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4.00% 33-month Convertible GIC offer
February 13, 2018
10:33 am
Bill
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Their member T&C seem to indicate no need to reside in BC:

"This agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable in British Columbia, irrespective of where you live or where you when you are located when you apply for membership."

But elsewhere their site says "Who can open an account? We’re happy you’re interested in opening an account at Coast Capital Savings. Anyone living in British Columbia can apply for a membership."

February 13, 2018
10:57 am
Top It Up
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AND I was told you have to have a Coast Capital membership to open an account.

February 13, 2018
11:39 am
James
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Brimleychen said
That's weird.

I just finished a phone conversation from Coast Capital. She confirmed that Ontarion can open the account and also get 4% for the promotion of 33 months..

Does anyone have the terms and conditions for the promotion? I still hesitate to open the account.

----
As per out telephone discussion earlier, please find the link for joining Coast Capital Savings below:

https://www.coastcapitalsavings.com/Campaigns/2017/DigitalMembershipOpening/

....  

If you follow the link, the first page asks you to confirm that you live or work in BC and if you say no, it doesn't let you proceed with the application. I just called and asked multiple questions and it appears there isn't a way to open the term deposit unless you (or your spouse) live, have a physical business address, or are purchasing a physical property in BC. Working (or even living) part time in BC does not count apparently if you don't live there full time (as your primary address). She said they will look at the address listed on your identification. It doesn't matter if you meet them in person and they will ask you for documents supporting your business or purchase contract for the property (according to the rep with whom I just talked).

If anyone proves the above wrong, or has any other ideas, please let me know as I'd like to take advantage of the offer. I'm going to try some brokers and see what they say. I'm not sure why I can open accounts in Manitoba and other provinces in the country but just not in BC - especially when they are expanding nationally in any case. That doesn't seem logical to me.

February 13, 2018
12:38 pm
JenE
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I had a call a short time ago from Coast Capital and was told they could confirm I’d held a GIC with them in the past and so could hold a regular term GIC with them but NOT the 4% convertible GIC. Go figure......

February 13, 2018
12:52 pm
GR
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As per telecon with Coast Capital customer service rep:
Resident of Ontario can apply to become a member on-line and buy the 33 month term deposit special, but I did not attempt the application form.
Interest on this product is compounded annually, so interest can not be paid out to the client before maturity.
They do not have electronic funds transfers, so they can mail client a cheque/draft at maturity of the term deposit, with a service charge of $10.

February 13, 2018
1:01 pm
Top It Up
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If you go to THIS link on Coast Capital's website you will quickly fail the residency test

https://open.coastcapitalsavings.com/en/home/index

Which leads to THIS link

https://open.coastcapitalsavings.com/en/Person/PreQualification/1

Things we need to ask

All fields required

Do you reside in BC?

Yes

No X

Do you meet any of the following criteria? Please select a single option.

I work in BC

I own or am acquiring property in BC

I am a spouse, parent or child of someone who resides, works, owns or is acquiring property in BC

None of the options apply to me X

Due to provincial regulations, you need to have ties to BC to open an account with Coast Capital Savings.

February 13, 2018
1:20 pm
Doug
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Loonie said
i understand what you're saying about Meridian. I had been thinking mostly about their intention to also go national. Not sure where that is at right now.
Meridian's projected niche seems to be mass market we'll-give-you-a-better-deal-than-BigFive rather than top of the heap rates.

Are you positive this is not available to non-residents of BC? I don't see anything about residency on their website app section. Somewhere, I read "wherever you live" or words to that effect, implying anywhere. But perhaps there is an overall restriction in BC which applies to all of them.

It's too bad the CUs have to lose their unlimited provincial insurance when they go national. I suppose this is some gov't regulation, but why can't the national CU organization set something up? CDIC limits are out of date IMO, and I see no good reason for them - unless it's true that CUs are better managed than banks.

Great deal for those in BC! I doubt they will have this offer when they roll out nationally, but there could be some kind of "opening special"!  

The promo itself does not restrict non-residents of B.C. in the sense that if you already have an existing Coast membership, you're eligible. However, if you don't currently have a membership, you can't create one due to B.C. credit union regulations prohibiting sign-ups by non-B.C. residents. B.C. and Alberta have regulations in effect that require provincial residency. Saskatchewan doesn't explicitly prohibit it but, as a matter of practice, only its Innovation Credit Union allows out of province residents to sign up - and they're to go national sometime next year.

