I was looking at the annual interest rate for PC Financial’s Tax free Interest Plus Savings Account and by the look of it the rate is currently sitting at 1.4%. haven’t seen any special promotions as of yet even though it seems like a lot of the other big banks are gearing up for the tax season.
Not only is this the first time I have seen any TFSA Interest rate plan go under one percent, but what an odd combination of banks. PC Financial, RBC and CIBC have dropped its rates to 0.75% as you can see.
Normally all the big banks would follow each other at the same time. I suppose everyone should expect the other banks to follow suit in the near future as well.
I was checking a lot of the banks TFSA intrest rates today and it looks like interest rates have dropped throughout many of the banks to 1%. PC Financial, RBC, BMO, CIBC, Scotiabank and HSBC all seem to share the same rate now as you can see below:
Although, for HSBC’s Direct TFSA it is 1.05%. Insanely low rates though regardless. Guess there is no such thing as the one king of low interest rates now as it is a party.
Well, as of this day at least. And the award goes to…….. PC Financial. At an astonishing rate of 1.2% this is the lowest TFSA interest that I have ever seen as you can see here:
I’m inclined to say that it is trivial to invest in a TFSA account with them with that low of an interest rate as even if you had to pay taxes using a more traditional high interest savings account you would earn more in the end.
How is it that they are offering a lower rate than the big banks considering this financial institution should have a lower overhead without things like an in-store branch?
I am actually very surprised to see this interest rate drop from PC financial. As you can see, it is now at 1.65%:
I’m surprised as while the previous figure was pretty low, this financial institution usually clamors its no fee banking plans while offering a high interest rate. Here, this is one of the banks that has a transfer fee and now not to mention one of the lower TFSA rates.
They must have rounded up a lot of clients with the original 3.05% plan I’m thinking to be this confident to drop the rate lower than even the large banks.
You talk about a drop in interest rate. I was checking the interest rate today and it has fallen to a whopping 1.85% as you can see here:
It is pretty unbelievable and how fast the rates has dropped for PC financial considering they started as one of the highest at 3.75%. If I’m not mistaken, that makes this the lowest interest rate offered by any financial institution thus far.
I have been getting word that some people who have signed up for PC Financial’s TFSA plan before the official launch date got some kind of bonus interest incentive. It is not too much by the sounds of it, but free money is always nice especially since this bank in particular has dropped its rates pretty dramatically in a quick time.
At this point I’m not sure exactly how they calculate this bonus, but for those who signed up before January 2nd you might want to check your statement online to see if you got this bonus as well.
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