Manulife One Rates: Everything You Need to Know

Posted on March 24, 2021

Have you struggled to pay off debt? Do you feel like your money is everywhere? Consider Manulife One rates and setting up a Manulife One account.

You can use the account for your mortgage and other debt, and you can save money and pay for daily expenses. Then, you don't have to manage multiple accounts for your regular life.

Read on to learn about the Manulife One account.

What Is Manulife One?

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Manulife One is a bank account from Manulife that you can use for your everyday expenses. However, you can also use it to pay off your mortgage or other forms of debt.

You can combine all of your money into one chequing account, and it can give you access to your home equity. Then, you can use that account to pay for all of your expenses.

That way, you can increase the balance of your account, which can help reduce your debt.

What It's For

You can use Manulife One for many things, but the most common use is to pay down your mortgage. By combining all of your finances in one account, you can use that money to lower the amount you'll have to pay in interest.

That way, you can eliminate your debt sooner, and achieve financial freedom. If you don't have a mortgage or much debt, you can also use Manulife One to help save for emergencies or other short-term goals.

You can also use Manulife One to reduce your borrowing costs. Whether you have a credit card balance or a new mortgage, the account can help you focus on your finances.

Manulife One Features

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When considering Manulife One rates, you should know more about the account's features. Whether you're single and have student loans or you're married and want to buy a house.

Unlimited Banking

You don't have to worry about using multiple accounts to handle all of your finances. The unlimited banking feature includes:

  • Direct deposit of Canadian funds
  • Interac e-transfers
  • Mobile banking
  • Online banking
  • Telephone banking
  • Bill payments
  • Cheque writing
  • Debit card purchases

If you don't know how much money you'll need for your expenses, you can combine them with the funds for your mortgage. That way, you can pay for everything you need, but you don't have to put off mortgage payments.

Unlimited banking also provides cash back at certain retailers. Then, you can use the extra money on your mortgage to lower your debt even more.

Interest Savings

Another way the Manulife One account can help is by saving money on interest. If you keep your savings in a separate account, you may earn a bit of interest on that.

However, most savings interest rates are lower than debt interest rates. The money you keep in another account won't earn enough to offset your debt.

But if you can combine your savings with your chequing account, you can use the extra funds to lower your interest. You can also lower the amount you owe by depositing your pay cheque into the account.

Fixed-Rate Terms

Another benefit of a Manulife One mortgage is that you can get a fixed interest rate. Fixed interest rates don't change over time like variable interest rates do.

Now, this can be a blessing and a curse because you never know if interest rates will increase or decrease in the future. However, a fixed interest rate can make your debt payments more predictable.

You can lock in a fixed interest rate for a year with Manulife One. Then, you can budget for it along with your other expenses, so you won't have any surprises.

Manulife One Rates

Before you decide to set up and use a Manulife One account, you should consider Manulife One rates. Whether you want to use the account for a mortgage or to simplify your banking, knowing the rates can help you determine if the account is worth it.

As with other mortgages, Manulife One uses the daily closing balance to calculate your interest. The account pays interest each month, and variable rates can change at any time.

If you have a negative balance, the account will only calculate the rate each month, rather than each day. Consider the rates available when using Manulife One.

Base Rate

The base rate for a Manulife One mortgage is 3.05%. It's a bit higher than the Manulife Bank Prime rate, which is 2.45% and could change any time.

However, the base rate can change as well. Be sure to check the Manulife website when signing up to learn the most up-to-date information.

You'll need to pay the base rate on your mortgage or other debt that you put on your credit line with Manulife One. While it's not too high of a rate, it doesn't account for other rates you have to cover.

Positive Balances

If you have a positive balance in your Manulife One account, you will earn interest. The interest rate in this scenario is 0.15%, and the account will compound the interest each month instead of in advance.

Having a positive balance isn't a big deal, but the earnings can add up. That's why putting as much money into your Manulife One account can help you lower your debt.

When you have more than enough money in the account, you can use the extra to cover the interest that you owe on your debts.

Variable Rate Sub-Account Terms

Along with your base rate, you can get a variable sub-account rate. If you want to commit to a 5-year open rate, it will be the same as the base rate at the time.

As of now, that rate is 3.05%, but it can always change. And with mortgage debt on the rise in Canada, you should consider if a variable rate is worth it for the next few years.

It's a great option if you think interest rates may go down because you'll be able to save more money. However, be prepared for interest to increase, so make sure you keep enough money in your account to compensate.

