Savings Account | Canadian Tire | Discussion forum

Benjames35 said

Canadian Tire Bank just lowered Savings account to 1.30%, Tax Free Savings Account remains unchanged at 1.60%

That is very disappointing, especially since CTC Bank had one of the highest rates. I have sent them an email informing them that I will move my money to another FI where it will generate more income. If more folks did the same, perhaps they would reconsider reducing the rate.

I also started moving out my money, because when I phoned them last night, and I was told that at the present time they are not providing any incentives to retain their clients. The CSR did recommend that I not close out my account, just in case they raise the rate in the future, meanwhile that I should keep a minimum of $20 to avoid inactive/dormancy fees.

Benjames35 said
Yes its official, its now on the main page that Canadian Tire savings account is back at 1.50%  

Jeezus, why are people still using this moribund bank for high savings account deposits that is essentially on "life support"?

It's received no development or enhancements from a product and a technology standpoint, cannot be access via a debit card, might not even have a mobile banking app and its account opening process is arcane, requiring a credit bureau and a cleared cheque to be mailed. I don't even know if they'll accept stamped VOID cheque forms in lieu of VOID cheques to link additional accounts. Plus, this interest rate increase notwithstanding, they're still near "bottom of the pack" and will likely be again once this rate rise cycle completes. 🙁

Help me understand, Ben, why you or others would continue to keep your savings with this bank when literally every other option is superior in terms of rates other than maybe the "Big 5" banks and Simplii Financial/Tangerine's regular, posted rates (with their promo rate offers, they beat CTFS handily)? Is it out of some sort of "brand love" for Canadian Tire?

I just don't get it. 🙁

Plus, there's also the increasing likelihood that Canadian Tire Bank will ultimately ended up being absorbed by The Bank of Nova Scotia in an asset sale to them resulting in temporary, transitional CDIC limits for the merged entity. They have an option to buy up to 51% of Canadian Tire Financial Services Ltd., which owns 100% of Canadian Tire Bank, within the next several years and Canadian Tire can increase that to 100% if they wish at any time. 🙂

Cheers,
Doug

Benjames35 said
I joined the Canadian Tire Bank a few years ago linked from my PC Financial(Simplii) Account so I go back to Simplii whens theirs a nice promo rate and I have to say the Canadian Tire Bank website is top notch. Never had one issue with moving money, errors, glitches or anything and customer service is fast. The rates aren't as great as some but their getting better now and at least they do offer a tax free savings account unlike EQ bank that doesn't have one and 100K limit on there savings account and Wealth One's rate is horrible at 0.85%  

Fair enough, I don't like EQ Bank's maximum balance limit as I believe that's what you meant, either. I can definitely see maintaining them when Simplii Financial doesn't give you a net new money promo and there's no sense having a Tangerine account if you are with Simplii Financial.

Have you considered Hubert Financial or Implicity Financial?

Better e-Statements, better way of linking external bank accounts and much better rates. With the letter, you get free Acculink (credit union) ATM deposits and withdrawals and you can write cheques, too, for no fee. 🙂

Foreign currency deposits are also insured by the provincial deposit insurer and there is also no limit on insured deposits. Transfer limits are also quite high compared to some of the banks, including Canadian Tire Bank.

They also have RRSP/RRIF/TFSA savings accounts and GICs that pay the same high rates as non-registered savings.

Cheers,
Doug

Bill said
Benjamin35, I agree with you, my experience with Canadian Tire Bank has been the same, I've always kept some HISA business there. Also, you never know if an fi will decide to get more competitive and then you don't have to go through the process of opening an account at that time - for example, I had accounts at PC Financial/Simplii that were unused for years until the last year when they've been offering promo rates to me (and after years of being ignored it's also become a temporary hot favourite around here over the last while). Takes zero time to keep an account, aside from logging in once a year, making a $20 transaction and changing the password. Finally, on a matter of principle I don't deal with credit unions (aside from some 4% "shares" with a local one) so that narrows choice for me. Different people have different wants and needs, CT Bank suits some folks fine.  

That's kind of snobby and arrogant, Bill, that you "don't deal with credit unions" on a "matter of principle". I find it odd that you'll invest in their preference/preferred investment shares for the sake of decent dividend return (though not guaranteed as they are almost always non-cumulative, meaning where no dividend is declared by the Board, they are not obligated for any missed dividend payments). Also, keep in mind credit union investment shares often have liquidity issues in terms of getting your money out if you need it. Yes, they have a par value, which is good, but take Meridian Credit Union's frequent investment share issues...they commit to a dividend rate for a period of 5 years but the dividends are still not guaranteed and you can't sell your shares for 5 years. They say they'll "try" and find another member to buy them within 5 years for you but, even after five years, you're generally limited to withdrawals of about 10-20% of the current share balance that you hold. Don't get me wrong...I'd invest in credit union investment shares, too, because I trust them but to put more faith in banks over credit unions is just wrong, in my view. 🙁

Cheers,
Doug

Bill said
Doug, you assume my reasons are due to being "snobby and arrogant". You assume it's because I have "more faith" in banks. You assume I invest in credit union investment shares "for the sake of a decent dividend return".

I've lost track of how often but yet once again, Doug, you are incorrect on all counts.

Anyway, I have no intention of justifying (or even, since you didn't ask, explaining) to you why I do what I do with my money.  

Why make such bold pronouncements and statements if you do not believe you should be expected to justify them?

Prove me wrong. In absence of your reason(s) to the contrary of why you prefer banks, the assumptions I've made are the most logical.

Thanks,
Doug

Bill said
Doug, "on a matter of principle I don't deal with credit unions" is in fact not a "bold pronouncements and statements" (note also: it's a single statement, not plural), just because you state it is so. It's a pretty innocuous statement of fact. So wrong again on two more counts. And your other 3 assumptions, including that I am arrogant and snobby because I don't patronize credit unions (?!), are not logical in the least, so wrong yet again there.

As well, you say "prove me wrong" when I already told you I'm not justifying or explaining, in particular to you. So it appears your reading comprehension needs work too (never mind that proving you wrong would end up being a full-time job given the number of your posts here).

In the interest of civility on this site I'll gladly let you take the last word on this, I'll have nothing further to say to you on my use of banks but not credit unions, or your assertion regarding my requirement to justify my banking choices to anyone.  

Bill, if you want to get technical because I used the plural form of a word instead of the singular, fine, but that's petty. I don't and have never criticized other forum users writing habits. I welcome all contributions to this board.

You're the one who is saying you don't have to justify why your prior statements would not seem as snobby or, perhaps, somewhat arrogant (aloof might be a better word) so I asked you to please clarify. Instead, you get snippy with me. Your responses are not worthy of my further time and attention. 🙂

Cheers,
Doug