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Email this8:09 am
April 2, 2018
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Bobbyjet11 said
It is??... been lackadaisical lately when checking but last I checked the CT savings interest was 1.55%. Will check again - thanks for the heads up.
Yup. CT High Interest Savings 1.25%.
History repeats... They attract you with higher interest rate, get your money and then they drop rate to average or below expecting you 'trust' them to be 'the best on the market' and leave money there.
ICICI, Peoples Trust, ING/Tang, EQ, Hubert, etc. did the same.
CT is retail business buying aggressively every other business. Just go and look what they own... The only non-grocery company constantly filling my mailbox with their annoying flyers (CT and Shoppers).
I did consider them due to their higher interest but now I am very glad I did not go through their archaic registration process to get few bucks more.
I would stick with regular FI.
Are you willing to open an account with Loblaws, Sobeys, Balk Barn, Metro, Tim Hortons, etc. if they offer you 1.5% on saving account??? Not me, thank you.
As for exceeding CDC limit, I did that few times with Tang. It might be a gamble but I doubt subsidiary of a 5 Big Bank will go under these days.
1:25 pm
January 9, 2011
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Agree. IMO, its a good time for those who exceeded CDIC limits with CT to do a 'portfolio re-allocation'.
Not a good day, add to this rate drop, the stock market, especially banks/dividend payers. 
"Keep your stick on the ice. Remember, I'm pulling for you. We're all in this together." - Red Green
4:44 pm
September 7, 2018
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dougjp said
Not a good day, add to this rate drop, the stock market, especially banks/dividend payers.
Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.
4:48 pm
January 9, 2011
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canadian.100 said
Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.
Yes, I'm watching closely, on the "buy" side of the market, not the "sell". A correction was overdue IMO, and today wasn't enough.
"Keep your stick on the ice. Remember, I'm pulling for you. We're all in this together." - Red Green
5:49 pm
December 27, 2020
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BNN's Andrew McCreath has a broader view on today's (and Friday's) dismal market performance?
I.E. Inflation worries and rate of economic growth are the main reasons for recent investor sell-off as well as the rising Covid variant cases in the U.S.
6:26 pm
September 6, 2020
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canadian.100 said
Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.
Personally I like it when stocks have a correction. I am setup for dividend reinvestment on some stocks. I automatically buy more shares when price is lower. It takes the guesswork out of buying. A couple rules on buying. 1. Keep the stock portfolio small. Up to 5 dividend blue chip stocks are plenty. 2. Buy enough shares to buy at least one more share with the dividend. This second rule will eliminate many stocks that you should not consider because of stock price. i did not use this rule when I started. There were many stocks that I owned that I never bought one more share with the dividend.
Have a Great Day
10:38 am
September 24, 2019
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Bobbyjet11 said
It is??... been lackadaisical lately when checking but last I checked the CT savings interest was 1.55%. Will check again - thanks for the heads up.
I have a few GIC's maturing at EQ bank this month. I think I will do their 1.3% for either 3mo. or 6mo. which would either mature in late Nov 2021 or Feb 2022. Hopefully the rates will improve around that time as many purchasing/renewing RRSP's & TFSA's then. Maybe that would suit you rather than a HISA @ 1.25%?
Also, as my GIC's are maturing with them, I won't lose any "transfer of fund days" to another institution that is only offering 1.25% anyway.
7:53 am
March 15, 2019
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I have had GIC's with Home and Pace in recent years. Had some nervous moments but got back all my principal plus interest on each maturity.
11:20 am
January 12, 2019
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Alexandra said
I have a few GIC's maturing at EQ bank this month. I think I will do their 1.3% for either 3mo. or 6mo. which would either mature in late Nov 2021 or Feb 2022. Hopefully the rates will improve around that time as many purchasing/renewing RRSP's & TFSA's then. Maybe that would suit you rather than a HISA @ 1.25%?
Also, as my GIC's are maturing with them, I won't lose any "transfer of fund days" to another institution that is only offering 1.25% anyway.
Ditto ❗
When it comes to GIC's, I think a lot of us are staying 'short' for now. For myself, that means no farther out than 18 months.
Fingers crossed we'll see some significant GIC rate increases in a few months (early next year❓).