Fixed-Rate Sub-Account Terms

If you don't want the volatility of variable rates, you can get a fixed Manulife One interest rate. While these interest rates can change over time, you can lock in the interest rate that exists at the start of your term.

You can choose from terms as short as 6 months or as long as 10 years. Most of these rates are closed, but you can get a 1-year open sub-account with an interest rate of 3.45%. Here are the rest of the interest rates for closed terms.

  • Six months: 4.45%
  • One year: 2.99%
  • Two years: 2.69%
  • Three years: 2.49%
  • Four years: 2.49%
  • Five years: 2.39%
  • Seven years: 4.54%
  • Ten years: 4.64%

For all of these fixed rates, the interest will apply semi-annually instead of in advance. Consider how long you want to commit to rate or if there's a rate that you want to get. Then, you can choose the right sub-account for you.

Manulife One Fees

Along with Manulife One rates, you should consider the account fees. In some cases, the fees can still save you money on your debt. However, the fees may not be worth it if you don't have much mortgage debt or other debt remaining.

Consider a few fees and costs that come with the Manulife One account.

Unlimited Daily Banking

Manulife One charges $16.95 per month for Unlimited Daily Banking. If you're 60 or over, you can get a discount of $9.95 per month.

However, you can waive the banking fee if you keep a positive balance of at least $5,000 in the account. If you have a lot of debt to pay off, keeping a higher balance can help you save money on the fee and interest.

Additional Costs

While Unlimited Daily Banking includes a lot of features, there are some things that will cost extra. For example, using your debit card outside of Canada will cost $1 per transaction.

Using an ATM outside of Canada will cost $3, and using an out-of-network ATM within Canada has a charge of $1.50. Receiving a wire transfer costs $15, while sending one costs $30 to $65, depending on the amount.

You'll also need to pay if you need Manulife to search your account for transactions, make a stop payment, or give you a duplicate monthly statement. These fees vary from $5 to $50.

Cost to Borrow

When borrowing money, you will also have to pay for interest and the principal. You will have to pay any interest from your original lender. Manulife will charge interest on your account with them, but you can choose between first and second position.

If you have Manulife One in second position, you will have to pay more in interest, and you won't have a higher borrowing limit.

Benefits of a Manulife One Account

Despite the Manulife One rates and the fees, the account can be beneficial. You can use it whether you earn a lot of money or not. And if you don't have debt now but will soon, it can also help.

Consider a few advantages of using a Manulife One account over another bank account or mortgage loan. Then, you can decide if you should consolidate your debt and other finances.

Pay Off Debt Faster

One of the most significant benefits of Manulife One is that you can pay off your debt in less time. You can put all of your extra money toward your debt to lower the amount you'll pay in interest.

Not only can that shorten the time to pay off debt, but it can make paying off your debt easier. You won't have to worry about transferring the right amount of money toward your debt.

If you don't have much income or your income varies, this can be a great option. That way, you don't have to take on more debt or worry about overdrawing your account.

Save Money

By paying off your debt in less time, you can also save money in the long run. It may not seem that way as you first combine everything in one account.

And combining your finances can make it harder to tell what money you want to save and what you can spend. Luckily, the account lets you set up sub-accounts to keep track of different things.

You can save as much or as little money as you want in the Manulife One account. It's a great flexible option, and it's perfect for emergency savings as well as other savings goals.

Make Banking Easier

If you aren't the best at banking, you may find the Manulife One account useful. You don't have to remember different accounts, and you don't have to worry about transferring money to pay for bills or set aside savings.

Instead, you can access all of your funds in one place and use the money as necessary. While this can be hard if you aren't good at saving money, it can save you a lot of time.

You can use the various Unlimited Daily Banking features to pay bills or shop online or in stores. And if you do want to separate your finances, you can set up sub-accounts to keep track of everything.

Customize Your Banking

If you have different types of debt you want to pay off, you can customize your account to meet those needs. When you set up a sub-account, it will have its own payment schedule. You can choose between fixed or variable interest rates as well as open or closed terms.

Then, you can make sure you can pay off each debt by a specific date so that you can reach your financial goals. You can create as many sub-accounts as you want.

Understanding Manulife One Rates

Whether you just bought your first home or are looking to invest in a larger property, you should consider Manulife One. The account can help you pay your mortgage and other debts, and you can save money in the process.

Do you want to learn more about mortgages? Visit Insurdinary to compare the best rates.

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