Canadian Personal Finance Blog

Personal Finances and Consumer Concerns, essays, stories, examples and how to articles with a distinctly Canadian Point of View
October 22nd, 2008

TD Rate Down 0.15%

That is the epilogue to the Bank of Canada rates dropping by 0.25% yesterday, so TD again shaves 0.1% more for their pockets, which I guess is to be expected now. The only way that TD might give back that 0.1% is if they find they are losing income from people with loans or lines of Credit taking these vehicles to other banking institutions (any suggestions can be added in my comments, I will investigate and report on them).

It’s interesting that TD announced their “prime” to be 4.00% however, their “prime to customers with allegedly prime lines of credit” is 4.35%? Interesting, and very annoying. Maybe they’ll change things today, we shall see, I guess.

Bad Day on the Markets

The Canadian Dollar dropped in reaction to the Bank of Canada Rate drop, which is good and bad for Canadians.

  • Good because companies that export now have a much cheaper labor force and thus the price of their products in the U.S. should be cheaper. This is a good thing, and was one of the HUGE issues with a very high Canadian Dollar.
  • Bad if you import or buy lots of stuff (like stocks) from the U.S.
I am a believer in a lower Canadian dollar, because I have seen jobs move away from Canada simply because of the cost of Canadian workers.
Stocks also took another pummeling, with uncertainty being the continuing theme. I think everyone is looking for some “good news” and there is some from company’s quarterly statements, but it is getting lost in the deluge of “doom and gloom” statements from the “Liberal Media” (sorry I couldn’t resist).

Post Number 1000

Remember a while back I celebrated with My 1000th Post well the Canadian Capitalist is also celebrating that same milestone (and he is giving a way free stuff too). Go have a look!
More on this topic (What's this?)
Toronto-Dominion Bank (TD) Dividend Stock Analysis (Dividend Growth Investor, 9/25/09)
Be “Dumb and Rich with TD Circ 570’s” (Stock Gumshoe, 12/16/08)
CDN Banks Still Raising Dividends (The DIV-Net, 9/10/08)
The Teflon Maple Leaf: TD Securities (GreenLightAdvisor Views, 10/31/08)
Read more on Toronto-Dominion Bank at Wikinvest

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Posted in Bank, Bank Rates, Bank of Canada, Canadian, Dollar, Inflation, Interest Rates |

This entry was posted on Wednesday, October 22nd, 2008 at 5:40 AM and is filed under Bank, Bank Rates, Bank of Canada, Canadian, Dollar, Inflation, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “TD Rate Down 0.15%”

  1. Canadian Capitalist Says:
    October 22nd, 2008 at 11:26 AM

    Thanks for the plug! Can’t believe we’ve written 1,000 posts. That’s a lot of words :)

  2. maggie Says:
    October 29th, 2008 at 6:26 PM

    Another fascinating article, thankyou. I will be using it in my coursework and also referencing http://www.thefinanceowl.com/ analysis. Please keep up the great work.
    Maggie

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