Hubert's One Year GIC Offer Coming to an end June 27 | Hubert Financial | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Hubert's One Year GIC Offer Coming to an end June 27
June 17, 2014
3:23 pm
jgclghrn
Member
Members
Forum Posts: 127
Member Since:
February 20, 2013
sp_UserOfflineSmall Offline

I received this e-mail today announcing the end of Hubert's one year GIC;

"Effective 5:00 pm CST on June 27 our one year term deposit special will no longer be available, so don’t miss out! Paying interest up to 2.50%, this term deposit special (which is also TFSA eligible) will keep you smiling for a full 365 days.
Here's what you will earn:
The first three months: 2.20%
Months four to six: 2.30%
Months seven to nine: 2.40%
The last three months: 2.50%
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 2.35%.
With just over a week left, don’t wait to sign up and risk missing out! To set up your one year 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."

June 17, 2014
4:02 pm
kanaka
Member
Members
Forum Posts: 1232
Member Since:
December 23, 2011
sp_UserOfflineSmall Offline

Looks like a good deal and the closest thing to a one year GIC which is lacking at Hubert for those folks that want to do a five year ladder. I know you could use the savings account but that would mess stuff up if you had more than one five year ladder and if you wanted to actually have some savings to access every now and then. Just not a clean way of doing compared to everyone else that offers a one year GIC. I have an account there but I have an issue with the no option for a one year GIC.....I know.....get over it! sf-confused

Is this offer their way of a quick fix to gain funds?

June 17, 2014
6:11 pm
Loonie
Member
Members
Forum Posts: 6270
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I'm in! It's too good to pass up, at least for now, so will give them a shot as I have money gathering dust at one of the Big 5.

I managed to get them to send me the membership application by email and will mail it back so that I can keep a copy. It will be non-registered investment so I shouldn't have a problem with the closing date.

I am not convinced it's a quick fix for Hubert. The current offer is seasonal, I suspect, as someone said they'd had the same offer last year. Also, there is keen competition in the short term market from Tang, PC and Oaken right now. I've been studying the various offerings here and there for the last couple of weeks. I think their "thing" is no-frills and no complications, for them, and that's how they can offer better rates. They don't offer RRSPs, RRIFs, credit cards, debit cards, cheques, ATM, or any other conveniences really, all of which take up time, legal expenses, and so on. It's strictly money in and money out, electronically. Their website it as basic as it could be.

June 17, 2014
6:31 pm
Norman1
Member
Members
Forum Posts: 3275
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Could be one of those seasonal, once-a-year things like those

  1. Canada Savings Bonds from the federal government,
  2. Bay Days from The Bay, or
  3. Shamrock Shakes from McDonald's!

sf-laughAlso, those limited-time Hubert one-year term deposits from last year are coming up for maturity around now.

Last year's offer was discussed in the thread Hubert Financial's 1 Year Redeemable GIC. That one-year term offering was available from May 8, 2013 to 5:00 pm CST on June 28, 2013.

June 17, 2014
10:45 pm
Loonie
Member
Members
Forum Posts: 6270
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

It's too bad the rates aren't as good this year as they were last year, but that is the way of all things.

Sure beats CSBs or Bay Days though! Never heard of SSs, but, then I don't eat at McDs.

One of the posts from last year's thread suggested you could only cash out at precisely 3 month intervals, but that is not what I have been told this year by Hubert by email. You can cash any time but will only get interest up to the most recent payout date.

June 18, 2014
11:54 am
kanaka
Member
Members
Forum Posts: 1232
Member Since:
December 23, 2011
sp_UserOfflineSmall Offline

As has been described here, Hubert is plain Jane as far as frills, like cheques, ATM cards etc. but they do offer decent rates. But the ability to hold them at a competitive rate, leaves them to be unattractive to invest with. Are we being fooled by the the bells and whistles offer? Keep in mind it is to your best interest to hold the funds for the full year. While I considered moving funds to them, that I preferred to be liquid, in a high interest savings account and could tie a % up for a year I looked at what the difference is based on a $1000 deposit...and found there is no point to using the Hubert opportunity as per below
.........................Rate.........Year......Amount.............Nets
Hubert 1 year......2.3500%....1.000 ....$1,000.0000....$23.5000
Hubert Savings.....1.9500%....1.000.....$1,000.0000...$19.5000
Accelerate 1 year..2.2500%....1.000......$1,000.0000...$22.5000
Accelerate Savings1.9000%....1.000......$1,000.0000...$19.0000
Oaken 1 year.......2.0000%....1.000......$1,000.0000..$20.0000
Oaken Savings.....1.7500%....1.000.......$1,000.0000..$17.5000
Coast Capital 1 year.1.5500%..1.000....... $1,000.0000...$15.5000
Coast Capital Savings.....1.0500%..1.000..$1,000.0000...$10.5000

So $5000 at Hubert nets me $22.50 more than leaving it in Accelerate Savings. Or 6 Shamrock Shakes!!

June 18, 2014
12:34 pm
Loonie
Member
Members
Forum Posts: 6270
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

True enough.
As always, it depends on individual circumstances and needs. If you held the Hubert GIC for less than a year, the margin would be even smaller.
On the other hand, if you had $50,000 to deposit rather than $5,000, and you ended up holding it a year (without being tied to that), the difference in return would be more significant. It depends on how much money is involved.
At times like this, I always remember Bell Telephone and their telephone booths. For many years they charged only 10 cents per call, but they made tons of money. It was all about volume. They would never have bothered if it were only one phone booth. And now that most of us have cell phones, it's almost impossible to find a phone booth, and if you do, it will cost you a lot more.

Please write your comments in the forum.