Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this9:41 pm
With the Bank of Canada raising their key rate by .25% today, why have none of the banks raised the interest rates that they pay on their accounts? They were quick to lower these rates to practically nothing when the BOC reduced its rate. Shouldn't they be raising their rayes as quickly as well?:frown:
10:17 pm
Of course savings rates should go up richat,but don't hold your breath.
It's similar to how gas prices go up the minute there's a stiff breeze in the gulf of Mexico but oil prices can drop for a month and there's no move down in the price at the pumps.
The golden rule, those with the gold make the rules.
1:40 am
December 12, 2009
Offline
Keep in mind, the banks will only raise rates when their cost of funds increases. Right now, the credit markets are pretty good thanks to a flight to quality and safety. U.S. treasuries and bonds, despite paying 0% interest, were oversubscribed in a recent issues. Corporate debt and money markets, where banks raise capital for loans and mortgages, have been very fluid right now. So, when the credit markets seized up, the banks were lowering rates to increase the spread between what they pay on deposits and what they lend at but now that the credit markets are fluid, they don't need need money from depositors and will likely leave rates where they are.
Bottom line: They may increase rates as the credit markets tighten but don't expect an increase every time the Bank of Canada increases prime.
Cheers,
Doug
10:58 am
March 25, 2009
Offline
MAXA just increased their rates from 1.50 to 1.85%
Have a great day
6:10 pm
May 15, 2007
Offline
I thought MAXA's rate was already at 1.85% since May?
2:29 am
Patience is the key word.
All banks increased their prime rate to 2.5%. Mortgage rates are also on the rise. Saving rates should eventually follow. TD already increased theirs to 0.85%. ING also increased their GICs.
7:14 am
March 25, 2009
Offline
I thought MAXA's rate was already at 1.85% since May?
Sorry, my mistake. I saw something went up in rates on the 1st and 2nd of this month and thought it was Maxa.
Have a great day
11:21 am
rbc increased my unsecured credit line rate by 0.25% about three or four milliseconds after the boc announced it was hiking its rate by 0.25%. wonder how many millions in profit rbc gave up over that three or four millisecond delay. heads are rolling in the rbc tower today let me tell ya...
2:10 am
rbc increased my unsecured credit line rate by 0.25% about three or four milliseconds after the boc announced it was hiking its rate by 0.25%. wonder how many millions in profit rbc gave up over that three or four millisecond delay. heads are rolling in the rbc tower today let me tell ya...
They already increased their rates a month ago in anticipation of this one, so how can they go ahead and increase it again, unless this latest rate increase is in anticipation of the next one? :yell:
5:13 pm
they didn't increase my credit line rate until the boc rate went up.
11:42 pm
why still no increase?
boc has now raised prime 0.50 basis points,and im still getting 2.1% on my money:frown:
1:20 am
December 12, 2009
Offline
The answer boils down to simply supply and demand. There's an abundance of cash sitting on the sidelines and the vast majority of it in safe instruments like GICs. Therefore, the banks and credit unions don't need to raise rates to attract deposits. It's unfortunate for savers but there's really not much you can do until one of two things happens - demand picks up dramatically thereby increasing the need for more lending or supply goes down and the amount of capital available goes elsewhere (i.e., the money market, equities, etc.)
Cheers,
Doug
3:55 am
its not the point about banks and unions raising rates to attract deposits,
its the point that the prime went up, the lending rates went up, the banks raised the rates on all mortgages, so why not pass it along to the customer?
Im not asking alot, like 2.3% instead of 2.1%
1:11 pm
why still no increase?
boc has now raised prime 0.50 basis points,and im still getting 2.1% on my money:frown:
You're getting more than most people. Banks are businesses out there to make profits. People's Trust already is the most competitive on the market, so from that point of view, why would it raise its rate?
It's been explained time and time again, there is no direct relationship between the BoC's overnight rate and savings account.
1:27 pm
its not the point about banks and unions raising rates to attract deposits,
its the point that the prime went up, the lending rates went up, the banks raised the rates on all mortgages, so why not pass it along to the customer?
Im not asking alot, like 2.3% instead of 2.1%
It is true that variable-rate mortgages increase with prime, but there hasn't been a significant increase in fixed-rate mortgages. Those rates have actually deceased since the announcement of the first increase of prime on June 1st.
11:00 am
well most banks' rates have gone up. look at the chart
Peoples trust is at 2.1 well banks like PC,ICICI,canadian tire and ING are not that far behind them. all the banks that had a 2% rate b4 the rate hike, have stayed the same:cry::cry::cry::cry::cry::cry::cry::cry::yell::yell::yell::yell::yell::yell:
2:54 am
March 25, 2009
Offline
well most banks' rates have gone up. look at the chart Peoples trust is at 2.1 well banks like PC,ICICI,canadian tire and ING are not that far behind them. all the banks that had a 2% rate b4 the rate hike, have stayed the same:cry::cry::cry::cry::cry::cry::cry::cry::yell::yell::yell::yell::yell::yell:
I think the phrase, "Don't be greedy" could apply here. There are many other ways to make more than 2.1%, but none as safe. Safety costs. You could get 5.1% in a safe mutual fund right now if you don't mind risking -11.6%. Or you could go for +15.1% if you don't mind risking -51.1%
Is a 5/15% return with a chance at a 11/51% loss? Or are you happy with 2.1% at 0.001% loss?
Don't take any more risk than you NEED to take.
Have a great day
6:47 am
well most banks' rates have gone up. look at the chart
Peoples trust is at 2.1 well banks like PC,ICICI,canadian tire and ING are not that far behind them. all the banks that had a 2% rate b4 the rate hike, have stayed the same
People's is still the most competitive, hence there's no real motivation on their part to increase it, for now.
Frankly I'm getting sick of people whining over the interest rates. This country has just been through a recession and a lot of people had a tough time. If the most relevant thing you can find about your life to complain about is the interest your savings account pays, then you shouldn't be complaining at all to begin with.
4:23 am
March 25, 2009
Offline
Simon - "This country has just been through a recession and a lot of people had a tough time"
I do agree with you that there many more relevant things one can complain about in life than interest rates. Money shouldn't be our #1 priority in life, it is important, but shouldn't be #1.
I would add that both the US and Canada has never left the recession yet and the tough times are just beginning for unfortunately a lot more people than before. Debt is out of control (gov't, corp and private) and we are in a deflationary environment. Those 2 things feed upon each other and negatively affect all aspects of life for those IN debt. Those who are in cash and not in the markets at all will do much better.
Have a great day
Please write your comments in the forum.