The Globe and Mail reports in its Saturday edition that the Bank of Canada's first rate hike in seven years was not enough to push the interest large banks pay on deposits higher. The Globe's James Bradshaw writes that while variable rates on some mortgages and loans immediately jumped a quarter percentage point higher, interest rates offered to customers on deposits in high-interest savings accounts have not budged. To some observers, the simple explanation is that banks are quicker to pass along rate hikes on products from which they earn money than on those that pay out interest to customers. However, the factors banks consider when calculating deposit rates are varied. And while there is some correlation to Bank of Canada rates, competitive dynamics and a bank's own financing needs weigh more heavily in the equation. Royal Bank of Canada's Catherine Hudon said the variables the bank considers include "competitive pressures, our cost of funds, regulatory costs and market volatility." The phenomenon isn't unique to Canada. The U.S. Federal Reserve has hiked its benchmark rate four times since December, 2015, but interest rates on deposits at American banks have mostly remained stubbornly low.