‘Price matters’: New online bank Motusbank hopes to attract cost-conscious customers

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‘Price matters’: New online bank Motusbank hopes to attract cost-conscious customers GlobeMoney

The flat yield curve everyone in finance is talking about these days is a gift to Canada’s newest online bank.

Here’s the problem: Banks are used to paying a modest rate to depositors and then lending that money out at a higher rate. A flat or inverted yield curve makes it harder to do this because savings-account rates are guided by short-term interest rates and lending is done at longer-term rates. Motusbank’s fee for chequing accounts is zero, and that includes unlimited debits, including e-transfers, and an interest rate of 0.5 per cent . On savings, the bank will pay a rate of 2.25 per cent on regular accounts and 2.5 per cent on tax-free savings accounts.

These players have for years offered no-fee chequing and comparatively high rates on savings, but they haven’t yet made a noticeable dent in the market share of the big banks. Mr. Maurin said Motusbank has an advantage in launching at a time when Canadians are more comfortable than they ever have been with digital banking by phone or computer .

 

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globemoney Is this tweet paid for?

globemoney motusbank Always exciting to see new banks join the fray. But what do you have that EQ and Simpli don't? Btw multiple banks are offering promos between 3-3.15% for HISA.

globemoney What major bank own this company.

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