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Hubert Rates have Improved. We just don't know for how long.
June 23, 2024
10:05 am
Dean
Valhalla Mountains, British Columbia
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davidgeorge said

Actually, IMO, almost all FIs I deal with (Oaken, Tangerine etc.) have better software than Access. At Access, you need to CALL to do fund transfer and purchase GIC.  

And we can add EQ Bank, the original Hubert and several others to that list.

When the original (Real) Hubert was moved to Access, it was a Huge step Backwards ... and one of the main reasons several of us will soon be doing a 'Stage Left', if they haven't done so already.

As The Stomach Turns sf-confused

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 23, 2024
1:32 pm
canadian.100
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Yes the family is now 100% out of Access/"new" Hubert. Old Hubert was excellent until its sad demise. We now consider Tangerine a star digital FI compared to our previous experience with Access/" new" Hubert and its nice to know that Scotiabank owns Tang. So easy to do transactions - however I agree that their interest rates can be all over the place. But then no FI is perfect, particularly the CUs in my experience.

June 23, 2024
2:11 pm
cgouimet
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canadian.100 said
Yes the family is now 100% out of Access/"new" Hubert. Old Hubert was excellent until its sad demise. We now consider Tangerine a star digital FI compared to our previous experience with Access/" new" Hubert and its nice to know that Scotiabank owns Tang. So easy to do transactions - however I agree that their interest rates can be all over the place. But then no FI is perfect, particularly the CUs in my experience.  

It certainly looks like many of us will be leaving the Access family to the MB locals once our GIC's all cash out.

CGO
June 23, 2024
7:49 pm
everhopeful
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While it is certainly frustrating to lose the excellent online access that Sunova's Hubert had, don't let that cloud the benefits of the quarterly redeemable GIC:

- You can keep funds in there that would typically have to be held in a HISA if you need quick access to it.
- The rate tops all HISAs, and if you have to pull out early, its a maximum of 90 days interest lost. The current rate beats a lot of fixed 1yr GICs, even their own.
- The rate is guaranteed for a year like a typical fixed GIC. If the rate rises, you can redeem and reinvest at the higher rate at the quarterly anniversary. If the rate drops, all is well until maturity.
- Phoning in feels so 20th century, but most agents I have dealt with are quick and efficient, and midweek mornings usually have very short hold times.
- Balances and maturities still can be monitored on Access' web site (hint: nickname your GICs with the maturity dates to save a lot of clicking). If this did not exist, that would be a deal killer for me.

I keep funds with Hubert that I feel I might need between my other GICs maturing at other FI's. Since this value is not changing much, I hardly have to make any transactions with Hubert, it just sits there and accrues interest each quarter while being at the ready should a financial emergency strike.

I was as disappointed as everyone last fall when the awesome Sunova DIY interface got kiboshed, but my searches have not found a replacement product anywhere else with all the benefits these GICs have. I am very glad Access has not gotten rid of the quarterly GIC, though I fear they will in the future. If they convert to only fixed GICs, my Hubert funds will definitely head over to another FI with full online capabilities.

June 23, 2024
8:36 pm
moneyhelp
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Dean said

And we can add EQ Bank, the original Hubert and several others to that list.

When the original (Real) Hubert was moved to Access, it was a Huge step Backwards ... and one of the main reasons several of us will soon be doing a 'Stage Left', if they haven't done so already.

As The Stomach Turns sf-confused

    Dean

  

I'm at that stage. Earlier in the week, I transferred the remaining of my cash fund (CAD & USD) to my other FI, and confirmed today that the transaction (transfer) has completed.

Tomorrow I'm calling Hubert and saying good bye sf-frown

At first it was annoying that they removed a lot of the online features, but still wasn't sure if I should close the account since their rates are still respectable compared to other FIs, but when they announced they were closing their US savings account, that was it for me.

Sad because their service is great, but having to open now another US savings account with Access and their online UI is horrible, I have no desire to do so.

