Interest Rates Канада


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Решение Банка Канады по процентной ставке (Bank of Canada (BoC) Interest Rate Decision)

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Решение Банка Канады по процентной ставке (BoC Interest Rate Decision) выносится восемь раз в год и является одним из главных событий, влияющих на котировки канадского доллара. Оно принимается Советом управляющих Банка Канады. В своем решении Совет управляющих ориентируется на информацию, предоставленную Комитетом по обзору денежно-кредитной политики и четырьмя экономическими отделами регулятора (они отвечают за анализ экономической ситуации в Канаде, международной экономики, финансовой стабильности и финансовых рынков). Также в процессе принятия решения используется информация от статистического ведомства страны.

Процесс принятия решения состоит из пяти шагов.

  • Презентация проектной документации — проект базового сценария, определение ключевых рисков (за две недели до принятия решения).
  • Основной брифинг происходит через неделю после презентации проектной документации. На нем обсуждаются денежно-кредитные и экономические условия, характеризуются бизнес-перспективы и текущий процесс инфляции. В нем принимают участие члены всех вышеуказанных комитетов и Департаментов.
  • Рекомендации по окончательной политике (через два дня после основного брифинга). Их оглашает либо глава Департамента экономического анализа Канады, или глава Департамента международного экономического анализа.
  • Обсуждение и принятие решения, которое начинается в тот же день, что и оглашение рекомендаций по окончательной политике. В нем участвует только Совет управляющих Банка Канады. Эта стадия длится два дня.
  • Оглашение решения и публикация пресс-релиза (отчета по процентной ставке Банка Канады).

В зависимости от сложившихся условий инфляции, регулятор либо поднимает процентную ставку (если инфляция слишком высокая), либо опускает ее (если наблюдается дефляция), либо оставляет неизменной (если инфляция сохраняется на целевом уровне). Процентная ставка — основной инструмент регулирования инфляции, который реализуется Банком Канады.

Изменение процентной ставки приводит к краткосрочной волатильности канадского доллара. Если ставка увеличивается, это благоприятно влияет на котировки национальной валюты.

Interest Rates in Canada

Article by Donald G. Mcgillivray
Updated by Justin Douglas
Published Online February 7, 2006
Last Edited August 24, 2020

Interest is the price charged to borrow money. Expressed as a rate, interest is a percentage of the amount of money borrowed (the principal amount) that is to be paid for an agreed period of time. Interest can be paid by a borrower to a lender (e.g., to a bank), but it can also be paid by a bank to individuals whose money the bank uses to lend money to other borrowers. In Canada, interest rates are determined by the policy of the Bank of Canada, the demand for loans, the supply of available lending capital, interest rates in the United States, inflation rates and other economic factors. The Bank of Canada helps the Canadian government manage the economy by setting the bank rate and controlling the money supply.

​ Interest, Credit and Loans

Interest refers to the amount of money that a borrower pays for money borrowed. Interest payments do not reduce the principal amount (the original amount of money borrowed). Interest is usually paid in increments. To calculate the money owed at each increment, a percentage rate or interest rate is set and agreed upon. For example, a $100 loan with a 3 per cent monthly interest rate means that the borrower will owe the lender 3 per cent of the remaining balance of their debt at the end of the payment period. The interest arrangement means that if the borrower continues to owe the full $100 after the first payment period, he or she will be charged $3 in interest and will owe the lender $103. Interest is integral to credit and loan agreements because it allows borrowers to delay repaying the full amount of money they borrowed. Interest also creates an incentive for lenders to release money into circulation.

Credit is a contractual arrangement between a borrower and a lender in which the lender is pre-approved for a loan. The lender provides the borrower with something of value, and the borrower agrees to return that value to the lender at an agreed upon date. In most credit relationships, interest provides incentive for the lender to part with something of value and for the borrower to repay what they owe. Credit repayments can be made either in instalments (e.g., in-store credit) or on a revolving basis (e.g., credit card credit).

Similar to credit, a loan agreement involves a lender providing money, property or anything of value to a borrower. A loan agreement normally has terms agreed upon by both the lender and borrower, including how long the borrower has to repay the lender and how much interest the lender will charge the borrower.

Interest Rates

Interest is stated as a rate (a percentage of the principal amount borrowed) to be charged for either an agreed or indefinite period of time that the money is on loan. The interest rate can be either fixed or variable. Fixed interest rates remain the same for either the entire duration of the loan term or for a specified period of the loan term, while variable interest rates can fluctuate over the loan term.

