONE GICs - 1 Year 1.60%
WealthONE GICs - 2 Years 1.70%
WealthONE GICs - 3 Years 2.50%
WealthONE GICs - 4 Years 1.90%
WealthONE GICs - 5 Years 2.55%

December 6, 2017
9:42 am
voodoo22
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Wow, that was fast.

Thanks for the info.

December 6, 2017
1:23 pm
Nehpets
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gicjunkie said
Wealth One high interest savings account rate reduced to 2.00% (from 2.50%). All good things must end.  

Thanks for the heads up.

December 6, 2017
8:57 pm
GR
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A few weeks ago, Wealth One was assuring us that 2.50% on the savings account was NOT a promotional rate. Very dishonest and unethical to drop the rate so much after such a short time, once they figure they got you hooked! Not a good way to build long-term customer relationships!

December 7, 2017
10:32 am
rhvic
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I had my doubts about this institution from the start, given some of the warnings from brimleychen. They won't get my cash.

December 7, 2017
11:01 am
fabafter50
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Shame on them. I didn't put much in, but what I did is coming out!

December 7, 2017
7:56 pm
gicjunkie
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Quite honestly, unless an institution guarantees an interest rate for a specific period, the rate is always subject to change. To assume otherwise leaves one open to disappointment. This institution is no different. It is possible they were waiting for the latest Bank of Canada rate statement and, when there was no increase, they reduced their rate.

The only real question about any new institution is whether they want to ultimately be one which consistently offers savings rates higher than the average or just one of the numerous ones which offer enticement rates at the beginning before falling back into the pack. Wealth One's 2.% savings rate is still pretty good compared to the rest of the banks. I'm leaving money there on a "wait and see" basis. Personally, I've gotten tired of the Tangerine 3 month negotiation nonsense. To just leave my money here and accessible at 2% is easy enough for now.

I do have one other observation about Wealth One. They are one of the few institutions which offers a much lower rate of interest on TFSA accounts (.85%) than on their regular high interest savings accounts (2.00%), as if because we aren't paying tax, we should accept a lower interest rate as some kind of offset. This reasoning is, of course, totally backwards. The whole idea of a TFSA is for the customer to reap the benefits of a no tax situation. Don't know if they think we are stupid or what.

December 7, 2017
11:14 pm
Loonie
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I mostly agree with you, gicjunkie. I am just skeptical about question of the timing re: the bank rate. BoC did not lower the rate, so there's no reason why WO had to, especially by such a significant amount. I think it was the plan all along. They had a target; they met it; it's over.

While it's true that WO's TFSA rate is significantly lower than regular savings, many banks discriminate against registered accounts. The worst is with RIFs, but RSPs also get hit. This is something to think about while you're busy filling up your RSP account! Eventually, most RSPs turn into RIFs. RIFs get the shortest end of the interest stick more often than not. Your options will be more limited and you will be annoyed that you can't always get comparable rates to what you'd get in an RSP even. We have little to no negotiating power because RIFs are declining assets. Notable exceptions to this pattern are the MB CUs and Oaken.

December 7, 2017
11:55 pm
Vatox
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It could also be a strategy to lure people to lock in on the 3 or 5 year GIC. It's likely nobody bought them because, why lock in when 2.5% isn't locked. Banks can do more with a GIC than savings accounts.

December 8, 2017
4:18 pm
Loonie
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Vatox said
It could also be a strategy to lure people to lock in on the 3 or 5 year GIC. It's likely nobody bought them because, why lock in when 2.5% isn't locked. Banks can do more with a GIC than savings accounts.  

This is basically what Peoples did with their TFSA rate. i wouldn't call it a promo rate because it was stable for several years. However, when they decided to pull the plug on it, the TFSA GIC rates indicated fairly clearly to me that it was their intention to move the money fom savings to GICs if they could. And I'm sure they were successful to some degree, but lost other accounts (like mine).

December 9, 2017
8:36 am
monju00
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gicjunkie. I was wondering why would you leave your money here with 2%? You can get 2.30% from EQ.

December 11, 2017
12:17 am
Vatox
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monju00 said
gicjunkie. I was wondering why would you leave your money here with 2%? You can get 2.30% from EQ.  

For sure, the bulk of my money is at EQ. I hadn't gotten around to moving it to W1 yet. Good thing eh!

December 11, 2017
6:01 am
savemoresaveoften
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was going to open an account... now absolutely no point..
saves me time.

December 11, 2017
9:34 am
gicjunkie
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monju00 said
gicjunkie. I was wondering why would you leave your money here with 2%? You can get 2.30% from EQ.  

Sorry for the late reply, but EQ does not offer joint accounts yet. We want our money accessible to both me and my wife. Also, .30% isn't enough of an inducement for us to start moving funds so quickly.

December 11, 2017
9:51 am
Brimleychen
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rhvic said
I had my doubts about this institution from the start, given some of the warnings from brimleychen. They won't get my cash.  

Good for you if you passed this bank. The reason is very obvious.

This bank has only paid-up capital $39 mil, less than the price of a mansion in Vancouver, with some stories from the press

Many people think CDIC insured and they won't loss anything. Wrong. They lost their precious personal information.sf-cool

December 11, 2017
12:43 pm
Vatox
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Brimleychen said
Good for you if you passed this bank. The reason is very obvious.

This bank has only paid-up capital $39 mil, less than the price of a mansion in Vancouver, with some stories from the press

Many people think CDIC insured and they won't loss anything. Wrong. They lost their precious personal information.sf-cool  

Do you know how many people and corporations already have access to your personal info! One bank is nothing to worry about, especially with all the government servers getting hacked so easily.

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