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Hubert Financial's 1 Year Redeemable GIC
May 8, 2013
7:43 am
James
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Well, I'm less than impressed with this offer considering all the propoganda from Hubert but I post it here for the sake of those of you who might be interested.

One Year Term Deposit Special
Limited Time Offer

For a limited time only, we are happy to offer a one year term deposit special featuring one of the best rates around! Paying interest up to 2.60%, this term deposit special will keep you smiling for a full 365 days.

This redeemable term deposit special features compounding interest that will pay you interest quarterly. Here’s what you will earn:

The first three months: 2.30%
Months four to six: 2.40%
Months seven to nine: 2.50%
The last three months: 2.60%

The good news? You’re not locked in for the entire year – you can redeem your term after three, six or nine months. The even better news? If you sign up for the term special and keep your funds in place for the entire year, you’ll earn an average rate of 2.45% for the year. Not too shabby, is it?

Since this is a limited time offer, don’t wait to sign up and risk missing out on this great rate! To set up your one year term deposit special, you can add the term right in Hubert Online (our online banking system) or, if you’re not yet a Hubert member, click on the ‘open account’ link below.

And don’t forget, all deposits are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba. Like other Hubert terms, a $1,000 minimum balance is required to be eligible for this special rate.

https://www.happysavings.ca/high-interest-terms.aspx

I think I'll stick with PCF or ING for now - at least until their promotional offers expire.

May 8, 2013
9:29 am
NorthernRaven
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I think I'll stick with PCF or ING for now - at least until their promotional offers expire.

It is a limited time offer, so it may not be around when PCF/ING expire. The question is what one will do with PCF/ING money when the promotions end, and what rate one will get then (call it Y). It would be

X days * ING/PCF rate + (365 - X) * Y
versus
365 * 2.45 (Hubert rate)

Assuming you stay at ING/PCF and then move to someplace (say Peoples Trust) that gives you 1.9%, your rate for the next year works out to 1.98% or 2.02% respectively, versus the 2.45% Hubert would provide. Depending on what rate you anticipate getting after the promotions expire, where you think interest rates are going, whether you are willing to loosely lock in the cash, and your views of the Manitoba credit union guarantee, if might make sense to forgo the remaining promo rates at ING/PCF and lock in to Hubert.

Note that the Hubert special is different from their normal longer term GICs (they don't usually offer 1-year) in that it is ONLY cashable at the 3/6/9/12 month quarterly intervals. A three month lock-in isn't too onerous, but keep it in mind.

May 8, 2013
11:28 am
James
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That's very true! Good thoughts. Thanks NorthernRaven.

I tried to get some information from Hubert's customer service and they said the offer will likely be around for at least 2 weeks but they don't guarantee it. The way they talked about this 'HUGE rate' that was coming, I thought it would be > 3% at least which would have made the decision much easier.

What are you planning to do? Transfer to Hubert?

May 9, 2013
2:13 pm
doc
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every body is dropping there rates where does hubert getting the money to give these high rates?

June 24, 2013
8:23 am
James
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Now we know when it will end...

"All good things come to an end (including Hubert's one year term special). Effective 5:00 pm CST on June 28, 2013, our exclusive one year term deposit special will no longer be available, so get it while you can! This one year special (which is also TFSA eligible!) features one of the best rates around paying interest up to 2.60%. Here's what you will earn: The first three months: 2.30%Months four to six: 2.40%Months seven to nine: 2.50%The last three months: 2.60% The good news? You're not locked in for the entire year - you can redeem* your term after three, six or nine months. The even better news? If you sign up for the term special and keep your funds in place for the entire year, you'll earn an average rate of 2.45% for the year. Not too shabby, is it? With only a few more days to go, don't wait to sign up and risk missing out on this great rate! To set up your one year term deposit special, you can add the term right in Hubert Online (our online banking system). Sincerely, Hubert * If you choose to redeem your term special after three, six or nine months, you must redeem the entire amount. Partial withdrawals are not allowed."

