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Email this9:48 am
June 30, 2009
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For those of us wondering how long the 3% rate would hold we have an answer, nearly 4 months. At least this rate is better than the ISA rate.
3:41 pm
it'll be interesting to see if people finally wise-up to this bait and switch tactic next january when ing and others again raise their tfsa rates to try and lure in some cash. i fell for it the first year the tfsa was offered. never again.
4:22 pm
Thats for sure I wrote to my MP just recently, but no answer yet maybe all canadians need to complain. The worst part is if you transfer to someone else you may have to pay admin costs, although ING may be free. Even then if you transfer to say CTIRE which is at 3.15% who knows how long that will last. You could just take your money out but you cannot put back into a TFSA until the following year so your basically and even then have a lower rate in a HISA. They got us and they know it as well, silver lining is rates should be moving back up and if you have a lot of cash parked right now just hold on for a little longer.
2:34 pm
bait and switch sucks, that's for sure, but there's nothing illegal about it. it's free-market economy 101. you just have to be smarter than the banks (which really isn't that hard... they have all sorts of whiz-kids working for them, churning out "sophisticated" financial models based on super-advanced mathematics that pretty much do absolutely nothing... it's what a goldman-sachs dude referred to reccently as "intellectual masturbation" in front of a US senate committee). follow two simple rules to maximize your profits from the online banks: (1) don't put cash into a tfsa... use the tfsa to invest in stocks, bonds, etc... and (2) open as many online accounts as you want, and put your money in the one that has the highest interest rate. just make sure the acccounts you use are cdic-insured.
6:04 pm
November 8, 2009
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the only power the little guy has is to move your money when one bank doesnt want to compete. ING was always one of the best rates but now they have decided to keep it all on the low side even as others start to raise rates. Ally for all the annoying small things does offer 2% so the money starts to move to them. I still see the ING tv commercials but it makes me laugh that they are saying one thing but doing another. ING had 3% short term rsp rates but thats gone too.
TFSA should go up since rates are rising slowly now. The industry needs to push all rates up to encourage saving and spending restraint since reckless borrowing trashed the financial systems in the first place. We could see our own bubble burst as people suck up the stupid low mortgage rates. Having almost free money to borrow only makes for a fake economy.
12:19 am
"The industry needs to push all rates up to encourage saving and spending restraint since reckless borrowing trashed the financial systems in the first place."
1. The government wants to encourage spending not restrict it to get us out of our "trashed" financial system. The more people spend (less saved) the greater the ecnomic multiplier effect and more jobs created.
2. If people are really that annoyed about a drop in interest rate from 3% to 2% then buy 2 less coffees a month and put it into a savings account to make up for the differance. It comes out to about 4 dollars less a month on a $5,000 TFSA.
3. If you want a higher return the first lesson----> greater risk = greater reward. So if you want to put your money in a CDIC insured bank account then stop complaining about how the return is so low.
4. "Thats for sure I wrote to my MP just recently, but no answer yet maybe all canadians need to complain."
Polaticians have more to worry about than a company changing their rates. Would you write to your MP if a company changed their prices from $20 to $25. Afterall, ING is a company that needs to remain profitable and their rates are sibject to change. How are they different from any company that raises their price?
I hate to play devil's advocate but it seems like this post is completely one sides. Don't get me wrong, of course i'd love the interest rate to be at 3+% but that's why I invest in stocks and mutual funds where I can get a better return.
11:40 pm
Why don't you go somewhere else then? Don't come to this forum and complain that it's one-sided. Don't like it? Leave.
2:21 am
November 8, 2009
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this all still remains a sick paradox. people got access to artificially low, easy to get cash and the economy was almost destroyed. The solution proposed is to keep the rates way low so the same stupid people who cant manage their own finances can borrow too much and cause the same thing to happen again. Unless a recovery is real and not funded by 2% mortgages with jacked up house prices we are just waiting for the next crash. Put rates to a point where a person who can afford to service a mortgage on a reasonable priced house and at the same time have interest to reward some savings and you will have a sustained recovery not fake. Stupid people who carry 60k on a visa card or have a half million mortgage eating up all their income need to fail and be flushed out of the system. Keep the rates this low and soon everyone will be living in million dollar priced shacks, paying thousands in property tax and paying interst only on the visa that they use to buy food.... Our system needs to dish out the short term pain to get sanity back:yell:
3:56 pm
The economy got trashed because banks lent to much money to unsolvable people. The interest rate is irrelevant since in the end banks have the last word on who gets how much cash. It's only a question of managing risk better. It's not because borrowing rates are low that credit is available to anybody. I think banks learned their lesson this time.
5:23 am
this all still remains a sick paradox. people got access to artificially low, easy to get cash and the economy was almost destroyed. The solution proposed is to keep the rates way low so the same stupid people who cant manage their own finances can borrow too much and cause the same thing to happen again. Unless a recovery is real and not funded by 2% mortgages with jacked up house prices we are just waiting for the next crash. Put rates to a point where a person who can afford to service a mortgage on a reasonable priced house and at the same time have interest to reward some savings and you will have a sustained recovery not fake. Stupid people who carry 60k on a visa card or have a half million mortgage eating up all their income need to fail and be flushed out of the system. Keep the rates this low and soon everyone will be living in million dollar priced shacks, paying thousands in property tax and paying interst only on the visa that they use to buy food.... Our system needs to dish out the short term pain to get sanity back:yell:
Very well stated.
