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1.75% on a 3-month TFSA or RSP GIC
October 21, 2021
4:28 am
Alexandre
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Today on EQ Bank Web page and in app.

EQ-Bank-GIC.JPG

October 21, 2021
4:58 am
hwyc
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I'm in. TFSA at EQ for next year … not all in for a single GIC … but baby steps towards next year

I think non-registered is also up -> 1.5% for 3 months

October 21, 2021
7:14 am
COIN
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Alexandre said
Today on EQ Bank Web page and in app.

EQ-Bank-GIC.JPG  

Just to be clear. Is one locked in for the full 3 months? If yes, that means no access to the funds until GIC maturity 3 months down the road.

October 21, 2021
11:01 am
Loonie
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Yes, that's what it means.
It's clever of EQ, becauses that 3 months takes you well into "RSP season" where there are likely to be promotional rates elsewhere. Bearing in mind their previous sluggishness about transfers, you could miss out entirely on a better longer rate.

The rate appears on one of their GIC pages.
https://www.eqbank.ca/personal-banking/investments/gics

It's very annnoying how difficult it is to find a rates page on their site.

October 21, 2021
1:18 pm
annie
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EQ--- Really smart bank.. 3 months promotion lockedsf-cool

October 21, 2021
2:00 pm
dougjp
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It's clever of EQ too with TFSA, where they get a GIC expiry into the following year, and therefore once it matures, I'm stuck with them for 2022, or have to arrange a transfer to another bank, to keep funds in tax free.

I recall the stories previously about slow transfers, as Loonie reminded us above. However is it not correct that, unlike many other banks, they don't charge for a transfer of the plan to someone else?

I do like the 3 month non-reg 1.5% maturing in January, better than earning 1.25% for such a short period in the same place. And as the term is so short, I'm not worried that the GIC isn't joint like the savings account is, as it can only mature back into the joint account.

"I saw a subliminal advertising executive, but only for a second." ~ Steven Wright

October 21, 2021
2:15 pm
rhvic
Victoria, BC
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I am quite happy with the 1.5% for 3 month GIC. Alas, I bought two GIC's (3 month and 6 month) nine days ago from EQ at 1.3%, but those are the breaks. A good place to park cash for 3 months.

October 21, 2021
3:18 pm
HermanH
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dougjp said
However is it not correct that, unlike many other banks, they don't charge for a transfer of the plan to someone else?

You are correct. EQ does not charge a transfer fee for their registered products.

October 21, 2021
6:22 pm
RoughRunner
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Sorry for asking, but I haven't used my TFSA before. So once the TFSA GIC is up, the money will be put in the EQ TFSA Savings Account in January 2022, and you will be stuck with whatever interest rate that account has unless you transfer it to a different institutions TFSA account. You wouldn't want to withdraw money from the TFSA Savings Account because you have to wait till January 2023 to regain the contribution room. To avoid this you can buy the 1.5% unregistered GIC instead.

I just moved my savings to EQ from Motive due to the rate drop and was wondering how TFSAs work cause the rate looks intriguing for only three months. I haven't moved my money from Motive in like 2 years so I'm not sure if contributing up to my TFSA limit will mater since I don't transfer often.

October 22, 2021
5:07 am
dougjp
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RoughRunner said
Sorry for asking, but I haven't used my TFSA before. So once the TFSA GIC is up, the money will be put in the EQ TFSA Savings Account in January 2022, and you will be stuck with whatever interest rate that account has unless you transfer it to a different institutions TFSA account. You wouldn't want to withdraw money from the TFSA Savings Account because you have to wait till January 2023 to regain the contribution room. To avoid this you can buy the 1.5% unregistered GIC instead.

I just moved my savings to EQ from Motive due to the rate drop and was wondering how TFSAs work cause the rate looks intriguing for only three months. I haven't moved my money from Motive in like 2 years so I'm not sure if contributing up to my TFSA limit will mater since I don't transfer often.  

Welcome to the Forum!

I do wish TFSA has renamed and was made simple without the limitations. Here's the Government's TFSA guide, including how the TFSA contribution room works;

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#P44_1115

The TFSA contribution room is the total amount of all of the following:

the TFSA dollar limit of the current year
any unused TFSA contribution room from previous years
any withdrawals made from the TFSA in the previous year

You are right about the limitations as you described in your first paragraph. As you haven't used TFSA, and assuming you were over the minimum age when TFSA started, you have a ton of room.

Therefore, unless you completely 'make up for lost time' in one lump contribution, you could have remaining room to withdraw out of TFSA in January and go right back into someone else's TFSA at that time - that amount then would have 'used up' remaining contribution room. Those of us maxed out in TFSA contributions don't have that luxury.

Hope that helps.

"I saw a subliminal advertising executive, but only for a second." ~ Steven Wright

October 22, 2021
5:54 am
hwyc
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EQ's TFSA is less than 1 year old (launched Q4 2020). I had one 3-month GIC with promo rate in Jan, then renewed a 2nd 3-m with promo rate in Apr. Now in Oct, my 3rd 3-m with promo rate. If the next 12 months will be similar to the first 12 months. My money will stay at EQ TFSA for 2022 sf-smile

October 22, 2021
8:51 am
RoughRunner
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dougjp said

Therefore, unless you completely 'make up for lost time' in one lump contribution, you could have remaining room to withdraw out of TFSA in January and go right back into someone else's TFSA at that time - that amount then would have 'used up' remaining contribution room. Those of us maxed out in TFSA contributions don't have that luxury.

Hope that helps.  

Thanks, I really appreciate your help! I'm a college student but I managed to save quite a bit so I can contribute to my limit. Thing is I don't know if I'm ready to start investing, not sure if I will need my savings for tuition after this degree, starting my own business or whatever within 5 years. I know you should invest in your TFSA first if your tax burden is low, but putting money away for life is daunting when your young and uncertain. The TSX is at an all time high right now, should have bought the pandemic dip but I didn't know better sf-confused Worst that can happen is that I lose a year of investing if I max my contribution room I guess, I'll think about it...

October 22, 2021
9:18 am
smayer97
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dougjp said

...

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#P44_1115

...

You are right about the limitations as you described in your first paragraph. As you haven't used TFSA, and assuming you were over the minimum age when TFSA started, you have a ton of room.
...

 

Just to be more precise, the amount of contribution room depends on your age. If you were 18 prior to 2009, you have access to the max cumulative limit (since you have not used th TFSA before). If you turned 18 after 2009, your max limit will be lower. Just refer to the link provided for greater details.

October 22, 2021
9:25 am
pooreva
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RoughRunner said
Thanks, I really appreciate your help! I'm a college student but I managed to save quite a bit so I can contribute to my limit. Thing is I don't know if I'm ready to start

If you have a lot of room in your TFSA (financial institution does not matter) and you are not comfortable investing in stock market (yes, we all would like to buy low and sell high) and you have some cash available if I were you I would open TFSA at EQ and as soon money become available (hold completed) I would buy 3 months TFSA GIC at 1.75%. After 3 months if rate is the same, do it again. If GIC rate drops money will go to TFSA saving and earn 1.25%.

November 12, 2021
5:15 am
hwyc
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End of 1.75%!!! Rate for EQ 3m GIC now 1.50% (limited time???) for TFSA/RSP & 1.30% for non-registered.

... life is short & these rates are no longer attractive

November 12, 2021
9:38 am
Dean
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Alexandre said
Today on EQ Bank Web page and in app.

EQ-Bank-GIC.JPG  

KAPUT ... It's Over ❗

C'est La Vie,

    Dean

sf-cool " Live Long And Prosper " sf-cool

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