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A subsidiary of Meridian Credit Union, Motus Bank features a suite of financial products, including mortgages, personal loans, investment solutions, and savings and checking accounts. As a full-service digital bank, it will soon introduce banking services tailored to the needs of business customers. Motusbank is a Canadian federally chartered bank that opened doors in 2018 and is headquartered in Toronto, Ontario. It is also a member institution of the Canadian Deposit Insurance Corporation.

The idea behind the new bank is to offer customers across Canada the opportunity to access all services and products and to manage accounts online. In fact, virtually everything can be done by phone, mobile app, and online. The new bank is customer-oriented and offers checking and savings accounts with no monthly fees.

Meridian Credit Union

As Canada’s third largest credit union, Meridian offers personal and business financial products and online banking services. Individual customers are offered a selection of checking accounts, including U.S. dollar, senior, electronic, and limitless. Meridian also features youth, advantage, and high-interest savings accounts. There is an array of credit cards to choose from, with cash back, U.S., travel, and Visa benefits. Lines of credit, personal loans, and fixed and variable rate mortgages are also available. Travel insurance and mortgage protection are also offered as well as investment solutions such as registered retirement income funds and tax-free savings accounts. Business customers also benefit from a wealth of financial products, including business U.S. dollar checking and small business checking accounts. In addition to cashback credit cards, customers are offered business lines of credit, loans, and mortgages, and equipment financing and leasing. Meridian also features cash management and investment solutions and business planning assistance.

Competitors

Unlike financial institutions that have shareholders and pay profits, motusbank has members and the main goal is to offer personalized service, competitive rates and pricing, and the option to access all products online, including mortgages, investment solutions, lines of credit, and more.

Why Choose motusbank

This new full-service digital bank features a selection of investment, borrowing, and savings solutions with competitive rates. Given that Motus has no physical branches and associated overhead costs, customers enjoy affordable interest rates on mortgages and personal loans. Another benefit is the fact that decisions on applications for loans, mortgages, and other products are made quickly.

Personal Loans and Other Borrowing Solutions

Personal loans come with low interest rates that can be as low as 5.15 percent, and members can borrow up to $35,000. Secured lines of credit feature even lower interest rates (3.75 percent) to help customers secure financing for major purchases. It is quick and easy to apply, and customers only need to provide their social insurance number and information such as housing and family status and employment type. They are also asked about the amount required and the loan purpose, i.e. vacation, investment, home repairs, debt consolidation, or recreational vehicle, boat, or vehicle purchase. Motusbank also features fixed and variable rate mortgages with affordable interest rates that can be as low as 2.90 percent. 5-year fixed rate mortgages come with an interest rate of 3.09 percent. In comparison, Scotiabank offers an interest rate of 5.34 percent on the same type of mortgage, and the Bank of Montreal offers 3.54 percent. Secured home equity lines of credit also feature a low rate of just 3.75 percent. CIBC, for example, offers a rate of 3.95 percent on secured credit lines.

Savings and Checking Accounts

Motusbank also features a selection of checking and savings accounts, including RRSP, TFSA, and high interest savings accounts. Customers who choose to open high interest savings accounts can enjoy a rate of 2.25 percent. Savings accounts offer multiple benefits such as the option to make unlimited withdrawals and purchases, free-of-charge access to ATMs, no banking fees, no minimum balance requirements, and no monthly account charges. Motusbank also features checking accounts with no monthly fees, and customers enjoy unlimited Interac e-transfers. There are plenty of reasons to choose this type of account over products offered by other banks. The account has no minimum balance requirement and allows for unlimited bill payments and debit purchases. Another benefit is that every dollar earns 0.50 percent interest. Customers are free to make mobile check deposits and are offered 25 checks free of charge. Those who are travelling to the U.S. can access cash through the Cirrus or Accel ATM networks.

Investment Products

Motusbank also features investment solutions such as 5-year RRSP guaranteed investment certificates, 18-month TFSA GICs, and 18-month GICs. The 5-year RRSP GIC, for example, comes with a competitive interest rate of 3.25 percent, which makes it a good addition to a balanced investment portfolio. In comparison, CIBC offers non-redeemable 5-year RRSP GICs with an interest rate of 1.25 percent. Opening an account is quick and easy, and customers are asked to provide details such as personal information, term and length, and renewal option, i.e. reinvest in the same term or payout to the account. The bank features additional benefits such as tax free options, choice of non-registered and registered plans, and a low minimum investment of just $100. Terms vary from 1 month to 5 years.

Online Banking and Features

The online banking platform of motusbank offers convenient features to access and monitor investment accounts and view e-statements. Customers are free to download deposit forms and transactions and filter and sort accounts. Notifications, alerts, and secure messaging are also available. Depositing checks is also quick and easy and can be done from the customer’s phone. There is also an option to set up mobile alerts. The mobile app offers convenient features that allow customers to transfer money, make bill payments, and check account balances, including savings and checking accounts and tax free savings accounts. Mobile Bill Pay is a convenient feature that allows users to make bill payments and access more than 10,000 payees. The app can be used on Android and iOS devices.