Three main factors affect interest rates. First, there is a risk that the borrower cannot or will not repay the money. The risk of lending to the federal government is not large (although even countries, or sovereign borrowers, have defaulted on loans), but it rises somewhat on loans to provinces and even more on loans to large companies. On loans to individuals, risk is often reduced by a mortgage on property or collateral (something valuable, such as a bond deposited with the lender as security). The lender can then seize the collateral if the loan is not repaid. Unsecured consumer loans carry a high risk (see Consumer L​a​w), and therefore have high interest rates.

Second, risk increases the longer the money is loaned. The borrower’s ability to repay money may not change much in a month or a year, but over 10 or 20 years it may change radically, as may the need of the lender for the use of their own money.

Third, inflat​ion affects the purchasing power of the money when it is repaid to the lender. For example, on a $100 loan at 5 per cent interest, the lender will lose money if inflation runs at 10 per cent per year because the $105 paid in principal and interest at the end of one year will buy only what about $95 would have bought when the loan was made. The inflation that must be taken into account, however, is not the inflation rate at the time the loan is made or over the year; it is the future rate, which can only be guessed by lender and borrower. If inflation is generally expected to drop, short-term loans may cost more in interest than long-term loans, because the greater risk of default on the longer-term loan is more than balanced by the hope of lower inflation.

In the 1970s and 1980s, economists found that uncertainty also affected interest rates. Real interest rates — that is, the stated rates minus the expected inflation rate — had risen above 8 per cent by 1990, because in a time of economic instability, lenders had attempted to protect themselves from uncertainty.

The general level of interest rates is also affected by the demand for borrowed money, which tends to rise and fall with the economy (see Business Cycles). In times of ​recessi​​on, businesses and consumers are less interested in borrowing, and this tends to reduce the general level of rates. But with economic recovery, businesses want to expand and consumers want to buy on credit, and this increases the demand for loans. Since the financial service reforms of the 1980s and 1990s, increased loan demand has been met by creditors through the selling of debt in the form of asset-backed securities. This process is often referred to as securitization.

History of the Bank Rate in Canada

The Bank of ​Canada fixes the bank rate, which is the amount it charges for the relatively infrequent loans it makes to the chartered banks. Canada’s central bank was formed by an Act of Parliament in 1934 to help the federal government better manage the national economy.

Until the First World War, almost all Canadian government borrowing took place outside of Canada, in the United Kingdom. The reliance on foreign loans resulted in a lot of volatility in the Canadian economy. After the war, the Canadian government and its chartered banks sought credit within the Canadian market. However, the switch to the Canadian market did not reduce economic volatility. Following the Great Depression, the Canadian government decided to form a central bank to help increase the money supply and generate “cheap money” — a loan, or credit, with a low interest rate. The belief that guided this policy was that cheap money from low bank and interest rates would result in full employment (the lowest possible unemployment rate).

The drive to provide full employment met a serious challenge in the late 1950s, when inflation, or a rise in prices, started to impact the Canadian economy. To confront inflation, Bank of Canada Governor James Coyne ordered a reduction in the Canadian money supply and raised the bank rate.

The Bank of Ca​nada fixes the bank rate, which is the amount it charges for the relatively infrequent loans it makes to the chartered banks. The bank rate signals the direction in which the Bank of Canada wants interest rates to move. The Bank of Canada will raise the bank rate to try to reduce in​flation, for example, or lower the bank rate to help curb deflation (a decline in money supply — the opposite of inflation).

During the 1970s, the bank rate was fixed at a certain percentage rate for periods that typically lasted for months and then changed by a Bank of Canada announcement. In 1975, Prime Minister Pierre Elliott Trudeau introduced the Anti-Inflation Board, which sought to control wage and price increases. Correspondingly, the Bank of Canada began to try to cut inflation by raising interest rates in 1978 through 1981. This move was based on the theory that with high interest rates, consumers would be unwilling to borrow for goods such as houses and cars, and businesses would be unwilling to invest; thus, a rise in interest rates would cut down the demand for goods and services, which would reduce the upward pressure on prices. This policy (the use of interest rates to cut inflation) culminated in 1981 when the bank rate rose above 21 per cent and the prime lending rate was 22.75 per cent.

