Winter Promo: 3% on Savings Accounts Feb 3 to May 30, 2020 (extended to June 30, 2020) on new money | Page 4 | DUCA Credit Union | Discussion forum

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Winter Promo: 3% on Savings Accounts Feb 3 to May 30, 2020 (extended to June 30, 2020) on new money
June 16, 2020
11:43 am
GR
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Have any members with funds in their Winter Promo Savings Account, paying 3% until June 30th, phoned Duca to ask about any retention offers?

June 16, 2020
2:01 pm
Loonie
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No, but would like to hear if someone does. call. My email is silent; I suspect they have decided to just let us go with our money.

June 16, 2020
8:43 pm
smayer97
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GR said
Have any members with funds in their Winter Promo Savings Account, paying 3% until June 30th, phoned Duca to ask about any retention offers?  

There was a retention offer that was silent but pointed out by someone here...12 months for 2.5% in a new promo account but it had a VERY NARROW window of 2-3 days, if that, at the end of April. I fortunately took advantage of it, sacrificing 2 months at 3% but gaining additional 10 months at 2.5%. Did it because I have seen offers dry up lately above 2%.

Have not seen or read about anything since.

June 18, 2020
6:48 am
mustang
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I just called in to DCUA, asked if any promo to move the June 30 HISA. Answer: no
I asked if there will be anything coming: Answer: Don't know-- possible
So, it's off to Manulife HISA for me

June 18, 2020
8:07 am
Nehpets
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mustang said
........
So, it's off to Manulife HISA for me  

Based on earlier experience with Manulife, it would be wise to keep expectations low on maintaining the promo rate for any length of time.

June 18, 2020
9:57 am
mustang
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Thanks for the heads up Nehpets
They have always done right by me, in the past, but certainly won't hurt to keep a close eye on them
I think my rate is good until Oct 10, something like that

June 18, 2020
11:52 am
Nehpets
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mustang said
......I think my rate is good until Oct 10, something like that  

You may find the terms of the promo indicate the promotional premium paid on top of the base rate is subject to change, and in last year's "promotion" the premium add-on deteriorated rapidly, once new clients signed on.

See this discussion thread from summer 2019.

Stephen

June 20, 2020
2:31 pm
Londonguy
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Nehpets said

You may find the terms of the promo indicate the promotional premium paid on top of the base rate is subject to change, and in last year's "promotion" the premium add-on deteriorated rapidly, once new clients signed on.

See this discussion thread from summer 2019.

Stephen  

I was in that program, and there was a lot of confusion about it with certain people. Some interpreted Manulife's language such that a depositor would receive the original 3.15% rate for the entire duration no matter what happened, which was incorrect since the base rate could decline (and did). However, the important takeaway there is that only the base rate fluctuates, not the promotional portion.

The current Manulife promotion rate is 2.30%, which is then added to their base rate of 0.30% to yield 2.60%. So even if they dropped their base rate to zero, you will still be getting the 2.30% until expiry (October for most people). The only negative of this recent program IMO is that the maximum eligible deposit was capped at $250K.

Anyways, since the 2020 promo is no longer open to new investors, any lingering concerns about the rate mechanism don't really matter anymore

June 20, 2020
11:25 pm
smayer97
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Londonguy said

The current Manulife promotion rate is 2.30%, which is then added to their base rate of 0.30% to yield 2.60%. So even if they dropped their base rate to zero, you will still be getting the 2.30% until expiry (October for most people). The only negative of this recent program IMO is that the maximum eligible deposit was capped at $250K.

 

Actually, the 2.3% promo rate can also be adjusted. I missed that the first time I read through the details.

June 21, 2020
1:39 pm
Londonguy
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smayer97 said

Londonguy said

The current Manulife promotion rate is 2.30%, which is then added to their base rate of 0.30% to yield 2.60%. So even if they dropped their base rate to zero, you will still be getting the 2.30% until expiry (October for most people). The only negative of this recent program IMO is that the maximum eligible deposit was capped at $250K.

 

Actually, the 2.3% promo rate can also be adjusted. I missed that the first time I read through the details.  

Yes, Manulife learned from some past bad PR experiences (as have some other FIs) to now describe their promotional rate as a "variable annual promotional rate" to give themselves an exit door if they need one.