I'm considering it - although I don't like being locked in for 3 months for such small interest. What are the rest of you doing?

June 25, 2013
11:01 am
MG
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Hi James!

I moved some funds into Hubert and still am not sure if I will leave it there for a year - but time flies so being locked in for 3 months is really not that bad. By the way, Hubert suggests that you might want to split your deposit into more than one term deposit. In that way, you can take one out after 3 months and leave the remainder in for another 3 - 9 months. Keep in mind that you must withdraw all or none of your term deposit.

Cheers,
MG

June 25, 2013
11:29 am
NorthernRaven
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If you are creating multiple terms, be aware that Hubert's system seemed to merge two created on the same day into one, which can have redemption implications. These were pulling money from an external linked account, not from a Hubert account, but be aware that there may be some sort of daily batch sweep that combines similar terms. Check with Hubert if this is an issue.

June 28, 2013
8:29 am
jgclghrn
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I was able to create multiple terms with separate identifiers on the same day and the money has been deposited. All I did was add an account each time and transferred the money from an external account each time and it worked. I also tried creating multiple terms and transferring money from my HSA to each and that worked as well. Hopefully they don't get merged next week.

NorthernRaven said

If you are creating multiple terms, be aware that Hubert's system seemed to merge two created on the same day into one, which can have redemption implications. These were pulling money from an external linked account, not from a Hubert account, but be aware that there may be some sort of daily batch sweep that combines similar terms. Check with Hubert if this is an issue.

June 28, 2013
2:02 pm
kanaka
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Hi, while staying on the topic of Hubert but off in regards to the GIC being offered. I have read the comments about Hubert and their rates and the sudden vanishing of Vanessa. But looking at their rates it appears they have been constantly a bit higher than the other Manitoba CU's. I assume they can do that because they do not offer ATM cards etc. Would I be correct?

Questions:
Do they have a savings account only?
Using their website can you direct money from Hubert TO another bank or CU?
Using their website can you direct money to Hubert FROM another bank or CU?
How long does it take a transfer to clear from both banks/CU's?
Does the OTHER bank/CU charge for moving funds in or out of your account?
Do they offer RRSP GIC's and if they do, do they offer assistance to create a transfer?
Is there phone contact (call center) as good as what Accelerate offers?

August 1, 2013
8:44 am
kanaka
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NorthernRaven said

If you are creating multiple terms, be aware that Hubert's system seemed to merge two created on the same day into one, which can have redemption implications. These were pulling money from an external linked account, not from a Hubert account, but be aware that there may be some sort of daily batch sweep that combines similar terms. Check with Hubert if this is an issue.

I asked Hubert about this and their response was:
The information you have heard is incorrect and you can purchase as many GIC”s as you would like on any given day and we will never roll them together. Let me know if you need anything else.

So far I am very comfortable with what they have to say and offer.

August 2, 2013
9:00 am
NorthernRaven
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As a note, anyone who depends on a front-end CSR to always be 100% on technical details is on shaky ground... :)

Here's what happened for me. My intent was to put a total of $X in non-registered 1-year GIC, but to split it into pieces ($A, $B, $C) so to provide maximum flexibility in the unlikely event of wanting to cash in some of it. I've created $A in a GIC account on a particular day. I thought I created and set up separate $B and $C accounts the next day and set up their funding transfers (from an external bank). But I wound up with a single "BC" account, with both the $B and $C transfers. It is possible that I somehow didn't create the $C account and accidentally chose the $B account as the target for that last transfer, rather than Hubert combining the accounts. But I wouldn't have thought so, and in that case it points out that the naming in the transfer popups is terrible ("term2", "term3") and unchangeable, and that there is no warning or display that you are setting up a funding transfer for a GIC that already has one pending, which may or may not be what you want to do.

Note that there certainly is something that changes with GIC accounts, since you apparently can add multiple funding transfers until either the next day, or perhaps when the transfers arrive. Obviously you can't add additional funds to a GIC account once it has been established!

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