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November 1, 2022
7:04 am
Nehpets
Ontario
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Email received today:

We’re excited to share the news that Wyth Financial has joined the Equitable Bank family, making Equitable Bank the 7th largest independent bank in Canada by assets. Equitable Bank shares our passion for driving change in Canadian banking to enrich peoples’ lives, and we couldn’t be more excited about what the future holds.

Acquisition supports growth and value creation
As a branchless digital bank focused on strong and growing partnerships with brokers across Canada, Equitable Bank leads the country in innovative products and exceptionalservice, and it has won a Best Bank in Canada award for the past two consecutive years. For more than 50 years, Equitable has taken an entrepreneurial approach to carving niches where it can thrive in an industry dominated by the largest banks in Canada. Culturallyand strategically, our banks are aligned. We’re excited to share best practices and we anticipate growth opportunities for our combined team. Please visit equitablebank.ca for details.

We will close your HISA account, but no sooner than 90 days from now

Because of this change in ownership, within the next few months, Wyth Financial will stop selling High Interest Savings Accounts (HISAs) and will close all existingHISAs. We will send you specific information well in advance to ensure you’re fully informed of what will happen and when.

You may wish to transfer all funds out of your Wyth HISA to EQ Bank or another financial institution that you’ve linked via online banking or our mobile app. If you have not drawn down all the money in your HISA account by the date when we close it, then we will close your account and send you any remaining balance, either via electronic funds transfer to your linked bank account, or via a cheque by mail. Rest assured; we’ll give you ample notice before taking either of these actions.

Thank you for being a valued customer

We didn’t get to this point alone, and we would like to thank you for your support in making Wyth Financial a success. If you have any questions or if you need to updateyour contact information, please contact us at 1.800.788.6311 or answers@wyth.ca.

The loss of a competitor

Stephen

November 1, 2022
7:56 am
AltaRed
BC Interior
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I am surprised (what I expected) the default option is not to roll the Wyth HISA into an EQ Bank HISA rather than account closure.

November 1, 2022
11:12 am
Jimmy
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This could explain why I can't log into EQ now. Something to the effect of 'high volume of users right now' pops up.

November 1, 2022
11:53 am
Loonie
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AltaRed said
I am surprised (what I expected) the default option is not to roll the Wyth HISA into an EQ Bank HISA rather than account closure.  

Me too. It seems EQ really doesn't want your money. It isn't even an option to send the money to EQ.

November 1, 2022
2:13 pm
COIN
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The headline could be misconstrued.

At first blush, I thought this might be another PACE CU.

November 1, 2022
5:45 pm
Doug
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AltaRed said
I am surprised (what I expected) the default option is not to roll the Wyth HISA into an EQ Bank HISA rather than account closure.  

It's a bit surprising, yes, given this was the approach RBC Royal Bank took when they bought Ally Canada's deposit business. However, I suspect the account closures apply only to Concentra Bank direct-to-consumer HISAs, which was likely a very marginal business (a couple hundred million, at most). Broker HISAs, direct-to-consumer GICs and broker GICs will likely be migrated.

Nonetheless, we knew this was coming.

It's all about squeezing out every marginal dollar of costs and doubling EQ Bank's book of business. sf-cool

Cheers,
Doug

Full and fair disclosure: As of October 2022, I am now a common stockholder in EQB Inc., parent company of Equitable and Concentra banks/trusts.

November 1, 2022
5:48 pm
Doug
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AltaRed said
I am surprised (what I expected) the default option is not to roll the Wyth HISA into an EQ Bank HISA rather than account closure.  

Also, this does simplify the integration of banking systems on their end, if they just encourage users to roll their funds over to their EQ Bank accounts (they have customer data that likely indicated high levels of customer overlap), or encourage customers to create EQ Bank accounts where they don't.

Cheers,
Doug

November 1, 2022
5:49 pm
Doug
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Loonie said
Me too. It seems EQ really doesn't want your money. It isn't even an option to send the money to EQ.  

You have to link your EQ Bank account to your Wyth Financial account. In this case, since Wyth's linking process is paper-based, I'd set up a link on the EQ Bank side, verify your account digitally within 1-2 days, and pull funds from Wyth. 🙂

Cheers,
Doug

November 1, 2022
6:21 pm
Loonie
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No doubt it can be done, but it's not exactly the Welcome Wagon! Not everyone has an account with EQ and clearly they don't care if you never do.

I don't have an account with Wyth, and almost no money at EQ. EQ is a bank of last resort for me and will remain so. It certainly deserves its place among the "Big Seven".

November 1, 2022
6:27 pm
Doug
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Loonie said
No doubt it can be done, but it's not exactly the Welcome Wagon! Not everyone has an account with EQ and clearly they don't care if you never do.

I don't have an account with Wyth, and almost no money at EQ. EQ is a bank of last resort for me and will remain so. It certainly deserves its place among the "Big Seven".  

