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February 7, 2019
7:02 pm
Loonie
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Norman1 said

Loonie said

…. Keep the receipt separate but available. I have known TD, for example, to ask for evidence that the draft was real (as if they couldn't tell! - some of them aren't too bright - I had literally just got the draft from the bank across the street from them and had simply walked it across the street as I don't like to hang onto them), and the receipt helps.…

Unfortunately, one can't easily tell now if a bank draft is real or a counterfeit. Counterfeiters are now quite good.

Some years ago, counterfeit Bank of Montreal money orders were used to purchase computer parts. The counterfeits had all the security features replicated. One victim took the bounced money order to the BMO branch. Teller though a mistake was made in bouncing the money order.

Only way teller could tell it was not real was to look up the serial number in their register of issued money orders and drafts and see that the details didn't match.  

They could, of course, make them more secure if they wanted to, but that would cost them more money. And if they wanted to make it easy to check serial numbers, i'm sure they could.
I didn't have any trouble buying a brand new car from a dealership with a bank draft - and driving it away - almost 3 years ago. In fact, that was the only form of payment they would accept.

I don't doubt there are forgeries though.
My annoyance with TD was compounded by the fact that I had spent over an hour at the bank across the street and was, by then, very well known to all their staff. because I'd had a problem they had trouble resolving. I suggested to TD that they could just phone over there and ask, with my permission, if they'd issued me this draft, and i was certain they would not have difficulty getting an answer - but they refused to do this. Further, I had way more than enough in my TD account to cover this draft and I was not trying to withdraw any of it.
Accordingly, I don't keep much money there any more. If they don't trust me after 30 years and with a sizeable account, and staff (including managers) turning over every few months to ensure nobody knows me, why would I deal with them?
A lot of that money is at Meridian now. I've gone through 2 "advisors" there in the 3 years or so that i've been with them, but both of them could recognize me on sight. And, although I've never sat down with the manager and she doesn't know my name, she does recognize me. And i only go in there a few times a year. Further, they have no problem accepting my "expired" cheques from TD!

February 7, 2019
8:47 pm
Norman1
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Loonie said

I would hope that the worst Newcommer_80 might encounter is that they would put a hold on his draft at RBC, but surely that should not ultimately affect the GIC. It's not as if he's cashing it in and running off with the cash.

I think there is a good chance the Royal Bank branch will allow a direct purchase of the US$ GIC using a US$ draft or US$ personal cheque.

If Newcommer_80 is new to Canada, then benefits under RBC Newcomer Advantage could be available. One benefit is "Preferred interest rates on select Guaranteed Investment Certificates (GICs)10." The fine print for note 10:

10) Enjoy preferred interest rates on the first term of non-redeemable, redeemable and one-year cashable GICs with a minimum term of one year and a balance of $1,000 or more. Contact an RBC branch for more details. Regular interest rates apply upon renewal. Available only to newcomers; please see the eligibility requirements in note 1. This offer may be withdrawn at any time without notice; interest rates are subject to change without notice.

Note 1 is:

1) Available only to newcomers to Canada who arrived in Canada within the last 12 months and to newcomers who arrived between 1 and 3 years ago when they switch their account from another Canadian financial institution. Must show proof of entry into Canada and provide supporting documents such as landing papers or permanent resident card. Other conditions apply. See branch for details. This offer may be withdrawn at any time and is subject to change without notice.

Perhaps a better rate than 3% for a one-year US$ GIC is available under the newcomer program.

February 7, 2019
9:17 pm
Loonie
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I think you're really optimistic, Norman, regarding the rate he will get! I can't imagine him getting more than 3%.
However, it's another card he can play, along with his professional background. These are good negotiating tools.

Hopefully we'll hear how things went on Friday.

February 8, 2019
6:28 am
Koogie
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I can't imagine this will be of a lot of interest to anyone but I put it out there since I saw it advertised this morning.

First Ontario CU - 1.50% US Dollar Savings Account
https://www.firstontariocu.com/Personal/ProductsAndServices/Banking/Savings/USSavings/

remember:
~ DICO does not insure US deposits
~ you can very, very easily get 1.70 - 1.80% with any of the Big 6 brokerage ISAs.

February 8, 2019
4:01 pm
Loonie
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It's not a bad rate considering that not everybody has a brokerage account. So, maybe worth posting.
However, the risk is not insignificant, considering the only back-up is this small CU. I certainly wouldn't go out of my way for it.

February 9, 2019
10:11 am
Norman1
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First Ontario CU is unrated by DBRS or any of the other debt rating agencies.

I don't know if the risk would be about that of a Province of Saskatchewan bond, with DBRS rating AA, or that of a junk bond, like any uninsured deposits of Home Trust Company, with DBRS rating BB(low).

