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Ganaraska Credit Union - 4% for 5 Years
February 19, 2018
12:59 pm
gicjunkie
Ontario
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I pointed this credit union out a while back for having pretty good rates. Problem is that they are a local credit union in the Port Hope, Peterborough, Cobourg area of Ontario. They require that you come in to set up an account. Some of you may want to make a special trip for these rates. Theses are cashable GICs. I have no other details other than what's posted on their website. Today being a holiday, I have not phoned them. That 5 year rate is pretty enticing.

Term Deposits / Tax Free Savings / RRSP / RRIF

Cashable Term Special Rates
5 Year Cashable 4.00%
3 Year Cashable 3.00%
1 Year Cashable 2.00%
* NOT limited to NEW FUNDS
* All rates are subject to change without notice. Terms and Conditions may apply

February 20, 2018
12:14 pm
Save2Retire@55
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That's a very good rate. Maybe I should stop by on my next trip to Toronto.

February 20, 2018
7:50 pm
Loonie
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Does anyone have any more details yet?

February 20, 2018
8:42 pm
gicjunkie
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As I have said before, you have to go to a branch to set up an account, unless they have changed their policies. We went to Port Hope to set up an account. It's about a 90 minute drive from us in the GTA. If you want annual interest on the investment, it is deposited into your Ganaraska account and can be transferred out electronically to your home bank. There's a $2.00 service charge for this. There are also daily limits for transfers. They allow joint accounts and joint investments. Don't know what else you need to know. There's a toll-free phone number in the contacts area of their website if you need more information.

February 20, 2018
9:29 pm
Norman1
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Their web site is at https://ganaraskacu.com/Personal

Their online membership application requires one to (1) be an Ontario resident and (2) be at least 18 years old.

February 20, 2018
10:00 pm
Loonie
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Thanks for the additional information. Sounds promising.

I'm wondering about the "cashability" provision. Normally, with other CUs, this involves some kind of penalty, but it can vary.
I'm also not 100% clear if it applies to non-registered funds; probably yes, but it doesn't say precisely.

I just noticed that the online membership application form wants to know the total value of all your assets and liabilities. I have never been asked that before when signing up at any bank or CU. I think it's none of their business. In fact, I don't think I've ever been asked those questions, even for mortgage or credit card.

February 21, 2018
6:55 am
gicjunkie
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I don't know what the rate becomes if you cash out early, but based on what I have seen at other institutions, the rates are usually very low for early redemption.

Regarding the request for asset information, I have seen this before. You do realize that almost all financial institutions have access to your credit report. They often do what is called a soft credit check when you are a new customer and apply for an investment. This check isn't supposed to affect your credit score.

You should call them if you want more specific details. Good luck. It's a great rate.

February 21, 2018
7:29 am
--- deleted ---
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Thanks OP for sharing this -- would never have known about this.

I've emailed the CU and asked some basic questions (e.g. cash-out rate, etc.). Once I hear back, I'll post the details.

****later that day...***

Here's what I learned:

- Minimum $500. No Maximum.
- 4% for 5 years. Interest paid annually or compounded.
- Cashable rate is 1.25% (see note below)
- Can be cashed at anytime during the term -- not just on an anniversary, etc.
- In-person application. 3 branches: Peterborough, Cobourg, Port Hope. One visit required.
- $50 membership fee, returned when closing account.
- DICO coverage
- Available in non-reg and reg (RRSP, TFSA)

Note: The cashable rate is retroactive. For example, let's say you invest $50,000. Fast forward 2.5 years. If you need to cash out, then you will not effectively get 4% for year 1, 4% for year 2, and 1.25% for half of year 3. You will effectively get 1.25% over 2.5 years. The CU will do the math and deduct the interest overpayment before giving you access to your money.

I think this is fair and don't have a problem with it. But I'm just mentioning it in case it helps.

Also, nothing above is assumed (which you could have guessed anyway, since their website is about as illuminating as a grilled cheese sandwich). All of this information was sent to me in email.

February 21, 2018
2:36 pm
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Just bumping the edited post up the ladder so those interested will see it on the latest comments list.

Carry on...

February 21, 2018
2:51 pm
Top It Up
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lostmyusername said

Note: The cashable rate is retroactive. For example, let's say you invest $50,000. Fast forward 2.5 years. If you need to cash out, then you will not effectively get 4% for year 1, 4% for year 2, and 1.25% for half of year 3. You will effectively get 1.25% over 2.5 years. The CU will do the math and deduct the interest overpayment before giving you access to your money.

I think this is fair and don't have a problem with it. But I'm just mentioning it in case it helps.  

While Outlook Financial's 5-year rate is 0.9% less than this CU - I much prefer their approach to early withdrawals -

Early Withdrawal Rate

You can access funds from your Cashable GICs (in whole or in part) any time prior to the maturity date subject to the *early-withdrawal interest rate, a $1,000 minimum withdrawal amount and a minimum remaining balance of $1,000 for non-registered and registered investment accounts.

Withdrawals from Cashable GICs made prior to the maturity date will earn the early-withdrawal interest rate on the funds withdrawn, calculated back to the date of deposit. The remainder of the GIC will continue to earn its regular rate of interest.

February 21, 2018
3:05 pm
--- deleted ---
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That's a great point. That never occurred to me. I've emailed the rep to find out if the policy is the same.

If not, then I don't see why someone couldn't open 2+ GICs and just have them exist concurrently.

