Peoples Trust savings rate down from 1.90% to 1.80% | Peoples Trust | Discussion forum

I said in my prior posts that being a financial nomad transferring money from different accounts to different financial institutions is where these guys get you with variable falling interest rates.

The reason why they left the TFSA savings account rate at 3.00% for now is because there is a limit e of $25,500 per person allowed by tax law.

They still have a shortage of TFSA deposits. They will cut this rate when they reach their personal TFSA deposit limit.

You can have $50,000 or $75,000 or more in non-registered savings accounts within specific deposit insurance limits by CDIC, DICO etc. but not with DGCM etc.

My point is they have much more deposits in non-registered and RRSP, RRIF, RESP accounts than TFSA accounts. If you look at their 1-5 year fixed rate GIC, RRSP, RRIF, TFSA rates the highest is 2.60%.

They did increase their 1 year GIC, RRSP, RRIF rate by 5 basis points from 2.05% to 2.10% but like you said they did cut their e-savings account by 10 basis points from 1.90% to 1.80%.

Their rates are effective from October-1-2013 and are listed below which are all annual interest paid or annual interest compounded.

GIC's, RRSP's, TFSA's

1yr. 2.10%

2yr. 2.20%

3yr. 2.35%

4yr. 2.40%

5yr. 2.60%

TFSA savings account 3.00% unchanged

Non-registered term deposits only

30 days 1.30%

60 days 1.30%

90 days 1.45%

120 days 1.45%

180 days 1.45%

270 days 1.50%

They don't even have an RRSP, RRIF savings account or RRSP, RRIF variable account. Their 2-4 year GIC, RRSP, RRIF rates look the same but I was not keeping track of them.

Most Financial institutions want locked in fixed rate deposits so they can lend them out with similar terms for mostly mortgages, lines of credit mostly and some car loans.

Peoples Trust's Canadian deposits 5 year or less are insured, protected, guaranteed by CDIC, Canada Deposit Insurance Corporation up to the $100,000 maximum deposit insurance limit.

For more information about CDIC, go to http://www.cdic.ca. and to see all their rates, different account types that are available go to http://www.peoplestrust.com

Shame they dropped interest to 1.8%. They finally got internet banking working and everything conveniently worked and now this. Unfortunately Manitoba guys have no internet banking and it is major pain to find ATM in GTA North to do deposit.

dennis said

JustMe said

Shame they dropped interest to 1.8%. They finally got internet banking working and everything conveniently worked and now this. Unfortunately Manitoba guys have no internet banking and it is major pain to find ATM in GTA North to do deposit.

More shame they didn't tell people. Even their web site still shows old rate of 1.9%. Only when logged in, I can see new rate of 1.8%.

Hm. Even without logging in, if I go through their site they show correct 1.8% interest rate.

If you read fine print any bank has, there is no obligation to notify clients of interest rate changes. Even if financial org. rises interest rate they will not tell you. Thanks to this site I found that AcceleRate has increased their rates, not only for daily saving account. So if you have a need to know who has the best interest rates, you really have to be diligent and visit all bank sites on a daily basis.

Wait until they get a lot of TFSA money coming in over the next 6 months. There is a good chance that their 3.00% tax free savings account variable rate will drop.

Peoples Trust already has much lower 4 and 5 year GIC, RRSP, TFSA rates. Home Trust Company has a 2.90% 4 year and 3.15% 5 years compared to Peoples Trust's 2.40% 4 year and 2.60% 5 year GIC, RRSP, TFSA.

For those that need income or have to change their RRSP to a RRIF, Home Trust has a 3.15% 5 year RRIF that pays monthly RRIF payments with the interest included monthly as well.

These low savings account rates from all financial institutions after inflation and income taxes are taken into account are really losing money instead of making money.

I just thought people should know that their 3.00% TFSA savings account rate should be tracked more often which maybe they did less in the past.

SD2013 said

Wait until they get a lot of TFSA money coming in over the next 6 months. There is a good chance that their 3.00% tax free savings account variable rate will drop.

Peoples Trust already has much lower 4 and 5 year GIC, RRSP, TFSA rates. Home Trust Company has a 2.90% 4 year and 3.15% 5 years compared to Peoples Trust's 2.40% 4 year and 2.60% 5 year GIC, RRSP, TFSA.

For those that need income or have to change their RRSP to a RRIF, Home Trust has a 3.15% 5 year RRIF that pays monthly RRIF payments with the interest included monthly as well.

These low savings account rates from all financial institutions after inflation and income taxes are taken into account are really losing money instead of making money.

I just thought people should know that their 3.00% TFSA savings account rate should be tracked more often which maybe they did less in the past.

Ah, SD2013. Do not be so negative I hope they keep their 3%. They managed that for years?
I understand your logic they wait until they have enough TFSA accounts but if they lover their rate let say in March, do not you think that people will get so angry and take their money even losing tax free interest?
In a first or second year after introduction of TFSA, President Choice had the best rate; I gave them money and sometime in Feb/March they lowered it significantly. I calculated having money in high interest account, tax to be paid, etc. and concluded that I will have more money in my pocket doing just that (take all money, put into high saving, report income, etc.). So I did it. And they will never ever see my $ again.
So if PT does something similar I will have to reconsider having $ with them and move money somewhere else; maybe investing money in some nice fund paying 8-10%...