Swamped EQ Bank puts weekly limits on how many can sign up for high-interest savings account

Equitable Bank, which heavily promoted a high-interest checking account for a price of three per cent and was promptly swamped with increased customers than it could handle, has now set limits on how many people can subscribe to the brand new account every week.

“We are slowing down new account openings to ensure that we can handle the volume with the great service that people wish to deliver,” Andrew Moor, Equitable’s chief executive said within an email. 

“We are not sure just how long this method will stay essentially, but it’s really going to be judged by our ability to resolve any service issues and equipment up our operations to handle higher volumes effectively.”

Related

Equitable bank struggling to keep up with demand for high-interest savings accountEquitable's three per cent savings account: here's how they do it

A note was posted towards the company’s website over the weekend advising applicants for the high-interest rate account to fill out a web-based form to reserve an area on a single from the weekly lists to spread out a merchant account.

“We underestimated the response from Canadians, which led to long customer support wait times and delays in account activations,” the website note reads.

Unlike high-interest savings accounts offered by other financial services firms, Equitable’s EQ Bank checking account wasn’t marketed as carrying a promotional or introductory rate.

The rate, first offered in January, was higher than what was being offered traditional banks and even high-interest competitors for example Bank of Nova Scotia-owned Tangerine (formerly ING Direct) and President’s Choice Financial, some pot venture between Loblaw Cos. Ltd. and Canadian Imperial Bank of Commerce.

The eye-popping rate, coupled with an advertising and marketing campaign targeted at grabbing attention for the new online bank within the competitive marketplace, resulted in a flurry of sign-up activity. It was quickly followed by customer complaints that they are not able to open accounts on time.

The note posted to the company’s website around the weekend says the internet bank will be bringing on more customer support staff over the next few weeks, as well as improving sign-up processes.