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EQ 2% for one year and 2.5% for two years GICs
February 6, 2022
10:25 am
Loonie
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Bill said
I think you'll find that when executor contacts EQ re the death they will let the gic be cashed in with interest paid to date of death and thus those funds will become part of the estate funds.

 

I can't speak for EQ, but I would not make the assumption Bill has made.

I recently contacted another FI to ask this question and was told by email that their policy is that GICs must run their course and are not cashed upon death. I then asked what they would do if the executor requested the GIC be cashed, and was told that this would have to be negotiated, at the discretion of the FI. This struck me as a new reason to request annual payout! I think that, realistically, they would have to negotiate as beneficiaries would be complaining, but the value could suffer. I would definitely not assume interest to date would be paid.

February 6, 2022
10:25 am
Norman1
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Bill said

They're making the effort to be clear that Manitoba taxpayers have no legal requirement to backstop the fund (to which they also have not contributed in the first place, i.e. same as CDIC).

An agency established by gov't is not part of the gov't as is a ministry or department.

The topic was explored in depth a while back in this thread.

We found no evidence that the province would be liable and plenty of evidence to the contrary.

February 6, 2022
10:43 am
savemoresaveoften
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Norman1 said

Bill said

They're making the effort to be clear that Manitoba taxpayers have no legal requirement to backstop the fund (to which they also have not contributed in the first place, i.e. same as CDIC).

An agency established by gov't is not part of the gov't as is a ministry or department.

The topic was explored in depth a while back in this thread.

We found no evidence that the province would be liable and plenty of evidence to the contrary.  

Isnt it true then for Ontario CU $250k, CDIC $100k, Manitoba $unlimited, they all do NOT have explicit guarantee by the province/government. But business model for the CUs and Manitoba only works cuz its implict guarantee, not in black and white

February 6, 2022
10:47 am
Norman1
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Loonie said

I can't speak for EQ, but I would not make the assumption Bill has made.

I recently contacted another FI to ask this question and was told by email that their policy is that GICs must run their course and are not cashed upon death. I then asked what they would do if the executor requested the GIC be cashed, and was told that this would have to be negotiated, at the discretion of the FI. This struck me as a new reason to request annual payout! …

I think it would depend on the terms of the GIC.

A while back, we found in the fine print that sole owner Oaken GIC's could be redeemed without penalty on death of the owner.

Annual payout of interest may not help. For example, EQ Bank GIC Agreement allows them to claw back interest already paid from the principal:

No Redemption prior to Maturity Date
EQ Bank GICs are not redeemable and may not be redeemed prior to maturity.

Termination of GIC investments

On termination of your EQ Bank GIC, no interest will be paid to you and we will recover any interest amounts that have been paid to you by deducting those amounts from the principal balance of your GIC. …

February 6, 2022
10:53 am
Norman1
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savemoresaveoften said

Isnt it true then for Ontario CU $250k, CDIC $100k, Manitoba $unlimited, they all do NOT have explicit guarantee by the province/government. But business model for the CUs and Manitoba only works cuz its implict guarantee, not in black and white

There's no implicit provincial guarantee. That's just a figment of some people's imagination.

The business model of credit unions, including the Manitoba ones, don't rely on a provincial guarantee. One isn't getting the equivalent to a Province of Manitoba or Province of Ontario bond when one buys a GIC from a Manitoba or Ontario credit union.

February 6, 2022
11:03 am
Loonie
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Another reason to avoid EQ, of which I am not fond, along with their no-joint-GICs and no-RIFs policies

The statements quoted do not specifically refer to disposition upon death, but, given their generally nasty and mechanistic attitudes (my experience), I wouldn't expect any consideration.
I only use EQ for joint savings account when it's the best I can find, and don't intend to use it for anything else.

February 6, 2022
11:53 am
HermanH
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Norman1 said

Bill said

They're making the effort to be clear that Manitoba taxpayers have no legal requirement to backstop the fund (to which they also have not contributed in the first place, i.e. same as CDIC).

An agency established by gov't is not part of the gov't as is a ministry or department.

The topic was explored in depth a while back in this thread.

We found no evidence that the province would be liable and plenty of evidence to the contrary.  

I called the DGCM and they confirmed that the Government of Manitoba had no legal obligation to step in and cover their losses.

However, the agent also confided that in the eventuality of a Provincial collapse, depositors would probably be facing far bigger problems than currency and that they would likely be better off acquiring firearms and ammunition. sf-wink

February 6, 2022
12:27 pm
Bill
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Re EQ gics, their online GIC Agreement says "Upon your death or incapacity, we are authorized to take steps or restrict transactions to your GIC which we deem prudent or advisable." I just spoke with their chat and the answer was the executor can terminate gics early and interest is paid up to termination date.

Been with EQ since day one, nothing but top-notch experience with them in my case, including as executor for my parents, very positive review from me.

Note that interest accrued to date of death is reported on the deceased's final tax return whereas interest after that day is reported on the estate trust return.

February 6, 2022
12:52 pm
Loonie
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So I guess that leaves open the question of what happens at EQ if they don't know you've died.
Bear in mind that most people seem to have obituaries which are widely accessible online.

February 6, 2022
4:41 pm
dollarbill
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I have both of my daughters set up to receive my balance. All I had to do was fill out beneficiary forms and mail them in. EQ told me they would pay on receipt of Death Certificate.

I've also been with EQ since their beginning. Never had any problems. They do not always have the best rates, but they are not far off.

February 6, 2022
5:08 pm
Loonie
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dollarbill said
I have both of my daughters set up to receive my balance. All I had to do was fill out beneficiary forms and mail them in. EQ told me they would pay on receipt of Death Certificate.

  

Are you talking about TFSAs or non-registered accounts? It makes a difference as to what is possible.

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