# Savings Account Interest Rates: TD vs. PC Financial vs. INGDirect



## Kinny (Apr 3, 2009)

Has anyone noticed the big drop in savings account interest rates for PC Financial? 

From my understanding, PC, ING & Canadian Tire do not have branches (in comparison with TD, RBC, etc.), thus they can redirect those savings in offering no fee services and higher interest rates. However, that is not the case. Today, PC Financial Interest Plus Savings account rates are currently the same as the big banks, like TD.

As of today:

TD Savings (GIA): 0.75%
PC Financial Interest Plus: 0.75%
Ing Direct: 1.35%
Canadian Tire: 2.00%

What's happening here? Anyone know? Although I opened up my PCF a few months ago and I understand the downturn impact...i'm tempted in switching over to INGDirect. They seem to be able to keep providing a higher interest rate than their competitors.

What do you think?


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## byronbb (Jun 7, 2009)

Anyway you slice it, the returns are terrible.


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## Ben (Apr 3, 2009)

I have also been wondering why PC is unable to keep their edge over big banks with their interest rates. Does anyone have insight?

I'm not personally interested in switching from PC. Switching say $10,000 to ING earns only in the ballpark of extra $60/year in interest. I'm pretty settled in my PC routine, and because I use them for day-to-day banking as well, enjoy the convenience of free use of CIBC machines as well.


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## janbjarne (Jun 7, 2009)

The Canadian Tire rate is a promotional rate - 1% extra for 90 days, so they are all pretty well the same - neglible interest.


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## apples (Apr 10, 2009)

janbjarne said:


> The Canadian Tire rate is a promotional rate - 1% extra for 90 days, so they are all pretty well the same - negligible interest.


No, I believe Canadian Tire offers 2% regular rate PLUS a bonus of 1%, so you get 3% for the first 3 months if you sign up now.

PC Financial probably reached their "target" customer numbers by now so they can afford to lower the savings rate to the level of those of "big five", a few of us left probably won't hurt their bottom line, besides most of are quite settled with them, so the lower rate. Nevertheless .75% (while others well above that) really dissappoints.


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## michika (Apr 20, 2009)

Don't forget, PC is a subsiduary? or at least intrinsically linked, with CIBC. When they used to be held under Amicus the customer service and interest rate was much better. Now that they are not twice removed from CIBC things seem to be slowly coming in line with CIBC's way of doing things.


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## CanadianCapitalist (Mar 31, 2009)

apples said:


> No, I believe Canadian Tire offers 2% regular rate PLUS a bonus of 1%, so you get 3% for the first 3 months if you sign up now.


I'm confused about the wording:

"Your account will earn a special interest rate which consists of the sum of the regular variable rate of interest for this account (see our "Rates" page online for rate details) plus a bonus interest of 1.00%, per annum."

https://www.myctfs.com/Rates/

It is not at all clear that the advertised 2% is the "regular variable rate of interest" or the "special interest rate". I'm sure a phone call would clarify matters but I wish the website would be crystal clear on the wording.


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## badcaleb (Jun 8, 2009)

The homepage https://www.myctfs.com/ shows 3%. Another link for the promo is here: https://www.myctfs.com/Promo/

I plan on applying this week.


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## Ben (Apr 3, 2009)

The interest rate is variable, which of course is no different than any other bank. I don't see any assurance that the interest rate will continue to be 2+1% in 6 months or a year, nor that CT will always have higher rates than other banks. 

For uncertain (and small) reward, and certain inconvenience to switch funds over, I'm staying put. Rate-hopping from bank to bank seems a bit like chasing performance, buying last year's winner. 

Is Canadian Tire a no-fee bank?


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## martinv (Apr 30, 2009)

Just to add one more option.
If you are with Itrade (formerly E'trade) as I am, they have a current interest rate of 1.25% for the "Cash optimizer account".
It is interesting how 1.25% can get one excited now! Remember the days of 8,9,10 percent or even higher!


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## snowback96 (Jun 13, 2009)

Anybody have any experience with Canadian Direct Financial? They seem to have very competitive rates (currently 2.05%, up from 2.0%) and are owned by Canadian Western Bank. In particular, I'm interested in their customer service, especially speed/efficiency of online funds transfer to from another bank. Thanks.


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