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January 31, 2019
1:48 pm
jxhyao
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It seems not many people discussing US$ GIC rate, but I just saw that Tangerine has US$ GIC rate at 1 year for 3.00% and 5 year for 3.5%. Pretty attractive, isn't it?

January 31, 2019
2:11 pm
Top It Up
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January 31, 2019
2:45 pm
rhvic
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That is a tasty return, compared to where I currently have US$ parked in a savings account at Hubert at 0.75%. So I am immediately opening a US$ savings account at Tangerine, and setting up a link from Hubert to move most of my US$ to Tangerine, eventually to end up in their one year GIC at 3%. Sure, it is not CDIC covered, but Tang should be solid enough, one hopes.

Anyone know of any other high rate US$ GICs?

January 31, 2019
3:44 pm
Newcommer_80
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Hi all ,

This i my first post in this very informative site i discovered.

I could not find any decent rates for USD. I searched over and over, the only banks I found was Tangerine and western canada bank.

I'm afraid of putting all my USD in tangerine as usd is not CDIC insured and tangerine sounds like a small bank that my face trouble anytime. Also I live in Ontario and I could not find any western bank branch here!!

Does anybody know any other banks/credit unions which offer good rates on USD long term/GIC???

I have an account RBC and I read on the form recently that RBC and scotia offer a 2.5-3% rate if you ask a financial advisor for it !!!!! this sound insane to me! my money has been parked at RBC for over a year and nobody offered me anything like that.

is this link below for real??? I called RBC and they said they have never heard such a thing!

https://www.highinterestsavings.ca/forum/gic/scotiabank-us-dollars-2-52-on-1-year-gic-rate-special/

for all fellows on this form who live in the west , please find the westerrn bank link below for those who want to invest their usd

http://www.cwbank.com/investin.....nt-options

February 1, 2019
2:16 pm
Loonie
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If it makes you feel any better about it, Tangerine is owned by Scotia.

February 1, 2019
5:30 pm
Newcommer_80
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It makes me feel much better but does that mean that tangerine will be bailed by scotia if it had a problem or it operates independently ? Does it being owned by scotia make it a part of this big bank ?

February 1, 2019
8:15 pm
stoidi
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rhvic said
That is a tasty return, compared to where I currently have US$ parked in a savings account at Hubert at 0.75%. So I am immediately opening a US$ savings account at Tangerine, and setting up a link from Hubert to move most of my US$ to Tangerine, eventually to end up in their one year GIC at 3%. Sure, it is not CDIC covered, but Tang should be solid enough, one hopes.

Anyone know of any other high rate US$ GICs?  

How do you get US$'s in/out of Hubert?
Are there any fees?

February 1, 2019
8:26 pm
stoidi
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Even if BNS owns Tangerine and when things are bad and if the losses are in Tangerine or if BNS can shift their problems to Tangerine I would NOT trust the big BNS steel wheels in motion!!! BNS would protect their "ASS"ets and let all the blame and losses go to Tangerine if they could. Sorry about my pessimism.

I am not with Tangerine. Being on the outside looking in I read all the good things about Tangerine and a lot of non appealing things about them as well. So I would not get involved with them as you just "should not" have so many non appealing things on their score card. Looking here if you rated them as 5 being best and 1 being poor. I would rate them as a 2. An FI should not have target offers as they should be for all and it they have poor customer service the rating should reflect that.

I have been watching this forum for years and have been waiting a long time before I actually had the "you know what" to say this.

February 1, 2019
8:53 pm
stoidi
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Newcommer_80 said
Hi all ,

This i my first post in this very informative site i discovered.

I could not find any decent rates for USD. I searched over and over, the only banks I found was Tangerine and western canada bank.

I'm afraid of putting all my USD in tangerine as usd is not CDIC insured and tangerine sounds like a small bank that my face trouble anytime. Also I live in Ontario and I could not find any western bank branch here!!

Does anybody know any other banks/credit unions which offer good rates on USD long term/GIC???

I have an account RBC and I read on the form recently that RBC and scotia offer a 2.5-3% rate if you ask a financial advisor for it !!!!! this sound insane to me! my money has been parked at RBC for over a year and nobody offered me anything like that.

is this link below for real??? I called RBC and they said they have never heard such a thing!

https://www.highinterestsavings.ca/forum/gic/scotiabank-us-dollars-2-52-on-1-year-gic-rate-special/

for all fellows on this form who live in the west , please find the westerrn bank link below for those who want to invest their usd

http://www.cwbank.com/investin.....ptions  

For US$ look at a credit union as most do insure and in B.C. they also insure other currencies like British pounds....just ask your CU.

Over the years we have always had 2 banks for day to day banking. But now we have a bank and a CU which has it’s benefits.

February 1, 2019
8:55 pm
Loonie
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Charlotte said

How do you get US$'s in/out of Hubert?
Are there any fees?  

I haven't done it but my understanding is that you can do direct transfers to/from an external USD account. No fees at Hubert.

February 1, 2019
9:40 pm
Loonie
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It's quite true that Tangerine is financially separate from BNS and that it could fail, but at least you know that there is a Big Bank that intends for it to succeed and will feel the loss if it doesn't. It's not out there completely on its own.