Whatever they do or don't do to the rate between now and October, I'm still good with it as long as the overall yield is better than I can get elsewhere. Right now that's becoming a problem for me with DUCA's June 30th expiry coming up. Not sure where I'm going to go yet, but losing a full 1% going forward on that money seems to be a given no matter what I do

June 21, 2020
6:58 pm
smayer97
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Londonguy said

Whatever they do or don't do to the rate between now and October, I'm still good with it as long as the overall yield is better than I can get elsewhere. Right now that's becoming a problem for me with DUCA's June 30th expiry coming up. Not sure where I'm going to go yet, but losing a full 1% going forward on that money seems to be a given no matter what I do  

Yes, that is why I jumped on their 2.5% promo at the end of April when @Norm pointed it out (thanks again!)...lost 0.5% for 2 months but gained 0.5% for 10 months compared to other FIs/banks. Unfortunately, that offer was only there for 2-3 days. Sorry you missed out.

June 22, 2020
8:25 am
Londonguy
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smayer97 said

Yes, that is why I jumped on their 2.5% promo at the end of April when @Norm pointed it out (thanks again!)...lost 0.5% for 2 months but gained 0.5% for 10 months compared to other FIs/banks. Unfortunately, that offer was only there for 2-3 days. Sorry you missed out.  

That was a GIC, right? Wouldn't have worked for me

June 22, 2020
8:39 am
Nehpets
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Londonguy said

That was a GIC, right? Wouldn't have worked for me  

No it's a HISA retention offer that was available to those who had the 3% 2020 Winter promo:

Earn More Savings in 2020 Promotion (Closed) *
*Promotion is now closed to new deposits. For existing deposits, (2.5%) rate valid until March 31, 2021.

See the discussion HERE

Stephen

June 22, 2020
9:44 am
Londonguy
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Nehpets said

No it's a HISA retention offer that was available to those who had the 3% 2020 Winter promo:

Earn More Savings in 2020 Promotion (Closed) *
*Promotion is now closed to new deposits. For existing deposits, (2.5%) rate valid until March 31, 2021.

See the discussion HERE

Stephen  

Hmm, in retrospect that was definitely a good deal -- I must have been preoccupied elsewhere during the brief time it was available. I'm already maxed out at Manulife on their 2.60% so it looks like I'm stuck with moving DUCA money into the 2.00/2.05% FIs until another promo materializes somewhere

June 22, 2020
10:20 am
Loonie
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DUCA may not be offering a retention rate per se but they seem to have the highest 5 and 7 year GIC rates available, at least as far as I am aware.
5 Year 2.45%
7 Year 2.50%
I know they aren't terribly attractive but may be useful for some people.

June 22, 2020
10:53 am
Nehpets
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Londonguy said
.... it looks like I'm stuck with moving DUCA money into the 2.00/2.05% FIs until another promo materializes somewhere  

Looks like the current options would be Motive SAAvy Svgs for instant liquidity (2.05%) or 2+ years GIC with Peoples Trust / Bank, Oaken, Hubert; even DUCA, as Loonie alluded to for longer terms, and BCU Financial 30 & 37 month promos.

If the amount is substantial, it might even be worth trying to negotiate with some of the smaller, ethnic CU's directly

Stephen

June 22, 2020
11:29 am
smayer97
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Nehpets said

Looks like the current options would be Motive SAAvy Svgs for instant liquidity (2.05%) or 2+ years GIC with Peoples Trust / Bank, Oaken, Hubert; even DUCA, as Loonie alluded to for longer terms, and BCU Financial 30 & 37 month promos.

Stephen  

Laurentian Bank and B2B also have 2.05% HISA.

June 22, 2020
12:23 pm
cruzinalong
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Stick with one, maybe two FI. Be happy with them. The rates are competitive. .1% difference is insignificant.

June 22, 2020
12:37 pm
Londonguy
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Nehpets said

Looks like the current options would be Motive SAAvy Svgs for instant liquidity (2.05%) or 2+ years GIC with Peoples Trust / Bank, Oaken, Hubert; even DUCA, as Loonie alluded to for longer terms, and BCU Financial 30 & 37 month promos.

If the amount is substantial, it might even be worth trying to negotiate with some of the smaller, ethnic CU's directly

Stephen  

Good suggestions but I'm really loathe to commit to a GIC term here, even though I suspect that HISA rates are headed lower near-term -- maintaining liquidity is really important to me while this COVID stuff plays out.

I'll try my contact at Ideal Savings but quite frankly I'm not hopeful they'll do better than 2.00%. I still have active HISAs at LBC, B2B, Motive & EQ Bank so maybe I'll just spread it around those 4 for the summer and see what happens

Must be a lot of DUCA 3% people contemplating the same dilemna.

June 22, 2020
2:40 pm
Loonie
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If liquidity is your issue, you might look at some of the Escalator rates. they normally are a bit lower than regular non-redeemables, especially in the first year or two, but can be cashed on any anniversary date without penalty.

I'm not sure which FIs are marketing them at the moment or how low they have fallen.

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