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Insurance company GICs
June 22, 2022
8:26 pm
AllanB
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Globe's Carrick wrote a piece in it he claims they are cashable anytime fully redeemable through all terms and notably higher rates. Adjustments may be made if rates move up or down, are they variable.

Sunlife 1yr 2.85, 3yr 3.35 fully redeemable with no loss of interest?

Too good to be true? Who sells them?

June 23, 2022
4:39 am
canadian.100
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AllanB said
Globe's Carrick wrote a piece in it he claims they are cashable anytime fully redeemable through all terms and notably higher ratesAll contact hours are Monday to Friday, 8 a.m. to 8 p.m. ET. Adjustments may be made if rates move up or down, are they variable.

Sunlife 1yr 2.85, 3yr 3.35 fully redeemable with no loss of interest?

Too good to be true? Who sells them?  

Individual investments purchased through an advisor and all other inquiries
Call: 1-877-SUN-LIFE (1-877-786-5433)

June 23, 2022
8:33 am
AllanB
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They don't make it convenient to buy and redeem maybe

https://www.sunlife.ca/sl/rates/en/wholesale/competitor-guaranteed-rates/

Why would someone buy the 1yr@2.85 instead of the 3yr@3.35 if they're both fully redeemable?

June 23, 2022
9:40 am
Norman1
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Redeemable doesn't mean without penalty.

Some redeemable GIC's will claw back some of the interest if redeemed early.

The Sunlife ones will apply a "Market Value Adjustment" against the principal to cover the embedded fees for the remainder of the term and for changes in interest rates. One is credited interest earned to date but may not get 100% of principal back on early redemption after the adjustment.

June 23, 2022
10:07 am
COIN
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"Why would someone buy the 1yr@2.85 instead of the 3yr@3.35 if they're both fully redeemable?"

What does "fully redeemable" mean? Does it mean "fully" or does it mean after applying some kind of "haircut"?

June 23, 2022
10:48 am
Norman1
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"Fully redeemable" means the entire GIC can be redeemed. That's in contrast to something like up to 20% in the first 90 days and up to 40% in the first year.

It doesn't imply anything about there being no haircut.

Those Hubert one-year term deposits are fully redeemable. But, one loses any accrued interest that hasn't been paid out yet.

June 23, 2022
12:58 pm
Dean
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.
I'm guessing you'll find the details on the "Haircut", in the fine print.

'Caveat Emptor' sf-wink

    Dean

sf-cool " Live Long And Prosper " sf-cool

June 24, 2022
1:47 pm
AllanB
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Only way to buy is thru life insurance agent a bit of a headache. She wouldn't answer my question when I asked about interest penalty if cashed early. She wanted my stats on the phone and online.

Do they distribute thru Gic brokers

June 27, 2022
6:13 pm
AllanB
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From Sunlife agent,

"Our GICs can be short term with 30 days at 0.5%, 60 days at 0.55% or 90 days at 0.6%.

If you have a potentially longer term horizon, we have 1 year at 3.2% but may lose the interest earned depending on interest rates."

Can't seem to get a straight answer

July 2, 2022
1:24 pm
RetirEd
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Where there's an agent, there's a high commission eating your return.
RetirEd

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