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Email this5:58 pm
December 12, 2009
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President's Choice Financial, a unique financial services partnership that is owned by Loblaw Companies but sees various "service providers" provide the various banking and investment functions (i.e., banking, credit, mutual fund and "direct-to-consumer" GIC solutions are provided by CIBC's direct banking division whereas the PC MasterCard & "deposit broker" GIC solutions are issued by President's Choice Bank but its PC MasterCard administration & call centres are contracted out to CUETS Financial [a wholly-owned subsidiary of TD Bank Group]), has announced a new spring, "net new deposit" rate promo somewhat earlier than I'd potentially expected. (I had expected it to be towards the end of April or at least waiting until ING DIRECT Canada rebrands on April 8th.)
It's wanting new and existing clients to "debankify" and has backed up its claims with some new President's Choice Bank-sponsored public opinion research from Leger Marketing.
Among the highlights of the promo:
- A customer's aggregated balances in their "no fee bank account", "Interest Plus Savings Account" and grandfathered "Interest First Savings Account" will see any net new deposits earn a promotional or bonus rate such that it is equivalent to 2% from March 24th to June 30th (inclusive). That is, if the the funds are in a person's "no fee bank account", the differential between the regular rate and the "promo rate" on the new deposits portion will obviously be greater than the differential between the regular rate and the "promo rate" if in an Interest Plus Savings Account but the net result is, 2% interest earned during the "promo period" agnostic of which account the funds are in
- New deposits are those not on deposit in any of the customer's aggregated accounts as of March 21st
- Registered deposit promo ends March 31st, as expected, and is not eligible for the non-registered "new money" promo
I'm warming to the idea of these "net new money" rate promos, in non-registered accounts only (because of the complications in not being able to easily transfer "registered" deposits).
It may, in fact, cause me to open a PC Financial account. If I did that, though, I'd want to ensure my HSBC Bank Canada Advance Savings Accounts with token balances got closed as well as either my Hubert Financial or Implicity Financial accounts closed as well. I'm just waiting to see what happens with Oaken Financial, how their "self-to-self bank-to-bank transfer" process is going to work when they launch online banking, or if Implicity Financial will finally launch "me 2 me transfers". 
That said, I'm earning 1.90% at Implicity so I may sit this one out but, if there's a 'promo' from PC Financial in the summer or fall and Implicity still doesn't come through, then it may be time to look at my accounts and consolidate things down to basically three or four (Tangerine, PC Financial and Oaken Financial, with potentially Hubert, Implicity and HSBC getting the 'heave ho').
At any rate, you'll notice their "promo" rate is lower than last year's 2.5%, and even this year's "registered" 'promo' rate of 2.25%, so what you're seeing is some minor improvements to the net interest income margin improvements on the bank's funding side (rather than on the lending, to clients, side). I fully expect you might see PC Financial lower its base non-registered and TFSA savings account rates to 1.25%, if Tangerine does that as well. They're going to promote their other benefits (which I regard as greater anyway), by way of ABM access, mobile cheque deposits, enhanced online and mobile banking apps and, in PC Financial's case, free unlimited cheque orders.
I'm just kind of surprised they didn't want until Tangerine launches, to see what their 'promo' is going to be. There is some logic to going first, in this case, however. You pull people (and money) in first and, unless the Tangerine 'promo' is wildly better (50 bps or more better), they are unlikely to switch for a short-term one- or two-month 'promo'.
Among the highlights from the Leger survey:
- 71 per cent of people identify bank fees as their biggest frustration, but only 35 per cent have a bank that offers a solution. That's why PC Financial aims to help Canadians "debankify" for good
- 54 per cent of Canadians said they would switch banks to save up to $200 a year – the estimated savings from choosing a PC Financial® no fee bank account, compared to what the big banks charge. This suggests that Canadians are ready to "debankify"
- A surprising number - 65 per cent – see themselves as strongly or somewhat financially stable. "However, that doesn't mean they are saving money. 57 per cent admit, "Getting by financially today is hard enough, never mind saving for tomorrow."
- 57 per cent of Canadians believe that in uncertain economic times, treating themselves to smaller, more frequent rewards is easier and preferred
Greg, I'm sure you'll be happy about this - and just as you maybe started consolidating things into your book entry/nominee-held RBC Investment Savings Account. 
