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2% on a 3-month TFSA or RSP GIC
December 17, 2021
7:56 am
Alexandre
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On EQ Bank web site:

2-percent-EQ.jpg

December 17, 2021
11:30 am
dougjp
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Thanks for the heads up. They already got me & my TFSA$ with the 1.75% 3 month, as I'm sure is the case with some of us.

With my luck, this will expire the day before that comes due in January! 🙁

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

December 17, 2021
1:07 pm
hwyc
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Only took a nibble at the 1.75% … still room for another bite 🙂

December 17, 2021
2:17 pm
hwyc
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dougjp said
Thanks for the heads up. They already got me & my TFSA$ with the 1.75% 3 month, as I'm sure is the case with some of us.

With my luck, this will expire the day before that comes due in January! 🙁  

EQ stated this deal is good until Jan 20th,2022 on their splash.

However, I took the 1.75% on the 1st day offered and it matures on Jan 21st ... no chance of rolling at 2% there 🙁

December 17, 2021
4:33 pm
HermanH
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hwyc said
EQ stated this deal is good until Jan 20th,2022 on their splash.

However, I took the 1.75% on the 1st day offered and it matures on Jan 21st ... no chance of rolling at 2% there 🙁  

You might get lucky. EQ extended a deadline last year by a few days. If it happens, you could squeak in under the wire. sf-wink

December 17, 2021
4:40 pm
dougjp
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HermanH said
You might get lucky. EQ extended a deadline last year by a few days. If it happens, you could squeak in under the wire. sf-wink  

I hope so, but might be just wishful thinking. EQ knows what they are doing with the TFSA "annual trap". They would be smarter to accommodate their good customers, but if they can avoid cost, would they.

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

December 18, 2021
5:24 pm
techno
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So this is EQ Banks's response to Hubert's promo:

Hubert's 1-year quarterly term with an average rate of 2%:
The first three months: 1.85%
Months four to six: 1.95%
Months seven to nine: 2.05%
The last three months: 2.15%

EQ Banks 3-month Term at 2%

Let's see if other banks will join the interest war...

Which one will you choose and why?

December 18, 2021
5:34 pm
HermanH
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I would go with Hubert, because the GIC is redeemable. Just remember that you must redeem by quarters. For example, if you redeem at month 11, you will earn interest up until month 9, but no interest for months 10 and 11.

$1 at EQ for 3 months at promo rate 2% and then 9 months at regular rate of 1.25% would yield $1.014421875

The same dollar at Hubert should earn $1.0201502926125

A difference of $0.0057284176125

If EQ is already unwilling to give a promo term longer than 3 months in the face of a known competitor's public promotional offer, I would not put much faith in them aggressively challenging later in the year.

December 19, 2021
6:53 am
Alexandre
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HermanH said

$1 at EQ for 3 months at promo rate 2% and then 9 months at regular rate of 1.25% would yield $1.014421875

The same dollar at Hubert should earn $1.0201502926125

A difference of $0.0057284176125

This math assumes EQ will not raise interest rates on its Savings account during 2022, and also that it won't offer another promo rate in 2022.

Hubert cashable GIC is an attractive offer, and I might have chosen it if I already had an account with Hubert. I don't, so I am going to stay with EQ.

December 19, 2021
12:19 pm
HermanH
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Alexandre said

HermanH said

$1 at EQ for 3 months at promo rate 2% and then 9 months at regular rate of 1.25% would yield $1.014421875

The same dollar at Hubert should earn $1.0201502926125

A difference of $0.0057284176125

This math assumes EQ will not raise interest rates on its Savings account during 2022, and also that it won't offer another promo rate in 2022.

That is absolutely true. You might also use the money to buy a winning lottery ticket. sf-laugh
One can only make calculations on the known facts. If circumstances change, you would have to recalculate. Wishing on stars is usually wasted effort.

December 19, 2021
1:55 pm
pooreva
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EQ vs. Hubert vs. Tangerine

EQ is CDIC covered and max deposit in single account is $200K. Who covers extra $100K??? 3-month GIC is not redeemable under ANY circumstances.

Hubert is covered by Manitoba province and amount of deposit is Unlimited. 1-year GIC is redeemable at any time. Yes, you lose interest if you redeem between quarters but you can get your money if you really need it.

Tang is covered by CDIC. If you win Tang lottery you can get nice interest for a limited time on New money. You can get your money at any time since it is not a term deposit. If you have iron nerves you can put All your money into Tang account (up to $1 million), grab interest and run away after promo ends.

December 19, 2021
2:39 pm
dougjp
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pooreva said
EQ vs. Hubert vs. Tangerine

EQ is CDIC covered and max deposit in single account is $200K. Who covers extra $100K??? 3-month GIC is not redeemable under ANY circumstances.

Hubert is covered by Manitoba province and amount of deposit is Unlimited. 1-year GIC is redeemable at any time. Yes, you lose interest if you redeem between quarters but you can get your money if you really need it.

Tang is covered by CDIC. If you win Tang lottery you can get nice interest for a limited time on New money. You can get your money at any time since it is not a term deposit. If you have iron nerves you can put All your money into Tang account (up to $1 million), grab interest and run away after promo ends.  

Sounds like that TV game show. sf-surprised I will pick Door #3, alternately Door #1, and lastly, Door # 2. Because Manitoba decides to use the word 'unlimited', covering all those small FI's, doesn't sway my risk assessment.

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

December 19, 2021
6:22 pm
techno
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dougjp said

Sounds like that TV game show. sf-surprised I will pick Door #3, alternately Door #1, and lastly, Door # 2. Because Manitoba decides to use the word 'unlimited', covering all those small FI's, doesn't sway my risk assessment.  

Tangerine is probably the best option for non-registered accounts. But if it's TFSA or RRSP, you will be stock with a low interest even if you win another Tangerine lottery since only new money will get the good rate. You can transfer it to another bank but it requires extra procedures.

December 20, 2021
5:09 am
Alexandre
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techno said

Tangerine is probably the best option for non-registered accounts. But if it's TFSA or RRSP, you will be stock with a low interest even if you win another Tangerine lottery since only new money will get the good rate.

That's very good point. For TFSA, Motus 2.25% promo makes more sense, as then it'll roll into its regular 1.25% TFSA Savings rate.

December 21, 2021
9:41 pm
techno
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Alexandre said

techno said

Tangerine is probably the best option for non-registered accounts. But if it's TFSA or RRSP, you will be stock with a low interest even if you win another Tangerine lottery since only new money will get the good rate.

That's very good point. For TFSA, Motus 2.25% promo makes more sense, as then it'll roll into its regular 1.25% TFSA Savings rate.  

For Motus Bank, you will get 2.25 % for 122 days on your first TFSA.
There's $50 charge if you plan to transfer it directly to another bank as TFSA account.

January 19, 2022
8:44 am
Ed
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Just a reminder that this promo ends tomorrow, January 20th, 2022.

January 20, 2022
6:08 pm
Lamaison
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Ed said
Just a reminder that this promo ends tomorrow, January 20th, 2022.  

And by using this date they are effectively eliminating anyone who had even the earliest possible transaction in the previous 3 month
GIC offering from participating in the latest one (by one day!!). Planned not doubt and shades of Tangerine promotions!!

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