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Email this2:04 pm
October 21, 2013
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I think we have gotten way off topic from OP's query, with this talk of extreme and highly unlikely possibilities. Everyone has to put their money somewhere, and the sky is not falling.
7:42 am
August 24, 2024
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Thanks everyone. I've learned more than I had intended about banking regulations, account insurance and individuals' risk tolerances. The clock is ticking down towards the date when we receive our proceeds. @AltaRed's advice on RBC's interest-linked cashable GIC is definitely a contender (already an RBC client) and the groups' general consensus that brokerage savings accounts are a good option is a natural choice (I already have a BMO Investorline HSIA acct paying 4.25%). If the Simplii and/or Tang options are still available, I may opt for those for the extra 1% or more. Thanks again for the advice, and be kind out there... we're on the same team.
7:08 pm
April 6, 2013
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Simplii High Interest Savings Account would be the best for over $1 million. Rate is 5% for $1,000,000.01+:
| If your account balance is: | Annual rate |
| $0.00 to $50,000.00 | 0.40% |
| $50,000.01 to $100,000.00 | 0.40% |
| $100,000.01 to $500,000.00 | 0.65% |
| $500,000.01 to $1,000,000.00 | 1.25% |
| $1,000,000.01 and up | 5.00% |
Issuer is Canadian Imperial Bank of Commerce, with DBRS debt rating of AA.
4:28 pm
June 2, 2018
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Looks like the rates have changed, some up and some down. I wonder why they did that. Anyway it looks like the 5% is now 4.25%.
I wonder what date that changed?
If your account balance is:
Annual rate
$0.00 to $50,000.00
0.35%
$50,000.01 to $100,000.00
0.50%
$100,000.01 to $500,000.00
0.80%
$500,000.01 to $1,000,000.00
1.80%
$1,000,000.01 and up
4.25%
Interest is calculated by multiplying the daily interest rate (based on the applicable annual rate) by the daily closing balance
10:35 pm
October 21, 2013
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Does anyone have historic info on the Simplii HISA tiered rates?
I found, to my surprise, that at Steinbach CU, the highest tier did not always have the highest rate; sometimes it had the lowest rate! - an unpleasant and unannounced surprise. I no longer belong to Steinbach CU.
I have no idea how widespread this practice may be.
10:59 pm
April 6, 2013
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Motive Financial does that:
| Motive® Savvy Savings Account | |
| $0 - $5,000,000 | 4.10% |
| $5,000,000.01 and over | 0.50% |
LBC Digital used to have a lower rate for over $500,000 in their savings account. Financial institutions like Motive likely do not want really large balances in their savings accounts.
9:03 am
April 6, 2013
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anitavirginia said
Looks like the rates have changed, some up and some down. I wonder why they did that. Anyway it looks like the 5% is now 4.25%.
I wonder what date that changed?
…
Only a few possibilities:
- Friday, Sept. 6
- Saturday, Sept. 7
- Sunday, Sept. 8
- Monday, Sept. 9
One would be able to figure out near the end of this month when the regular interest is paid. The 0.05% rate difference would result in a 2¢ per day difference in interest for each $14,600 of balance.
1:53 pm
November 18, 2017
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Some financial institutions may not want to commit to paying current rates on large balances in a declining rate market. And of course very large balances may be destabilizing when large amounts are pulled out.
This is why share accounts are often limited in the proportion of total capitalization are wirhdrawn.
RetirEd
4:53 pm
April 27, 2017
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Sorry, which share accounts are limited?
11:28 pm
October 21, 2013
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Yes, I understand why some FIs might not want huge deposits per person, but I had assumed they would be consistent about that. It was the inconsistency at Steinbach that startled me, plus the lack of notice of change of direction of the tiers. There isn't much point in putting, say, 100K, into a tiered account in order to get the highest rate only to find out at month end when you get your statement that they reversed the tiers on the day after you made your deposit, so that what you thought was 4% is now only 1% etc. A couple of months later it might reverse again without your knowledge.
2:47 pm
November 18, 2017
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mordko: I can't say for sure for all credit unions, but VanCity has not imposed any delay on Class B (membership) shares yet that I know of. I was able to walk in and walk out with cash from some this week with no delay. Their Class E (investment) shares now have a waiting list. They have four preset redemption days per year, quarterly, but there's a limit on what proportion of total shares can be redeemed at any one time. Their interest rate is BoC-linked. I think it's prime+3.2 at the moment but I haven't checked this quarter.
BlueShore (North Shore Credit Union) has investment shares, too, but they do not make it easy to redeem them. You have to write a letter to the board and convince them. They earn very well, setting the rate periodically but staying high even when they aren't making a lot of money - I think they have had the worst year of any BC credit union and are aggressively advertising now. Redemption on death is their preferred method but medical emergencies sometimes accelerate the process. Definitely for the long term.
I have not found anything about investment shares at Coast Capital. Their membership shares don't earn anything, and every member holds exactly $5 in them.
I don't know about any others.
RetirEd
9:07 pm
April 6, 2013
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RetirEd said
… but VanCity has not imposed any delay on Class B (membership) shares yet that I know of. I was able to walk in and walk out with cash from some this week with no delay. …
VanCity can if members try to redeem too many of the Class B shares in a year.
Appendix A (Share Rights and Restrictions) of their rules allows the board to limit Class B redemptions to 10% of the Class B shares outstanding at the end of the previous year:
1.2 Class B Membership Shares:
… provided that the Board may limit the number of Class B Membership Shares redeemed, purchased, or otherwise acquired in any one year period to 10% of the Class B Membership Shares issued and outstanding on December 31 of the previous year, but this 10% limit will not apply to redemptions under Section 1.2(f)(i) [for death of the Member] or (iii) [for termination by Vancity of the membership of the Member];
…
1:01 am
November 18, 2017
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Norman1: Right, that's the provision. But they haven't imposed it on Class B (membership) shares yet, as far as I've been able to establish. And I can say for myself that I had no delay this week (and haven't tried it with 10% of deposits).
RetirEd
11:09 am
April 6, 2013
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The 10% limit is 10% of the Class B shares issued and outstanding. That's much larger than 10% of the Class B shares issued to one VanCity member.
11:27 am
April 6, 2013
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Sully said
… @AltaRed's advice on RBC's interest-linked cashable GIC is definitely a contender (already an RBC client) and the groups' general consensus that brokerage savings accounts are a good option is a natural choice (I already have a BMO Investorline HSIA acct paying 4.25%). If the Simplii and/or Tang options are still available, I may opt for those for the extra 1% or more. …
Another possibility is a Bank of Montreal brokerage ISA (currently paying 4%) along with the improvement from BMO InvestorLine's Fall 2024 cash bonus offer for existing clients. Bonus is on net new assets during September 4, 2024 to April 30, 2025 funded by October 31:
| Earn up to $15,000 in cash back this fall – simply activate, fund, and maintain your investment. |
|
| Net New Assets (CDN) |
Award (CDN) |
| Add $100,000 - $999,999 | Get 0.25% |
| $1,000,000 + | Get 0.50% (max $15,000) |
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