- Dean
" Live Long, Healthy ... And Prosper! "
7:45 pm
November 20, 2018
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How does everyone feel about safety with EQ and Oaken compared to big banks? Txs
8:43 pm
April 6, 2013
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EQ Bank and Oaken are miles apart from the Big Banks. That's why their deposits have a higher rate than deposits of the Big Banks.
Big Banks have provincial bond like debt ratings. In contrast, debt of Equitable Bank, with DBRS debt rating BBB, and Home Trust, with rating BBB(low), are one or two notches away from junk bonds.
9:45 pm
April 14, 2021
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I always appreciate it when a member brings the facts.
6:23 am
November 8, 2018
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heinzheinz57 said
How does everyone feel about safety with EQ and Oaken compared to big banks?
I feel good, because I never exceed CDIC limits with any of them.
9:57 am
March 15, 2019
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I've had GIC's with both Oaken (Home) and Pace. Yes, there were some nervous moments. Ultimately, got all my principal plus interest back.
11:10 am
December 27, 2020
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FWIW. When you google the subject you mostly read that if you are over the 100 k max and the institute goes under the chances are still very good that you will get all of your money back. However, you are risking waiting a while whereas the first 100 k should be returned fairly quickly. Again, FWIW.
12:06 pm
March 30, 2017
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Bobbyjet11 said
FWIW. When you google the subject you mostly read that if you are over the 100 k max and the institute goes under the chances are still very good that you will get all of your money back. However, you are risking waiting a while whereas the first 100 k should be returned fairly quickly. Again, FWIW.
If there is a loss, there will be prorated loss. Not sure if I will portray as it "chances are still very good you will get all of your money back". Its more like "its highly unlikely u will loss the full amount above the CDIC limit"
5:12 pm
March 15, 2019
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savemoresaveoften said
If there is a loss, there will be prorated loss. Not sure if I will portray as it "chances are still very good you will get all of your money back". Its more like "its highly unlikely u will loss the full amount above the CDIC limit"
I think the regulators will force a "shotgun" marriage with a healthy institution so that the depositors will be made whole (I hope).
The Pace Securities debacle is a whole other story.
7:14 pm
April 6, 2013
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That's a myth. Regulators can't force anything. At best, the regulators make it worth the healthy institution's while to assume the deposit liabilities.
No financial institution would assume deposit liabilities unless it receives at least that much in assets to compensate.
CDIC wrote a big cheque and issued loan guarantees to TD for TD to assume Central Guaranty Trust's deposits. CDIC had the bad loans and foreclosed real estate for years afterwards to try to recover what it had to pay TD.
7:23 am
March 15, 2019
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I read about this trust companies debacle in the history books. It is my understanding that the Ontario government (perhaps technically not the regulator) took control of the 3 companies and then sold them off. Did the depositors lose any money money?
During the real estate meltdown of the early 1990's, almost all the trust companies were taken over by the banks. I am assuming that the regulator(s) were somehow involved in the process. Central Guaranty Trust and Royal Trust were among the bigger trust companies that were taken over.
8:36 am
October 27, 2013
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CDIC insured companies that become insolvent can be liquidated in pieces or sold in their entirety. CDIC's responsibilities are to guarantee the insured portions of deposits and they usually find another CDIC insured institution to take those on.
CDIC can try to find buyers for the whole entity but generally they often have to take on under performing loans to get another FI to buy the company itself.
This is how CDIC resolves the issues for institutions of various sizes. https://www.cdic.ca/what-happens-in-a-failure/
This is a list of failures managed by CDIC https://www.cdic.ca/about-us/our-history/history-of-failures/ Most of them were are a result of the 1983?86? recession or the 1991 recession.
Obviously more than CDIC is involved in the dissolution of an FI. OSFI, attorney generals, etc. all play a role, especially if there is a criminal element such as fraud in the failure. I'd be careful with blanket statements and poorly written articles by amateur writers.
P.S. There is no way of knowing how much, if any, of uninsured portions of deposits were covered without researching each of the 43 failures individually. https://www.cdic.ca/your-coverage/deposit-protection-for-all-life-stages/cdic-articles/bank-failures-in-canada-a-history/
My sole experience was with Principal Trust and at the time, I only knew about it when receiving a letter saying something to the effect that my deposits were covered and more importantly, when my quarterly statement regarding my GICs in an RRSP came with a new letterhead of a new company that had taken over the deposits.
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