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Hubert Rates UP July 31 2017
July 31, 2017
7:27 am
Cranston
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Starting today, our two-five year term rates are going up, which means more saving for you! These rates can be used for our TFSAs, GICs, RRSPs, and RRIFs. Here’s what’s changed:

Two-year term – 2.05% (previously 2.00%)
Three-year term – 2.15% (previously 2.05%)
Four-year term – 2.30% (previously 2.15%)
Five-year term – 2.45% (previously 2.40%)

Nice to see.....but .05 on the five year rate doesn't reflect the .25% BOC increase and Oaken five year rate as of Aug 3 will be 3%. I wonder what feeble increases we will see with the forecasted October BOC rate increase?

July 31, 2017
8:49 pm
Loonie
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And they are offering no improvement on the one year rate which they reduced a couple of months ago.

August 1, 2017
7:14 am
swan
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It seems that the bank lending into the house market do not needed capital any more .with the housing market slowing down and the rates are suffering . I have found some good rates in institution leading in the agricultural industry .

August 1, 2017
8:37 am
Loonie
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swan said
It seems that the bank lending into the house market do not needed capital any more .with the housing market slowing down and the rates are suffering . I have found some good rates in institution leading in the agricultural industry .  

such as...?

September 8, 2017
8:42 am
jgclghrn
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Hubert announced rate increases this morning:

"Great news; rates are going up! Starting today, our two - five year term rates are increasing, which means more saving for you! These rates can be used for our TFSAs, GICs, RRSPs, and RRIFs.
Here’s what’s changed:
Two-year term – 2.20% (previously 2.05%)
Three-year term – 2.35% (previously 2.15%)
Four-year term – 2.50% (previously 2.30%)
Five-year term – 2.65% (previously 2.45%)

September 8, 2017
9:42 am
Doug
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At first, I thought this was in response to the surprise (and wrong, in my view) BoC rate hike but if you look, these rates just match Implicity Financial's existing rates. So, while appreciated certainly and I love Hubert Financial equally to Implicity Financial (I have memberships with both), I stand firm on my "prediction" that we won't see any high interest savings account rate hike (other than maybe minor "tinkering" from the "Big 5" banks, which are already rock bottom) until after the next BoC rate hike (I'm adjusting my timetable up a bit as I hadn't seen any rate hikes prior to 2019 or even 2018 as recently as several months ago) which will probably be next month in line with the Monetary Policy Report release & press conference, though there's some quality to the belief the BoC may go in December instead since it won't have to answer for its actions to journalists. I believe recent regulatory actions are already going to slow Canada's economy and the BoC is dumbheadedly, in my view, accelerating the next recession with these rapid rate hikes while not waiting for new economic data. Stephen Poloz, much like Justin Trudeau who broke his clear-as-day promise on electoral reform, I was enamoured with your prudent moves to the downside when the economy was slowing in 2014 but these moves to the upside at a time when...it's not clear where the economy is headed...have made you somewhat of a central bank "radical" and I've lost (most of) my respect for you. 🙁

So, bottom line: except the Manitoba CUs' HISA rates possibly rise to 1.95%, possibly 2% as I'm hoping they'll bring things in line with the historical standard rate ending in "0" to the right of the decimal place, EQ Bank to possibly go to 2.5% tying WealthOne Bank (thank you to the other forum user whose name I'm forgetting for pointing out they now appear to have a HISA with possibly no transaction fees), Alterna to bump up modestly to 2% in line with the Manitoba CUs or possibly going to 2.25%.

GIC rates may rise modestly before the next rate hike. Expect increasing focus on GIC rates, especially for the Manitoba CUs and alternative mortgage lenders, in light of Home Capital's liquidity event this past spring. So, with that, savings account rates will rise much more modestly over the next several years. I don't expect a "posted" regular interest rate on savings accounts above 3% (3.25% for EQ Bank/WealthOne) in the next five years, at a minimum. 🙂

Cheers,
Doug

September 8, 2017
10:02 am
Top It Up
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Forum readers would be reminded that this is an anonymous comment forum and are advised to perform their own marketplace due diligence before making any and all investment decisions.

September 13, 2017
10:05 am
Doug
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Top It Up said
Forum readers would be reminded that this is an anonymous comment forum and are advised to perform their own marketplace due diligence before making any and all investment decisions.  

