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Email this5:34 am
January 9, 2011
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Massive % drops in rates this year, while in comparison competitors (and the rate markets) have been stable to only mildly down.
TFSA 3/4% drop? Mid year so people have no choice about switching for another 6 months? This isn't something customers forget easily, or certainly shouldn't. And won't. Saving rate drop from 1.8% to 1.6%, which of course leaves a number of viable CDIC insured competitors much better.
They can make their own decisions, however as they will find, so will customers. My savings is now zero and TFSA will probably be gone in December.
"Keep your stick on the ice. Remember, I'm pulling for you. We're all in this together." - Red Green
7:33 am
September 11, 2013
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True re savings accounts, but they're still alone at top of TFSA savings account chart by .3% (still 15% more interest than 2nd place institution) so where would TFSA savers who don't want to lock in be happier? Wouldn't be surprised to see them drop it to 2% or even lower, they'd still be highest.
8:39 am
October 27, 2013
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They target the kind of money they want. It seems PT no longer has a need for as much 'unpredictable' deposits as they do with TFSA type deposits that are likely to stick around more. They will not offer any more than it takes to attract just enough money they are looking for. I don't like it either but if I was running the business, I would pretty much do a similar thing. They already know they have 2 types of customers: 1) those that are loyal no matter what which is usually the 'visit the brick and mortar teller' type customer, and 2) those who surf online providers looking for a 10 or 20 bp edge with no loyalty to a particular institution.
In all my years of buying GICs at discount brokers where there may be 10-20 different issuers, I have seen issuers change their competitiveness time and time again depending on where their emphasis is and for what they are seeking deposits. Sometimes it is Equitable Bank, sometimes Home Trust, sometimes BNS, and earlier this year Korea Exchange Bank was way out front and is now very low.
It is what it is and hence why I only shop at discount brokers for GICs. For my HISA funds, I will move it around a bit amongst 3-4 providers.
5:02 pm
February 17, 2013
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Definitely reduced the contributions to my HISA and diverted them to CDF, but still no better option for TFSA, even if you wanted to lock it in for 5 years elsewhere. Smart plan. Increase deposit base and keep interest payout cost consistent. Bet you it drops again Jan 2016 to 2% or less (if the BoC prime rate stays the same) and they'd STILL be the best option for TFSA HISA.
11:11 pm
July 10, 2011
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Maybe rates will go up in the future.. I think they'll be near the top for awhile to come..
6:00 am
April 6, 2013
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Peoples Trust may have attracted as much demand deposit money as they need and are not interested in attracting more for the moment.
That is a challenge of smaller institutions. If the deposit rate is high, then more money could come in than they can lend out profitably. Paying 2% for saving account deposits and then having to park the money in 30-day Government of Canada treasury bills at 0.56% is not an attractive proposition.
There's only so much they can do with savings account deposits. They certainly can't use such funds to fully fund a five-year mortgage.
6:57 pm
July 10, 2011
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But this is exactly what they use these funds for.. The bottom line is if PTC didn't offer the highest TFSA rates the majority of out rates would end up under 2%..
12:47 pm
April 6, 2013
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It is highly unlikely that Peoples Trust uses the savings account deposits to fund their five-year mortgages. They would run into serious trouble if people made withdrawals from their savings accounts.
Both the lender and borrower are locked in in a mortgage. Peoples Trust would not be able to have the borrowers of the mortgages repay their mortgages early to get funds for the withdrawals. Also, they would likely not be able to sell the mortgages quickly as they "specialize in mortgages for
• Imperfect credit applicants
• Discharged Bankrupts
• Business for self
• Spec Builders"
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