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DUCA Flex80 GIC RRSP & TFSA
January 5, 2018
10:11 pm
AlainJF
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Here is an offer from DUCA that I did not find on the forum.

It looks interesting and should be listed in the Promos (I think).

The statement "Interest paid at maturity is compounded annually" seems to indicate that the 3% or 2% interest rate is a real compounded annual rate that is determined when you get the money out.

I did not find anything better for my TFSA.

All comments are welcome... perhaps there is something wrong that I am missing ?

Here are the info from the website:

https://flex80.duca.com/

- Hold until 80 months and earn 3% per year
- Cash in after 12 months and earn 2% per year
- Available for registered investments only: : RRSPs, TFSAs, RESPs, RRIFs and LRIFs.
-Deposit $500 or more as much as you need to meet your investment goals
- Insured by DICO with no maximum amount

"*This is a limited time offer available through March 31, 2018. Offer may be changed or withdrawn at any time without notice. Rate subject to change. All deposits made to RSP, TFSA, RRIF, and LIF plans are fully insured with no limit on the maximum amount. Minimum interest paid per payment period -- .75¢. Interest rates are per annum. Minimum $500 investment required. Interest paid at maturity is compounded annually. Offer not available for US funds. Not offered in conjunction with any other rate bonus or promotion. Only available in Registered Plans."

January 5, 2018
11:21 pm
Loonie
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I don't see any hidden problems, but I wonder about two things:
1. Do you really want to tie up your money for almost 7 years? One consideration may be what you expect to happen to interest rates over that time. I would be hoping for a little bit more for such a long period - maybe 3.25
2. I would want to check on whether DICO insurance is valid for deposits greater than five years. CDIC is only valid for up to five years, but I am not sure about DICO. Perhaps you already know the answer. They seem to suggest it's all covered but I would want to confirm with DICO.

Offer good to March 31 so I would wait til end of January to see what else comes up before diving in - unless this is exactly what you want. I don't think rate offer will likely decrease.

January 6, 2018
6:30 am
AlainJF
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Thanks for your reply and observations/remarks Loonie.

I always went year-by-year with TFSA and I have never been able to beat 3%.

In 2017, I achieved ~2.643% ($invested in Jan2017/$retrieved in Dec2017 - 1), and this was a good year for me. (using Short Term GICs + Special Promos). I put the "~" because, in reality, I invested mid-Jan and retrieved mid-Dec.

This is why anything over 3% seems to be good for me, considering that I should not need that money for a long time.

My decision is not taken, this is why I am here !

January 6, 2018
9:48 am
James
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Hi AlainJF,

Are you aware that Hubert and Oaken currently have 5 year TFSA GICs at 3%? Maybe you like that it is redeemable early at 2% but if you are thinking about redeeming, you can get better than 2% with current savings account offers. You can also get shorter term redeemable GICs for over 2%.

Nothing against DUCA - I've found the customer service to be pretty good so far. Remember there is a yearly fee there. Oaken and Hubert have also been good with customer service. Just my 2 cents.

January 8, 2018
5:20 am
AlainJF
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James said
...
Nothing against DUCA - ... Remember there is a yearly fee there...   

Could you clarify what is the "yearly fee" that you mentioned. Thanks.

January 8, 2018
5:50 pm
GoldenLion
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AlainJF said

Could you clarify what is the "yearly fee" that you mentioned. Thanks.  

Each year on December 31 an annual membership fee of $5.00 is applied to every member's account. I bought some of the redeemable 80month GICs in February 2016 at 3% when they offered the same deal but rates were lower back then.

January 8, 2018
5:56 pm
Loonie
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Yearly fee is not uncommon with a number of CUs. it tends to be stable, not like transfer fees!

January 8, 2018
8:37 pm
AlainJF
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I was surprised by this fee remarks, because I joined DUCA a few months ago and I was not charged any such fee to date.

So far, their service/system have been really good, with no fee at all.

I have not been a full year with them yet, perhaps this is why I did not get this fee ? I did not find anything written on their site about fee neither.

January 8, 2018
9:28 pm
Loonie
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i have no experience with DUCA, but Luminus (another TO CU) just recently charged spouse an annual fee. I'm not sure why it was not charged before. Joined a couple of years ago.
it is listed in Luminus' fees - or at least it was last time I looked - so can't complain.

January 9, 2018
2:46 pm
AlainJF
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GoldenLion said
...Each year on December 31 an annual membership fee of $5.00 is applied to every member's account...  

I spoke to a DUCA employee who told that this $5 fee did, in fact, exist in the past, but it has been eliminated.

Here is the current fee webpage: https://www.duca.com/mymoney/fees/

Unless I am missing something, I did not find anything on it to make me run away, or to make me think that the Flex80@3% is not what it claims it is.

It would be sad to find out 80 months later that it is not what you thought it was...

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