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Tandia: 4.50% for a 5-year GIC
May 20, 2022
11:24 am
gicjunkie
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Tandia Makes a Splash: 4.5% for 5 years

NON-REDEEMABLE LONG TERM DEPOSITS RATE
1 Year Term Deposit 2.00
18 Month Term Deposit 2.75
2 Year Term Deposit 3.00
3 Year Term Deposit 4.00
4 Year Term Deposit 3.30
5 Year Term Deposit 4.50

Minimum $500, youth/trust $100, non-redeemable. Semi-annual or monthly interest payments (min. $5,000) available at slightly lower rates. Renews for same term at maturity

https://www.tandia.com/personal/product-services/rates

May 20, 2022
12:04 pm
turquoise
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And Tandia takes the lead!
Thanks GICJunkie, you always deliver 🙂

May 20, 2022
12:13 pm
lifeonanisland
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gicjunkie said
Tandia Makes a Splash: 4.5% for 5 years

NON-REDEEMABLE LONG TERM DEPOSITS RATE
1 Year Term Deposit 2.00
18 Month Term Deposit 2.75
2 Year Term Deposit 3.00
3 Year Term Deposit 4.00
4 Year Term Deposit 3.30
5 Year Term Deposit 4.50

Minimum $500, youth/trust $100, non-redeemable. Semi-annual or monthly interest payments (min. $5,000) available at slightly lower rates. Renews for same term at maturity

https://www.tandia.com/personal/product-services/rates  

Nice! We're going to be at 6 percent sooner than we think...

May 20, 2022
12:48 pm
phrank
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lifeonanisland said

Nice! We're going to be at 6 percent sooner than we think...  

I'm not going to be tempted until we get into the double digits OR we enter a recession.

May 20, 2022
12:59 pm
lifeonanisland
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phrank said

I'm not going to be tempted until we get into the double digits OR we enter a recession.  

You won't have long to wait, methinks, for a recession. Double digit returns? I'm not so sure we'll ever see that again.

May 20, 2022
6:52 pm
COIN
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This is weird. The 4 year is only 3.30%. Is this a typo?

1 Year Term Deposit 2.00
18 Month Term Deposit 2.75
2 Year Term Deposit 3.00
3 Year Term Deposit 4.00
4 Year Term Deposit 3.30
5 Year Term Deposit 4.50

May 20, 2022
7:25 pm
Loonie
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No, I don't think it's a typo. The four year terms rarely attract promotional rates. Tandia has put its energy where they are likely to get the most business.

3.30 was their four year rate last time I checked, on May 3. They just haven't increased it like they increased the others.

May 21, 2022
6:25 am
COIN
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I just called Tandia and the lady said the actual 4 year rate is 4.20%. The 3.30% on the website is a typo.

Question: How safe is Tandia? I doubt we can go through another Pace and/or a Home situation again.

May 21, 2022
1:09 pm
Loonie
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Ah-hah! I guess they just forgot to update that one.
Good to know.

May 21, 2022
2:26 pm
turquoise
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COIN said
Question: How safe is Tandia? I doubt we can go through another Pace and/or a Home situation again.  

My opinion is that as an Ontario credit union, Tandia is as safe as any financial institution in Canada, up to insurable limits ($250,000 regular deposits, unlimited registered deposits).

I put CDIC and FSRA on the same level. I don't deal with Manitoba credit unions, even though I do not think that any of them are at risk -- and if one were to falter a bit, it would be scooped up by another credit union. But still, I'm personally more comfortable with CDIC and FSRA.

You mentioned Home Trust -- if you were within insurable limits for Home Trust and/or Home Bank, then you were never at any risk.

May 21, 2022
8:11 pm
Loonie
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I doubt any of us ever knows what's really going on inside financial institutions, so we have to rely on what we can glean from their annual reports, attending their AGMs and reading the press. But they are not going to tell you, "the ship is sinking", if it is.

So, as turquoise said, we have to rely on the insurance. Just keep your money within insured limits and you should be OK. The worst that is likely to happen would be that your GIC would be terminated prematurely. I don't buy CU investment shares as they are not insured at all.

May 22, 2022
4:56 am
savemoresaveoften
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COIN said
Question: How safe is Tandia? I doubt we can go through another Pace and/or a Home situation again.  

What is safe today may be risky tomorrow. Any name that you have to ask the question, just stay within insured limit.
some may say dont want too many accounts, there is really no valid reason why that is a bad thing, other than really being "lazy". To me principal protection trumps my laziness any day 🙂

May 22, 2022
7:04 am
COIN
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It appears to me that currently Tandia is the leader of the rate pack.

Sometimes a high rate may not be a good sign.

May 22, 2022
8:27 am
turquoise
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Loonie said
I don't buy CU investment shares as they are not insured at all.  

Yes, same here. In the promo material, this very important fact is usually buried in the small print.

My take is that if I'm buying GICs in the first place, then I have no business going beyond insurable limits.

May 22, 2022
1:07 pm
COIN
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The big problem with investment shares is that they have no maturity date. How do you get your money back?

May 22, 2022
2:43 pm
turquoise
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COIN said
The big problem with investment shares is that they have no maturity date. How do you get your money back?  

After the term you can start to redeem them for the value of the investment. Hopefully by then you would have earned promised dividends each year. But there's no guarantee you will -- it depends on the profitability of the credit union.

Plus, in most cases you won't be able to redeem all of your shares after the term. Credit unions typically put a cap on this -- e.g. 10% of shares can be redeemed. So it could take you a decade (or longer) AFTER your term is up to get 100% of your investment back. And during all that time, it would not be insured.

For this reason, I have never understood the financial appeal of investing in credit union shares. The only benefit I can see is that it allows some people to financially support their credit union, which is a personal choice that I respect but categorically do not share.

May 22, 2022
11:22 pm
Loonie
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Are you sure about the redemption schedule? I was under the impression that the graduated redemption applied to the shares awarded from profit-sharing, not from investment shares that you buy, being two different categories. However, it's quite a while since I looked at them in any detail.

As I said, I've never bought any but I currently have about $100 in "bonus" profit-sharing shares at DUCA which are on the 10% p.a. schedule. It's so little that I will let them ride out the 7 years until I get the principal back from the first year, and so on in subsequent years. In most cases, from what I've seen, there is the option of selling them to another member, through the CU, if you want, and there are often people waiting to get them.

I don't really understand the appeal either, but they do seem to market them a on the basis of loyalty and rate. I guess that if you've bought them once and it is proving successful, you will do so again.

May 23, 2022
7:50 am
COIN
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I think those preferred shares qualify as regulatory capital.

May 23, 2022
10:45 am
RetirEd
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I do have a small amount in the shares of two credit unions, both of which paid double the GIC rates during most of their terms. One of them allows withdrawals at any time (subject to not being more than a specified percentage OF THE TOTAL SHARES ISSUED) and the other is very reluctant to allow withdrawals but has kept dividends at 5%, which is attractive.

Risky, but I keep an eye on them. The first one kept paying its dividends during the 2008 crisis, and has over the 25 years I've held it has been extremely lucrative.

But, again, I keep to the risk I can afford.
RetirEd

May 23, 2022
1:37 pm
COIN
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RetirEd said
the 25 years I've held it has been extremely lucrative.
RetirEd  

How did your "Big 5" bank shares do during the same period?

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