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High Interest GIC in a RESP
October 10, 2018
7:18 am
Pipersierra
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Is there some place I can set up an RESP and get access to some of these great GIC rates? Scotia Itrade offers GIC but they are taking a cut on the yield. So I guess my question is, if I were to set up a second RESP, where should it be?

October 10, 2018
8:30 am
Nehpets
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Pipersierra said
... RESP and get access to some of these great GIC rates. 

Of the FI's with high GIC interest rates, one that comes to mind, eligible for RESP is DUCA currently paying 2.8% for one year.

You may want to also check with some deposit brokers like GIC Wealth or Scrivens, the latter's website indicating to offer GIC's eligible for RESP

Stephen

October 10, 2018
6:04 pm
Loonie
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Steinbach Credit Union (Manitoba) offers the following in RESP GICs:

12-month
2.35%

24-month
2.55%

36-month
2.75%

48-month
2.85%

60-month
3.00%

https://www.scu.mb.ca/rates/investments

October 11, 2018
5:00 pm
Save2Retire@55
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Also you can use Meridian. I asked and you can open a 5 years GIC for RESP and get the good rate they are offering now 3.75%.

Also you can get a normal non-GIC for 2.4% for RESP.

October 12, 2018
6:23 am
Loonie
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Great idea to use Meridian for this. You won't get a better rate right now for five year term. I'd go with that if I were looking for one. Rates may improve next year, in which case you can make another contribution at that time, but not lose out on today's offer. Most places that offer superior rates don't seem to offer RESPs. which makes this one especially attractive.

October 12, 2018
8:44 pm
Save2Retire@55
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Exactly. I opened mine with them just last week 🙂

Also, was just curious about DUCA, and it bugged me that they need an in person appointment with an FA to open the account.

October 13, 2018
8:42 am
Nehpets
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Save2Retire@55 said DUCA, and it bugged me that they need an in person appointment with an FA to open the account.  

That has not been my experience, unless the policy has to do with registered money . I opened a deposit account online and so has someone else I know.

DUCA does have more stringent security policies than some other CU'S however.

Have you been in contact with a Customer Connect CSR?

October 13, 2018
9:35 am
Save2Retire@55
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Nehpets said

That has not been my experience, unless the policy has to do with registered money . I opened a deposit account online and so has someone else I know.

Have you been in contact with a Customer Connect CSR?  

Yes, I called them yesterday. They said for RESP, I need to book an appointment with an FA. I said, OK. Thanks. We move on!

October 13, 2018
9:39 am
Loonie
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It seems though that SavetoRetire was in fact opening a registered account (RESP).
It is my impression that a lot of FIs have only partially embraced online banking thus far. We are in a transitional stage.
Speaking of security, spouse was asked for TWO pieces of PHOTO-ID yesterday at TD! They wanted a passport, which is not something we carry around on the streets of Toronto. They finally relented. We've had that account for many years and nothing peculiar has ever happened with our accounts there - except that we've gradually removed most of our money!sf-wink This is where Meridian wins the day with ease. If we walked in there, somebody would recognize us. We've only been with Meridian for 2 years but we've been at TD for over 30 (same branch) and have had a lot of money there (more than we've ever had at Meridian), but nobody knows us at all. At Meridian, they would not be requiring a passport.

October 13, 2018
10:14 am
Top It Up
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Loonie said
If we walked in there, somebody would recognize us. 

I have three online accounts and one bricks and mortar account. They don't know me at the bricks and mortar either because I only deal with them online, as well ... in other words, I'm a low maintenance client.

I'm now only recognized in 2 places, my local Starbucks and my favourite cocktail bar in Berlin and I'm OK with that.

October 13, 2018
5:44 pm
Save2Retire@55
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Top It Up said

Loonie said
If we walked in there, somebody would recognize us. 

 

And I am refuse to meet in person. Time is more valuable to be wasted in a traffic while things can be done online or over the phone. So backwards! I am PUTTING money there under my children's name! I don't see any security risk for the bank in this scenario.

And yeah I love Meridian. Everything can be done online, private messages, or over the phone.

October 13, 2018
7:03 pm
Kidd
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They recognize me at the post office, only because my picture is on the wall.

A few years ago we had relatives visiting from Europe. We went to the cn tower and i was the one singled out for an additional wanding. I made a big scene over this. I was born and raised in canada, and the security staff at the cn tower got off the boat a week before they decided to flag me. Every head turned, when i loudly pointed out the irony of what was taking place.

I have also been with the td bank for decades, i don't expect them to recognize me because i don't have a clue who any of them are.

October 13, 2018
9:28 pm
Loonie
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You are all welcome to your own opinions and priorities.
I will just say that negotiating potential improves significantly when you know someone, even though we know that relationships with our money tenders and lenders are somewhat artificial. This applies no matter which side of the desk you occupy. If it weren't so, bankers would not be constantly trying to get us to meet with one of their advisors or wealth managers by promoting such a relationship.

In my view, TD had all kinds of time and potential to make me feel like something other than an account number when I had most of my money there. They failed, and the money is gone. Expecting long-term clients to show up with a passport creates an alienating experience. Perhaps this counts as success in the banking industry?

October 14, 2018
2:53 am
Kidd
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I agree, recognition puts a little pep in my step. When it happens, i do smile.