Canadian rates might not have reached such levels had it not been for the rise in rates in the United States, where a similar monetarist policy was in effect (see Mo​netary Policy). When American rates rise and Canadian rates do not follow, money tends to flow to the US as lenders seek the higher return on their loans. This outflow pushes the value of the Canadian dollar down relative to the value of other foreign currencies, such as the American dollar. Imported goods then cost more in Canadian dollars (see Imports), and this tends to raise the inflation rate in Canada. One way to break the close connection between Canadian and American interest rates is to control the flow of money in and out of Canada, as was done during the Second World War by a system of exchange controls (see Exchange Rates).

Overnight Rate

The overnight rate refers to the interest rate used by large ba​nks in the overnight market to lend and borrow from each other. In Canada, the Bank of Canada sets a target rate for the overnight rate, which it refers to as the policy interest rate. In March 1980, the Bank of Canada shifted to a system under which the bank rate was changed each week to match changes in the rate paid by the federal government to borrow money for 90 days by selling treasury bills. In February 1996, the Bank of Canada adopted a new approach. It began setting the bank rate at the upper limit on a one-half-percentage-point range (e.g., 0.75 per cent to 1.25 per cent) for overnight loans to financial institutions — over which it has more control than the rate on 90-day treasury bills. The range, or operating band, is fixed by the bank and is only adjusted when the bank wants a change in other short-term rates, such as for consumer and business loans. For example, the bank rate was changed five times in 1998. At the end of 1998, the bank rate was 5.25 per cent, which was the top of the 4.75 to 5.25 per cent operating band. Other lenders, usually, quickly match changes in the bank rate with increases or decreases in their prime rates, to which consumer and business loans are tied. In November 2000, the Bank of Canada announced that it planned to introduce eight fixed dates each year to announce changes to the overnight rate. Fixed announcements of possible interest rate changes ensure less speculation about a rate that affects not only large banks, but consumer loan and mortgage rates, as well as the exchange rate for the Canadian dollar.

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Interest Rates 101

Interest rates have an important role in our financial market; they indicate the cost of lending. In other words, interest rates provide incentive for lenders to provide us with the loans we need and want. The higher the interest rates are, the more profitable it is for lenders to provide loans and other financial products. In turn, loans offer countless possibilities for borrowers to wisely spend and invest. Simply put, this type of spending creates good debt (what is good debt? learn here) and can lead to prosperous economic growth.


On the other hand, excessively high interest rates can have a negative impact on economic growth as they often create high levels of bad debt. It’s important for all Canadians to understand how interest rates are calculated before they make any decisions about applying for loans or credit. This article will provide basic information to help you understand the general aspects of interest rates.

Fixed Rate vs. Variable Rate

Generally, most loan products offer two types of interest rates to borrowers: fixed or variable. Depending on your financial needs, one may be more beneficial than the other.

Fixed

A fixed interest rate refers to an interest rate that will not change during the complete duration of your loan agreement. This means that you will maintain the same interest rate as your payments go by and until your loan is completely paid off.

Organizing your finances is key to having healthy financial habits as they will help you build a great credit score and allow you to access a variety of different financial products. The best way to organize your finances is to know the exact amount of money you have to pay. Fixed interest rates can help you anticipate your payments and make sure you have enough money to pay them.

A Fixed interest rate is calculated by financial institutions in the same way the variable rate is calculated. It can be broken down into two parts: the market premium rate and your own risk premium. The first one is a base that depends on the market’s position; we can think of this as the basic cost of lending. Your risk premium is based on your financial history; this is usually found in the form of a credit score. Your risk premium is a percentage that will cover the lender in case you are unable to pay back your loan.

Variable (or Floating)

The second form of interest rate is the variable rate. As its name implies, this is a rate that will change as your payments go by. The variable rate moves according to the market premium, when the market interest rate shifts so will your interest rate , it can either be positive for you (a lower interest rate) or negative (a higher interest rate). When you negotiate your loan agreement, your risk premium will be given to you in the same way as in the fixed rate, based on your financial history. With a variable interest rate you are sharing part of the risk with your lender, therefore they will offer you a lower interest rate when you first get your loan.

A variable rate can be a great option when you are applying for a short-term loan. In Canada, interest rates are stable and rarely fluctuate; this can be a great way of getting a lower interest rate without too much risk

For example, the market premium is 3% and your own risk premium is 2%, this means that for the first month your variable rate will be 5%, in the case that the market premium drops to 2% your interest rate for the following month will 4%. It is important to consider that the market can shift positively or negatively.

