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EQ TFSA Savings acc 2.3% GIC 3 mo 2.5 % Same for RSP
December 16, 2020
2:41 am
Loonie
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The desirability of the 3 month GIC should be evaluated alongside your assessment of the likelihood of a transfer fee being implemented by then. They are linked.

I'm with Rick in thinking it is unlikely they will introduce a fee that quickly. Perhaps they never will, as I think that would be consistent with their model in general.
But they will certainly lower the rates, and very possibly by the time your GIC matures. They could still remain competitive, even at lower rates, and you may want to leave your money there anyway.

Bear in mind that there are still 2 weeks before Jan 1, and their rates could change by then if they have already had a strong response.

I can't remember if we already determined whether they will hold the rate, waiting for a TFSA transfer, but that is also a factor. A transfer could easily take a month, especially in January and employees in quarantine or sick in increasing numbers, which seems very likely as so many are fond of ignoring the rules.
Those who can only deposit 6K may not all feel it's worth the bother if they will have to transfer it out soon. And you might miss out on better longer term offers during that 3 months. After 3 months, all the deals will likely be gone for now. That said, I am not optimistic about a lot of deals being on offer this time around.

December 16, 2020
6:07 am
HISAhopper
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Loonie said
The desirability of the 3 month GIC should be evaluated alongside your assessment of the likelihood of a transfer fee being implemented by then. They are linked.

I'm with Rick in thinking it is unlikely they will introduce a fee that quickly. Perhaps they never will, as I think that would be consistent with their model in general.
But they will certainly lower the rates, and very possibly by the time your GIC matures. They could still remain competitive, even at lower rates, and you may want to leave your money there anyway.

Bear in mind that there are still 2 weeks before Jan 1, and their rates could change by then if they have already had a strong response.

I can't remember if we already determined whether they will hold the rate, waiting for a TFSA transfer, but that is also a factor. A transfer could easily take a month, especially in January and employees in quarantine or sick in increasing numbers, which seems very likely as so many are fond of ignoring the rules.
Those who can only deposit 6K may not all feel it's worth the bother if they will have to transfer it out soon. And you might miss out on better longer term offers during that 3 months. After 3 months, all the deals will likely be gone for now. That said, I am not optimistic about a lot of deals being on offer this time around.  

I agree with that assessment, transfer-out fee is very unlikely in March but it can not be ruled out completely in one's calculation as I am not going for only 6K but around 34k.

December 16, 2020
6:14 am
Loonie
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A transfer fee on a larger amount is actually more manageable because it's a fixed amount and you are spreading it among more dollars, so it dilutes your return less than on a small amount.

December 19, 2020
1:48 pm
LK
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hwyc said
After browsing thru their FAQs, I am not sure one can buy a TFSA GIC from an externally linked account in a single step.

I intend to buy a TFSA GIC on Jan 1st & working the dates backwards.

  • Transfer money to Savings Plus from external FI latest on Dec 22nd
  • Money unhold after five business days on Dec 31st
  • Open TFSA Savings Account (beneficiary setup etc) on or before Jan 1st
  • Contribute money to TFSA Savings Account on Jan 1st
  • Buy TFSA GIC with money in TFSA Savings Account from on Jan 1st

More lead time required if you do not already have a Savings Plus account or externally link not yet ready. Would you agree ?  

I did the following: (1) set up external link to other FI and (2) set up an EQ TSFA account. It looks like within EQ's transfer page, I can transfer from the other FI directly into the EQ TSFA account, specifying the transfer date of Jan 1, 2021. I'm guessing that amount would be on hold for five business days* before I could then transfer those funds into a TSFA GIC. If that works, it seems a better option to get 2.3% while waiting for the hold to lift, rather than transferring to EQ savings account around Dec 22/23, getting basically no interest for a week while waiting for the hold to come off so that funds can be internally moved from EQ savings to EQ TSFA.

* I chatted with an EQ rep today, and was told that all funds are now subject to five business days, regardless of amount and that they haven't updated their Hold Policy page yet (which states 8 business days if over $1500).

December 19, 2020
2:00 pm
LK
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After a December maneuver, I'm thinking about putting maybe 1/2 or 2/3 of my TSFA funds into the 2.5% 3 month TSFA GIC, and the remainder into the 1.8% 6 month TSFA GIC. Possibly a bit of a hedge against the likely decrease in the 2.3% TSFA savings rate? Any thoughts? Anyone else taking this approach?

I'm aware that there is a risk regarding a possible change in the "no TSFA transfer fees" by going with a 6 month GIC. It's a possible downside, for sure.

