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GIC for small business
March 4, 2019
12:30 pm
Sev
BC
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This is useful. Thanks!

I see that Tangerine got dropped from the list. Today, I chatted with Tangerine and they do have business accounts. You can see what they offer online. Go to "Products", then scroll down to "Business accounts". The catch is that you will need to have your business chequing account at another institution.

And if I remember correctly, PC Financial is now Simplii, right? Might be useful to make a note of it on your list? sf-smile

March 4, 2019
12:39 pm
Hornby
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Yes I have had a Tangerine business acount for at least 10 years. They tell me that they will not open new business accounts.

If you go to https://www.tangerine.ca/en/rates/index.html the business deposit rates are 1.00% while you can get 2.40% for a 6 month personal GIC. I have discussed this with them numerous times - they refuse to change, so I have taken my deposit out

Let me know if you find another bank that offers close to 2.4% for a 6 month GIC to a small incorporated business

March 5, 2019
7:22 am
Koogie
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Sev said
And if I remember correctly, PC Financial is now Simplii, right? Might be useful to make a note of it on your list? sf-smile  

Hi.

Thanks for the suggestion. However, I think Simplii is actually a separate entity founded by CIBC after they split with Loblaws/PC Financial ? I stand to be corrected on that.

If anyone knows if Simplii does or does not take small biz money for GICs we can add them to the list.

Cheers.

March 5, 2019
7:28 am
Koogie
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Hornby said
Let me know if you find another bank that offers close to 2.4% for a 6 month GIC to a small incorporated business  

If you only need it for 6 mos., why not just use a HISA ? Lots of candidates at around that level on the HISA chart.

March 8, 2019
5:09 pm
Koogie
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One addition. Meridian CU.
===============================================
TD - Yes. CDIC (x3)
CIBC - Yes. CDIC.
BNS - Yes. CDIC (x3)
RY - Yes. CDIC.
BMO - Yes. CDIC.
Oaken (Home Trust) - Yes. CDIC.
Oaken (Home Bank) - Yes. CDIC.
Steinbach CU - Yes. DGCM.
DUCA CU - Yes. DICO.
Alterna Savings - Yes. DICO.
Alterna Bank - Yes. CDIC.
Comtech CU - Yes. DICO
Thamesville CU - Yes. DICO. (renamed Nexus and purchased by Alterna CU)
Luminus CU - Yes. DICO.
MCAN Mortgage - Yes. CDIC.
Ganaraska CU - Yes. DICO.
Wealth One - Yes. CDIC.
Momentum CU - Yes. DICO.
Tandia CU - Yes. DICO.
Canadian Western Bank - Yes. CDIC.
Blue Shore Financial CU - Yes. CUDIC.
Meridian CU - Yes. DICO.

Peoples Trust - No.
Maxa Financial - No.
Accelerate Financial - No.
Achieva Financial - No.
Outlook Financial - No.
PC Financial - No.
Implicity Financial - No.
Hubert Financial - No.
Canadian Tire Bank - No.
Motive Financial - No.
EQ Bank - No.

Please feel free to comment or add-on !

March 8, 2019
5:46 pm
dommm
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I thought that CIDC insurance was only for personal accounts but upon reading this thread it appears I am mistaken?

March 8, 2019
6:36 pm
Doug
British Columbia, Canada
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RBC offers corporate versions of their broker-held nominee form savings accounts (http://www.rbcroyalbank.com/pr.....ducts/isa/) to businesses across a myriad number of subsidiaries, so it stands to reason they would offer branch-based deposits under Royal Trust and other subsidiaries to businesses. I think you can safely add (+3) to RBC and the other "Big 5" banks. sf-cool

Cheers,
Doug

March 9, 2019
10:08 am
Koogie
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dommm said
I thought that CIDC insurance was only for personal accounts but upon reading this thread it appears I am mistaken?  

When in doubt, always go to the source:
http://www.cdic.ca/en/about-di.....-name.aspx

"""Who is considered a depositor?
A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since it is a business operated in the depositor’s own name."""

March 9, 2019
10:10 am
Koogie
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Doug said
RBC offers corporate versions of their broker-held nominee form savings accounts (http://www.rbcroyalbank.com/pr.....ducts/isa/) to businesses across a myriad number of subsidiaries, so it stands to reason they would offer branch-based deposits under Royal Trust and other subsidiaries to businesses. I think you can safely add (+3) to RBC and the other "Big 5" banks. sf-cool
Cheers,
Doug  

Completely agree but the real issue is I personally don't know how many separate subsidiaries they have. It could be 3. It could equally be 5. I've never dealt with RBC so I don't know so I haven't indicated it.

If you do know for sure how many they or BMO, etc.. have, please feel free to add it on !