Annual Percentage Rate (APR)

There are several different ways to display interest rates. When signing a loan agreement, your interest rate can be calculated on a daily basis, monthly or more commonly on an annual basis. In fact, it is legally required in Canada for any loan agreement to display the annual percentage rate (APR). An annual percentage rate represents the percentage of interest you’ll pay on your loan over one year. For example, if you have a 5% interest rate (APR) on $10,000 loan, you will pay 500$ of interest rate in a year.

Here is another example that may help you understand how you can transform your interest rate into an APR format.

Let’s say you have a 3-month loan of $1000, every month you have to pay $400 and there is a $30 activation fee. As per the calculation bellow, you are currently paying a 23% interest rate on a three month loan. Let’s now find out what your APR is. The easiest way to calculate this is by firstly, finding the monthly rate and then multiplying it by 12 months. In this case, the monthly rate is 7.67% and the yearly rate is 92%.

( (430+ 400+ 400)-1000)/1000) = 23% interest for 3 months

23% / 3 months = 7.67% per month

7.67% x 12 months= 92% per year

Formulas

Interest Rate (term)= (Total payments – Loan amount) / Loan amount

Interest Rate (monthly)= Interest Rate (term) / Amount of months/weeks

Interest Rate (yearly)= Monthly Interest Rate x 12 months

Interest Rate Legal Limits

In our last example, the APR was 92%, in Canada this is over the legal limit. In fact, the legal limit for Canadians is at most, 60% APR including fees and charges. There is an exception to this legal limit, the payday loan industry is regulated provincially and has different legal limits.

A payday loan is a last resort loan in which you borrow an amount of money you must repay by your next payday; this is typically a two week period (learn more about payday loans and the cycle of debt they create). Payday lenders charge high interest rates and fees to their customers in order to make short term profit. Here is a chart presenting the legal interest rate limits allowed for payday loans per province.

Provinces

Legal limit for a 100$ loan with a 2 week term

Best GIC Rates in Canada for 2020

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Guaranteed Investment Certificates (GICs) are some of the best savings tools available. But given their variety of terms, types, and interest rates, it’s not always easy to choose which GIC is best for you. Before you get started, make sure you understand what is a GIC and how it can help you meet your savings plans.

Best GIC Prov >CDIC-Insured GIC Rates :

Provider Rate Term Type
Oaken Financial 2.85% 5-year Non-registered, RRSP, TFSA
ICICI Bank of Canada 2.3% 5-year Non-registered, RRSP, TFSA
Tangerine Bank 2.2% 5-year Non-registered, RRSP, TFSA
Manulife Bank of Canada 2.2% 5-year Non-registered, RRSP, TFSA
TD Bank 2% 5-year Non-registered, RRSP, TFSA, RESP
Bank of Montreal 2% 5-year Non-registered, RRSP, TFSA, RESP
Scotiabank 1.6% 5-year Non-registered, RRSP, TFSA, RESP
CIBC 1.25% 5-year Non-registered, RRSP, TFSA, RESP

Province-Insured GIC Rates :

Provider Rate Term Type
Implicity Financial 2.75% 6-year Non-registered, RRSP, TFSA, RESP
Omnia Direct 2.75% 5-year Non-Registered
Casera Credit Union 2.7% 5-year Non-registered, RRSP, TFSA, RESP
Parama Credit Union 2.7% 5-year Non-registered, RRSP, TFSA, RESP
MAXA Financial 2.45% 5-year Non-registered, RRSP, TFSA, RESP

Ready to pick the GIC to meet your financial goal? There are plenty of Canadian banks, credit unions, and other financial institutions to choose from.

Which GIC is best for you depends on what you’re looking for. Pay special attention to the length of the GIC term, they type of GIC, whether or not the GIC can be held in a TFSA or RRSP, and of course, the GIC rates comparison. These will help you pick the best GIC for your financial goals!

Meridian Credit Union GIC Rates

Meridian, based in St. Catharines, has some of the best GIC rates in Ontario, but their accounts are also open to non-Ontarians as well (save Quebecers. Sorry.)

Oaken Financial GIC Rates

Oaken Financial provide registered GICs for TFSAs and RRSPs. If you want to keep your GIC tax-sheltered, this is one of your best options.

