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Email this4:55 am
December 17, 2016
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From Rob Carrick in the Globe and Mail
‘Price matters’: New online bank hopes to attract cost-conscious customers
[...]
Motusbank, brought to you by Ontario-based Meridian Credit Union, is a virtual bank that charges nothing for chequing accounts, pays a good rate on savings and has a unique offer on mortgages: All terms from one to five years have the same interest rate.
[...]
Motusbank’s fee for chequing accounts is zero, and that includes unlimited debits, including e-transfers, and an interest rate of 0.5 per cent (competitive for a chequing account). On savings, the bank will pay a rate of 2.25 per cent on regular accounts and 2.5 per cent on tax-free savings accounts.
As a division of a member-owned credit union, Motusbank does not face the same pressure as shareholder-owned banks to keep revenue, profits and dividends on the rise. This is a big competitive advantage for luring cost-conscious customers.
“From our research, price was the No. 1 consideration when we asked people what was important to them,” Mr. Maurin said. “The harsh reality in financial services is that price matters.”
2:35 pm
October 21, 2013
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Price only matters on the spending side of the ledger.
I get everything I want for free at my two BigBanks as a Senior already - plus a Safety Deposit Box, which no virtual bank offers. I can also get bank drafts there conveniently. i'm not sure if motus offers bank drafts, but they wouldn't be as convenient. I don't need bank drafts very often, maybe once a year, but it's nice to know I can get one easily.
Yes, I lose a teeny bit of interest, compared to .5% chequing account, but I still find it worthwhile.
Motus should appeal to a younger audience. Might give EQ a run for their money, so to speak. I'll bet motus has joint accounts!
It will be interesting to see what sort of credit card motus offers, if they do.
4:58 pm
December 12, 2009
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Loonie said
Price only matters on the spending side of the ledger.
I get everything I want for free at my two BigBanks as a Senior already - plus a Safety Deposit Box, which no virtual bank offers. I can also get bank drafts there conveniently. i'm not sure if motus offers bank drafts, but they wouldn't be as convenient. I don't need bank drafts very often, maybe once a year, but it's nice to know I can get one easily.
Yes, I lose a teeny bit of interest, compared to .5% chequing account, but I still find it worthwhile.Motus should appeal to a younger audience. Might give EQ a run for their money, so to speak. I'll bet motus has joint accounts!
It will be interesting to see what sort of credit card motus offers, if they do.
Indeed, they do have joint accounts, Loonie.
I'm actually impressed by the breadth of products Motus Bank has available on day # 1. So many virtual banks have launched with a very limited product suite, or their technology has been very limited. Motus Bank seems to have both. If you'd asked me last year that Motus Bank would beat Coast Capital Savings to accepting customers, I'd have said you were crazy. Their process started after Coast and even Coast has been national for 5 months yet aren't taking non-B.C. clients yet. It's so bizarre.
Cheers,
Doug
5:47 pm
October 21, 2013
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I think Meridian has very smart managers at the senior level, and I think this venture will probably work very well once they get going. It was a strong launch, albeit without widespread advertising.
I can't comment on Coast Capital's.
That said, I don't think there's anything there for people like me. There's nothing significant at Meridian either right now, but they had a good run earlier and loaded up their piggy bank.
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