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?
Once again it looks like the big trio of BMO, CIBC and RBC have all dropped its rate to a similar figure at 1.25%.
It was only about two weeks ago that I posted about the last drop too. That was pretty quick for a drop of 0.25%.
I was just looking at the TFSA interest rate for TD Canada at it looks like it has slipped to a new low of 1.25% as you can see here:
I know a lot of people were latching on to this one as it remained as one of the higher ones for awhile I believe it is one of the few banks where the interest rates have been unchanged for the longest time too.
It was inevitable that everyone’s rates dropped and I must say it took awhile for HSBC to drop its TFSA interest rates. It seems as though its highest offering now has shrunk to the 1.5% rate level.
This is the bank with what I find the confusing plans still with its “TFSA High Rate Savings Account” and “Direct TFSA” plan. How many people can use an option of a 1.5% interest rate on balances over $100,000 considering the limit is $5000 for the year?
Similar to last time how a bunch of banks appeared to have copied each other’s interest rate levels it seems like history repeats itself. The Bank of Montreal, Royal Bank and CIBC have all set its new tax free savings account rate at 1.5% :
Again, it seems so artificially with these changes sometimes huh?
© 2008 - 2014 TaxFreeSavingsAccountplan.com