Tangerine Bank GIC Rates

Tangerine Bank offers great GIC rates for both registered and non-registered accounts alongside appealing day-to-day banking (regular chequing and savings). For those that prefer to keep all their money in one place, rather than juggling multiple accounts across multiple banks, Tangerine is a great option.

Bank of Montreal GIC Rates


BMO is one of the few banks that offers GICs with terms as long as 10 years. If you’re looking for ultra-long-term saving options, such as for retirement, this is one of your best options. Aside from this 10-year GIC, BMO offers a number of other GICs of different terms, types, and rates, so you’ll be able to find exactly what you’re looking for no matter your savings goals.

Parama Credit Union GIC Rates

Parama offers cashable and non-cashable GICs with terms of 1 to 5 years and a minimum investment of $1,000. Interest is paid annually and deposited into your chequing account, which makes this a great option for savers who want to leave their principal investment alone and enjoy the income it produces!

Scotiabank GIC Rates

Scotia offers non-redeemable GICs with minimum investments of $500 or $1,000. Terms range from 30 days to 10 years, so they have something for every savings goal. They also offer both short and long-term US GICs so you have maximum flexibility in how you want to save your US cash.

TD Bank GIC Rates

TD offers a diverse selection of market-linked GICs with maximum potential returns listed as high as 25%. They offer both cashable and non-cashable options, as well as US dollar GICs.

CIBC GIC Rates

CIBC has 1-year term GICs with rates as high as 1.25%. They require a minimum investment of $1,000 and offer TFSA and RRSP GICs to tax-shelter investments.

HSBC GIC Rates

HSBC is one of the few banks that offers TFSA redeemable GICs. If you need to access your money before the 1-year term is up, your GIC can be redeemed within the first 89 days with no interest paid. This is a good option if you want to start investing in GICs, but need to ease into the experience of locking up your money for a fixed term!

Manulife Bank of Canada GIC Rates

Manulife offers short-term non-registered GICs for 30 to 365 days. For registered GICs in TFSAs and RRSPs, they provide longer terms of 1 to 5 years. The minimum investment is $2,500, so these are better options for savers with larger financial goals.

Coast Capital GIC Rates

Coast Capital offers a variety of term deposits for both Canadian and US currency. One of their more eye-catching products is the rising-rate term deposit, where account holders earn more and more interest for every year money is invested. The 7-year rising rate term deposit goes up to 3.4%!

MAXA Financial GIC Rates

MAXA Financial offers GICs with terms of 1 to 5 years, requiring a relatively low minimum deposit of $500. All GICs are non-redeemable prior to maturity, so this is only a good choice for savings you don’t need to touch until your GIC matures.

Omnia Direct GIC Rates

Omnia Direct is another credit union offering strong GIC rates. Omnia offers a 1-year US GIC for those who travel frequently to the US and want to build up their US currency at high interest.

ICICI Bank Canada GIC Rates

ICIC Bank Canada offers both redeemable and non-redeemable GICs. You only need a minimum of $1,000 and redeemable GICs are available for terms 1 year and above. They also offer US GICs if you’re looking to diversify into other currencies.

Implicity Financial GIC Rates

Implicity Financial offers GICs with terms ranging from 1 to 6 years. They require a minimum investment of at least $1,000 to open a GIC.

Casera Credit Union GIC Rates

Casera Credit Union is another option if you prefer to do your banking with a credit union rather than a large financial institution.

motusbank GIC Rates

motusbank is an online bank offering several non-redeemable GIC options, including in tax-free and RRSP accounts, most notably the 2.6% 5-year RRSP GIC. You’ll also get 2.3% on any RRSP down to the 18-month term (also 2, 3, and 4-year RRSP GICs at the similar rates), or long-term TFSAs with identical rates as well. These are good for people who are comfortable with digital banking and aren’t planning on early withdrawal.

Picking the Right GIC Term

When it comes to choosing the right GIC term for your savings, you want to focus on your personal financial goal. The GIC should mature near or on the date you need to access the funds you’ve invested. In order to choose the right term, you need to know what your money is for and when you’ll need it.

Depending on what you’re saving for, you might have only a vague idea of when you’ll need the money. For example, if you’re saving for retirement, longer GIC terms are appropriate. You may not know exactly what date you’ll retire, but you should have an idea of approximately what year. If retirement is many years away, you can certainly feel comfortable choosing GIC terms of 5 years. As they mature, you can then roll them into new 5-year term GICs or shorter terms as needed once your retirement date becomes more clear.

