this post was submitted on 08 Aug 2023
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Personal Finance Canada
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While it might not directly relate to Canadian Finance News, I believe we could implement a similar regulation for big banks in Canada. Currently, none of these banks have raised their deposit interest rates, and I think this practice should become the standard.
@mxwarp I mean, what incentives do these banks have to pay higher interest? They own like >80% of the market and their name recognition alone draws deposits.
Keep in mind that paying higher interest rates is a way to attract deposits, when your name recognition & size can already do that for you, why pay more?
As a consumer, people need to consider shopping around. Far too many Canadians believe there's no choice when in fact there is.
For higher paying options, see: https://highinterestsavings.ca/chart
Looks like they finally got the memo!
@mxwarp This is just a promo rate, all the Big Banks & their subsidiaries do this. They boost the rate for 3-4 months and then you earn their base crappy rate thereafter.
Scotiabank, Tangerine, Simplii & etc. have been doing this for years.
The options in the link I provided previously are non-promo rates.
Other options incl. fintechs like WealthSimple offer 4.5% if you have $100k deposited or invested with them, or via money market funds or investment savings account which all pay >4%.