4:15 am
I want everyone to know that I COMPLETELY CLOSED OFF my TFSA!
This is one of many ways I am going to let the government know how vial and unjust they are!
I can write more about people who have had over $100,000 in OVERCONTRIBUTIONS. Yes they might have made $3000 interest last year, but they now have to pay $12,000 in "penalty" fees. That is $9,000 of there HARD EARNED money going to the government for NO REASON.
It makes sense now why Steven Harper spend $1 billion dollars last month over the span of a two-week summit in Toronto.:yell:
10:08 am
February 3, 2009
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Zahra said:
I want everyone to know that I COMPLETELY CLOSED OFF my TFSA!
This is one of many ways I am going to let the government know how vial [sic] (vile) and unjust they are!
I can write more about people who have had over $100,000 in OVERCONTRIBUTIONS. Yes they might have made $3000 interest last year, but they now have to pay $12,000 in "penalty" fees. That is $9,000 of there [sic] (their) HARD EARNED money going to the government for NO REASON.
The TFSA rules were made perfectly clear. If you were stupid enough to break the rules, I don't see why you shouldn't pay the penalty, hefty as it is. Only 1.5% of accounts had over-contribution. That just means 1.5% who tried TFSA found it too complicated. It doesn't mean the government is evil. The government could not have known that there would be anyone too stupid to understand the rules.
6:18 am
when i opened my tfsa, the very first thing the guy from the bank talked about me
is that of "BEWARE OF THE OVERCONTRIBUTION...then explained it..."
i opened another TFSA at another bank (not a branch but different company)
still, the other bank guy told me, "beware of the overcontribution...[then explained further]" so i guess the guys at the banks tell and explained to us this thing called over contribution....
now if still, and you still OVERCONTRIBUTED, i don't know why. are you even
listening to the guy zahra? 😎
6:38 pm
Zahra, I read that the government will not charge people for their overcontribution this year because of all the mix-up. I bought mine through the ING website and was not told about overcontribution, but I was smart enough to read the fine print!
3:26 am
The Bank of Canada hiked their rate by 0.25% and all the major banks scrambled to hike their prime rate, yet I don't see ING breaking their asses to raise the savings account rates at all.
And nobody says a peep about it. Typical Canada.
10:29 pm
Now it's down to 1.50%. ING has a lot of nerve reducing this when the prime rate has been on the rise. Not only that but they're drawing in new TFSA customers by paying them double the interest (ostensibly to cover the taxes). Where's the break for loyal existing clients?
3:54 pm
November 8, 2009
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what a joke ING has become. They were a leader in rates and now everytime I check they are doing the opposite of what would attract people to their bank. They send me advertisements saying they will chip in cash if I open an account or refer a friend but I wouldnt suggest them to anyone at this time. My money and referals are going to Ally now. That stupid dutch idiot with his orange crap can go suck a lemon. 1.5% for the tfsa....makes no sense neither does the savings rate...
5:16 pm
We can only blame our selfs for the mess we put our selfs into.
People fell for the scams one after the other
2001 pensions funds ect like eron buy shares of the compnay with your pension money what happenned the rich got richer and the workers lost ther pension money.
2003-2007 next scam buy a home that you cant afford
Every one went for the easy money with out realizing that they would loose ther shirts down the road, and soon will happen here in canada.
If you look at intrest rates from years back from 1930s
when an economy is going good the rates are at par any where from 5% to 12%
and when it slows down thats when intrest rates are down to make the economy pick up
Well what happened after the 2001 stock crash the rates came down the economy started to pick up the rates went up as in 2004-2005 i was getting 4.50% on my savings accounts and the so called economy was doing great if its true to believe
then why in the hell did the intrest rates start to go down
THE ANSWER is simple people started to borrow as they were stupid enough to pay more for a 1600sqft home then its actual price, and they only way to pay that much was to get cheap mortgages this was the way the scam went in order for the mortgage brokers, realestate sales,bankers to make so much money, and once ther were no more new buyers (suckers) to fall for this scam what you think happens the scam falls apart. but i guess poeple are that dum to fall for these scams with out realizing what they are getting into.
Like you make $50000.00 a year and you think you can afford a $600000.00 home I DONT THINK SO you can only blame your self for falling into the scam
The saying goes
IF A DEAL IS TO GOOD WALK AWAY
Or
BUYERS BEWARE
But did or do they the realastate agents or loan bankers tell you that you can't afford a $600000.00 home on $50000.00 income they didnot cause if they did they would loose commisions.:cool::cry:
5:30 am
i was getting 4.50% on my savings accounts and the so called economy was doing great if its true to believe then why in the hell did the intrest rates start to go down
FYI - When savings account interest was paying out at 4.5%, inflation was at around 3%, so the real return rate was 4.5 - 3.0 = 1.5%. Savings interest rates nowadays peak at 2.0%, and the actual rate of inflation is around 0.5%, so the real return rate is around 2.0 - 0.5 = 1.5%, which is basically the same. You have to account for inflation when considering interest rates.
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