As for Meridian, theirs is likely taking longer because they're going the "old fashioned route" of incorporating a chartered bank subsidiary. I wonder if they're re-thinking that, perhaps? Sure, DICO has higher deposit insurance coverage limits that might want to retain but it's not unlimited. Moreover, Coast is forgoing B.C.'s unlimited deposit insurance coverage. Meridian may also be getting "push" from OSFI to go with the federal credit union conversion route, too.

As for customer targeting, Coast targets mass customers, too, just like Meridian but I think the difference is in their funding model (i.e., Coast relies on deposits more than Meridian hence the higher rates).

Cheers,
Doug

February 13, 2018
1:23 pm
Doug
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Loonie said
i understand what you're saying about Meridian. I had been thinking mostly about their intention to also go national. Not sure where that is at right now.
Meridian's projected niche seems to be mass market we'll-give-you-a-better-deal-than-BigFive rather than top of the heap rates.

Are you positive this is not available to non-residents of BC? I don't see anything about residency on their website app section. Somewhere, I read "wherever you live" or words to that effect, implying anywhere. But perhaps there is an overall restriction in BC which applies to all of them.

It's too bad the CUs have to lose their unlimited provincial insurance when they go national. I suppose this is some gov't regulation, but why can't the national CU organization set something up? CDIC limits are out of date IMO, and I see no good reason for them - unless it's true that CUs are better managed than banks.

Great deal for those in BC! I doubt they will have this offer when they roll out nationally, but there could be some kind of "opening special"!  

Missed the last part. Well, under the national legislation, they have to use CDIC for deposit insurance. OSFI and the Minister of Finance are the primary regulators that establish them but then CDIC serves as a sort of secondary regulator and deposit insurance issuer. I agree that the $100,000 limit is meaningless. I would go so far as to say deposit insurance itself is meaningless for well capitalized, large FIs - it's useful for smaller banks and credit unions for sure.

I think they will have some sort of "new member" or "we've gone national" promo special, whether it be a HISA promo rate, lucrative GIC promos, etc.

Cheers,
Doug

February 13, 2018
1:26 pm
Doug
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Top It Up said
Just spoke with Coast Capital - the woman said you don't need to be a B.C resident BUT you need a B.C. address to open an account ... DUH!  

That's the provincial residency requirement. It's probably open to existing Coast members who live in Ontario but not to non-B.C. residents who aren't yet members. I'd be curious to know who JenE's financial advisor is (i.e., from Coast or other FI). If other FI, it's likely because it's not a broker GIC promo.

Cheers,
Doug

February 13, 2018
1:28 pm
Doug
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Brimleychen said
That's weird.

I just finished a phone conversation from Coast Capital. She confirmed that Ontarion can open the account and also get 4% for the promotion of 33 months..

Does anyone have the terms and conditions for the promotion? I still hesitate to open the account.

----
As per out telephone discussion earlier, please find the link for joining Coast Capital Savings below:

https://www.coastcapitalsavings.com/Campaigns/2017/DigitalMembershipOpening/

....  

You were given misinformation by the Coast rep, unfortunately. Or, equally likely, you misunderstood. Yes, they allow digital account openings, as I mentioned above, but you still need a B.C. residential address if you're not an existing Coast member. You could, potentially, use your B.C. family member's address, which will also report on your credit report so be mindful of that, and then update it after a couple months or whatever to your Ontario address. However, this "mismatch" may cause a "red flag" and require a branch visit. I'm not too sure.

Cheers,
Doug

February 13, 2018
1:30 pm
Doug
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Bill said
Their member T&C seem to indicate no need to reside in BC:

"This agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable in British Columbia, irrespective of where you live or where you when you are located when you apply for membership."

But elsewhere their site says "Who can open an account? We’re happy you’re interested in opening an account at Coast Capital Savings. Anyone living in British Columbia can apply for a membership."  

Exactly. This is proof positive why it is not helpful, often, to rely exclusively on the legalese. You can reside elsewhere in Canada and be a Coast member, currently, but to open a new membership, B.C. residency is required. 🙂

Cheers,
Doug

February 13, 2018
1:31 pm
Doug
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Top It Up said
AND I was told you have to have a Coast Capital membership to open an account.  