If you’re saving for a more specific goal, such as a house down payment, you want to choose a shorter term. Depending on how much you plan to save or when you want to go house shopping, you might choose a GIC with only a 2 or 3-year term. If you’re anticipating you’ll need your money on a certain date, try to choose a GIC that matures a few months beforehand in case your goal gets pushed ahead of schedule. For example, choose an 18-month term GIC instead of a 2-year term GIC, even if that means you’ll earn slightly less interest. Because many GICs will not let you access your investment until it matures, it’s generally better to err on the side of caution and make sure your money is available earlier rather than later!

Choosing the Right GIC Type

Different GICs have different rules, so it’s important to read the fine print carefully before you invest.

Many GICs are non-cashable and non-redeemable, which means your money cannot be accessed until the GIC term is up. This probably doesn’t matter for money you’ve put in an RRSP GIC for retirement, but if you’re looking at a GIC as an emergency fund, you don’t want to be unable to access money you might need in a hurry. Likewise, where most GICs are simple cash investments, others are linked to the stock market. This makes the return on your investment less predictable. If you are saving for something specific and need to know exactly how much you will have when your GIC matures, you might not be interested in a market-tied GIC.

The Bottom Line

Choosing the right GIC depends on when you need the money, what you want to use it for, and how you want it invested. This will help you pick the right GIC term, type, and the best GIC rates in Canada for your savings!

*Please note this product is currently not available for residents of Quebec.

CA BOC Interest Rate

Неожиданное изменение процентной ставки – это всегда огромная волатильность, но ставка не меняется часто. Обратите внимание, что чаще волатильность вызывают протоколы заседания Банка, которые носят текстовый характер и для автоклика не применимы.

Features of the publication

How to trade CA BOC Interest Rate

Если данные выходят выше прогноза, то USDCAD , падает, и наоборот.

Процентная ставка меняется достаточно редко, куда чаще рынок реагирует на текст протокола заседания Банка Канады. Но если изменение ставки таки произошло вопреки ожиданиям рынка – ждите громадных движений.


Текстовые протоколы, которые не программируются для алгоритмической торговли автокликом, используются участниками рынка для коррекции своих ожиданий – более жесткие заявления могут означать скорое ужесточение монетарной политики и сокращение стимулов, что в свою очередь поддержит CAD (то есть ослабит USDCAD ).

Savings Account Interest Rates

Scotiabank В® Momentum PLUS Savings Account

Right for you if:

You want to save more and earn more.

Scotiabank В® Momentum Savings Account TM В В

No longer available. Information provided for existing account holders

Right for you if:

You want to build your savings faster and for longer.

Money Master В® Savings Account

Right for you if:

You want to earn interest right away.

Scotiabank В® Savings Accelerator Account

Right for you if:

You want our highest regular interest rate

Scotiabank В® Savings Accelerator Account — Tax-Free Savings Account

Right for you if:

You want our highest regular interest rate, tax-free

Scotia U.S. Dollar Daily Interest Account

Right for you if:

You make or receive payments in U.S. Dollars.

Scotia Euro Daily Interest Savings Account

Right for you if:

You make or receive payments in Euros.

Money Master В® for business

No longer available. Information provided for existing account holders

Scotia Power Savings Account TM

No longer available. Information provided for existing account holders

Right for you if:

You carry a balance of $5,000 or higher.

Scotia Power Savings for business TM

No longer available. Information provided for existing account holders

Right for you if:

You have over $25,000 in surplus funds

Cash in Scotia Investment Accounts

Scotia В® Tax-Free Savings Account 1

Right for you if:

You want to earn tax-free income

Investment Cash В±

Right for you if:

You are finalizing your long-term investment decisions

Rates are provided for information purposes only and are subject to change at any time.

Deposits are eligible to be insured under the CDIC Act only if they are in Canadian Currency, have a term of 5 years or less and are payable in Canada.


The interest rate paid depends on the total daily closing balance. Interest rate is applied to the entire balance, calculated daily, and paid monthly. Regular interest is stated as an annual rate.

Interest is calculated daily and will be paid monthly on the entire balance up to $2,000,000 when the minimum daily closing balance of $25,000 is met.

Scotia Registered Accounts hold Scotia GICs and Mutual Funds. Each account also contains a Cash section through which all transactions are settled. Funds may be accumulated in the Cash section prior to purchasing an investment.

