More Rate Increases :-) | Page 4 | Hubert Financial | Discussion forum

Winnie said

That is not correct.
You will lose $8.42, if you will redeem your $25,000 today (3 days, Sept 15 -Sept 17) and you will gain $9.37 for the next 90 days for a net gain of $0.95  

Hmm ...

I did 3-4 days at .15 (4.30-4.10) instead of 4.10. So, the real loss of those first few days is $25k*4.10%/100/365*3=$8.42 as you calculated.

But, for the next 90 days ...

On a 4.25% GIC: $25k*(4.10%)/100/365*90=$252.74
On a 4.40% GIC: $25k*(4.25%)/100/365*90=$261.99

So, my net gain in closing my $25k 4.25% GIC to replace it with a new one on the 19th at 4.40% is 261.99-252.74-8.42=-$0.83. A huge loss.

That's assuming that in 90 days I would collect the 1st quarter interest and renew into a new higher rate GIC.

But if I end up keeping it for the full year ...

On a 4.25% GIC: $25k*(4.25%)/100/=$1062.50
On a 4.40% GIC: $25k*(4.40%)/100/=$1100.00

In that case, converting that 4.25% to 4.40% on the 19th would be 1100.00-1062.52-8.42=$29.06.

About right?

If so, perhaps dinner for 2 without wine Chez McD ...

I'm new to Hubert. I guess I could wait until tomorrow, but for 4.40% for one-year GIC, are we thinking it'll be the following?:

The first three months: 4.25%
Months four to six: 4.35%
Months seven to nine: 4.45%
The last three months: 4.55%

When I bought my first GIC from Oaken in May (not a renewal), and asked about holding rates, they told me that all term deposits allowed a regulated 10 days to back out.

Mind you, I don't have a lot of confidence in Oaken's staff...check this:

http://www.canada.ca/en/financ......html#toc6

Your right to cancel an automatic renewal

A federally regulated financial institution may automatically reinvest your funds at the original investment’s end date. You can cancel this new investment within 10 business days of the start of the new term. If you’re in this situation, check the terms and conditions of your original agreement. You can also contact them for details on how to cancel the product.

Your right to information before renewal or rollover

Banks must disclose certain information about any renewal or rollover of a product or service they may provide to you.

If the product or service is for a term of more than 30 days, they’ll disclose the information:

21 days before the last day of the term, and
5 days before the last day of the term

RetirEd

Dean said
.
So once again, the Hubert CSRs are giving our forum members conflicting information (see Posts 33, 37 & 42).

Is Hubert's 2Yr Term Rate going Up or Down❓ And will we be given Prior notice, or will they just tell us when it's too late, on the day it happens❓

I tried to call Hubert today, but they're closed.

Dean

  

Shortly after the merger they went to Monday to Saturday phone support.

In my experience, Hubert rate changes go out late the day before. After 21:00 ON time ...

Dean said

cgouimet said

Shortly after the merger they went to Monday to Saturday phone support.

In my experience, Hubert rate changes go out late the day before. After 21:00 ON time ...  

Thanks Cgouimet ⬆

Unfortunately for us folks way out here in BC (Pacific Time),
that's virtually No notice at all.

Dean

  

6-8PM BC time vs 9-11PM ON time ...

GR said
New GIC rates I posted in post #42 were confirmed this morning by another CSR - effective Monday, Sept.19.

For existing clients who want a 2 yr. GIC at today's rate of 4.75% (before it drops to 4.40% on Monday), you should be able to do the following this weekend:

Log in to your account and select "create new account" at top of green box. Set up a new 2 yr. GIC at 4.75% and fund it within several days. I don't know how many days they allow.  

If anyone's wondering about that last line from GR's post, I had asked a rep about this a month or so ago and was told you have 2 days (48h) to fund your GIC after opening it, so anyone interested in taking advantage of the 2 year rate before it drops can open it today as long as they fund it within 48 hours of opening it.

I was also told that if someone has submitted a TFSA transfer form before a GIC rate drops, that person can get the pre-drop rate for those funds as long as they open a TFSA GIC before that rate goes down. Once the funds have been fully transferred my understanding is one would need to call Hubert for a rep to finish setting it up.

Just put some $ in to the one-year GICs. Thanks, GR, for the advance word. I didn't get my email until 9:36 AM ET today.