Falling behind the competition? | Page 7 | EQ Bank | Discussion forum

It doesn't matter if there is continuing loan growth. It would be foolish to raise deposit rates if matching deposits are flowing in faster than the loans are growing.

He's cloning himself to the BofC, who said inflation is transitory and have no clue day to day about history vs. the present.

Look around, don't need to be an economist to see the spending binge post pandemic, half of which is coming from savings which accrued via doing nothing for 2 years, and the other half from people binging that can't really afford to (but are obsessed to get out), ending up in massive increases in credit card debt (daily news reports about this, so no need to create a link(s)).

Fall/colder/indoors.... hello again virus. Big THUD to spending as summer binging promptly ends due to reality and credit card bills. AKA winter recession with stagflation.

ronjoh said
I also notice my brokerage has a mutual fund saving account that pays 2.85%
I admit i don't understand why the different rates within the same bank (EQ) and why I wasn't aware I could get a much higher at my bank brokerage account.
I know there is some obvious reason that I don't understand.
I'm hoping some one here can clear this up for me.
Thank you  

Those are not mutual funds. They are ISAs (Investment Savings Accounts), i.e. CDIC insured deposit accounts, sold under the mutual fund platform as discussed here. https://www.highinterestsavings.ca/forum/investing/td-webbroker-isa-investment-savings-account/

There is discussion in other threads about various channels individual banks may decide/prefer to solicit deposits. EQB1000 is the Equitable Bank version of a deposit account available through some brokerage channels. Why might they pay more (or less) through the brokerage channel? Because they have too perhaps to be competitive with other offerings? Because they aren't as enthused having the overhead dealing with retail customers who are a PITA much of the time? Because they can capture enough customers and deposits through EQ Bank at the rates they now pay?

Loonie said
I'm not aware of any EQ savings account that pays 2.3 as of now. Can you give us a link that shows it?

I am pretty sure Ronjoh is talking about EQB1000 from Equitable Bank (not EQ Bank) that is only available through the brokerage channel (nominee name only) https://www.equitablebank.ca/invest-and-save/high-interest-savings-accounts

EQ Bank is just a marketing name or brand used by Equitable Bank. EQ Bank doesn't really exist legally.

Equitable Bank offers the "EQ Bank Savings Plus account" through its EQ Bank website directly to personal depositors.

Equitable Bank also offers the "Equitable High Interest Savings account" (mutual fund symbol EQB1000) through the mutual fund ordering system via sellers of mutual funds.

Yes, the pricing or the interest rate can be different between the "EQ Bank Savings Plus account" and the "Equitable High Interest Savings account" even though both are deposits issued by the same Equitable Bank.

Loonie said
It appears, then, that one is asked to sacrifice 30 bps of interest for the "convenience" of online banking as opposed to branch banking? (bearing in mind Vatox's link)
But it's not clear to me if this account is available at any branch or even if they have a publicly accessible branch. Looks like this account, as well as the "mutual fund" may only available through investment brokers? But that doesn't make sense to me either.  

EQB1000 is likely not available through an investment/financial advisor at a bank branch (though it could be at some FIs). EQB1000 is available in 'nominee name' only (not directly in one's personal name) and has a settlement of T+1 like money market mutual funds do, albeit as I have said before, it is a CDIC deposit account sold under the mutual fund platform, not a mutual fund in structure.

Equitable Bank does not deal with the public directly (that is what their EQ Bank division does).

It may seem illogical, but it does make sense in that financial institutions, as Norman1, I and others, have said a number of times, choose to market through different channels to different clients/customers.

A number of institutions do similar things. LB does it with B2B (broker channel) and LBC Digital (retail channel). B2B has an ISA (BTB100) currently @ 2.75% marketed through the brokerage channel.....considerably more than what LBC Digital is paying through their HISA retail channel.

Home Capital does it as well, as does ICICI Bank, as does Manulife per https://mrthrifty.ca/investment-savings-accounts-maximize-interest-in-your-brokerage-account/

A word of caution on these broker channel ISAs...... Not all, or necessarily most, of the ISAs on Mr.Thrifty's list may be available at all brokerages.

Individual brokerages may limit purchases to their own in-house offerings, e.g. RBC Direct Investing or RBC Dominion Securities may only make the RBF series of ISAs available to their clients, or if they allow any other third party offerings, there may be a 90 day minimum hold placed on them in order to collect the quarterly trailer fee...or an early redemption penalty may be imposed.

I don't know which brokerages, for example, would sell EQB1000 to their clients. Do your due diligence before getting the bright idea one can just open a DIY discount brokerage account with any provider and buy any/all of ISAs listed on MrThrifty's list.

I specifically mention brokerages and not mutual fund dealers in my responses because I know nothing about mutual fund dealers. I've never had a mutual fund account with any mutual fund dealer, e.g. RBC Asset Management, at a bank branch at any time in my investing journey.

Add: I just did a test at Scotia iTrade. It will allow me, of course, to buy the in-house DYN series of ISAs. It will also allow me to buy EQB1000 and MIP510, but none of the other bank ISAs, i.e. their competition. That is one indication of the restrictions brokerages may impose.

The 2.85% is probably the TD ISA, Series A (TDB8150) among my brief ISA survey.