But the idea of having 1 GIC and having the option to cash out some of that (and earn 1.25% back to the date of deposit) is obviously better.

I'll let you know what they say.

February 21, 2018
11:29 pm
Loonie
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DUCA has a 1.75% early cash-out rate. I think it only applies to 40 month GICs, with a one year minimum deposit. In any event, it's the best I've seen for withdrawal rate.
Of course, neither they nor Outlook are offering 4% rate!

Agree, the best way to manage this if you might need early access to your funds is to make several smaller GICs. Still, this should only be considered for unpredictable expenses. It's probably a better idea to keep emergency funds somewhere else.

I remain surprised about the question regarding total assets etc. I have opened accounts at a few new FIs in the last few years and have never been asked this. Yes, I know they do credit checks, but had understood that was more about capacity to pay, record of doing so, and income, than about net worth. Creditors want monthly payments, and my house will not provide that unless they go to court for it. Besides, we are not asking for credit. I understood the soft check was for opening an account and the hard was for credit, although they are not always consistent about that.
I regard it as a bit of a fishing expedition, for information they are not really entitled to.
If you apply for a credit card, all they seem interested in is how much you earn, where you work, maybe something about your housing.

I would be interested to hear, from anyone who goes into the branch for this, whether they get asked the same question in person.
An awful lot of people, if the media are to believed, don't even know their total assets and liabilities accurately.

I wonder what would happen if you answered, "greater than X" for assets, and "less than Y" for liabilities, said "I don't know" or "can't be sure and don't want to lie" or just left it blank - more possible in person than online. Who really know what their house, their jewelry, their art, etc., are worth anyway if they're not on the market? Who is really willing to list amounts owed to CRA on their RSP as liabilities, and knows how much that will bw? - nobody - yet it is surely a liability, and even moreso if accessed in a lump sum to pay a big bill, which is all that needs to interest the FI.

I sure wouldn't want to give the credit agencies any more info than I had to, especially with their record of errors and security leaks.

"Grilled cheese sandwich" - lol. So true!

I appreciate the responses.

February 22, 2018
6:36 am
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The total assets/liabilities question is weird. I've been asked that question when borrowing funds (e.g. car financing), but not for applying to a FI.

I heard back regarding the cash out process: you can't withdraw a partial amount. It's all or nothing. But you can purchase multiple GICs (e.g. 4 x $25,000).

February 22, 2018
2:07 pm
James
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Thanks for bringing this to our attention! I'll add a few other thoughts. Remember that DICO now insures $250,000 and registered funds have unlimited coverage. On the topic of registered funds, Ganaraska Financial charges $100 transfer out fees for both RRSP and TFSA (link to fees below).

https://www.ganaraskacu.com/SharedContent/documents/accountfees.pdf

February 22, 2018
2:24 pm
Loonie
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i must say, I am disappointed about the monthly fee, assuming they actually charge it. Over five years, that amounts to almost $250 (plus tax?).
gicjunkie - can you tell us if you have been charged this fee? Do they require a savings account to take it out of?

February 22, 2018
2:50 pm
James
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I found another service fee page on the website. This one is more up to date:

https://www.ganaraskacu.com/SharedContent/documents/REV5personalbanking.pdf

Note that it now says charge for TFSA transfer is $50 (RRSP is still $100). I spoke to them on the phone Loonie and they said the only fee for the purposes of the GIC is the $50 refundable membership fee until you transfer out. Now if you want a savings or chequing, maybe gicjunkie can tell us if there is still a monthly fee.

I'm also curious what others are doing. It's an interesting time. This might be a sign of things to come (ie. increased rates) but I'm also mindful that we're (almost) setting the record for the longest bull market run in history and in the event of a crash, interest rates usually drop (although this took a while back in 2008).

February 22, 2018
3:58 pm
Loonie
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Thx, James.
Yes, I had seen that other fee page the other day. How do you know which one is more accurate? i would expect the $100 TFSA transfer to be more up to date than a $50 one, as these things never come down, in my experience.

Has anyone else gone out there to check this out in person?

February 22, 2018
9:54 pm
gicjunkie
Ontario
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I only have GICs and a savings account with Ganaraska, no TFSAs or anything else. The interest from the GIC is deposited annually to the savings account with no monthly service fees. I think it's called a Savings 16 Account. Don't know if it's because I'm a senior that there is no fee or if this account doesn't have one. For some reason, the website only lists chequing accounts, which do have monthly fees. There is a fee to transfer money out electronically to your home bank. Again, you may want to call them for more details specific to your needs.
Toll free 1 888 374 1717

February 23, 2018
1:05 am
Loonie
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thx, gicjunkie. The senior thing makes sense. I'd rather rely on your experience than calling them! - as the site itself seems unclear and at times contradictory.

February 23, 2018
6:04 am
gicjunkie
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Loonie said
thx, gicjunkie. The senior thing makes sense. I'd rather rely on your experience than calling them! - as the site itself seems unclear and at times contradictory.  

You're welcome, but I still think you should phone them for specifics, if you are really interested in doing business there. I can only report information that is based on what my needs are. I think that because they are a smaller regional CU they are still evolving regarding website technology and information disclosure.

I have encountered larger companies which have been a little vague about info on their sites and, after expressing this to them, they updated the information. The Home Trust Preferred Visa site is an example. They offer free forex fee transactions on out of country charges, but didn't say so on their website, until I questioned them about it. This is an important selling feature for this credit card and they omitted this from the basic info section. You would think they'd have people to proofread and check details on important promotional information.

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