The Money Mover service featured by motusbank offers customers the option to transfer large amounts of up to $10,000 daily and is free to use. Money is transferred within 3 business days. Users are also free to set up recurring and future transfers through the mobile app or online. Motusbank also features Interac payments to transfer amounts of up to $3,000 a day, and money is deposited immediately. Customers can make an unlimited number of transactions up to $10,000 a month.

The bank’s contact centre offers assistance to members and can be reached by dialing its international or toll free number. While the bank is fully digital, the fact that it is customer-centric means that the emphasis is on customer service. Motusbank also places an emphasis on safety and security, and all deposits are insured by the Canada Deposit Insurance Corporation.

Finally, the new bank also offers advice and practical information across a host of different topics related to borrowing, investing, and saving. The goal is to help customers learn more about dealing with debt, planning for retirement, preparing financially for a new child, and choosing the best investment solution. Other topics include home improvement loans, choosing between variable and fixed rate mortgages, down payments. The bank also features handy online tools such as mortgage prepayment calculator, savings calculator, retirement planning calculator, and loan and line of credit calculator. These online tools help customers figure out what size of mortgage to apply for, whether their monthly payments are affordable, and other important issues.

Experts warn that the Canadian dollar will remain weak over the coming months, with oil prices going down and revenues falling. Canada is one of the world’s largest oil producers, and lower oil prices certainly pressure the currency down. Another reason why the dollar is sinking further is the business unfriendly policies adopted by the liberal government. Truly, the government is committed to investing in waste water treatment, building bridges, repairing roads, and infrastructural improvements that will benefit engineering companies and the construction industry as a whole. At the same time, the government’s decision to run a deficit means a weak dollar, and experts warn that more debt also means larger interest payments and a weaker currency.

Making Money Trading USD/CAD

How to make money from Forex trading is a question that many investors ask post election and given the weakened external demand. The first thing to do is to learn more about Forex rates, current stock market trends, and how perceptions of government policies affect rates. If investors see the liberal party as spend-progressive, then they will be confident that the market is doing well. But this is just part of the puzzle. When it comes to currency trading, many believe that the loonie has further to weaken and fall due to falling gold prices and revenues of giants such as Kinross, Goldcorp, and Barrick. The economy of China, one of Canada’s trading partners, is also slowing down. As a commodity currency, the loonie has been affected by a combination of factors, among which risk sentiment, commodity prices going down, and China’s economy.

Investing in Assets and Currency Hedge Funds

Some Forex experts recommend buying into USD/CAD as long as most investors continue to sell. At the same time, a falling Canadian dollar, combined with low oil prices means that US assets increase in value if priced in CAD. The opposite is also true – US assets are worth less when the loonie is rising. Investors who are worried about the fact that the Canadian dollar will increase in value may want to look into currency hedge funds like iShares S&P 500 Index ETF CAD-Hedged. Others choose not to hedge and limit their US exposure to no more than 10 percent. Still others choose to invest in healthcare, technology, and consumer-oriented companies in the US and hedge their currency exposure. The goal is to reduce potential risk when investing abroad. Currency hedge funds promise significant payoffs and to this end, they follow market trends through computer algorithms. In some cases, currency hedge funds take bearish or bullish positions and report gains at a time when companies trading emerging-market assets report losses. In any case, the ultimate goal is to realize consistent returns. To this, currency hedge funds that focus on CAD to USD usually use advanced strategies and algorithms to follow the movements of currencies with significant trading volumes.

USD/CAD Trading and Other Instruments to Make Profits

Crude oil is an important factor that affects the Canadian dollar. The reason is that oil prices are denominated in USD. The fact is that there is a strong USD – CAD negative correlation and the same goes about the price of oil. This means that when oil prices go down, USD/CAD goes down and USD weakens. The opposite is also true – USD/CAD rises when oil prices go down and USD strengthens. If you think that oil is going to rally more than USD/CAD will go down, then you may want to purchase both. By the same logic, sell both if you think that USD/CAD is going to decline compared to oil. Another idea is to invest in options on the futures and spot markets. This is a low-risk type of investment.

When there is no clear up or down trend, one option is to rely on hit and run trading in the hope of making small profits. In this case, you may want to pay close attention to trends and look for a small pull back and a bullish trend. When you spot a reversal pattern, then it is time to buy. Such strategies could be useful when the situation on the Forex market is unclear. When there is uncertainty about the direction in which the market will go, some experts recommend using Nadex spreads and the Iron Condor strategy to trade options. Nadex spreads can be used in a flat or downwards market while an upwards market requires credit spreads. Note that when you use Nadex spreads, there are time limits as well as a ceiling or floor level. Investors who use the Iron Condor technique buy the lower spread and sell the upper in the hope of making significant profits.

motusbank – Meridian Credit Union Creates a New National Bank