I've had accounts at Tangerine and its predecessor ING for over 20 years. I probably have a more sanguine view of it. It's true they have some annoying policies like targeted rates. And I"ve had a couple of negative experiences with them.
However, on the whole they've been fine. In terms of rates, I've done better with them in recent years than I have with other FIs for HISA rates. Targeting, while unethical and often annoying, doesn't make them less viable as a financial institution.

For USD, the GIC rates are very attractive. For people who dismiss CDIC and CDIC limits as unimportant, and there are a number of them on this forum, the issues discussed here probably don't matter.

February 2, 2019
8:16 am
Norman1
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I found some US$ brokerage Investment Savngs Accounts (ISA) that have better rates.

Bank of Nova Scotia US$ ISA, Series A (FundSERV: DYN6001) is available through Scotia iTRADE. According to the Scotiabank Advisor Deposit Services rate sheet, it is currently paying 1.65% for under $100,000 and 1.80% for $100,000+.

RBC Direct Investing clients can probably access RBC ISA's, including Royal Bank of Canada U.S. Investment Savings Account, Series A (RBF2014) that currently pays 1.70%.

Scotia iTRADE offers a US$ Pay GIC issued by Bank of Nova Scotia:

US$ Pay - Annual Interest Rate, US Currency purchase and Pay-out, non-redeemable before maturity.

Issuer 1 year 2 year 3 year 4 year 5 year DBRS Purchase
Minimum
US Pay Bank of Nova Scotia 2.5800 2.7500 3.1600 3.2500 3.3500 AA $1000
February 2, 2019
10:09 am
stoidi
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Norman1 said
I found some US$ brokerage Investment Savngs Accounts (ISA) that have better rates.

Bank of Nova Scotia US$ ISA, Series A (FundSERV: DYN6001) is available through Scotia iTRADE. According to the Scotiabank Advisor Deposit Services rate sheet, it is currently paying 1.65% for under $100,000 and 1.80% for $100,000+.

RBC Direct Investing clients can probably access RBC ISA's, including Royal Bank of Canada U.S. Investment Savings Account, Series A (RBF2014) that currently pays 1.70%.

Scotia iTRADE offers a US$ Pay GIC issued by Bank of Nova Scotia:

US$ Pay - Annual Interest Rate, US Currency purchase and Pay-out, non-redeemable before maturity.

Issuer 1 year 2 year 3 year 4 year 5 year DBRS Purchase
Minimum
US Pay Bank of Nova Scotia 2.5800 2.7500 3.1600 3.2500 3.3500 AA $1000

  

Just a bit of a warning about iTrade Cash Account fees. I have an iTrade Account. I first started with a totally no fee Cash Account and a TFSA Account. Then they brought in new fees for the cash account so I closed it as it would not have a lot of activity. The TFSA Account is still free with a lot of free trades and of course a low fee for some trades and GIC purchases are no fee also.

Check iTrade fees here for Cash Accounts.
https://www.scotiaitrade.com/content/dam/scotiabank/itrade/files/en/SIT_FeeSched.pdf

I originally started with TradeFreedom that was owned by BNS and they rolled all 3 of their online brokerages into iTrade and then the fees started to creep in. When I found this PDF I was surprised to see fees for mailed statements and confirmations not to mention some other very expensive and overly lucrative fees collected by iTrade.

February 2, 2019
10:11 am
rhvic
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Charlotte said

How do you get US$'s in/out of Hubert?
Are there any fees?  

One can set up transfer links for US$ accounts at other FIs the same as for CDN$ accounts. Provide Hubert with the transit, bank, and account numbers of the other FI, and they will send a test deposit there. Once you confirm the deposit, the link is set up. Then you can transfer (but in this case only US$ acct to US$ acct) at no fee. Hubert is excellent at setting up these links, and makes it easy to push/pull funds via Hubert to other FIs. There also seems to be no limit as to how many external accounts can be linked.

February 2, 2019
1:15 pm
Norman1
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Charlotte said

Check iTrade fees here for Cash Accounts.
https://www.scotiaitrade.com/content/dam/scotiabank/itrade/files/en/SIT_FeeSched.pdf

I originally started with TradeFreedom that was owned by BNS and they rolled all 3 of their online brokerages into iTrade and then the fees started to creep in. When I found this PDF I was surprised to see fees for mailed statements and confirmations not to mention some other very expensive and overly lucrative fees collected by iTrade.  

Scotia iTRADE is not really suitable for clients with small accounts.

Under $10,000 total balance and no trades in a quarter means a $25 low activity account admin fee that quarter, with registered accounts (RRSP, RIF, LIRA, LIF, RESP, TFSA) and Cash Optimizer Investment Accounts exempt.

Under $25,000 total balance and less than 12 trades a year means a $100/year RRSP/RRIF admin fee.