Cheers,
Doug
10:45 pm
February 22, 2013
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Doug:
I'm really considering passing on this one. March 24 to June 30 is 98 days. I used $65000 as my model as that is close to what I would move. At 2% one would earn $349.04 and at the 1.25% I am currently getting in the RBC Investment Savings Account "funds" one would earn $218.15 or a difference of $130.89 or about $1.34 per day.
I need to weigh the benefit of the $130 against the deficit of having to move the money, and more importantly, ensure Mrs GS would know how to get at it should I, as she likes to put it, "run away". My death or disability isn't something she likes to think about and so I am trying to simplify things for her.
I am still not using Implicity except for the initial $1000 I stuck in there. I also have CTFS which is still giving 1.5% and which I could move money there but chose not to when I started the consolidation towards RBC.
I hate to give up even $0.05 and while $130 isn't trivial it isn't going to make or break us. I must be getting old!! 
Greg
11:55 pm
October 21, 2013
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Oaken is still offering its 1yr cashable-without-penalty-after-90-days GIC at 2.05, which seems like a better deal to me, if you can wait 90 days for access. OR Set aside what you need for the next 90 days and keep it in Implicity or wherever at 1.9, and put the rest in the Oaken GIC? I must be getting old too but it doesn't seem worth it to me to open a PC acct for 90 days' worth of spending money. I think the difference works out to about $4, which you will more than recoup if you keep a reasonable-sized chunk in the GIC. Perhaps it depends on how much money we are talking about.
Please explain if I'm wrong.
12:39 pm
May 3, 2013
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I made a request to pc financial to have the balance of my account in the interest plus savings acct. on march 24, 2014 be considered for the new 2% promotion but it was turned down because the funds are considered old money. Pc said that it was the second request I made & that it cannot be done only for me since many have requested the same. I anticipated April 1, 2014 as the new PC promotion but I was wrong and got caught with my money sitting still as old money on the 24th of March. I did the same appeal last year during a similar promotion for new money and it was approved. I'm thinking of pulling out the money now earning 1.75% under the prior promotion and putting it to Duca Cr. Union for 1 yr. at 2.1% but I'm having second thoughts as I might need some sooner.
2:25 pm
February 22, 2013
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piotrus said
[snip]
I'm thinking of pulling out the money now earning 1.75% under the prior promotion and putting it to Duca Cr. Union for 1 yr. at 2.1% but I'm having second thoughts as I might need some sooner.
I assume the 2.1% is a GIC and that is why you are reluctant. Consider splitting the money into tow pieces, "no way it will be needed" as one piece and "might be needed as the second piece". That gives you more flexibility.
Greg
11:22 pm
May 9, 2013
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So if I submit the transfer request of $1000 from ING to PCF on April 1. That $1000 isnt earning the 1.3% nor the 2%? It's like in limbo? It wont earn anything until the $1000 arrives at PCF on like April 5 (or 7 or 8 if Sat isnt a business day)?
I always thought it'd stay with ING until April 4, then on April 5, PCF processes the paperwork (or whatever).
8:04 am
January 30, 2009
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It looks to me like PC has increased their promotional rate to match Tangerine's current promotion. PCF is now offering 2.5% on new deposits until June 30. Note that it still says you have to 'enroll' so I would suggest you call them if you want to take advantage of the offer.
10:13 am
October 21, 2013
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"Save More
Earn 2.5%
interest* on all
new deposits. Earn 2.5% interest* until June 30th 2014, on new non-registered deposits combined across either of these accounts:
Interest Plus™ savings account
No fee bank account
Call 1 888 236 6394
to enrol today.
* 2.5% Non Registered Rate Promo Offer Terms and Conditions (March 24th, 2014 – June 30th, 2014)"
Looks like they back-dated this rate, which seems strange to me. I suggest taking a screen shot and make sure you get it for the entire period if you deposited early.
12:24 pm
March 2, 2014
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I posted this comment in one of the other threads but I think it fits in this one as well.