December 19, 2020
3:26 pm
GR
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LK said
After a December maneuver, I'm thinking about putting maybe 1/2 or 2/3 of my TSFA funds into the 2.5% 3 month TSFA GIC, and the remainder into the 1.8% 6 month TSFA GIC. Possibly a bit of a hedge against the likely decrease in the 2.3% TSFA savings rate? Any thoughts? Anyone else taking this approach?

I'm aware that there is a risk regarding a possible change in the "no TSFA transfer fees" by going with a 6 month GIC. It's a possible downside, for sure.  

Unless their TFSA savings account rate and 3 month TFSA GIC rate is less than 1.1% when the 3 month 2.5% TFSA GIC matures, the 1.8% GIC for 6 months is not the best option. (3 months @ 2.5% + 3 months @ 1.1% = 6 months @ 1.8%)

December 19, 2020
5:14 pm
topgun
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LK said

I did the following: (1) set up external link to other FI and (2) set up an EQ TSFA account. It looks like within EQ's transfer page, I can transfer from the other FI directly into the EQ TSFA account, specifying the transfer date of Jan 1, 2021. I'm guessing that amount would be on hold for five business days* before I could then transfer those funds into a TSFA GIC. If that works, it seems a better option to get 2.3% while waiting for the hold to lift, rather than transferring to EQ savings account around Dec 22/23, getting basically no interest for a week while waiting for the hold to come off so that funds can be internally moved from EQ savings to EQ TSFA.

* I chatted with an EQ rep today, and was told that all funds are now subject to five business days, regardless of amount and that they haven't updated their Hold Policy page yet (which states 8 business days if over $1500).  

I have a similar plan with a different FI. I needed some of the funds from my FI HISA where I plan on investing TFSA GIC. I left enough there to purchase my TFSA GIC Jan 1st. I did not want to work out the number of days to transfer the money back. No funds on hold. On Jan 1 I will buy a TFSA GIC from my HISA. Jan 1 no hold initiate transfer Dec 25 if no statutory holidays for 5 day hold. To have funds transferred 2 days earlier Dec 23 so hold is removed. You will be fine.
Nothing wrong with purchasing more than one GIC with different term. Do what works for you.

Have a Great Day

December 19, 2020
5:41 pm
Rick
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topgun said

I have a similar plan with a different FI. I needed some of the funds from my FI HISA where I plan on investing TFSA GIC. I left enough there to purchase my TFSA GIC Jan 1st. I did not want to work out the number of days to transfer the money back. No funds on hold. On Jan 1 I will buy a TFSA GIC from my HISA. Jan 1 no hold initiate transfer Dec 25 if no statutory holidays for 5 day hold. To have funds transferred 2 days earlier Dec 23 so hold is removed. You will be fine.
Nothing wrong with purchasing more than one GIC with different term. Do what works for you.  

I'm just pushing the funds on the 28th using non-registered cash into EQ HISA. Should be in EQ long before the 1st, no hold at all. I guess I pay 1 to 3 days lost interest as a convenience. If I set it up in advance, could even make it the same day. Dec 31 take the funds out of my TFSA to replace the cash I borrowed in FI #1, and Jan 1 our contributions for 2021 moves from EQ HISA to EQ TFSA.
Easy - peazy
Might wait a couple months before I convert to a GIC so it matures in Dec (IF they keep offering a 3 month GIC to roll over) in case the funds have to abandon ship into another FI.
Not worried about transfer out fees at all. Don't usually chase rates in my TFSA's. If I think it's necessary to move any or all, the math is easy to do to see if it's worth it or not, or just do the December thing.
Quite Frankly though...I'm hoping to keep them as my second FI for my TFSA. I need one as I want to leave a bit of room for growth before maxing out in my first FI. Their rates haven't been THAT bad since I signed on with them. Need another basket for my eggs and they fit the bill.

December 19, 2020
8:57 pm
topgun
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Rick said

I'm just pushing the funds on the 28th using non-registered cash into EQ HISA. Should be in EQ long before the 1st, no hold at all. I guess I pay 1 to 3 days lost interest as a convenience. If I set it up in advance, could even make it the same day. Dec 31 take the funds out of my TFSA to replace the cash I borrowed in FI #1, and Jan 1 our contributions for 2021 moves from EQ HISA to EQ TFSA.
Easy - peazy
Might wait a couple months before I convert to a GIC so it matures in Dec (IF they keep offering a 3 month GIC to roll over) in case the funds have to abandon ship into another FI.
Not worried about transfer out fees at all. Don't usually chase rates in my TFSA's. If I think it's necessary to move any or all, the math is easy to do to see if it's worth it or not, or just do the December thing.
Quite Frankly though...I'm hoping to keep them as my second FI for my TFSA. I need one as I want to leave a bit of room for growth before maxing out in my first FI. Their rates haven't been THAT bad since I signed on with them. Need another basket for my eggs and they fit the bill.  

