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EQ TFSA Savings acc 2.3% GIC 3 mo 2.5 % Same for RSP
December 2, 2020
9:17 am
Dean
Valhalla Mountains, British Columbia
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techno said

I tried transferring some fund to the new EQ RSP yesterday night but was getting a "This transfer could not be completed" message. I tried changing the date to next day and still getting the same message. Also, the site was slower than normal. Since it was pass midnight, online Chat was not available.

Today, I tried again. When I transfer some funds to the RSP, it logs me out with this message - "Sorry! Looks like something went wrong on our end." (similar to the problem with LBC when they were starting). After a few attempts of transfer (maybe 5 times), it logged out again and when I signed in, the money was finally successfully transferred.

I get inconsistent results when I tried to view my balance in RSP. Occasionally it will work and occasionally you'll get this message "Sorry! Looks like something
went wrong on our end." and you are signed out (similar to the problem when transferring fund to the RSP. sf-frown

===========================================================

I went to the EQ online banking site again today at around 11:45 EST and they were under maintenance. Hopefully they can fix the problem.  

It looks like EQ hasn't got all the Bugs out of their 'New & Improved' site yet.

Apparently, they're still in Beta Mode ... and they're using Us as their Guinea
Pigs ❗ sf-confused

I'd stay away from there, for now.

    Dean

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

December 2, 2020
4:00 pm
Loonie
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I think you should phone EQ and ask about the transfer. In my experience, registered funds can only be transferred with paper forms. It's possible fax might be accepted. It's the government that sets a lot of the rules regarding RSPs, and financial institutions must comply. It's not like transferring money in a regular savings account. Actually, in a way, you are lucky you got blocked because otherwise you might have accidentally de-registered your funds.
You might need to first set up an RSP, even though no money in it, at EQ. The incoming funds need somewhere to go.

That said, there should be clear instructions on the site, with downloadable forms.

December 2, 2020
5:06 pm
techno
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Loonie, I first open an RSP savings account online with no money in it and moved my money from my EQ savings into it. I remembered about 10 years ago, the customer service of PC Financial (now Simplii) convinced me to open an RRSP savings account and moved $2 into it to get me started. She said that I can move money in anytime. I did not sign any papers as well.

Maybe other people can confirm if forms are needed or not.

By the way, after more than 2 hours of maintenance, the online bank of EQ appears to be stable now. Hopefully, no more problems.

December 2, 2020
8:03 pm
Loonie
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I don't know what PC Financial was up to but, apart from whatever the requirements might be, I think it's prudent to use an actual form.
This allows you to specify whether it is, for example, a spousal RSP, which could be important down the line. Also, you should never open an RSP without designating a beneficiary and/or successor beneficiary and signing your name to that. Some account-opening forms allow you to make this designation on the form; others require a second form. This too will be important later.
PC may not care about these things as they don't really impact the bank, but they are for your own protection.
I have found that in roughly 50% of cases, the financial institutions don't bother to mention the beneficiary issue. And it can sometimes be a nuisance to get verification form them that they have received it.

December 2, 2020
8:37 pm
techno
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The online application process of EQ Bank did not mention anything about beneficiary. You have to find it yourself. To help others, here's the procedure:

1. Log in to your EQ online account and open an RSP account. If you want to make it registered, in the "Terms and Conditions" section, make sure you check - "I request that Equitable Bank register my EQ Bank retirement savings plan (the “Plan”) as a registered retirement savings plan pursuant to section 146 of the income Tax Act."

2. After the completing the opening of the account, you can already transfer money to the RSP without a beneficiary. To designate a beneficiary (while still logged in):
- click "EQ Bank RSP" to go to your RSP section
- on the left column, select "RSP beneficiaries"
- follow the procedures: read, download pdf, fill out the from then mail or fax it.

If you want to play it safe, you transfer the money when your beneficiary application is completed.

December 3, 2020
2:22 am
Loonie
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That's good information on how to open the account.

I have never seen one where you have to make a point of asking them to register it, as far as I recall. That part seems badly designed, as does the absence of beneficiary on the sign-up process.

The point about asking you to ask them to register it must be to distinguish an RSP from an RRSP. Everyone I know thinks of them as one and the same, so i think they ought to have simply called it an RRSP to avoid an unintended default situation.

TFSA process should be basically the same except that there is no equivalent to the spousal RRSP.

December 3, 2020
7:21 am
Winnie
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Loonie said
I have found that in roughly 50% of cases, the financial institutions don't bother to mention the beneficiary issue. And it can sometimes be a nuisance to get verification form them that they have received it.  

