GIC 30 day grace period | GIC discussions | Discussion forum

Windsurfer said
Hello all, this is my first post. Great website!

I recently purchased a GIC with Tangerine and they have a 30 day grace period during which one can cancel the GIC without penalty. I also purchased one with Achieva and I am thinking of cancelling it but I see no mention of a grace period on their website.
I think most institutions do have a 30 day grace period for GIC's. Is it a standard in the industry? Is it required by some regulation?
Thanks.  

Welcome to the site, Windsurfer.

Most FIs do have a 30-day grace period, though I'm not certain if it's a mandatory regulatory thing. My Concentra Bank has a 30-day grace period. Peoples Trust and Peoples Bank do. It could be a bank thing. Achieva Financial may have an unspoken, unwritten 30-day grace period; however, they are a virtual branch of a Manitoba credit union. As such, they have a different regulatory construct than banks, so that's something to consider.

Nevertheless, good question. I don't have a definitive answer, so you've sort of stumped even me. Will wait to see what others say.

Cheers,
Doug

With EQ Bank, the grace period for a GIC purchase is one day.

I think it is unlikely that most financial institutions would allow 30 days for one to cancel a GIC purchase. The GIC funds could have been loaned out by then as a multi-year mortgage.