RBC Bank Interest Rate Changes 2024 – A government financial services bank, the Royal Bank of Canada provides its citizens various banking services. With over 100,000 people globally, RBC is Canada’s most prominent financial services corporation, having covered the market capitalization. Currently, the RBC bank offers a prime rate of 7.2, which determines the interest rate on variable loans and credits. Keep reading this page to learn more about RBC Bank Interest Rate Changes 2024, the new prime rates, and other subjects.
RBC Bank Interest Rate Changes 2024:
According to Dave McKay, CEO of the Royal Bank of Canada, interest rate reductions are expected to be significant in 2024. In its third and fourth quarter economic projection, RBC has taken a 50 basis point decrease. Interest rate adjustments have been implemented, starting with 4% overnight rates. In the second half of 2024, lower rates are anticipated, as they have been lowered from coast to coast.
The higher current neutral level of 2% affects the interest rate of RBC Bank, and this keeps RBC accountable for meeting its overnight rate objective of 5%. The Royal Bank of Canada lowered interest rates to get overnight rates down by the end of 2024 due to inflation. The prime rate is the primary factor when determining interest rates for variable loans and mortgage lines.
New Prime Rates 2024 VS 2023:
Most Canadian banking institutions publish rates similar to the current RBC rate of 7.2%. In reaction to the Bank of Canada’s interest rate policy, RBC Bank Interest Rate modifies its prime rates. The primary prime rates, often altered by the same amount, have been raised or cut by the federal BOC.
The Royal Bank of Canada has had many exceptions when the BOC cut rates have been completely implemented. The new prime rates are subject to alter at any time, and most banks have the autonomy to do so. However, most banks frequently produce identical cells that are changeable with the federal mortgage interest rate offered by RBC Bank.
There won’t be any changes to RBC Bank interest rates in 2023 or 2024. The prime rate of 7.20% is still in effect. However, there will be some adjustments in the prime rates in the third and fourth quarters of the year. These rates are anticipated to decline by 0.25% by June 2024 and 0.75% by December 2024. Nonetheless, the Federal Bank of Canada’s policy, which is heavily influenced by the same total BOC overnight growth rate, provides the foundation for the prime rate.
Expectations for New Prime Rate 2025:
By the end of the year, RBC Bank Interest Rate Changes for 2025 are anticipated to reach 4.7%. The prime rate, often known as the prime lending rate, is the annual interest rate that most financial institutions in Canada charge. The Bank of Canada’s overnight rate, which determines the fees associated with lending and borrowing in the overnight market, constantly affects prime rates.
By the end of the year, the overnight rate will be reduced by 150 essential points to 3.5% as of February 2024. In addition, there will be a further 125 essential point drop in 2025, shown as 2.25%, so that the rates will be 5.7% and 4.45%, respectively. It is anticipated that the new, lower prime rate will be implemented beginning in the middle of 2024 and continuing until 2025.
Before lowering rates, the BOC wants inflation to reach its objective. According to the data, the annual inflation rate would drop to 2.90%, less than economists predicted. By the end of the following year, the RBC Bank Interest Rate Changes are anticipated to decrease by 100 basis points to 4%.
RBC GIC Rates:
For a predetermined amount of time, GIC provides a guaranteed rate of return. Numerous banks offer their clients various GIC options with varying interest rates. GIC has a lower rate of return, but because it has fewer risks, it is preferred by many. The length of the period and interest rates affect the rate of return.
Three distinct types of GICs are available from RBC Bank, each with a unique duration and set of perks. Over time, the GIC Rates may fluctuate. Customers may visit their local RBC Bank store or shop online to select the GIC that best suits their needs.
What are the GIC rates at RBC?
Citizens can currently take advantage of exceptional GIC rates offered by RBC Bank. These rates, however, are only available to qualified individuals and for a certain amount of time. The unique GIC rates are subject to abrupt changes over time.
Check the Special RBC GIC Rates –
| Type of GIC | Term | Special Rate | Posted Rate |
| Cashable GIC | 1 Year | 3% | 2.25% |
| Non-Redeemable GIC | 1 Year | 5.35% | 4.05% |
| Non-Redeemable GIC | 2 Year | 5.30% | 4.25% |
| Non-Redeemable GIC | 5 Year | 5% | 3.95% |
Interest Rates for Margin and Cash:
- Debit balances in cash: 21% of total balances.
- Margin Balances (Debit): There is an 8.75% fee if the margin exceeds $25,000. There is an 8.75% rate if the margin is $24,999 or less. (These rates apply to non-registered investment accounts.)
Mortgage Rates:
Fixed and Variable Closed:
| Term | Special Offer | APR |
| Fixed – 2 Year | 7.090% | 7.150% |
| Fixed – 5 Year | 6.490% | 6.520% |
| Variable – 5 Year | 7.150% | 7.180% |
High Ratio Mortgages:
| Term | Special Offer | APR |
| Fixed – 5 Year (High Ratio) | 5.890% | 5.920% |
| Variable – 5 Year (High Ratio) | 6.950% | 6.980% |
Savings Account:
RBC High-Interest eSavings:
| Balance | Interest Rate |
| All balances | 1.7% |
RBC Enhanced Savings:
| Balance | Interest Rate (%) |
| 250,000 dollars or more | 0.010 P |
| between 150,000 dollars and 249,999.99 dollars | 0.010 P |
| between 100,000 dollars and 149,999.99 dollars | 0.010 P |
| between 60,000 dollars and 99,999.99 dollars | 0.010 P |
| between 25,000 dollars and 59,999.99 dollars | 0.010 |
| between 10,000 dollars and 24,999.99 dollars | 0.005 |
| between 5,000 dollars and 9,999.99 dollars | 0.001 |
RBC Day-to-Day Savings:
| Balance | Interest Rate (%) |
| 5,000 dollars or more | 0.010 P |
| between 3,000 dollars and 4,999.99 dollars | 0.010 P |
| between 1,000 dollars and 2,999.99 dollars | 0.010 |
| below 999.99 dollars | 0.005 |