5.25% HISA rate has arrived at Simplii | Page 3 | Simplii Financial | Discussion forum

moveyourmoney said
There’s no use responding to the know it alls that live on this site. It’s hilarious though how they all jump in and provide the wrong information.
Just to clarify for everyone else so you get the correct info. Simplii is a separate division of CIBC .…

It is you who is providing the wrong info. What's the opposite of know-it-all? That's you!

Divisions don't legally exist. That's why the legal owner of one's Simplii debit card is CIBC and not Simplii Financial. That's also why it is CIBC who owes the money deposited into a Simplii bank account or Simplii GIC.

Call up CDIC and ask them if one has $200,000 of CDIC coverage if one has both a $100,000 CIBC-branded GIC and a $100,000 Simplii-branded GIC. The answer is no. Try to understand why that is the case.

How about you become informed yourself before disrespecting the people here who know way more than you and have figured out what things matter and what things don't?

Days_of_the_New said

canadian.100 said
What do you mean by going sideways? CIBC made a PROFIT of over $9 Billion in 2022 (i.e. about $6 Billion after income taxes.) So if CIBC's profit goes "sideways" (your expression) in 2023 to say $7 Billion before income taxes, are your really going to be that worried about CIBC (and Simplii). I won't.
 

Profitability isn't a measure of FI's stability. There's a variety of things a bank can do to turn quickly from profitability to insolvency. Sometimes the very thing that's turning those huge profits ends up being the thing that sinks them. Riding a bubble can yield huge profits. But if the institution gets in too deep and the bubble pops before they get out, there can be a world of hurt in store.

Lehman posted record profits from 2005 to 2007. Their net profit in 2007 was $4.2 billion. One year later it ceased to exist.

Does that mean that CIBC is at risk? No. It's just a warning that profitability is not a good measure of insolvency risk.  

Awesome post and welcome to the site. We need some new perspectives, for sure. The one thing that comes to mind, a little different angle… but to your point on fast things can change; is that as soon as there is a bump in the road and people get nervous, everybody shows up at the bank for their money, and it’s game over. We have some solid banking in Canada but heaven forbid, overnight it could all change. The system is fragile in some ways whether we like to think so or not.

Wrayzor said

I'll take the risk of being banned for bad language for calling out BS on your name-calling. What wrong information has been provided by the so-called "know-it-alls"? That Simplii is a division of CIBC? (true) That Simplii deposits are covered under CIBC's CDIC coverage? (true) Something else?  

I think my post was pretty clear regarding how Simplii and CIBC operate in terms of services… while some indicated they overlap. (Previous posts) Everyone knows their affiliation (I was not referring to coverage) but try calling in or visiting the branch, it’s clear they operate separately. Hope that helps.

KamWest said

They are going heavily into this

Just got that email  

Is the offer available to anybody who has a $million or do you have to be targeted? I have not received such an email.

https://www.simplii.com/en/rates/high-interest-savings-account-rates.html

Maybe this is just about CIBC trying to find a bunch of new customers with lots of loose cash who they can target for future business of one kind or another. Obviously just a tiny fraction of the general population is being targeted with this offer.

Gather round everyone, kindergarten class is starting and we’re going to learn to read today. Bit of an insult, not surprised. Post #50 was asking for verification to the notice from Simplii…
Then I think of the posts where it was stated that FIs are not really interested in hisa investments…FIs can access inter banking money for cheap…it must be out of the goodness of their hearts, they continue to offer you and I more than those rates, I don’t think so.
In my opinion, a primary source of profit for banks is the spread between deposits (in many forms including hisa) and lending rates. When they have lending opportunities and need money, they get more aggressive (in several ways) and must always show investors growth. Without that, rates are lowered, promos go silent. Now who’s preaching what most everybody already knows…just my opinion.

Simplii does pay or compound the interest on its GIC's monthly. That's why Simplii quotes a second APY rate that is the equivalent annual pay/compound rate for comparing with GIC's that pay/compound interest annually.