I am currently looking into EQ to open a US account, their rates are great, but I'm not familiar with their online banking features, their customer service or their mobile banking app features either; still deciding on this one...

June 23, 2024
10:07 pm
Loonie
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I know others like EQ, but, FWIW, my opinion is quite negative. Service is snippy, and the whole operation is lean and mean. No joint GICs allowed last time I looked, but I don't look often.

They send unwanted emails announcing the interest you earned every month.
If you have no transactions in a given month, the so-called statement doesn't even give a balance.

EQ is in the "last resort" class for me, and I haven't had to resort to it for a few years.

I'm sticking with Hubert. There have been some very annoying issues at Hubert lately, but most staff remain excellent, and they can be relied upon to do what I ask them to do. At EQ, I can't get them to do anything; it's like talking to robots.

June 23, 2024
11:04 pm
everhopeful
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EQ is average in my books, but I have never contacted them for anything, I can achieve everything I want online (like good ol' Hubert). I currently have fixed GICs with them at decent rates.

Their notice account looks interesting, but I cannot avail of it at the moment as almost all my cash is locked into GIC's as I feel rates will trend neutral or lower in the upcoming year.

The HISA account has a very paltry rate, I just keep a small float in the EQ card subaccount to benefit from its features (free Canadian ATM withdrawals and 0% forex fee).

My funds are spread amongst a few FI's to take advantage of the features of each one, and also to diversify for deposit insurance purposes. With the convenience of old Hubert, I probably had way too much money there if there was a Manitoba financial calamity... thanks Access for having me rebalance that hehe.

June 24, 2024
7:04 am
Case1030
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Interesting, they went with a half percentage point on the quarterly spread.

The first three months: 4.50%*
Months four to six: 5.00%*
Months seven to nine: 5.50%*
The last three months: 6.00%*

sf-cool

June 24, 2024
7:30 am
cgouimet
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Case1030 said
Interesting, they went with a half percentage point on the quarterly spread.

The first three months: 4.50%*
Months four to six: 5.00%*
Months seven to nine: 5.50%*
The last three months: 6.00%*

sf-cool  

Interesting indeed. Their previous schedules would have gotten us 5.10/5.20/5.30/5.40?

This is very likely to encourage us not to flip every 3 months like we did when rates were trending up; however, there should be fewer quarterly flippers when rates are trending down.

CGO
June 24, 2024
7:37 am
NorthernRaven
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Case1030 said
Interesting, they went with a half percentage point on the quarterly spread.

The first three months: 4.50%*
Months four to six: 5.00%*
Months seven to nine: 5.50%*
The last three months: 6.00%*

sf-cool  

Hmm, hadn't click through to look at the splits, thanks for that - it is usually -15/-5/+5/+15 bps around the average rate. But this encourages holding the GIC, while still providing the equivalent of a 4.5% 90-day GIC , or guaranteed HISA rate should you need to cash in early, which is pretty decent, although for short-term people the EQ notice stuff has attractions.

The bigger variances will also make a difference should lower rates start to rise some day - I suspect they had more people than they (or their CS crew) preferred cancelling quarterlies just to rebuy again. It didn't take much of an increase for that to be worthwhile, since even if the higher annual rate was a wash against the lower rates you got for the early part of the previous GIC, you at least got to extend the maturity. The bigger steps would discourage that in future days of rising rates.

June 24, 2024
10:03 am
anitavirginia
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that looks like approx 5.35% annual rate

June 24, 2024
10:12 am
cgouimet
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anitavirginia said
that looks like approx 5.35% annual rate  

Yep, that's what I calc'd.

CGO
June 24, 2024
12:00 pm
Laertes
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NorthernRaven said

Hmm, hadn't click through to look at the splits, thanks for that - it is usually -15/-5/+5/+15 bps around the average rate. But this encourages holding the GIC, while still providing the equivalent of a 4.5% 90-day GIC , or guaranteed HISA rate should you need to cash in early, which is pretty decent, although for short-term people the EQ notice stuff has attractions.