A maximum of five Premium Periods at any one time, each of which can have a length of 90 days, 180 days, 270 days, or 360 days. For each Premium Period, Premium Interest is calculated daily by applying the Premium Interest Rate to each deposit, including any accumulated Regular Interest, until the end of the Premium Period. Premium Interest is paid at the end of each Premium Period, so long as NO DEBIT TRANSACTION HAS OCCURRED within that Premium Period. When a debit transaction occurs, no Premium Interest is payable for that Premium Period and a new Premium Period of the same length will commence the same day. Refer toВ Current Rates PageВ for current Regular Interest Rates, which are subject to change.

Scotia Tax-Free Savings Accounts may hold Scotia GICs, Mutual Funds and a Savings Account. All transactions in the Scotia TFSA are settled through the Savings Account. Funds may be accumulated in the Savings Account prior to purchasing an investment.

Interest on funds in Canadian currency held in the Savings Account of your Scotia TFSA is calculated on your closing balance and paid monthly. During a leap year, interest is earned on the leap day. Upon account closure, interest earned up to the day of closure is paid on the account balance. The interest rate paid depends on the total daily closing balance. Interest rate is applied to the entire balance, calculated daily, and paid monthly. Regular interest is stated as an annual rate.

Interest on funds in Canadian currency held in the cash section of your account is calculated on your closing balance and paid monthly. During a leap year, interest is earned on the leap day. Upon account closure, interest earned up to the day of closure is paid on the account balance. The interest rate paid depends on the total daily closing balance. Interest rate is applied to the entire balance, calculated daily, and paid monthly. Regular interest is stated as an annual rate.

Preferred Package account holders receive an additional 0.05% annually added to the annual Regular Interest Rate of any Momentum PLUS Savings Account (the “0.05% Interest Rate Boost”) held by the Preferred Package account holders. It will take 10 business days after opening a Preferred Package account for the 0.05% Interest Rate Boost to apply. The 0.05% Interest Rate Boost will cease to apply effective the Preferred Package closing date. The Regular Interest Rate plus the 0.05% Interest Rate Boost is calculated daily on the Momentum PLUS Savings Account(s) closing balance and paid monthly.В

Ultimate Package account holders receive an additional 0.10% annually added to the annual Regular Interest Rate of any Momentum PLUS Savings Account (the “0.10% Interest Rate Boost”) held by the Ultimate Package account holders. It will take 10 business days after opening an Ultimate Package account for the 0.10% Interest Rate Boost to apply to Momentum PLUS Savings Account(s). The 0.10% Interest Rate Boost will cease to apply effective the Ultimate Package closing date. The Regular Interest Rate plus the 0.10% Interest Rate Boost is calculated daily on the Momentum PLUS Savings Account(s) closing balance and paid monthly.

Customers can have a maximum of five Premium Periods at any one time, each of which can have a length of 90 days, 180 days, 270 days, or 360 days. For each Premium Period, Premium Interest is calculated daily by applying the Premium Interest Rate to each deposit, including any accumulated Regular Interest, until the end of the Premium Period.В Premium Interest is paid at the end of each Premium Period, so long as NO DEBIT TRANSACTION HAS OCCURRED within that Premium Period.В When a debit transaction occurs, a new Premium Period of the same length will commence the same day.

Premium interest rate is stated as an annual rate.

Momentum Savings Premium is paid at the end of each 90 day period (Momentum Savings Period) if you do not initiate or permit any debit transaction or allow your balance to fall below the minimum balance required during that period.

If your dealer is The Bank of Nova Scotia, any Canadian currency you hold as cash in your account is also protected by CDIC, subject to maximum coverage and other limitations. If Scotia Securities Inc. is your dealer, Canadian currency held as cash is not insured by the CDIC. However, Canadian currency GICs or high interest savings held in a Scotia Securities Inc. account are issued by member institutions of the CDIC, and may be insured as eligible deposits, subject to maximum coverage and other limitations.

CDOR and CORRA interest rates

Canada interest rate benchmarks

We are the official administrator and calculator of two key bankers’ acceptance rates: Canadian Dollar Offered Rate (CDOR) and Canadian Overnight Repo Rate Average (CORRA).

Our Canada interest rate benchmarks

We are the provider of choice for the official benchmark interest rates charged by Canadian banks for short-term collateralized loans.

