Duca EMPA Deposit Rate Increase! 3.25% effective Monday, July 18, 2022 | Page 4 | DUCA Credit Union | Discussion forum

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Duca EMPA Deposit Rate Increase! 3.25% effective Monday, July 18, 2022
November 22, 2022
7:17 am
Loonie
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canadian.100 said
So I gather the present 3.25% Promotion is going to end very shortly and they are offering you the 4.75% Term but just to March 31 and after that you are back to 1% on the HISA?  

Yes, it looks like you can't go back to Park at 3.25,but it doesn't say what happens to your Park money if you DON'T buy this GIC.

I think it's very possible the 3.25 deal will end Dec 31 but ultimately it will depend on what their goal is for retaining money deposited there and whether that goal has been met.

I think it's likely that those who buy this GIC will be given another, longer term, GIC offer when this one ends as this is a very short term and they still won't want to let all that money go elsewhere when it ends.

November 22, 2022
7:25 am
Loonie
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I didn't receive the offer either, although I have significant funds in Park and the account is very active.

November 22, 2022
7:55 am
smayer97
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COIN said

savemoresaveoften said
I did not receive this email even tho I do have an earn more park account (I did clean it out last month for the obvious reason).
 

I think only clients who had $60,000 or more got the email.  

Yes, as per the title of the email, it is an exclusive offer:
"EXCLUSIVE OFFER: For Members in current Earn More Promotion Account. "

There is no mention of an amount, so not sure how to confirm the threshold.

November 22, 2022
9:14 am
James
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Loonie said
I didn't receive the offer either, although I have significant funds in Park and the account is very active.  

Same here. No offers.

November 23, 2022
11:10 am
savemoresaveoften
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Talked to DUCA customer rep and she said I can bring new money over and she can put it into the Mar31 4.5% GIC. But she also said its by invitation only. I did mention I did not rec the email invite, and asked if I qualify. She says YES and no minimum req. If anything she does not give me 100% confidence what she said is indeed 100% correct.
Bottom line, I think anyone that brings new money in or already have money in the PARK account can just call them to set it up.

Personally 4.5% sounds ok to lock in for 4 months, but not a must have in my case.

November 23, 2022
12:34 pm
mebe
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I got the Duca 4.75% GIC offer with less than $10 in the Earn More parked account.
So why did I get the offer? I assume it's because I pulled several thousands from that Duca account into Tangerine several weeks before to get that same offer that I had with Tangerine.
Duca should have offered me more than 4.75% to get its money back. C'mon man!
If any of you have a Tangerine account (even with a low % rate), simply pull $5 from Duca into Tangerine. If that doesn't trigger an email invite, just call them and tell them you'll move your current Tangerine funds if they offer you 4.95% or higher.

November 23, 2022
1:23 pm
Loonie
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Spouse pulled a chunk out of DUCA Park in the summer but didn't get the promo email. Spouse has continued to add money to DUCA Park since then from time to time.

November 23, 2022
2:03 pm
COIN
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Heard that DUCA is currently cash rich. Loan demand is down. Deposits are up. True? False?

November 23, 2022
2:37 pm
HermanH
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They are aggressively soliciting 2-5yr GIC with 5.4% from brokers
Don't know if that supports or disproves your position.

November 23, 2022
5:51 pm
COIN
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HermanH said
They are aggressively soliciting 2-5yr GIC with 5.4% from brokers
Don't know if that supports or disproves your position.  

It's weird because their own branch(es) are offering less than 5.4%

November 24, 2022
8:05 am
savemoresaveoften
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COIN said

It's weird because their own branch(es) are offering less than 5.4%  

Its beyond weird, its absurd. Never makes sense to me why they are paying almost an extra 1% away thru brokers, as oppose to just do it with their own members direct. If they are pricing in their funding cost at X, that X should go to its own members...

November 24, 2022
10:10 am
canadian.100
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I am not so sure it is beyond weird or absurd. The strategy allows DUCA to pull in more money from more sources - could be that DUCA members have more limited funds or are not buying enough DUCA GICs. DUCA members may not be as affluent as the "outside" sources who will patronize GIC brokers for larger amounts.
DUCA does save on admin costs when the GIC buyers deal with the broker and not limited DUCA staff.

November 24, 2022
10:42 am
COIN
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Seems to me DUCA is "cannibalizing" their deposit business.

November 24, 2022
11:02 am
HermanH
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savemoresaveoften said Its beyond weird, its absurd. Never makes sense to me why they are paying almost an extra 1% away thru brokers, as oppose to just do it with their own members direct. If they are pricing in their funding cost at X, that X should go to its own members...  

It does make some sense if DUCA wants flexibility and responsiveness in management of the funds accumulated. If DUCA only wants or needs $XXX, then the broker can stop offering them immediately, once the goal has been reached. If they make a promotional offer, then they might feel obligated to continue soliciting unwanted/unneeded funds throughout the term of the offer.

I would like for DUCA to at least match the rate offered by brokers, but can understand that brokers might specifically disallow that practice in their distribution contract. Otherwise, it might not be worth their while to agree to sell the GICs for DUCA.

November 24, 2022
11:26 am
savemoresaveoften
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HermanH said

It does make some sense if DUCA wants flexibility and responsiveness in management of the funds accumulated. If DUCA only wants or needs $XXX, then the broker can stop offering them immediately, once the goal has been reached. If they make a promotional offer, then they might feel obligated to continue soliciting unwanted/unneeded funds throughout the term of the offer.

I would like for DUCA to at least match the rate offered by brokers, but can understand that brokers might specifically disallow that practice in their distribution contract. Otherwise, it might not be worth their while to agree to sell the GICs for DUCA.  

Its all true except a 1% spread is a huge premium to pay for the flexibility in my mind, at the expense of all the members, both the borrowers and the savers.

Its old school system of funding to say the least, and CUs are like 10 years behind when it comes to their treasury management...

On another note, they do let me make a new deposit and then put it into the 4.75% Mar31 GIC. Keep in mind the M2M transfer has a 1 week hold, the money can only sit in the Park account until hold is over to "purchase" the GIC.

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