EQ reduces rate on 3 month registered funds | EQ Bank | Discussion forum

Don't like seeing this at all. IMO they are playing the old shell game of (essentially) "trapped funds", as its not in keeping with market conditions at all. Yes I know TFSA in particular can be withdrawn at any time, but you know what I mean for all practical purposes.

Its what CTC bank did years ago that gave them a bad name, with the "come on" early in the fiscal year (TFSA/RRSP) short term rates, and then make sure nothing attractive short term in these categories exists after 3 months or so for the balance of the same year. Net result = recouping all and more of their lower margins on funds for the come on period.

For those who remember what CTC did 2 years in a row, they stated "this (excellent savings rate) is not a promotional rate" in January, then dropped the TFSA savings rate beginning of April in a rising rate market (like we are in now).

Won't be forgotten come December TFSA "withdrawal time", if any other viable options exist then.

Yep, should be the same rate! I like EQ so I’m just using the longer terms, but since we are pretty sure rates will be higher in 3 months, that term should have a better rate than 1.55 and the 2.0 is probably just right. The 6 month is 2.05

Neither Hubert nor EQ charge fees to transfer RRSP and TFSA accounts.

Oaken also has no TFSA transfer-out fees. Good thing, given they have no TFSA savings accounts or flexible terms.
RetirEd

Loonie said

All i can say is that I've never seen a FI remove these fees or decrease them.  

No but there are FI's that will reimburse you for those trfr-out fees when you trfr-in.

Alexandre said
EQ currently offers 2.1% for 6 mo registered and non-registered. I understand what they are trying to do, but reluctant to lock my money for that long at that rate.  

I agree. There is likely no downside risk (and nominal lost interest) in waiting up to a month. Today we will see what the Fed says when they (surely will) raise their rate. Then the next Bank of Canada rate change is expected on June 1.

My strategy for TFSA funds, that portion that is in cash, is to be able to shift decision making for where the funds go to late in the year. This avoids transfer fees/delays etc. as I simply withdraw if I choose to go elsewhere (in early December, redeposit in January), or get into annual maturing GICs then with (in this case) EQ. A 6 month GIC is an ideal "time shift" to accomplish this, at this time.