Exactly, my observations are the same.
You probably meant "to get verification from them".

EQ accepts beneficiaries form via fax.
No other bank or CU, that I know, accepts beneficiaries form via fax.
I will not be opening RRSP and/or TFSA with EQ.

December 3, 2020
11:43 am
HISAhopper
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I probably will use EQ TFSA HISA come Jan 1st (to have the flexibility to move it when transfer fee out is introduced)
I guessed I need to opened the account 2 weeks before Jan 1st and get it ready to receive funds from the EQ savings.
Is 2 weeks enough time including the beneficiary fax completion?
Thanks

December 3, 2020
4:00 pm
julio
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Once you print out, fill out, and sign all pages of the beneficiary form (theirs is three pages) you then these to the number printed on the form itself. Takes 1 minute, if your printer ink didn't dry out. From that moment it is considered done. You cannot open the 3 months GIC until your funds are received by them, which, in case of the T2033 (direct transfer form) takes 1 to 3 weeks, depending on how successful you are, but respectful, in bugging the institution the funds are being send from.

December 3, 2020
5:06 pm
Loonie
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Winnie said

Exactly, my observations are the same.
You probably meant "to get verification from them".

EQ accepts beneficiaries form via fax.
No other bank or CU, that I know, accepts beneficiaries form via fax.
I will not be opening RRSP and/or TFSA with EQ.  

Yes, that was my mis-type. Unfortunately it's an error I make regularly!

Fax is good for other legal documents so that would not be an issue for me.

I've had a bank lose docs before, so I would insist on documented receipt of the beneficiary form before I sent money. (TD lost my POA which had been in use.)
Since you are faxing, you can keep the original for your records in case it's ever needed.

I think I'll wait til January and see what the competition is and whether EQ holds its rate. I don't have anything coming due right now, so it's only 6K anyway. It will go in savings until GIC comes due later in the year. I'm only interested in HISA with no transfer fee at this point so options will be limited. I dislike having numerous TFSA GICs for smallish amounts.

December 7, 2020
10:57 am
pianoman8849
Halifax, NS
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miro said
Introducing the EQ Bank TFSA Savings Account.
2.30% interest*, tax-free
Zero fees
No minimum balance
No hassles, sign up in minutes

I just pulled out of the Motus Bank TFSA HISA. They're only paying 1.1%.
I transferred it to my bricks and mortar savings account until January 2 at which time I'll transfer into Eq Bank TFSA HISA. I've already opened the account.

Should be no transfer fees doing it this way as it's not going directly from one TFSA to another.

Sure, the 2.3% offer is good, even if only for a few months. If it then goes down to 1.5 or whatever, I'm still better off than if I had left it at Motus. Plus I like the Eq system much better than Motus. I'm closing my account with them in January as well.

December 7, 2020
4:11 pm
topgun
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pianoman8849 said

miro said
Introducing the EQ Bank TFSA Savings Account.
2.30% interest*, tax-free
Zero fees
No minimum balance
No hassles, sign up in minutes

I just pulled out of the Motus Bank TFSA HISA. They're only paying 1.1%.
I transferred it to my bricks and mortar savings account until January 2 at which time I'll transfer into Eq Bank TFSA HISA. I've already opened the account.

Should be no transfer fees doing it this way as it's not going directly from one TFSA to another.

Sure, the 2.3% offer is good, even if only for a few months. If it then goes down to 1.5 or whatever, I'm still better off than if I had left it at Motus. Plus I like the Eq system much better than Motus. I'm closing my account with them in January as well.

  

I know a friend that keeps transferring funds around from one FI to another FI frequently for special rates. Personally I do not see the point. I had 4 GIC's mature this year. The one in January was paying 3.00%. The one in April was paying 3.25%. The two in October were paying 2.88%. I put the funds in my HISA soon after the GIC's matured. In January I am adding some additional funds to buy a 5 year TFSA GIC. The current rate is 1.85%. Better to merge and have a larger GIC. Before interest rates increase they have to stop going down. Everyone has different priorities.

Have a Great Day

December 7, 2020
8:13 pm
Rick
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topgun said

I know a friend that keeps transferring funds around from one FI to another FI frequently for special rates. Personally I do not see the point.  

I guess this is the point:
35000 @ 1.5% = $525
35000 @ 2.5% = $875
Tax Free Difference = $350
Worx for me anyway.

December 8, 2020
4:36 am
dougjp
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Rick said

topgun said

I know a friend that keeps transferring funds around from one FI to another FI frequently for special rates. Personally I do not see the point.  