Was this directed at me? I'm curious why you'd post that after I posted my comment, which makes no investment recommendations whatsoever. 🙁

So, back at you, forum readers are reminded that forum user "TopItUp" is NOT a forum moderator or administrator, does NOT speak for either "highinterestsavings.ca", its forums or affiliates or any other forum user, for that matter, and appears to suffer from cases of "head-in-the-clouds" and "egomanitosis". (I'll let inferences be drawn individually rather than define those terms.) 😉

Cheers,
Doug

September 13, 2017
12:29 pm
Loonie
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Doug said

Was this directed at me? I'm curious why you'd post that after I posted my comment, which makes no investment recommendations whatsoever. 🙁

So, back at you, forum readers are reminded that forum user "TopItUp" is NOT a forum moderator or administrator, does NOT speak for either "highinterestsavings.ca", its forums or affiliates or any other forum user, for that matter, and appears to suffer from cases of "head-in-the-clouds" and "egomanitosis". (I'll let inferences be drawn individually rather than define those terms.) 😉

Cheers,
Doug  

And here I thought it must surely have been the ominous voice of God speaking to us from the Great Beyond in the passive voice, ineffable and unaccountable to mere mortals but determined to save us from ourselves, weaklings that we are.

November 29, 2017
6:37 am
Brimleychen
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The 5 year rate is 3% now.

Capture-1.JPG

Get ready for RRSP / TFSA contribution.sf-cool

November 29, 2017
9:17 am
christinad
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If I have a 1 year gic maturing in march at 2.05% would it be better to pull it out early on December 10 so I can reinvest at a higher rate? I'm not sure what would make the most interest.

November 29, 2017
9:33 am
Brimleychen
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Just give them a call / online chat. They may help you. Or you have wait until the quarterly maturity date if you're at 1 year quarterly term.

In general, I like Hubert customer service.

--- Just received the following ---
Hello Hubert Members,

We’re getting in the holiday spirit and raising our term interest rates, which means more saving for you! These rates can be used for our TFSAs, GICs, RRSPs, and RRIFs.

Here’s what’s changed:

One-year quarterly term – 2.25% average
Two-year term – 2.40% (previously 2.20%)
Three-year term – 2.45% (previously 2.35%)
Four-year term – 2.70% (previously 2.50%)
Five-year term – 3.00% (previously 2.65%)

*RRIFs are not eligible for the 1 year quarterly term.

If you have any questions please give us a call or send us an email. We can be reached by phone at 1-855-4HUBERT (1-855-448-2378) or by email at hubert@happysavings.ca. We’re happy to help!

Sincerely,

Hubert

November 29, 2017
11:01 am
Loonie
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christinad - It sounds like your third quarter ends Dec 10.
It depends in part on what your rate is for the 4th quarter. My notes say it is 2.2%.
The other factor is whether you think rates are on their way up, stable, or on their way down.

FYI, the breakdown on the new one-year rate is as follows:
The first three months: 2.10%.
Months four to six: 2.20%.
Months seven to nine: 2.30%.
The last three months: 2.40%.

I think I would cash it in on Dec 10 and reinvest at the new rate. A difference of .1% for that final quarter is not very significant - about $25 on 100K. And that would only be relevant if you decided to take the new rate now and then cash it in after one quarter. The only reason you would likely do that would be if an even better rate came along, or if you had a need for the cash.
If you take the new rate now and hold it for six months, you come out about even either way, assuming the new rate is still in effect in March. If you hold longer, you gain.
Personally, I am sceptical that rates will go up more in 2018 (or perhaps only a little). So, I would not be expecting to cash in again later for a better rate. So far, with regards to this particular rate, a .5% hike in the Bank rate has resulted in only a .2% increase in Hubert's deposit rate.

My own strategy with the Hubert one-year rates is to divide the money into smaller, graduated, amounts, so that some GICs can be cashed but the rest left as circumstances change. I believe their minimum is $1000.

November 29, 2017
6:30 pm
christinad
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Thanks for the detailed reply. I will cash in

November 30, 2017
6:25 am
SavingIsGood
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Definitely take money out on 10 Dec. and go for another year.
I have to wait until Jan as if I do it Now, will be loosing interest for 2 months. But, unless you keep 10 millions in GUC at Hubert, all the rest are peanuts...

November 30, 2017
4:29 pm
GR
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Another point of view is to wait until the GIC matures in March 2018. The quarter from December 2017 to March 2018 would pay 2.20% p.a. This is better than 2.10% p.a. if the GIC is redeemed in December and a new one purchased. It seems likely that rates for new GICs purchased in March 2018 should be same or higher than current rates.

December 1, 2017
5:14 pm
SavingIsGood
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Good point. It all depends on how strong your nerves are; rates might go down, stay as is or go up. Pick your choice.

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