Rising Rate GIC | Coast Capital Savings | Discussion forum

Yes, just call them. I called them yesterday about a maturing GIC in Nov. It isn't like you are phoning Tangerine and waiting for 45 min. They are right there for ya............at incredibly low rates!!

This type of GIC, with increasing rates, is called an Escalator GIC.
I can't speak for CC or whatever fine print , but an Escalator GIC is usually fully cashable on the anniversary dates. I have not heard of them being partially cashable.

I agree with Dean that you need to phone them or email to clarify what you can do. You may be able to negotiate something as I'm sure they would like to dump their obligation to pay you 4%.
The penalty for cashing out annually is reflected in the increasing rate which one would forfeit.
Still, I doubt they will accommodate you. You could try arguing that covid has put this special stress on you and perhaps they would respond to that as every financial institution in the country CLAIMS to be willing to help people out somehow - but I am skeptical.

In other cases that people have reported on this forum wherein they negotiated cashing in a normal non-redeemable GIC, they had to forfeit all the interest.

In terms of timing, I think 2 weeks prior to the anniversary is plenty of notice of your intentions, and even this can probably be reduced. However, the negotiation could take more time, so you need to allow for that.

For future reference, you could probably have avoided this situation by buying several smaller GICs rather than one large one. Then, you can cash in however many you need. As long as you put the minimum investment into each one, this can be done.

Good luck!

I hear that you have given this matter some thought, but, nonetheless, if there is any way you can manage without cashing in your savings, that would be best solution. I have no doubt that forum members would be very happy to provide ideas about how to reduce expenses, and you might be able to use some of them. The more details you can provide, the more targeted we can be.

I would hate to see you using up all or most of your savings in this way. Everyone needs a cushion, and things might get even worse.
If you have a mortgage, you might be better off to renegotiate (extend and /or re-mortgage) rather than cashing in the GIC. Mortgage rates are extremely low now, well below 4%, so this might be a cheaper route. When you again have two incomes, you could pay it down. But if you are renting or only recently bought, this is no help.

https://www.coastcapitalsavings.com/legal/term-deposit-non-reg

5. Transfer and Redemption – Subject to the Certificate of Deposit, you cannot negotiate, transfer, or redeem the Term Deposit before the Maturity Date. We may, at our sole discretion, allow the early redemption of the Term Deposit subject to clawback of interest and payment of the penalty interest as may be established by us at the time of early redemption. If we allow for the early redemption of the Term Deposit, interest payable will be calculated to the date of early redemption.

CC is notorious for being inflexible. On their list of products, only the ones purchased as Redeemable appear to be so. That being said...give them a call. My GIC is coming due Nov and the funds will be out the next day. The rare promo aside, they don't even come close to the competition when it comes to ANY of their rates.