The bigger variances will also make a difference should lower rates start to rise some day - I suspect they had more people than they (or their CS crew) preferred cancelling quarterlies just to rebuy again. It didn't take much of an increase for that to be worthwhile, since even if the higher annual rate was a wash against the lower rates you got for the early part of the previous GIC, you at least got to extend the maturity. The bigger steps would discourage that in future days of rising rates.  

Well!! I was about to cash out one of my GICs that hit a quarterly point today, and re-invest, but those splits have discouraged me. So, I guess it worked! I did put in another $1,000 for the 5.25% average, though.

I'm also disappointed that we have to phone to invest in the GICs, but the rates are good enough, and I just put my emergency cash.

June 24, 2024
5:15 pm
Winnie
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anitavirginia said
that looks like approx 5.35% annual rate  

cgouimet said

Yep, that's what I calc'd.  

No, it's an average rate of 5.25% for the year, not 5.35%

June 24, 2024
5:41 pm
Norman1
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The correct average is 5.35% and not 5.25% because of the quarterly compounding.

Held to maturity, the result is equivalent to an one-year 5.35% GIC, compounded annually:

Days Per annum Interest Balance
24-Jun-2024 0 4.50% $0.00 $10,000.00
24-Sep-2024 92 4.50% $113.42 $10,113.42
24-Dec-2024 91 5.00% $126.07 $10,239.49
24-Mar-2025 90 5.50% $138.86 $10,378.35
24-Jun-2025 92 6.00% $156.95 $10,535.30
365
June 24, 2024
7:08 pm
everhopeful
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Most other FI's would advertise this as 5.35%, with asterisks behind it... I wonder if Hubert will once they read this thread sf-smile

Really surprised they would widen the steps so much... I always thought that .1 was a bit narrow and they would go to .25 someday. They must have more folks than they want using it as a 90 or 180 day GIC.

4.5% seems lousy at the start, but 6% on the backend will be nice, especially if the BoC slashes a couple more times before then. Still glad that Hubert's signature product lives on... if the quarterly redeemable goes away, so do I sf-smile

June 24, 2024
8:54 pm
Loonie
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It seems Access can't leave well enough alone.

The quarterlies worked well the way they were, but Access HAD to mess with them, just like they've messed with so many things since they acquired Sunova/Hubert.

For shame!sf-frown

June 24, 2024
9:11 pm
Loonie
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Norman's calculation is correct.
However, when Hubert says "average", they mean, and have always meant, the average of the quarterly rates, which is 5.25% at this time, as they state. It has always been the case that, because of compounding, the interest received over the priod of a year exceeded the average rate by a few basis points.. An annual rate compounded quarterly is not the same thing as an average rate.
Now, because rates are generally higher, the quarterly compounded annual rate exceeds the average rate by a larger amount.

June 24, 2024
9:21 pm
everhopeful
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Simplii shows it on their rate page the difference between simple and compounding interest on their GICs.

Hubert's .5% quarterly spread doesn't change the benefits or drawbacks of the quarterly GIC much for myself, so steady as it goes for my emergency fund.

Every time they tweak things like this I actually breathe a sigh of relief. I anticipate getting an email some day in the future that Hubert will be wound down, and any new/renewal GICs would convert to Access' own mediocre fixed offerings. I hope I am wrong and that day never comes.

June 25, 2024
8:01 am
cgouimet
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everhopeful said
Simplii shows it on their rate page the difference between simple and compounding interest on their GICs.

Hubert's .5% quarterly spread doesn't change the benefits or drawbacks of the quarterly GIC much for myself, so steady as it goes for my emergency fund.

Every time they tweak things like this I actually breathe a sigh of relief. I anticipate getting an email some day in the future that Hubert will be wound down, and any new/renewal GICs would convert to Access' own mediocre fixed offerings. I hope I am wrong and that day never comes.  

You may be ever hopeful ... sf-laugh

Like may others, I'll remain on the sidelines until they address all of the merger induced negative offering issues.

CGO
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