Rate to decrease to 2.80% on March 1, 2020 | LBC Digital | Discussion forum

Sammy said
And here comes the first rate drop:

Effective March 1, 2020, the annual interest rate for the LBC Digital HISA on deposits up to and including $500,000 will change from 3.30% to 2.80%.

  

And I could never open their account because of their IT incompetence.
What is the alternative after March 5th?

I always kept money in another bank (Alterna) because LBC digital or B2b are not reliable. Now that the difference in interest rate is small (.06%) I wonder if it’s worth my while to continue with Laurentian/B2b. If their platform was problem free, yeah, but it isn’t. Is it worth the problems?

Briguy said
The 0.6% difference would be 6.00 per thousand invested per year, so for 100,000 it would be 600.00 per year. Worth it if you need to keep the money in a HISA and not in GICs. But you would get same rate as LBC with a more reliable web site at Motive.  

Can you pay your bills (daily banking) with Motive, I know it isn't a bank?

picassocat said

Can you pay your bills (daily banking) with Motive, I know it isn't a bank?  

Yes, you can pay bills with Motive, but you're only allowed 2 free transactions a month with the Savvy Savings HISA, so you need to transfer money to the ChaChing chequing account before you pay your bills. The only negatives with Motive are that the linking process to external banks is by the old fashioned paper way, and there are no overdraft or coverdraft or sweep features on the chequing account, and the savings account is not a hybrid account, ie, its just for savings.

Briguy said

I prefer not to deal with banks where you need to win a lottery to get a good rate.  

Agreed, I pulled everything out of there because of exactly that.

Did you guys really expect a rate of 3.30% to continue endlessly? I think 2.8% on a HISA is still not bad these days. I suspect rates are bound to go lower as the corona epidemic continues and negatively affects world economies.

smayer97 said
@sammy @nav66 please supply link to source info.  

This sentence appears on both the LBC and the B2B sites:
"Effective March 1, 2020, the annual interest rate for the B2B Bank HISA® on deposits up to and including $500,000 will change from 3.30% to 2.80%."

canadian.100 said

This sentence appears on both the LBC and the B2B sites:
"Effective March 1, 2020, the annual interest rate for the B2B Bank HISA® on deposits up to and including $500,000 will change from 3.30% to 2.80%."  

Yes but direct links are better than trying to hunt for the info. For example, clicking on the B2B Bank logo takes you to the Account info page instead of the Home page (odd) and that page does NOT have the rate change. Also, the LBC site is not so obvious either...you have to know what where to go.

Direct links are ALWAYS best so people can read the info for themselves, and in context.

Anyway, I tracked them both down and updated my post.

P.S. It also gives people a place where they can reference for any further changes.

Briguy said
The 0.6% difference would be 6.00 per thousand invested per year, so for 100,000 it would be 600.00 per year. Worth it if you need to keep the money in a HISA and not in GICs. But you would get same rate as LBC with a more reliable web site at Motive.  

I never keep more than 9000$ in my HISA, the rest is invested in the stock market, so .06% compound interest equals to 55.25$ more in my pocket at the end of the year.

Personally, not happy about the drop to 2.8% after all of the forward looking statements that were made about holding at 3.3% to get people on board and the fact that LBC is completely digital/ online.