It doesn't make sense to take that kind of risk when one would be able to get a higher rate through one of the brokerage US$ ISA's that is a deposit of one of the chartered banks with a province-like debt rating.

For example, BMO InvestorLine offers AAT780 (Bank of Montreal US$ brokerage ISA) which currently yields 1.7%:

High Interest Savings Accounts Rate Price Initial purchase Subsequent purchase CDIC eligible
AAT770 BMO CAD HIGH INTEREST SAVINGS 1.60% 1.00 CAD 1,000 C 50 C Yes
AAT780 BMO USD HIGH INTEREST SAVINGS 1.70% 1.00 USD 1,000 U 50 U No
February 9, 2019
11:42 am
Newcommer_80
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Hi all,

Just to update you, I just went to RBC and me and my wife put our USD in a 1 year GIC special promotion rate of 3%.

It is not linked nor are there any hidden fees (a week ago I wouldn't have asked any of these questions but thanks to my friend Loonie i guess I'm more financially clever now 😉

When I went to TD to take the money out the cashier went and called a higher ranking person who interrogated me as follows:

She asked me: why do u want to make the money order

Me: i want to move the money to another institution

She: which bank

Me: rbc

She: why

Me: they offer a 3% rate on usd

She: we have many offers in td you can make money from, why don't you speak to a financial advisor, we could offer you a better deal!

Me: I already spoke with a TD advisor and she advised me to take my money to rbc as TD can't beat that rate!

She: how could an advisor tells you that! She is wrong. I can give u the same rate, I just did it this morning and I locked it for 30 days

Me: I want to lock it for a year

She: we have much better investment options for your money

Me: ok , lock my money for a year with a 3% rate and i will buy the GIC right now

She: I cannot do it today, I can only do it now for 30 days. Why would you lock it for a year? Interest rates are going up.

Me: I really don't have time to come to the bank every 30 days.

It seems very strange to me TD started to be creative once i wanted to move my money!

Thanks to Norman, Charlotte, Koogie and a special thanks to my friend Loonie who guided me through this and I learned a lot from. My advice to anybody who wants to buy USD GICs is to go to RBC as they offer the best rate over all Canadian banks and credit unions. The competitor is Tangerine which used to offer a 3% on USD just until 2 days ago when they suddenly dropped the rate to 2.5%!

I guess if the rate was the same I would have put my money in RBC after all (thanks to Norman and his tip regarding Canadian bank classifications).

February 9, 2019
2:07 pm
Loonie
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Congratulations! You are now a savvy Canadian, and are now able to give other people advice based on experience!

Please know that you don't have to answer any of the questions from the person at TD. It's your money, and you can get a bank draft on it whenever you want. However, I imagine you were curious to hear what they would say.
I'm confident that if you'd met with the TD advisor, you would have been offered some kind of linked "GIC" or a mutual fund with unsubstantiated claims about how much money you would make from them. It seems like they wanted to delay you long enough to risk losing the 3%rate at RBC.

Thanks for letting us know the outcome!

February 9, 2019
3:16 pm
Norman1
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Glad to hear, Newcommer_80, that you got the 3% rate at RBC for the one-year US$ GIC.

It is not surprising that TD started becoming more creative once you asked for a money order for the money. At that point, the staff realized you were serious and were willing to move the money out.

Many people complain about the banks. But, most are not willing to move their money or switch their mortgage to a competitor. Some of the big banks have been here before Canada was fully formed. So, they know that one just needs to take the heat from the customer complaints for a bit and give a small goodwill gesture. Customer stays and continues to pay the high monthly service fees or the higher mortgage rate.

February 11, 2019
5:09 pm
ritawije
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Having seen this thread, I reached out to an RBC financial planner today. He could not find a 3.00% rate for a US funds GIC anywhere in his system. The best he could see was 2.60% for 100K or more, and a fraction less for lower amounts. I wonder if those folk have individual discretion, or if the market changed in the last few days. Anyway, I thought I'd mention my experience here.

February 11, 2019
9:31 pm
Loonie
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Thanks, rita...
Tangerine lowered their rate a few days ago from 3% to 2.5%.
I suspect that RBC had their 3% offer only in order to compete with Tangerine and when pushed to do so by customers.
So, it's very possible that this offer from RBC has now indeed vanished.

February 15, 2019
8:05 pm
ritawije
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After further calling to RBC toll-free numbers, and being persistent, I discovered in fact that a 3.00% US dollar 1-year GIC is still available, and opened one yesterday.

I posted a longer version of my experinece at the thread "RBC US$ GIC at 3% for one year"

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