One Year Term Increase 2018 06 26 | Hubert Financial | Discussion forum

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One Year Term Increase 2018 06 26
June 26, 2018
8:26 am
Nehpets
Ontario
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Email this morning:

Effective today, June 26, our one-year term rates are changing. (And for the better too)!

As always, you’re not locked in for the entire year – you can redeem your term after three, six, or nine months, BUT if you keep your funds in place for the entire year, you’ll earn an average rate of 2.55% for the year. Don’t forget; although this term deposit is RRSP and TFSA eligible, it is not RRIF eligible.

Like we said, these rates are changing for the better. Here’s what you’ll earn:

• The first three months: 2.40%
• Months four to six: 2.50%
• Months seven to nine: 2.60%
• The last three months: 2.70%

June 26, 2018
9:48 pm
Loonie
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Spouse had bought a one - year GIC on June 23, and was automatically given the new rate.sf-smile
A few years ago I had a one-year which rolled over the day before rates went up but they did not give me the better rate.sf-frown

June 27, 2018
12:10 am
Rick
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Loonie said
Spouse had bought a one - year GIC on June 23, and was automatically given the new rate.sf-smile
A few years ago I had a one-year which rolled over the day before rates went up but they did not give me the better rate.sf-frown  

Bought a two year less than a week before the last two year special and they automatically gave me the new rate. Missed by a day? Hope that was the policy a few years ago, seems they are pretty good at back dating now. If it was only a day since the rollover, did you cash it in and take out another at the new rate?

June 27, 2018
4:19 am
Loonie
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No, I didn't cash it in. Now that I ask myself why I didn't do that, I remember that what actually happened was that the rate went down on the day of my renewal, so I missed out . Of course, I didn't know they would be bringing the rate down. Even if I had known, I would have lost 3 months interest to cash it early.
I just accepted it as my bad luck, but, another time, I would plead my case if it happened again. Nothing to lose, and far less painful than, say, calling Tangerine! They have the most remarkable ability to actually pick up the phone and answer it EVERY time I call Hubert.sf-surprised New tech or something?...

Perhaps they've taken a leaf out of Oaken's book, but we still don't know what they'd do if rates were on the way down. I like that Oaken gives you a week's grace either way.

June 27, 2018
5:11 pm
DavidAlta13
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If you leave money in Hubert's new 1 year term for the whole year, your compound return will be 2.574%, not the 2.55% average of the 4 quarterly rates: Hubert 1 year terms with quarterly interest DO compound that interest every quarter (I called to double check).

Depending on your needs, these Hubert 1 years may be a great option as they can be fully redeemed without penalty on any of the quarterly interest payment dates.

In my case, I am using Hubert's 1 years in my TFSA & if rates keep going up, I can roll them over to get the higher rates.

Moving funds between TFSA's in different FI's to take advantage of the highest rates on either GIC's (Terms) or in high interest savings accounts is not feasible except at the end of calendar years, as the CRA doesn't increase TFSA for withdrawals until the calendar year after the withdrawal.

June 27, 2018
10:00 pm
Loonie
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Yes, I can verify that the interest is compounded quarterly. I have never understood why they don't advertise the slightly higher rate. It's always in the range of .02

They're redeemable any time at all, not just quarterly, but you don't get any interest since the most recent quarterly payment.

July 4, 2018
6:13 am
SavingIsGood
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Loonie said
Yes, I can verify that the interest is compounded quarterly. I have never understood why they don't advertise the slightly higher rate. It's always in the range of .02

They're redeemable any time at all, not just quarterly, but you don't get any interest since the most recent quarterly payment.  

Because dumb Canadians get confused when they see digits after first decimal so it is simpler to just say '2.55%' instead of '2.574%' and wait until some morbidly obese, not seeing well due to lard covering his/her eyes Canadian starts complaining 'where is my 2.7% interest'...

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