A non-registered Cash Optimizer Investment Account is a possibility if one is interested in only GIC's, bonds, and fixed income mutual funds. It is exempt from the under-$10,000 quarterly low activity admin fee. Unfortunately, it does not include access brokerage ISA's, like Bank of Nova Scotia C$ ISA, Series A (DYN6000). I tried entering an order for DYN6000 and got this warning:

Trading in the cash optimizer investment account is limited to bonds, fixed income mutual funds and money market mutual funds. For further assistance, please call customer service.

February 3, 2019
8:55 am
Newcommer_80
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Norman1 said
I found some US$ brokerage Investment Savngs Accounts (ISA) that have better rates.

Bank of Nova Scotia US$ ISA, Series A (FundSERV: DYN6001) is available through Scotia iTRADE. According to the Scotiabank Advisor Deposit Services rate sheet, it is currently paying 1.65% for under $100,000 and 1.80% for $100,000+.

RBC Direct Investing clients can probably access RBC ISA's, including Royal Bank of Canada U.S. Investment Savings Account, Series A (RBF2014) that currently pays 1.70%.
Scotia iTRADE offers a US$ Pay GIC issued by Bank of Nova Scotia:

US$ Pay - Annual Interest Rate, US Currency purchase and Pay-out, non-redeemable before maturity.

Issuer 1 year 2 year 3 year 4 year 5 year DBRS Purchase
Minimum
US Pay Bank of Nova Scotia 2.5800 2.7500 3.1600 3.2500 3.3500 AA $1000

  

Thanks norman for this information. I would be grateful if you could explain to me the following

- you mention in your post that BNS offer 1.8% for usd over 100 thousand while the table you attached shows 2.5%

- could you explain n simple words what is ISA ? If i put my usd in this account would it be insured ? Because if it not i would preferabley go with the 3% GIC offered at tangerine ? But i really dont understand the 1 year 2.5% rate ? If it is aGIC account at BNS then defenitely even if it has a lower return but i would prefer to put my usd with a big bank rather than with tangerine

Thanks for your reply in advance

February 3, 2019
9:21 am
stoidi
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Newcommer_80 said

Thanks norman for this information. I would be grateful if you could explain to me the following

- you mention in your post that BNS offer 1.8% for usd over 100 thousand while the table you attached shows 2.5%

- could you explain n simple words what is ISA ? If i put my usd in this account would it be insured ? Because if it not i would preferabley go with the 3% GIC offered at tangerine ? But i really dont understand the 1 year 2.5% rate ? If it is aGIC account at BNS then defenitely even if it has a lower return but i would prefer to put my usd with a big bank rather than with tangerine

Thanks for your reply in advance  

I believe Norman1 was referring to the information as in the URL in his entry. See here https://ads.scotiabank.com/ADS/Download/980/en

E54B109A-642C-43C8-A75D-69541AC14357.jpeg

February 3, 2019
9:50 am
Newcommer_80
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Is it possible for an ontario resident to open a Canadian western bank usd account ? They dont have any physical branches in ontario!

February 3, 2019
10:21 am
stoidi
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Newcommer_80 said
Is it possible for an ontario resident to open a Canadian western bank usd account ? They dont have any physical branches in ontario!  

They own Motive and you could try them.
https://www.motivefinancial.com

Or email CWB and ask.

There are some people here that deal with them and others that are skeptical about them somewhat like Peoples Trust. Do your research to satisfy your comfort level before jumping in.

I don’t deal or know much about CWB or Motive. I do deal with PT but am winding down as their rates are up and down and are not constantly competitive.

February 3, 2019
11:22 am
Norman1
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Newcommer_80 said

Thanks norman for this information. I would be grateful if you could explain to me the following

- you mention in your post that BNS offer 1.8% for usd over 100 thousand while the table you attached shows 2.5%

- could you explain n simple words what is ISA ? If i put my usd in this account would it be insured ? Because if it not i would preferabley go with the 3% GIC offered at tangerine ? But i really dont understand the 1 year 2.5% rate ? If it is aGIC account at BNS then defenitely even if it has a lower return but i would prefer to put my usd with a big bank rather than with tangerine

1.8% is for the Bank of Nova Scotia US$ brokerage ISA. The rates in the table is for the US$ pay Bank of Nova Scotia GIC's bought through Scotia iTRADE.

The brokerage investment savings accounts (ISA) are savings deposits that are bought and sold like mutual funds. It is a way for financial institutions to accept deposits through mutual fund dealers and investment dealers.

Purchased units of DYN6000 (Bank of Nova Scotia C$ ISA, Series A) are actually C$ deposits with CDIC member Bank of Nova Scotia. So, those units have CDIC deposit insurance.

Purchased units of DYN6001 (Bank of Nova Scotia US$ ISA, Series A) are US$ deposits with the same CDIC member Bank of Nova Scotia. But, there's no deposit insurance because CDIC only covers C$ deposits.

Similar with the US$ pay Bank of Nova Scotia GIC. One won't necessarily get an account with Bank of Nova Scotia. Instead, one will get a Scotia iTRADE account with the Bank of Nova Scotia US$ pay GIC. The GIC is a Bank of Nova Scotia deposit. But, there won't be CDIC deposit insurance because the GIC is not a C$ deposit.

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