At the end of the day, FI's can only pay the depositors something less than what they can lend the money out at. As everyone has seen, longer term (3 to 5 year) mortgage rates have decreased lately so it should be of no surprise that most FI's have lowered their 3 to 5 year GIC rates. This is primarily due to BMO lowering their 5 year MTG rate to 2.99%. Many FI's matched so they had to lower their cost of funds. Any time you see these rate specials, or apparent increases, one has to look to see what the same term loan rates are. If they haven't moved, I think it would be safe to assume that the increased rate won't last long. FI's try to match their term lengths on deposits with the same term lengths on their loans and mortgages to interest rate risk. They don't want to raise millions in variable rate deposits right now and lend it out in 5 year term mortgages. Because when rates do finally go up, then they would end up having to increase their variable rate deposits (their cost of funds) without the ability to increase the fixed mortgage rates they booked all their mortgages at. This happened to many FI's back in the early 80's and they ended up paying more for their deposits than what they can make on their mortgages. Watch what's happening in the mortgage rate market and you will see an equal effect on deposit rates. They need to keep their margins to pay their bills. Short term loan rates have not decreased so there is no reason to increase deposit rates! Simply a bait and switch method used by many.
One other thing to keep in mind, when Prime Rate does start to increase, don't expect variable deposit rates (savings) to move up as quick or in lock step with Prime. Many FI's stopped lowering their variable deposit rates when they were still lowering their variable loan rates. So their interest margin shrank. They will want to get that margin back to what it used to be as Prime starts to increase again.
6:27 am
October 13, 2011
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Not sure when this happened, but looks like PCF has extended this particular promotional offer to July 31 to match the Tangerine promo (also extended to July 31).
Save More
Earn 2.5% interest*
on all new deposits.
Earn 2.5% interest until
July 31st 2014, on new
non-registered deposits across either of these accounts:
Interest Plus™ savings account
No fee bank account
Call 1 888 236 6394
to enrol today.
*2.50% Non Registered Rate Promo Offer Terms and Conditions (March 24th, 2014 – July 31st, 2014)
9:43 am
April 6, 2013
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Yes, looks like PCF has matched the ending date of the Tangerine promotion.
The Tangerine promotion is still a bit more attractive as they pay the additional interest each month. According to their offer terms, PCF will pay the additional interest in August, after the end of the promotion period:
6. The Promotional Interest will be paid in August 2014 into a single Eligible Account held by a primary account holder. Promotional Interest will not be paid unless at least one of the primary account holder's Eligible Accounts is active and in good standing as at July 31, 2014. If a primary account holder holds more than one Eligible Account, Promotional Interest will be paid to an Eligible Account in the following priority sequence:
a) To the primary account holder's Interest Plus savings account, if it is active and in good standing; otherwise
b) To the primary account holder's Interest First savings account, if it is active and in good standing; otherwise
c) To the primary account holder's no fee bank account, if it is active and in good standing.
2:15 pm
May 28, 2013
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With the end of July rapidly approaching, I have now initiated transfers of the monies I had put into both PCF and Tangerine, back to my account in Hubert where they will earn 1.95%. Should either of these institutions launch a new interest rate promo starting in August, I will then have a small balance in their accounts as of July 31, and thus be able to put back these amounts as a "new" deposit. If no promo is made, then Hubert's savings rate is quite decent, and one can also consider their current term deposit special.
I for one do not mind at all moving my money about to get the best rates on offer.
9:37 am
October 21, 2013
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Do it while you can. It's only a matter of time until these banks close these loopholes so that you won't be able to jump around so often. I saw it happen with another kind of website I was involved with. As soon as a substantial number of people saw certain ways of saving money, those avenues were shut down.
1:28 pm
January 30, 2009
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The new offer is now here. It's 2% from PCF until October 31 for balances exceeding the amount you had in your account July 25. So rhvic, hopefully you got your money out in time if you want to use the new promotion. If not, we can wait for Tangerine's offering, or there is Hubert's GIC.
I'm not sure if you want to start a new thread to make this distinguishable from the previous offering but I thought I'd post it here for those interested.
Have a great week all!
10:05 am
July 15, 2014
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Does anyone have a link to the new PCF 2% offer?
4:21 pm
December 23, 2011
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In regards to PROMOS.....Oaken says
Watch out for the catch...