We were appointed by a joint committee of the Canadian Bankers Association and the Investment Industry Association of Canada to calculate, distribute, and administer two Canadian bankers’ acceptance rates that are essential to the Canadian banking and financial system.

Their selection is a testament to our global reputation as a trusted, independent, unbiased provider of accurate and current pricing and reference data for a wide range of assets and geographies.

Canada interest rate benchmarks is administered by RBSL.

Useful links

Announcement

Refinitiv Limited (‘RL’) is the administrator of numerous indices and benchmarks.

RL assigned Refinitiv Benchmark Services (UK) Limited (‘RBSL’) to be the regulated administrator of certain benchmarks, such as those used within the EU and thus caught by the EU Benchmark Regulation (EU BMR). RBSL is authorized by the FCA, as listed on the ESMA Register, to administer benchmarks under the EU BMR.

As a next step, the following benchmarks will move to be administered by RBSL by the end of December 2020:

  • WM/Reuters Spot, Forward and NDF benchmark rates
  • Thomson Reuters/CoreCommodity CRB® Index
  • Thomson Reuters Convertible Indices

Note: For those benchmarks administered by a non-EU entity within the global Refinitiv Group (i.e. a third country administrator), RL has until the end of the BMR Extension Transition period (Dec 2021) to migrate those benchmarks into an authorized benchmark administrator (i.e. RBSL).

Those RL benchmarks that fall under the BMR Extension Transition period and are under consideration for migration before the end of 2021 are:

  • Thomson Reuters Local Currency Indices
  • Thomson Reuters IX Global ESG Equal Weighted Index
  • Thomson Reuters IX Global ESG High Dividend Low Volatility Equal Weighted Index
  • Thomson Reuters IX Western Europe Small & Mid Cap Index
  • Thomson Reuters GL Large/Mid D&I Ex Controversial Weapons Equal Weight Index
  • Thomson Reuters Global Equal Opportunities Select Index
  • Thomson Reuters Global Resource Protection Select Index
  • Thomson Reuters Europe Equal Opportunities Select Index
  • Thomson Reuters Country, Regional and Sector Indices
  • Thomson Reuters Diversity & Inclusion Index

CA BOC Interest Rate

Неожиданное изменение процентной ставки – это всегда огромная волатильность, но ставка не меняется часто. Обратите внимание, что чаще волатильность вызывают протоколы заседания Банка, которые носят текстовый характер и для автоклика не применимы.

Features of the publication

How to trade CA BOC Interest Rate

Если данные выходят выше прогноза, то USDCAD , падает, и наоборот.

Процентная ставка меняется достаточно редко, куда чаще рынок реагирует на текст протокола заседания Банка Канады. Но если изменение ставки таки произошло вопреки ожиданиям рынка – ждите громадных движений.

Текстовые протоколы, которые не программируются для алгоритмической торговли автокликом, используются участниками рынка для коррекции своих ожиданий – более жесткие заявления могут означать скорое ужесточение монетарной политики и сокращение стимулов, что в свою очередь поддержит CAD (то есть ослабит USDCAD ).

Canada Interest Rates

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Select Interest Rate:

Interest rates are an important link between the current and future state of the economy. High interest rates are often associated with negative effects on economic growth prospects, and can affect the economy in the following ways:

  • Raise the cost of capital for business investments. Higher interest rates can reduce the possibility of profitable investments, and in turn, reduce business investment.
  • Discourage consumers from spending. High rates increases the cost of borrowing. This is especially true for major goods like cars and furniture on credit. This may encourage consumer to save more and spend less.
  • Increase the portion of household income needed to service debt (such as mortgage payments). This reduces the income available to spend on other items.

Of course, the effects of lower interest rates are the opposite to the cases above, and can provide a positive environment for economic growth. It is also important to understand how interest rates affect bonds. There is an inverse relationship between bond prices and interest rates. This means typically as interest rates rise, bond prices fall, and as interest rates fall, bond prices rise.

Bank Rate: The bank rate is the minimum rate at which the central bank will lend money to domestic banks.

Overnight Rate: The interest rate set in the overnight market in which financial institutions lend each other money on an overnight basis. It is the lowest available interest rate and available only to the most creditworthy institutions. As the overnight rate is influenced by the central bank, it can be used as a good predictor for the movement of short-term interest rates for consumers in the broader economy. It is also a good indicator of the health of a country’s overall economy and banking system.

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