The latest spawn of the internet seems to be the proliferation of virtual banking and robo advisers. This has seriously disrupted the personal finance world. Major old world banking institutions everywhere are closing branches and laying off staff. It reminds me of the early days of video stores and how all the big box retail video chains sought to lower rental prices to extreme levels to put all the Mom and Pop operations out of business. As soon as they couldn’t afford to compete on price they were gone. When that happened the majors raised prices immediately and cornered the market.
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Could the same thing happen in reverse with virtual online banking. Those banks that exist in limited brick and mortar form so they can afford those very enticing savings interest rates. Could they really force banks to raise the savings rates they offer consumers? The banks will certainly lose market share for this service and don’t even come close to what these online banks have to offer.
I’m not concerned with what products and services these online/virtuals have to offer. I always say if you bank in a grocery store you can’t expect great service but they do have great rates.
I’m just concerned about MONEY. How much do they offer you for parking your money with them. These seemed to be the best I could find.
These are the posted rates as of 10 December 2016.
Tangerine – 2.4 % Any new client.
PC Financial – Promotional rate of 2.25%
Zag Bank – Current Rate 1.65%
Equity Bank – Current Rate 2.0%
Oaken Financial – Current Rate 1.5%
Hubert Financial – Current Rate 1.7%
Canadian Financial Direct – Current Rate 1.5%
Implicity Financial – Current Rate 1.7%
Outlook Financial- Current Rate 1.7%
Achieva Financial – Current Rate 1.7%
And the winner is Tangerine with a Strong Runner Up finish to PC Financial
I will always keep this post updated with the new rates on offer so check back often. Savers have been crushed for the last 20 years but the worm is starting to turn back into our favour. Rates are going up for borrowing, everyone including the new president-elect is calling for it. That means savings rates will also start to climb. It’s about time.
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