I guess this is the point:
35000 @ 1.5% = $525
35000 @ 2.5% = $875
Tax Free Difference = $350
Worx for me anyway.  

Bingo sf-laugh Isn't this one of the main points of this site !

Or, you could invest in stocks, looking at the combination of both income from them and their potential capital loss (especially if you are older and aren't comfortable with a long timeline). Lets say that's a net loss, which it has been for a majority of this year, until recently. sf-cry

December 8, 2020
5:25 am
pianoman8849
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dougjp said

Bingo sf-laugh Isn't this one of the main points of this site !

Or, you could invest in stocks, looking at the combination of both income from them and their potential capital loss (especially if you are older and aren't comfortable with a long timeline). Lets say that's a net loss, which it has been for a majority of this year, until recently. sf-cry  

I haven't been transferring from one FI to another FI as if I do it annually or something. I originally had a TFSA GIC at my bricks and mortar bank. Of course, with the terrible low rates they pay, I moved it to Motus. So, this planned move to Eq Bank is only my third in many, many years.

I'm talking $ 70,000 here so, even a small difference in rates makes quite a difference in TFSA interest.

I'm not thinking in the long term because of my age. At present, I'm doing well with stocks in Pfizer, Moderna and BionTech. sf-smilesf-smile

December 8, 2020
6:31 am
topgun
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dougjp said

Bingo sf-laugh Isn't this one of the main points of this site !

Or, you could invest in stocks, looking at the combination of both income from them and their potential capital loss (especially if you are older and aren't comfortable with a long timeline). Lets say that's a net loss, which it has been for a majority of this year, until recently. sf-cry  

I count dividend income. Years ago I invested in a couple Canadian stocks. I reinvested the dividends. My cost went to $70,000 including reinvested dividends by 2008. I stopped reinvesting dividends. I receive dividend income. I use it for paying part of my expenses. The dividends increased over the years. The current yield is 5.2%. The dividend income kept coming in 2020 even though the stock price were extremely volatile. This seems to be a lot better than collecting 2-3% in interest. I would have been required to save a lot more to get the same after tax return.

Have a Great Day

December 13, 2020
8:42 am
davidgeorge
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I have a regular EQ savings account and a linked external account. I plan to open a TFSA 3 month 2.5% GIC account on January 1, 2021 and fund the GIC account from the linked external account. On April 1, I open a 2.3% TFSA savings account and move the fund from expired GIC account to the 2.3% TFSA savings account. Is my plan feasible?

December 13, 2020
9:22 am
Vatox
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davidgeorge said
I have a regular EQ savings account and a linked external account. I paln to open a TFSA 3 month 2.5% GIC account on January 1, 2021 and fund the GIC account from the linked external account. On April 1, I open a 2.3% TFSA savings account and move the fund from expired GIC account to the 2.3% TFSA savings account. Is my plan feasible?  

First off, you are assuming the 2.3% Will still be available in April. I would open the TFSA savings in January and fund the savings with your external account. Then open the GIC with the TFSA balance, that way the GIC is automatically matured into the TFSA from which it was funded, otherwise the default is for matured GIC to go back to your external account, and I’m assuming that is non-registered and will be a TFSA withdrawal. If you want to fund the GIC directly from your external account, you will need to contact EQ to ensure the funds mature to your TFSA and not the external account. Remember to have enough TFSA contribution room.

Edit: you can open the TFSA savings right now and leave it as zero.

December 13, 2020
9:29 am
julio
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Yes, in theory, but because EQ does not hold the 3 month rate , which I hope to get too, when the currently in transit cheque from T2033 eventually lands on EQ’s desk. Same for daily interest in April. Who knows, what it will be. By the way, Jan 2021 might see some promos from others emerge.

December 13, 2020
10:03 am
davidgeorge
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Vatox said

First off, you are assuming the 2.3% Will still be available in April. I would open the TFSA savings in January and fund the savings with your external account. Then open the GIC with the TFSA balance, that way the GIC is automatically matured into the TFSA from which it was funded, otherwise the default is for matured GIC to go back to your external account, and I’m assuming that is non-registered and will be a TFSA withdrawal. If you want to fund the GIC directly from your external account, you will need to contact EQ to ensure the funds mature to your TFSA and not the external account. Remember to have enough TFSA contribution room.

Edit: you can open the TFSA savings right now and leave it as zero.  

Thanks, (1) I am going to open the TFSA savings account now and leave it as zero since I don't have any room for this year. (2) I really doubt that if I fund the GIC directly from my external account, the matured GIC will automatically go back to my external account, which indeed is a non-registered account. Anyway, I will ckeck with EQ.

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