What are Bank of Canada Rates? + MORE Apr 30th

There’s nothing quite as satisfying as paying off the last few dollars of a lingering credit card balance. But if your first inclination is to cut that debt-free card into a million pieces, think twice – cancelling a credit card isn’t as straightforward as it seems.
Closing off your credit card isn’t an isolated act; it can have repercussions on your credit score says Patricia White, executive director of Credit Counselling Canada.
“It can have a serious impact – I can’t really stress that enough,” she says. “I think it’s a key piece people don’t understand about credit scores and credit reports, there’s still lots of misinformation and misunderstanding out there.”
She points out there are plenty of reasons for cancelling a credit card – maybe you’ve got a couple on the go and want to lighten your plastic load or perhaps you found one with a lower interest rate that’s more in tune with your needs as a consumer.
Here are a few of the consequences that can come with cancelling your credit card…

Attention Canadian banking customers – you could find yourself paying higher fees to use your chequing and savings accounts. Each of the nation’s “Big Five” banks (Bank of Montreal, TD Canada Trust, Scotiabank, CIBC and Royal Bank of Canada) have hiked their banking fees, or are set to over the coming weeks.
The fee increases vary depending on the institution, but generally affect the following:

Monthly and annual fee increases for everyday banking products like chequing and savings accounts

Reductions to bank account rebates for special groups (children, students and seniors)

Increased fees for excessive transactions or services outside of a banking plan, such as debit transaction overages

Increases to minimum balances required to waive fees

CIBC, TD and Scotiabank customers have already been subjected to the changes. Bank of Montreal will implement their fee increases on May 1, followed by RBC on June 1.
The latter has incited particularly high levels of consumer disappointment; in addition to hiking fees, RBC has raised the eligible age for senior discounts to 65 from 60, and have implemented fees for those making loan payments – including mortgages…

You’ve probably noticed that several times a year business reporters get excited about a pending announcement from the Bank of Canada on its “overnight lending rate”. They do so because any change in that figure can impact the interest rate the country’s banks charge their customers for mortgages and other loans. Here’s what you need to know about how and why the Bank of Canada guides interest rate policy.
The Overnight Lending Rate
At eight pre-determined dates a year – always on a Wednesday, at 10 a.m. Eastern Time – the Governor of the Bank of Canada makes an announcement about the overnight lending rate. This rate is what the country’s banks charge each other on funds they’re transferring between each other. But, more significantly, it’s what they use to base their “Prime lending rate” on. The prime lending rate is the figure that mortgages, lines of credit, and car loans are based on. (Mortgages are typically offered at a discounted percentage below the Prime rate while car and line of credit loans are charge a premium, “Prime plus” a certain percentage…

You’ve probably noticed that several times a year business reporters get excited about a pending announcement from the Bank of Canada on its “overnight lending rate”. They do so because any change in that figure can impact the interest rate the country’s banks charge their customers for mortgages and other loans. Here’s what you need to know about how and why the Bank of Canada guides interest rate policy.
The Overnight Lending Rate
At eight pre-determined dates a year – always on a Wednesday, at 10 a.m. Eastern Time – the Governor of the Bank of Canada makes an announcement about the overnight lending rate. This rate is what the country’s banks charge each other on funds they’re transferring between each other. But, more significantly, it’s what they use to base their “Prime lending rate” on. The prime lending rate is the figure that mortgages, lines of credit, and car loans are based on. (Mortgages are typically offered at a discounted percentage below the Prime rate while car and line of credit loans are charge a premium, “Prime plus” a certain percentage…

Attention Canadian banking customers – you could find yourself paying higher fees to use your chequing and savings accounts. Each of the nation’s “Big Five” banks (Bank of Montreal, TD Canada Trust, Scotiabank, CIBC and Royal Bank of Canada) have hiked their banking fees, or are set to over the coming weeks.
The fee increases vary depending on the institution, but generally affect the following:

Monthly and annual fee increases for everyday banking products like chequing and savings accounts

Reductions to bank account rebates for special groups (children, students and seniors)

Increased fees for excessive transactions or services outside of a banking plan, such as debit transaction overages

Increases to minimum balances required to waive fees

CIBC, TD and Scotiabank customers have already been subjected to the changes. Bank of Montreal will implement their fee increases on May 1, followed by RBC on June 1.
The latter has incited particularly high levels of consumer disappointment; in addition to hiking fees, RBC has raised the eligible age for senior discounts to 65 from 60, and have implemented fees for those making loan payments – including mortgages…