Achieva Interest Rates Update | Achieva Financial | Discussion forum

Perhaps my memory is a bit fuzzy, but I think the last time the Bank of Canada lowered the rate was in January?

When I complain about low rates, the financial institutions always tell me it's because of the Bank of Canada.

The Bank of Canada is not lowering its rates as fast as the financial institutions are lowering theirs.

What gives?

I saw a story on TV the other night about a small business person who was being charged what appear to be exhorbitant service charges by Scotia. In response, the journalist interviewed a prof at McMaster (didn't catch his name) who said that in this low interest environment with a reduced spread, the banks are all turning to service charges to make their money instead. So I guess we should all expect more of that. Some are increasing the registered plan transfer fees to $100 now for ordinary non-brokerage accounts, I notice. Their defence (as was the case here with Scotia) is always that whatever they charge is "the industry standard". A poor excuse.

Perhaps another problem, in some institutions, is executive pay. I can't imagine these guys are worth this kind of money, honestly. http://business.financialpost......ceo-payout
However, I don't believe this is the case at the credit unions.

It's hard to imagine how we will get out of this mess. So many people are over-extended with mortgages in the big cities, and, even so, the housing market is very tight with little inventory, at least in desirable areas of Toronto. I know people who've been looking for 2 years already, and they have the cash.
But people will have trouble hanging on if rates went up a couple of points. The last time we were in this situation a couple of points was only a small percentage of the whole rate, but now it would be almost doubling their mortgage payments.

If forces emerge that push rates up a point or two, there could be a huge housing meltdown.
Seems very precarious to me. I'm glad, in a sense, that I'm not young.
But it seems to me that this is also creating a stock market bubble, which is not healthy either.

I'm not going to get into an argument about the economy in general, although there's lots that could be said about it. That wasn't really what I was wondering about anyway.

I will say though that telling people to leave the city is not going to solve the problem. They won't leave unless they have viable options elsewhere. If they should leave in sufficient numbers to make the cost of housing more reasonable in these big cities, then we will have hollowed out cities and will create much bigger problems than what we have now.

I agree, Toronto will not be hollowed out any time soon because people are unlikely to move elsewhere in sufficient numbers. This includes immigrants as well as established groups. Suggesting that people move elsewhere only works for some people.

One of the reasons housing is so expensive in Vancouver is because of the number of foreign investors/speculators. Some may be immigrants but many are offshore. Immigrants are not all living in small spaces by any means.

Achieva's GIC rates lowered, but I'm not sure when it happened.
Daily rate remains 1.7o
The other MB CUs are holding at this time.

1 Year Term 1.85%
2 Year Term 1.95%
3 Year Term 2.00%
4 Year Term 2.15%
5 Year Term 2.30%

I've been a long-time Achieva client but with this latest interest rate drop, I'm switching my maturing GICs & RIFs to Oaken, at least while Oaken is offering 2.75% GICs. I've shifted the majority of my savings account to EQ as well, leaving just enough in Achieva to cover my car loan payments. Wonder how many Achieva clients will do the same. Here's hoping Oaken & EQ maintain their rates for awhile. For years, Achieva & Outlook offered superior returns but not any more, so buh bye, I'm off to greener pastures.

Achieva's GIC rates increased, but their Daily rate remains 1.70%

1 Year Term 1.85%
2 Year Term 2.05%
3 Year Term 2.15%
4 Year Term 2.30%
5 Year Term 2.45%