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EQ New GIC Offering
November 12, 2021
7:28 pm
smayer97
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dougjp said

I wouldn't give up. They should give you the rate, just phone them and tell them the funds were there, and transferred in because of the rate.

I've had them give the rate, as have others. Let us know how it gets resolved.  

And just to be clear, EQ is likely to honour the recent promo IF your funds were transferred in AND on hold before the promo was retired. BUT if the the funds were already there, they most likley will not honour the promo rate. It is on a case-by-case basis is what I was told.

It seems that if you did not take advantage of a promo with money already in your account that was NOT on hold, what they are looking for is to make sure there was plausible intent to move new money in to use the promo. And it looks like the main criteria is if the money was on hold or not.

November 13, 2021
1:33 pm
COIN
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I never understood why EQ hold money for 8 days when it would be locked in for 90 (or more days) anyway. Strange.

November 14, 2021
3:17 pm
Norman1
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I suspect that is from their GIC booking system not being able track any holds on funds used to purchase a GIC.

An EQ Bank GIC purchase can be cancelled up to the end of the next business day. So, some clever client with $1,000 clear funds and $9,000 funds on hold could otherwise purchase a $10,000 GIC. The client could then cancel the purchase next morning and end up with $10,000 of clear funds!

November 14, 2021
3:54 pm
dougjp
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COIN said
I never understood why EQ hold money for 8 days when it would be locked in for 90 (or more days) anyway. Strange.  

Source? I always thought it was 5 business days.

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

November 14, 2021
4:05 pm
Dean
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COIN said

I never understood why EQ hold money for 8 days when it would be locked in for 90 (or more days) anyway. Strange.  

dougjp said

Source? I always thought it was 5 business days.  

Correct ⬆ ... and then the funds become available on the sixth business day.

Source https://www.eqbank.ca/help/common-questions

    Dean

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

November 15, 2021
7:23 am
COIN
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Just to clarify, my 8 days includes a normal weekend. So, the funds become available on the 8th calendar day (9th day if there is a holiday). I should have mentioned I meant 8 calendar days in the original post.

BTW: I think Manulife Bank has a long hold period.

November 15, 2021
8:20 am
smayer97
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Dean said

dougjp said

Source? I always thought it was 5 business days.  

Correct ⬆ ... and then the funds become available on the sixth business day.

Source https://www.eqbank.ca/help/common-questions

    Dean

  

This is NOT the complete picture. Also read the following:
https://www.eqbank.ca/legal/hold-funds-policy

"Subject to the exceptions below, the normal length of time we will hold funds is 5 business days after the date of deposit. The maximum hold periods for encoded Canadian dollar cheques or items drawn on a Canadian financial institution are illustrated below:

Amount of Deposit / Maximum Hold Period
$1,500 or less / 5 business days after the day of deposit
Over $1,500 / 8 business days after the day of deposit

November 19, 2021
2:15 pm
hwyc
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Anybody noticed new EQ GIC rates today ? Is it still a good time to lock in funds for 3 yrs? Could 2-yr go above 2% before year end?

. . . no annual interest payout for their TFSA GICs, that's a hold back sf-frown

November 20, 2021
9:30 am
Loonie
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hwyc said

. . . no annual interest payout for their TFSA GICs, that's a hold back sf-frown  

That's very sneaky. I thought it deserved more emphasis.

November 22, 2021
5:49 pm
HISAhopper
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I am thinking of locking 50K into EQ GIC for 2 years at 1.9%.
I have been with EQ for a while but mostly with short term promo up to 6 months but never with long term.
Any advice regarding the 2 year GIC in terms of security?
Thanks

November 22, 2021
8:48 pm
Loonie
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Bear in mind that EQ tends to have one of the highest HISA rates and one can often do better elsewhere with GICs. If you put 50K into a GIC with them for 2 years, it will restrict your CDIC coverage on HISA and other GICs which you may want, assuming rates continue to rise during that period.
For this reason, I would look elsewhere for the GIC. If you have access to one of the GIC brokers, that might be a better bet. GICWealth was offering 2.1% today. I have established a relationship with them so that, when they have superior or equal rates, I choose them for the institutional diversification, which leaves me CDIC room with the others when they have an offer I don't want to refuse.
In a roundabout way, this is a safety issue.

November 23, 2021
7:05 am
HISAhopper
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Loonie said
Bear in mind that EQ tends to have one of the highest HISA rates and one can often do better elsewhere with GICs. If you put 50K into a GIC with them for 2 years, it will restrict your CDIC coverage on HISA and other GICs which you may want, assuming rates continue to rise during that period.
For this reason, I would look elsewhere for the GIC. If you have access to one of the GIC brokers, that might be a better bet. GICWealth was offering 2.1% today. I have established a relationship with them so that, when they have superior or equal rates, I choose them for the institutional diversification, which leaves me CDIC room with the others when they have an offer I don't want to refuse.
In a roundabout way, this is a safety issue.  

This is new to me, never dealt with a broker before.
So I guess GICWealth job is to find an "FI" (example DUCA) with good rate I then send my deposit cheque to GICWealth. My cheque is paid to the order of "DUCA" and will be insured with DICO.
GICwealth job is finished, isn't?
Upon maturity, the fund will be sent to account where it came from I guess I can try it.
I have to consider how to deal with beneficiary for a GIC!
Thanks Loonie for the advice.

November 23, 2021
7:23 am
Loonie
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When the GIC matures, the broker will contact you for instructions. They will want to keep your business, but not necessarily at the same FI, and will arrange for any transfers.

If this is a registered account, you will indeed need a beneficiary. However, deposit brokers often don't offer great rates for registered accounts, so you should ask about that first. If it's registered , you may indeed be better off with EQ.
For a non-registered account, there is no provision for beneficiaries. It just goes into your estate.

With a broker, you may end up with a less well known FI. I consider this an advantage, as it means I can spread my money around further for insurance. For example, i have one through GICWealth with Habib Bank, CDIC-insured.

November 23, 2021
8:38 am
HISAhopper
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It will be non-registered GIC for me.
When GIC matures, if the broker contacts me and I am not there for any reason, will the fund go into the account it originally came from as per original instruction on maturity?
Thanks for the insights.

November 23, 2021
9:29 am
Loonie
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You'd probably be better off to ask the broker this question. I wouldn't want to give you the wrong info as it's not a situation i have encountered.

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