Tangerine has dropped Savings rate from 1.25% to 1.20% | Tangerine Bank | Discussion forum

Vatox said
Lol, the 1.25% was already an embarrassment, the drop of 0.05 is pathetic really. I guess they don’t care to make it back onto the HISA Chart.  

They're well away from that. I would even argue Canadian Tire Bank and Meridian Credit Union, at 1.40%, can and arguably should be from the regular HISA chart (they can still be added to the GIC chart and to the "promos," when appropriate and applicable).

In the past, I've called to formalize the current "loosely interpreted criteria" used to establish a baseline for inclusion. I've suggested that the minimum posted rate of interest be 25 bps (0.25%) above the average of the "Big 5" banks highest rate paid on deposits as small as $1.00 or at least $5,000 (since that's typical of their "premium" savings accounts). I haven't surveyed those rates lately, but I think that would establish the baseline at about 1.40-1.50%. 🙂

And, as a footnote to the HISA chart, we could always link to the CANNEX daily interest savings table for those desiring to learn more about what's on offer and to earning even less than they might otherwise be able to. 😉

Cheers,
Doug

Vatox said
I would use 2.0% as the bottom. I couldn’t be bothered with anything lower, unless interest rates start falling everywhere. It should be a privilege to sit on the HISA Chart. But, I already do that regardless of which FIs are listed.  

I like your thinking on this, Vatox. Sounds like I've finally found a rare ally in my efforts to better quantity what "competitive" means.

That said, I'm doubtful I could get a lot of people on board with a 2% baseline, but would certainly be happy with anything like 25 bps above the average of the "Big 5" banks' best "high interest" savings account rates. That would seem to set 1.50% as a floor, but like I say, I could with anything above that, too.

Cheers,
Doug

Vatox said
I would use 2.0% as the bottom. I couldn’t be bothered with anything lower, unless interest rates start falling everywhere. It should be a privilege to sit on the HISA Chart. But, I already do that regardless of which FIs are listed.  

What about this for simplicity, Vatox?

Using the Bank of Canada's Policy Interest Rate (sometimes called the overnight lending rate) as a baseline:

https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

It's currently set at 1.75%. That would seem to work well as even the "Big 5" banks offer 1.60-1.70% HISA accounts at brokerages in nominee form (although they can't be included on that basis).

If the BoC ends up going to 0.50% again as its overnight lending rate, then we can re-evaluate the criteria, but at this point, it seems reasonable. And, it's only the minimum criteria. Peter, and the forum community, would still maintain overall discretion not to include HISAs paying 0.50% that matched a future BoC Policy Interest Rate.

Peter, what about this wording for a modified inclusion criteria:

Current wording: the regular interest rate on the high interest savings account must be “competitive” (this is loosely interpreted)

Proposed revised wording: the regular interest rate on the high interest savings account be, at a minimum, "competitive," as determined by the Bank of Canada's Policy Interest Rate

Cheers,
Doug

Vatox said
Sounds good to me. If interest rates bottom out again, then it just gets adjusted to the best reasonable offers by the FIs. I don’t think we had anyone below 1% back then, Tang was 0.8% in those days  

Thanks, Vatox.

Yeah, I agree. We could even set an implicit 1% as an absolute floor, if "Big 5" HISA rates bottomed out at 0.00-0.05% again. I think 1.10-1.15% was the lowest rate a bank in the HISA chart had when I suggested removing then PC Financial and ING DIRECT Canada. 🙂

Cheers,
Doug