Pushing funds to EQ HISA you lose 1 day interest at most.

Have a Great Day

December 20, 2020
7:42 am
hwyc
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LK said
After a December maneuver, I'm thinking about putting maybe 1/2 or 2/3 of my TSFA funds into the 2.5% 3 month TSFA GIC, and the remainder into the 1.8% 6 month TSFA GIC. Possibly a bit of a hedge against the likely decrease in the 2.3% TSFA savings rate? Any thoughts? Anyone else taking this approach?

I'm aware that there is a risk regarding a possible change in the "no TSFA transfer fees" by going with a 6 month GIC. It's a possible downside, for sure.  

I think it is a good strategy to hedge against rate drops ... thanks for the reminder. Probably will do mini GIC steps ( 3m/6m/9m ) but definitely nothing beyond Dec 31, 2021

https://www.highinterestsavings.ca/forum/eq-bank/eq-tfsa-savings-acc-2-3-gic-3-mo-2-5-same-for-rsp/#p57632

Capture-EQ-TFSA-GIC-rate.JPG

... stay safe ... play safe sf-wink

December 21, 2020
7:42 am
hwyc
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Oops. My original timeline was wrong!!! Today's the latest day to post funds to EQ if it were to be unhold by Dec 31

  • Dec 21 - transaction day
  • Dec 22 - day 1 on hold
  • Dec 23 - day 2
  • Dec 24 - day 3
  • Dec 29 - day 4
  • Dec 30 - day 5
  • Dec 31 - unhold after five business days

December 21, 2020
9:48 am
topgun
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Glad you resolved the issue in time.
I do it differently. If the hold is 5 days add 7 (i.e. 2 days for weekend) to transaction date. Add number of statutory holidays in the next week.
transaction = Dec 21
+7 = Dec 28th
+2 = Dec 30th
The hold will be removed in the early hours of Dec 31st while you are sleeping.
Merry Christmas.

Have a Great Day

December 24, 2020
7:15 pm
davidgeorge
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Seems there is no EQ spousal RSP account, right?

December 26, 2020
10:32 am
christinad
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I set up a withdrawal from hubert from eq bank on dec 23rd. The funds still show as being in hubert. Should it be gone by now? I usually use e transfers to eq and don't know how long transfers take.

December 26, 2020
12:15 pm
Norman1
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EQ Bank usually submits the pre-authorized debit or direct deposit into the clearing system the next business day. So, the pre-authorized debit for the Wednesday, December 23 pull would likely have been submitted Thursday, December 24.

It may take Hubert a business day or two to post the debit. Friday was not a business day as that was Christmas Day. Monday won't be a business day as it will be the substitute for Boxing Day.

Also, does Hubert allow pre-authorized debits against their HISA? I know they allow direct deposits as their new web site will generate a direct deposit form for their HISA. But, not a pre-authorized debit form.

December 26, 2020
2:00 pm
topgun
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I do not deal with Hubert.

I have FI's that I PUSH/PULL funds.

Tangerine must have transaction created 1 day in advance. Cutoff 12:00PM EST 1 day before transfer date.

Simplii must have transaction created 1 day in advance. Best to create TWO days in advance. Cutoff 7:00AM EST 1 day before transfer date.

My MB CU says create the transfer at least 3 days in advance. Cutoff about 11:30PM CST 3 days in advance. This is clearly stated on the transfer screen.

Each FI has different cutoffs. After a few times you know the rules.

I prefer PUSH if it is possible otherwise I revert to PULL.

Have a Great Day

December 26, 2020
2:57 pm
christinad
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Thanks both. I'm confused. Did i do a pull if i set up the withdrawal from hubert at eq bank?

December 26, 2020
3:55 pm
Norman1
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Yes, it was a "pull" if you logged into EQ Bank's site to transfer the money from Hubert. EQ Bank would generate a pre-authorized debit and submit it into the clearing system.

In contrast, it would be a "push" if you had logged into Hubert's site to transfer the money to EQ Bank. Hubert would have generated a direct deposit and submitted it into the clearing system.

December 26, 2020
11:03 pm
Loonie
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Thursday appears to have been a half day in the banking world, at least in terms of hours open to public. So it may take a bit longer.

Should be there by Wednesday, Thursday at latest.
Then it will be on Hold at EQ because it’s a “pull”. I don’t know if that impedes your ability to move it to TFSA. It might, because it's a registered account, which would be a bureaucratic nuisance to undo if it came to that. Perhaps the answer to that is somewhere in this thread already.

December 27, 2020
9:43 am
christinad
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Thanks. I think i should have split it into etransfers instead. The rate will probably change before i'm able to transfer to tfsa.

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