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Competition to offer a decent rate on savings has deteriorated to the point where the best deal out there at the end of September came from a bank run by a store chain selling tires, windshield washer fluid, hardware and household items.

Take a bow, Canadian Tire Bank. Your 1.8 per cent beat all comers in the banking sector.

There are roughly a dozen alternative banks, trust companies and credit unions offering 1.5 to 1.8 per cent on savings right now. The big banks aren’t in the game any longer, and that’s starting to stress their clients.

I’ve had a few readers reach out lately to vent their frustration trying to get a particular rate on a savings account or guaranteed investment certificate from a major financial institution.

Check out this recent e-mail from a reader: “You understandably promote finding a decent rate – but it’s a time-consuming process and without any guarantees the rate won’t drop any time. My worst experience was with a [Big Six] bank that demanded a lot of information and then played games with the rate, which was not as offered.”

Some suggestions to bank customers to help them get the best possible rates and avoid frustrating interactions with their banks:

UNDERSTAND THE ECONOMIC BACKDROP

Interest rates of all types have been pounded lower as we work through the pandemic. Low rates help promote the borrowing and spending needed to support the economy. Savers are collateral damage.

UNDERSTAND THE TERM ‘GUARANTEED’

Only with guaranteed investment certificates can you be assured of a particular rate. The word guarantee here refers to the rate of return on your deposit over the specified term. GIC rates are negotiable for larger deposits at big banks, but you’re almost certainly going to get a better rate from an alternative bank, trust company or some credit unions. Rates on savings accounts are not guaranteed and are subject to fluctuations at any time as a result of a) the bank’s changing motivation level in staying competitive with the competition and b) the broader interest-rate environment as determined by what’s going on in the economy.

UNDERSTAND THE COMPETITIVE MARKET

Some banks are more committed than others to providing a competitive interest rate on savings. For help in avoiding the posers who don’t deliver on a consistent basis, check out the savings-account comparison chart on HighInterestSavings.ca. Click on a bank’s name, and you’ll find a link to a savings account interest-rate history, complete with charts. Pay close attention to how a bank has handled rates since the COVID-19 lockdown in March. Some banks have rushed to cut rates, while others have held their ground on a comparative basis.

UNDERSTAND THE DEALS BEING OFFERED

Some banks use temporary rate bonuses to lure new clients or hold onto select existing customers. As a rule, the regular rates at these banks are pathetic. If you take advantage of a rate bonus, be nimble about moving money as required once your deal is over.

-- Rob Carrick, personal finance columnist

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Stocks to ponder

Cineplex Inc. (CGX-T) As many Canadian stocks recover from the market selloff in February and March, Cineplex shares continue to explore new lows, extending a three-year decline that began with dwindling attendance figures and then turned particularly nasty this year when cinemas were closed in response to the pandemic. Just about every reason to invest in Cineplex over the past three years has gone horribly wrong. Perhaps simply betting that the pandemic will eventually recede is the only remaining reason. David Berman shares his thoughts on the stock. (for subscribers)

The Rundown

Trump’s COVID-19 adds another big twist for markets ahead of uncertain U.S. election

Donald Trump’s coronavirus diagnosis poses an unsettling new challenge for both nervous markets and a slowing U.S. recovery. Investors and political analysts had already braced themselves for the possibility of a disputed election on Nov. 3. Many see a significant possibility that Mr. Trump will challenge the results in court if he loses the ballot count, as polls suggest he will. The news that he has tested positive for COVID-19 ratchets the uncertainty even higher. It suggests the run-up to the election could be just as unpredictable as whatever comes after. Ian McGugan has this analysis as this latest crisis emerges in the White House.

Also see:

How investing pros are reacting to Trump’s positive COVID-19 test

A Biden victory could weigh on stock market’s winners

Missing in action: ‘Lobotomized’ sovereign bonds sit out Trump-induced volatility

A new economic reading just out is providing hope for stock investors

A report on global manufacturing activity has provided some relief that the post-lockdown economic recovery is continuing, and this has important implications extending to commodity prices, the Canadian dollar and equity valuations. Scott Barlow reports on the data and how this factors into the three charts for investors he’s following most closely right now. (for subscribers)

Others (for subscribers)

The week’s most oversold and overbought stocks on the TSX

Friday’s analyst upgrades and downgrades

Thursday’s analyst upgrades and downgrades

Friday’s Insider Report: Board chair invests over $3-million in this REIT yielding 9%

Thursday’s Insider Report: A trustee invests a further $10-million in this high-flying REIT yielding 4.5%

Number Cruncher: Ten dividend stocks likely to benefit from new pandemic payouts

Number Cruncher: Which of these 12 TSX consumer staples stocks offer the best safety and value?

John Heinzl’s model dividend growth portfolio as of Sept. 30, 2020

Others (for everyone)

Poll: Canadian dollar projected to rise if commodity prices rebound

Big U.S. banks to report profit plunge as pandemic recession takes hold

Global funds hold even more bonds in a world fraught with risk

Globe Advisor

Why advisors are still missing the mark with women investors

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What’s up in the days ahead

Tim Shufelt will examine the shrinking energy sector of the TSX. And John Heinzl will tell us why income investors should consider loading up on shares of Fortis.

POTUS, virus, market ruckus: World market themes for the week ahead

Click here to see the Globe Investor earnings and economic news calendar.

More Globe Investor coverage

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Compiled by Globe Investor Staff

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