March 9, 2019
10:42 am
Hornby
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Doug - very good info - now if their rates were better at say over 2%, then I would investgate further.

The overall problem for a small incorporated business is that the on-line banks that are CDIC covered and offer decent deposit rates generally don't accept deposits from business. EQ Bank and Tangerine are good examples sf-cool

March 9, 2019
11:00 am
dommm
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Koogie said

When in doubt, always go to the source:
http://www.cdic.ca/en/about-di.....-name.aspx

"""Who is considered a depositor?
A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since it is a business operated in the depositor’s own name."""  

So to be clear, if I owned wholly an incorporated small business, that business would be included along with my personal deposits as one depositor but if the incorporated business had both myself & my wife as shareholders it would then become a separate depositor & therefore each would have $100.000 of CIDC coverage?

March 10, 2019
7:21 am
Koogie
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Hornby said
The overall problem for a small incorporated business is that the on-line banks that are CDIC covered and offer decent deposit rates generally don't accept deposits from business. EQ Bank and Tangerine are good examples sf-cool  

Agreed. I am having more trouble all the time getting decent rates from CDIC institutions. I have always liked having half of the ladders with CDIC banks and half with provincially insured CU. Now the ladders are getting skewed.

More worrisome is some institutions now seem to also be doing "two tier" rates.
A higher rate for individuals and a lower rate for businesses. Hopefully that does not catch on.

March 10, 2019
7:26 am
Koogie
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dommm said
So to be clear, if I owned wholly an incorporated small business, that business would be included along with my personal deposits as one depositor but if the incorporated business had both myself & my wife as shareholders it would then become a separate depositor & therefore each would have $100.000 of CIDC coverage?  

No. A corporation is an entity unto itself under the law. Its coverage is independent of whomever the shareholders are (if there is 1 or 49)

If you own an incorporated small business and it buys GICs/term deposits, it qualifies for its own separate coverage and you still have your own separate coverage. As would your spouse. You would also have joint coverage should you buy an investment together.

(for interested observers, I think you can also do joint coverage between yourself and a corporation. I've been told that before by some institutions (Oaken) but never tested it for myself).

March 11, 2019
5:38 am
dommm
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Koogie said

When in doubt, always go to the source:
http://www.cdic.ca/en/about-di.....-name.aspx

"""Who is considered a depositor?
A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since it is a business operated in the depositor’s own name."""  

So I assume from your earlier post that "a sole proprietorship" is not the same as owning all of the shares of an Incorporated Small Business? Thanks for your time Koogie

March 11, 2019
6:22 am
Koogie
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dommm said
So I assume from your earlier post that "a sole proprietorship" is not the same as owning all of the shares of an Incorporated Small Business? Thanks for your time Koogie  

You read it correctly.

""A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since it is a business operated in the depositor’s own name.""

Corporations are treated differently under the law. Whether or not it is worthwhile to incorporate a small business is dependent on a host of factors that aren't really relevant to deposit insurance.

No problem. Cheers.

September 20, 2019
10:12 am
ParamaPolly
West GTA, Ontario
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Parama Credit Union - Yes (DICO)

Koogie said
One addition. Meridian CU.
===============================================
TD - Yes. CDIC (x3)
CIBC - Yes. CDIC.
BNS - Yes. CDIC (x3)
RY - Yes. CDIC.
BMO - Yes. CDIC.
Oaken (Home Trust) - Yes. CDIC.
Oaken (Home Bank) - Yes. CDIC.
Steinbach CU - Yes. DGCM.
DUCA CU - Yes. DICO.
Alterna Savings - Yes. DICO.
Alterna Bank - Yes. CDIC.
Comtech CU - Yes. DICO
Thamesville CU - Yes. DICO. (renamed Nexus and purchased by Alterna CU)
Luminus CU - Yes. DICO.
MCAN Mortgage - Yes. CDIC.
Ganaraska CU - Yes. DICO.
Wealth One - Yes. CDIC.
Momentum CU - Yes. DICO.
Tandia CU - Yes. DICO.
Canadian Western Bank - Yes. CDIC.
Blue Shore Financial CU - Yes. CUDIC.
Meridian CU - Yes. DICO.

Peoples Trust - No.
Maxa Financial - No.
Accelerate Financial - No.
Achieva Financial - No.
Outlook Financial - No.
PC Financial - No.
Implicity Financial - No.
Hubert Financial - No.
Canadian Tire Bank - No.
Motive Financial - No.
EQ Bank - No.

Please feel free to comment or add-on !  

ParamaPolly
Parama Credit Union

September 30, 2019
12:45 am
nafutyiljs
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What financial institution did you guys end up using for your corporation for your HIS and GIC's and what rates are/did you get?

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