I agree with that, certainly, and I also have an EQ Bank account, but there's a few annoyances with them that also keep me from giving them more business. 🙂

Cheers,
Doug

November 1, 2022
9:24 pm
Norman1
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Equitable Bank hasn't been interested in more savings account money from its EQ Bank channel for a while. The EQ Bank savings account pays only 2½%.

Equitable Bank likely isn't too keen on receiving yet more savings account money from the Wyth savings accounts that have been paying a lower 2¼%.

Equitable Bank does seem more interested in brokerage ISA deposits. The Equitable HISA (EQB1000) now pays 3.3%!

November 1, 2022
9:36 pm
Loonie
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It varies. When they first opened TFSAs, they were falling all over themselves with high savings rates to get the customers and their money.

Marketing-wise, it seems foolish to me to let all these people go without making any effort. Apparently it's too much effort for them to figure out what to do with them and they'd rather pay more elsewhere. They may be seventh but they are still a one-horse outfit.

Not my problem, however!

November 2, 2022
6:45 am
Norman1
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It's what happens when too much deposit money comes in through a channel than the deposit taking institution needs.

The fix is to lower the rate or let the rate for a channel fall behind competitor's rates.

November 2, 2022
6:50 am
savemoresaveoften
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Looks like outstanding GIC longer than 60 days will also NOT be able to access online and have to call them etc re maturity instructions etc. What a nuisance.

They are really cutting their cost base fast

November 2, 2022
9:21 am
RetirEd
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Hmm.. Doug: Royal passed all Ally term deposits to Ally for full term with all provisions honored, though it was a hassle to get funds at maturity without paying any fees. (Firm and audible insistence, followed by a call from Royal to the receiving institution, did the trick.)

I didn't have any savings accounts with Ally - never knew they existed. If they did, were those wound up? The GICs weren't.

November 2, 2022
10:05 am
AltaRed
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I never had anything with Wyth so don't know what EQ will do with Wyth GICs (if there are such things). In the case of Concentra Bank GICs sold through brokerages, I would expect they will just continue on to maturity since I believe Concentra Bank will continue as an entity. Concentra Trust will certainly continue as an entity.

When Desjardins wrapped up Zag Bank (albeit a slightly different case than an acquisition), they handled it in a couple of different ways. The primary way was to buy out the GIC with full interest to end of term....just to get rid of them, and that was a super deal for the investor. I think that process was limited to GICs maturing in less than 2 years. I think longer term ones were allowed to carry on to maturity albeit my memory is a little foggy now.

November 2, 2022
10:31 am
Norman1
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Existing Wyth-branded GIC's will continue to maturity.

Which bank now holds my Wyth GIC: Wyth Financial or Equitable Bank?
Wyth Financial is a trade name of Concentra Bank, which will continue to be the bank behind your Wyth GIC until maturity.

Can people still get a GIC with Wyth Financial?
No. Instead, we encourage you to visit … to check out the great GIC options at Equitable Bank.

Can I redeem my Wyth GIC before the maturity date?
Non-redeemable deposits cannot be redeemed before the maturity date. In special circumstances, such as financial hardship, a non-redeemable deposit may be redeemed. A minimum 10-day hold is required after deposit date. Transaction and interest penalties may apply.

November 2, 2022
11:09 am
AltaRed
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Logical conclusion as I would have expected. Thanks for bringing that info to the forum.

November 2, 2022
4:00 pm
dougjp
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Norman1 said
Equitable Bank hasn't been interested in more savings account money from its EQ Bank channel for a while. The EQ Bank savings account pays only 2½%.

Equitable Bank likely isn't too keen on receiving yet more savings account money from the Wyth savings accounts that have been paying a lower 2¼%.

Equitable Bank does seem more interested in brokerage ISA deposits. The Equitable HISA (EQB1000) now pays 3.3%!  

Exactly. This almost ensures that EQ will remain noncompetitive with HISA, or in the same breath, it provides the reason why EQ has fallen off a competitive cliff for so many weeks.

The badness of a movie is directly proportional to the number of
helicopters in it.

November 4, 2022
6:48 am
TommyT
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Doug said

It's a bit surprising, yes, given this was the approach RBC Royal Bank took when they bought Ally Canada's deposit business. However, I suspect the account closures apply only to Concentra Bank direct-to-consumer HISAs, which was likely a very marginal business (a couple hundred million, at most). Broker HISAs, direct-to-consumer GICs and broker GICs will likely be migrated.

Nonetheless, we knew this was coming.

It's all about squeezing out every marginal dollar of costs and doubling EQ Bank's book of business. sf-cool

Cheers,
Doug

Full and fair disclosure: As of October 2022, I am now a common stockholder in EQB Inc., parent company of Equitable and Concentra banks/trusts.  

Long EQB? Why on earth would you pick that one to be long?
I've been short EQB and Home Capital since March this year.
Both are third tier lenders exposed to the Ontario housing market.

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