Of course you would. A membership is essential to hold any products with any provincial or federal credit union, even if some credit unions will pay your membership share for you when you join. 🙂

Cheers,
Doug

February 13, 2018
1:36 pm
Doug
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James said
If anyone proves the above wrong, or has any other ideas, please let me know as I'd like to take advantage of the offer. I'm going to try some brokers and see what they say. I'm not sure why I can open accounts in Manitoba and other provinces in the country but just not in BC - especially when they are expanding nationally in any case. That doesn't seem logical to me.  

I suspect it's not a broker GIC offer, so that's out. Their hands are tied vis-a-vis B.C. residency for new members. It's a B.C. Financial Institutions Commission rule and provincial regulation. B.C. and Alberta prohibit new members from joining who don't maintain residency in those provinces. Saskatchewan doesn't specifically prohibit it but most Saskatchewan credit unions don't allow it or they require a branch visit to finalize the new membership opening. Innovation Credit Union allows out of province membership sign-ups online but they're set to be Canada's 3rd national credit union, sometime in 2019.

You could probably use a family member's address as your residential and mailing addresses for a few months using Coast's new digital account opening tool but that may cause a mismatch based on your current credit file and put it through to a Contact Centre agent for further review, who would likely have to decline the membership opening.

Existing Coast members living elsewhere would likely be eligible for this promo, though.

Cheers,
Doug

February 13, 2018
1:39 pm
Doug
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JenE said
I had a call a short time ago from Coast Capital and was told they could confirm I’d held a GIC with them in the past and so could hold a regular term GIC with them but NOT the 4% convertible GIC. Go figure......  

That's because that would be a new product opening and, if all you hold with them is a membership equity share, it might be treated as something they can't technically solicit out of province business for. Or, they made a manual decision as, like I mentioned, this is on "net new money" and they have wide latitude here. You could try opening a chequing or savings account and if they say "no" to that, then you have your answer: they're barred from taking your business due to provincial rules. 🙂

Cheers,
Doug

February 13, 2018
1:40 pm
Doug
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GR said
As per telecon with Coast Capital customer service rep:
Resident of Ontario can apply to become a member on-line and buy the 33 month term deposit special, but I did not attempt the application form.
Interest on this product is compounded annually, so interest can not be paid out to the client before maturity.
They do not have electronic funds transfers, so they can mail client a cheque/draft at maturity of the term deposit, with a service charge of $10.  

Or you could have it paid to your Coast savings account and link that account to your external account, like I do, and make the transfer exclusive of Coast, but they can't suggest that nor do most FIs. 🙂

Cheers,
Doug

February 13, 2018
4:56 pm
Loonie
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OK. It seems that we've established that this won't be available to non-BC.

With rates jumping ahead all over the place, we can hope to see something comparable elsewhere in due course - perhaps.sf-smile

February 13, 2018
8:36 pm
Joe
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Top It Up said
AND I was told you have to have a Coast Capital membership to open an account.  

Wow...how long did that phone call take....sounds to me like you've become a rate chaser....welcome to the game.

February 13, 2018
8:43 pm
christinad
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Whats nice about the 33 month term is if i calculated correctly the tfsa gic would mature before dec 31st so you can transfer the money out of the tfsa and put the money somewhere else the next year. According to the fine print the offer is available to March 20th.

February 13, 2018
11:45 pm
Doug
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Yep, you're correct on that, christina. They actually have to manually calculate the number of months when they set it up. 🙂

Loonie, yeah, no non-B.C. residents yet. I see Hubert and Implicity have some 3.25% 4- or 5-year GICs so that gets you pretty close. 🙂

I haven't had a 4%+ rate since I did a 24-month debt consolidation loan for my sister more than 5 years go when I charged her 5%. I don't think that was gouging, do you? It was unsecured and it was better than the 19.99% she was paying and it got her into using debt responsibly because knowing she had to make regular payments really helped. With the "bank of Mom and Dad," she always knows she could just get them to overlook a payment. sf-cool

Cheers,
Doug

February 14, 2018
10:29 am
James
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Just reporting back that I have had no luck with brokers when it comes to setting up this term deposit from another province. I've had 3 different brokers assure me that it wouldn't be a problem and I had an appointment with 1 of them scheduled for tomorrow to sign the paperwork and they just called and cancelled.

Just FYI - I was very specific with each of them that if I can't get this particular offer, I'm not interested in hearing about any other offers. Otherwise, I'd likely be wasting a lot of time meeting with them.

Doug, Peter, do either of you want a roommate for 33 months? I'll bring a bunk bed if Loonie wants to join. 🙂

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