SPECIAL SPONSORED CONTENT
By: Damon Knights, Senior Director, Deposit Services
Enhanced Deposit Protection Yields New Opportunity for Advisors
After the U.S. Federal Reserve recently cut its benchmark rates to near zero in response to the COVID-19 crisis, banks on both sides of the border correspondingly reduced their rates on U.S. dollar (USD) deposit accounts.
In light of this, many Financial Advisors have been left wondering: how can I shelter my clients from the volatility, and still earn a competitive return on their USD cash? The answer can be found in sweeping new changes to the CDIC Act.
Since April 30th, deposits held in foreign currencies have become eligible for Canada Deposit Insurance Corporation (CDIC) coverage. 1 This means that USD deposit accounts are now eligible for protection, subject to CDIC terms and conditions (for more detailed information, visit the CDIC website).
At Equitable Bank, we see this expanded coverage as a game changer for Canadians who have not really seen much in the way of competition for foreign currency deposit accounts in the past.
Our new Advisor Series U.S. HISA, which is available through Fundserv, promises to provide a new solution for Financial Advisors by offering a competitive yield, flexibility and safety on USD deposits.
Never Leave Cash Earning Zero: Equitable Bank’s U.S. HISA
With the Equitable Bank U.S. HISA, Financial Advisors can put clients’ USD to work with competitive A & F series funds for both individual and small business clients.
| Fund Codes | Personal | Commercial |
|---|---|---|
| A Series | EQB1100 | EQB1102 |
| F Series | EQB1101 | EQB1103 |
Add to this, Equitable’s U.S. HISA offers total flexibility, with no locked-in periods or maturity dates, and an unlimited number of transactions. Clients can grow their savings, and access their USD cash when it’s needed.
Client Suitability:
- Investors with idle USD cash to deploy
- Frequent business travellers
- Snowbirds with real estate or assets in the U.S.
- Business owners with U.S. customers and/or suppliers
Financial Advisors can access our U.S. HISA through investment dealers on the Fundserv network.
Learn more about Equitable Bank, and our new Advisor Series U.S. HISA.
For more effective tools and strategies to enrich your practice, or to find out whether the Equitable Bank U.S. HISA is right for your client, contact us at wealthsolutions@eqbank.ca
About Equitable Group Inc.
Equitable Group Inc. is a growing Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank. Equitable Bank, Canada’s Challenger BankTM, has grown to become the country’s ninth largest independent Schedule I bank through its proven branchless approach and customer service focus in providing residential lending, commercial lending and savings solutions to Canadians. EQ Bank, the digital banking platform launched in 2016 by Equitable Bank, provides state-of-the-art digital banking services. The EQ Bank Savings Plus Account reimagines banking by offering an everyday high interest rate plus the flexibility of a chequing account, with unlimited transactions, no everyday banking fees, no minimum balances, fast, cheap and fully transparent international money transfers and more—all from one account. Its Guaranteed Investment Certificates (GICs) also offer Canadians a wide range of options with competitive rates. EQ Bank continually challenges the status quo to bring better banking solutions to Canadians. To learn more, please visit eqbank.ca.
Email us to learn more about Equitable Bank’s diverse wealth solutions