It's just that in large organizations like the td, they have the turn over of staff, large volume of clientele and the day to day worries of their own lives to deal with.

Everyday i do my morning walk to McDonald's for a cup of coffee, I've been doing this same walk for years. Most days the kid looks up at me with a blank expression of their face, may i help you? If i were to say, same as yesterday? The kid's brain would just shut down. By the way, the increase in minimum wage didn't help in this regard. Ontario's old government tried to assure us... more money means better service.

I still find, some days while walking home with my cup of coffee, it's not what i ordered. Today's youth is tomorrows rocket scientist, we are so screwed.

October 14, 2018
5:02 am
Loonie
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Kidd said
I agree, recognition puts a little pep in my step. When it happens, i do smile.

It's just that in large organizations like the td, they have the turn over of staff, large volume of clientele and the day to day worries of their own lives to deal with.

 

I agree, every time I go into TD, which is now about every 3 months, the staff are all different. The thing is though that TD has the power to organize themselves differently. Why is it, exactly, that staff are constantly turning over?
Pretty well all the staff at DUCA and Meridian, from what I can tell, from talking to them, used to work at one of the Big Banks and were really happy to leave. I probably go to Meridian even less frequently, but, when I phone there, my guy knows my name right away. In the two years or so that I've been with Meridian, I've only had 2 guys to deal with through 6 GICs, and the manager has remained the same and is very accessible. I can call her any time, and she will actually pick up the phone and talk to me if she can, and she notices if I've called and hung up. On the other hand, every time I get a business card from the manager at my TD, it's invalid by my next visit as that guy has left.

October 14, 2018
7:35 am
Bill
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Pretty obvious why staff are constantly turning over, TD dwarfs Meridian or any credit union so there's infinitely more opportunity for promotions, transfers, job-sharing, more interesting departments to work in, etc, so staff is more transient. Any large business or institution (e.g. gov't department I was familiar with for a while, almost everybody always on the move, filling in for somebody else, etc) has a lot more movement, especially to and from the front lines, than a small or medium-sized business.

October 14, 2018
12:26 pm
Loonie
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We don't really know why staff are on the move so much at TD. It could also be that they aren't very happy there and so they quit as soon as they can gt a better job somewhere else.

Be that as it may, it's bank's upper management that has decided to run things the way they do. They are the ones who approve the transfers. They obviously think it's a fine way to run a business with constant turnover at the branch level and no real relationship to the local community. So far, I guess they think it works for them.
But we are free to move our business elsewhere.

October 14, 2018
12:55 pm
Norman1
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It is also possible the departures are not voluntary. With the emphasis on product sales now (see previous post about the results of a FCAC investigation), all the branch staff may have sales quotas, even the tellers.

If the teller doesn't meet his/her quota two quarters in a row, of new credit card signups or of productive referrals to their mutual fund sales team across the branch, then the teller is let go. sf-frown

One friend recounted her interview last year for a teller position at a branch of one of the banks. Lots of questions about which of their credit cards to offer to a customer. Later, she was turned down for the position. The reason given was that they hired another candidate who had more sales experience!

October 14, 2018
3:40 pm
Loonie
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Yes, I'm sure that the sales emphasis is a huge issue. Even the people who pass the quotas will sometimes prefer to leave in order to get out of that environment.
On my visit to TD a few months ago, with the purpose of closing an account, I gave as a reason that they don't pay enough interest. This was immediately countered with "I can get you 5% on a GIC." I replied calmly that i didn't believe her - although I was impressed with her boldness in lying! It soon emerged that she was referring to a market-linked 5 yr GIC with a maximum of 5% annua; simple return and a minimum of 0%. At that time, Ganaraska CU was offering 4% compounded, so there was a risk of 4.3% lost in order to possibly get 0.7% more, which is a bad deal by almost anyone's standard. As soon as she realized I was "on" to this gimmick, she quickly withdrew from the conversation. She didn't have time to waste with someone who wasn't going to fall for their sales pitches. I wasn't going to help her meet her quota.
I can only conclude they don't want my business. Not surprisingly, they're not getting it.

The fellow I dealt with during my first year with Meridian told me that his manager had told him that the only thing he could get fired for was giving bad information. I'm sure there's more to it than that, but it didn't involve quotas. For whatever reason, he left and now works for an insurance company. in "Business Development", which I think was his real interest anyway. He had previously worked for BMO. I couldn't tell you what any of the people I encountered who previously worked for TD are doing as I rarely even knew their names and we took no interest in each other.

October 30, 2018
3:21 pm
Nutmeg
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Hi. I have been looking at this forum for a while but have not posted before. I was motivated by reading this thread (thanks, posters!) to open an RESP at Meridian with the 3.75% 5-year GIC. However, my local branch simply says that Meridian does not offer the option of putting GICs in an RESP. It's true that I don't see this option on their website, but people here on this forum were apparently able to get it. I am wondering whether the person I talked to just lacked knowledge, or lacked the power to carry this out, or just didn't have any motivation to do it because he would rather have me get mutual funds so he could get a commission. Anyway, that's my data point.

I am disappointed but also still hoping that I can somehow manage to get this. In general, I don't understand WHY financial institutions have so many rules about what can go in what type of account, with RESPs seeming to have the fewest and least desirable options. I know that they COULD do this if they wanted to.

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