[BC Only] GFFG GIC: first 9 months at 1.25%; second 9 months at 2.75% | GIC discussions | Discussion forum

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[BC Only] GFFG GIC: first 9 months at 1.25%; second 9 months at 2.75%
August 7, 2020
12:31 pm
implode
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https://www.gffg.com/BrightTerm

Looks like there is an early redemption period at the 9month mark, but at an early redemption rate (not posted, so I don't know what that is). Also, this GIC doesn't apply to RESP.

Below is the disclaimer on the 2.75% rate:

* Limited time offer where conditions apply and rates are subject to change. Not eligible for RESP accounts. This product is cashable on the 9 month anniversary date; an early redemption rate will apply.

August 7, 2020
12:32 pm
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Oops, I read it as GIC, but it's a term deposit, but to me, it's practically the same thing.

August 7, 2020
12:43 pm
Bill
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It says "earn 2.75%* in 18 months". So it's not an annual rate?

August 7, 2020
1:28 pm
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It doesn't explicitly say. If it's 2.75% over 18 months, that is worth about 2/3 then, ie, 1.83% 🙁 I'll inquire with them then.

August 7, 2020
1:33 pm
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Called in. So I was explained that the first 9 months is 1.25% and the second 9 months is 2.75%. The effective rate over the 18 months is 2%.

Moderator, can this thread subject be updated or the thread be deleted? I don't want to mislead people. I only got the details above now after calling in due to Bill's question.

August 7, 2020
2:57 pm
Bud
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CU? Guarantor BC gov? Open to other provinces?

August 7, 2020
4:39 pm
AltaRed
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Have to be a BC resident.

August 7, 2020
10:31 pm
Peter
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Title has been updated to state that it's BC only, and to list the components of the term. It's worth keeping the thread as a warning to anybody who might be misled by the "earn 2.75% in 18 months" wording.

August 8, 2020
8:04 am
AltaRed
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Sneaky marketing like that does not leave a good impression regarding the integrity and ethics of the organization. AFAIK, a CU is supposed to serve its membership. If I was already a member of that CU, I'd be running as fast as possible to something more worthy of my participation.

August 8, 2020
7:20 pm
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I saw the "2.75%" rate in a paper ad and checked out the website link. It was still not very informative. I was misled and didn't want others to be misled. Only upon calling in did I get the clearer details of the offering.

August 9, 2020
1:02 am
Loonie
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It states very clearly in their online ad that the rate is "up to 2.75". This kind of language is a red flag if you have tried to deal with it before.
We have seen this sort of language several times in offers from the banks and it has normally meant that basically you will not get the stated rate. So I think it's clear where G&F got this bad idea. I don't know anything about this particular CU, but from what I have seen, CUs tend to draw their senior managers from people who have previously worked for the big banks, so perhaps we should not be surprised.

Members need to complain, but if you are not a member, you will have no more voice than a solitary vote at a shareholders' meeting of a big bank.

I rarely bother to investigate rates that contain that phrase "up to". When you think about it, it's not any kind of rate promise at all, so they can't be held to it.. It doesn't actually guarantee that anybody will get it. I assume that "up to" really means "something less than" unless someone shows me that it doesn't. Why else would they use that language? If you mean 2.75, then why not just say so? There is always a reason.

It reminds me of retail ads that proclaim "30% off" in large font bold, but fail to tell you their regular price. I ignore those too.sf-wink

August 9, 2020
11:46 am
Alexandra
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I went on to their web page and engaged the chat. I finally got it out of them that in effect the rate would be 2% over the eighteen month period.

They said they were aware of the CIBC & Tangerine offers of 2.4% & 2.5%.

August 9, 2020
4:29 pm
Bill
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Ah, now it makes sense, when credit unions do (my word) "scummy" things "it's clear" it's because some of their senior staff came from big banks (by definition, major scumminess!) and poisoned, and forcibly imposed their scumminess on, the ethical credit union people who by definition are incapable of questionable activity. Though I am surprised the ethical credit union people would hire from the scummy big banks, it's well-known about the scumminess of those people who work for the big banks - ? But anyway, thanks, now I see.

August 9, 2020
8:30 pm
gicjunkie
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I have read all of these postings with interest. I have also examined the website in question. As there is no place on the website that clarifies how this promo rate works, I'd be curious to know when the CU would actually inform one of the way the interest is calculated. Would it be after committing to the investment or before? Would they even bother to tell you at all? The advertising is extremely misleading and lacking information. The credit union should be censured for this.

August 10, 2020
8:45 am
GICinvestor
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I have driven by the one in Port Coquitlam for many many years. And for the longest time I thought it was a small grocery store. And after reading here I think I should just keep thinking that way.....grocery store. sf-smile

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