You may have noticed that we’ve recently been running ads in local and national newspapers. We’re quite proud of them because they neatly sum up the way we do things at Oaken:
“No teaser rates or complicated promotions. Just great rates and
straightforward savings for all customers, not only if you’re new.”
That’s not the approach that others sometimes take, however. All too often you’ll find yourself enticed with special offers that really aren’t so special when you get to the fine print. And even worse, existing customers are often excluded, because the focus is only on acquiring new ones.
Here’s a roundup of some of the more typical promotions you can come across from time to time:
The tablet catch: This kind of promotion offers you a free tablet (or really could be any tangible good) when you open up a new deposit account. This is really a modern day version of the old free toaster promotion that banks used to use. Trouble is, the account could cost you $15 a month for up to six months in order to qualify—so your “free” tablet isn’t actually free. And is it really worth the hassle of switching to a different financial institution? You’d be paying almost $100 to get a $200 tablet—so make sure you read the fine print before you jump at an offer that isn’t as good as it first looks.
The great rate (limited time, new customers only) catch: This kind of offer hooks you with a great rate—and who doesn’t like that? But if the rate is only valid for three months (which it typically is), it doesn’t really amount to much. What’s worse is that it is only available to new customers. That means if you really want to get a low rate for an extended period, you’d have to hop around from bank to bank every three months—and you’ve probably got better things to do with your time.
Oaken makes it a lot simpler......
The eSavings bonus rate catch: In real estate, it’s location, location, location. And in savings it’s rate, rate, rate. Except when it comes to bonus rates. That’s because bonus rates come with conditions that eat away at your bonus. For example, you might see a promotional rate of 2%—which we’ve got to admit is pretty juicy in today’s low-rate environment. But when you see that you need to maintain a minimum balance of $5,000—and that you’re charged $5 a transaction—that juicy rate starts tasting a bit dry and tough. Plus the bonus rate is often valid only for a limited time. So it’s back to bank-hopping once your three months have expired.
With Oaken it’s different......
8:45 pm
April 6, 2013
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rqs said
Does anyone have a link to the new PCF 2% offer?
No sign of an official PC Financial link yet.
Looks like PC Financial has only sent out the offer by e-mail so far. Someone posted a copy of the e-mail text yesterday at Red Flag Deals: PC Financial 2% on new deposits until Oct 31st.
10:07 pm
December 12, 2009
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I don't know if they'll do a promo or not. They'll likely make it 2%, not 2.5%, but risk alienating clients that didn't pull the money out by Jul. 25th (a very early cut-off date).
That said, if you don't already hold a PC Financial account, this is not worth opening an account for an extra 5-10 bps when you can get 1.90% or 1.95% with either Entegra Credit Union or Sunova Credit Union's virtual banking divisions Implicity Financial and Hubert Financial, respectively. I suspect Greg may like to give Implicity a whirl, having opened his account there almost 18 months ago.
As well, one other thing to consider, if you don't hold a PC Financial account, one wants to maximize their new customer promotions and all the "free money" bonuses. You're better off waiting until March/April - that's the best time to be onboarded.
Cheers,
Doug
2:28 pm
February 22, 2013
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Doug:
I did not move anything to Implicity this time round. I did move almost all my ING funds to RBC as well as pulled spare investment funds from RBC DI's RBF2010 and moved that to RBC as well. It's all sitting in their (well, actually my) High Interest Savings account earning 1.05% plus a bonus of 0.95% (or 2%). I'm waiting to see who else wants to entice me with a better than 2% rate.
On another subject, the market dropped today due to the Argentine default. Best possible time to do it as all my monthly payout equity holdings which are on DRIPs will be automatically reinvested at the new, lower prices. (Got to look for a silver lining somewhere.)
Greg
6:42 pm
October 21, 2013
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Oaken has a valid point, as they are still offering a 1yr GIC at 2%, cashable without penalty after 90 days.
This is basically the same as the PC offer, which runs 3 months, approx. 90 days.
With Oaken, you have, in effect, an option to renew for the duration of the 1yr term. With PC, you will have to fiddle around, moving your money back and forth.
Please write your comments in the forum.