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Sunova CU Dividend Payout | Hubert Inactivity Fees
February 15, 2018
9:27 am
Yatti420
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Historical Dividend Payout Up To 2016: https://www.sunovacu.ca/wp-content/uploads/2017/07/DividendHistory2016.pdf (New Report/Payout Around March?)

$25 fee for accounts that are inactive for six months with a balance under $1,000.

Since inactive accounts are not being monitored by the account owner they pose a higher risk for fraudulent activity and have to be dealt with in a timely manner. If you don’t process a transaction semi-annually we’ll mail you a letter notifying you your account has become inactive and will request you to log into your account and process a transaction. Once this is complete we’ll remove your inactive status. Easy peasy!

What if I stop using my account and my account becomes inactive?

If you don’t process a transaction semi-annually we’ll mail you a letter to let you know your account has become inactive and will request that you log into your account and process a transaction. Once this is complete we’ll remove the inactive status. Easy peasy!

Since inactive accounts are not being monitored by the account owner they pose a higher risk for fraudulent activity and have to be dealt with in a timely manner.

February 15, 2018
6:04 pm
Loonie
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Their rationale about inactive accounts doesn't make sense to me. If inactive accounts that are not being monitored are a concern for fraud, wouldn't the ones with MORE than $1,000 be the preferred targets?

However, all they are asking you to do is sign in every six months, which is not onerous. Really, everyone should check in monthly to make sure they have not been hacked.

February 15, 2018
7:17 pm
Trump
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Any account that I have that has a downloadable statement monthly or semi annually I download and compare to my excel file for GICS for both my wife and I. For any other account that does not offer monthly statement I make a statement using date ranges. I also balance my cash accounts monthly. You never know if you have been hacked or if something disappears????

Does the under $1000 balance apply to any of the cash accounts.....as all my cash accounts have 0 or less than $2 in Hubert.

May 29, 2019
6:45 pm
moneyhelp
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I've been with Hubert since February 2017 (own the USD account), I was aware that they monitor the account for inactivity every 6 months, but I do not recall the stipulation that the account has to have a minimum of $1,000. Is this new?

I am a bit concerned because currently I have a few K (USD) in there so there is no problem, for the moment, but the main reason that I opened this US account was due to the rate and a place to park some of my US cash earned from dividends, but they are there with the full intention of being used, so there will be a time when the balance will fall well below $1K and even longer than 6 months at a time.

I have no problem initiating a transaction every so often to keep the account active, but again, my concern is with this $1,000 minimum required balance.

For example, can I not keep a $500 balance in the account with the occasional transaction every 3 or 4 months to keep the account active?

Am I missing something here?

May 29, 2019
6:57 pm
Doug
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moneyhelp said
I've been with Hubert since February 2017 (own the USD account), I was aware that they monitor the account for inactivity every 6 months, but I do not recall the stipulation that the account has to have a minimum of $1,000. Is this new?

I am a bit concerned because currently I have a few K (USD) in there so there is no problem, for the moment, but the main reason that I opened this US account was due to the rate and a place to park some of my US cash earned from dividends, but they are there with the full intention of being used, so there will be a time when the balance will fall well below $1K and even longer than 6 months at a time.

I have no problem initiating a transaction every so often to keep the account active, but again, my concern is with this $1,000 minimum required balance.

For example, can I not keep a $500 balance in the account with the occasional transaction every 3 or 4 months to keep the account active?

Am I missing something here?  

Hubert Financial does not have a minimum balance requirement.

If your account goes inactive and then subsequently dormant, they can apply an inactivity fee; however, this only applies to dormant accounts with less than $1000.00 in them. Details here: https://www.happysavings.ca/meet-hubert/faqs

If you mean the share requirement and dividend payout, it's not a patronage allocation based on your deposit and/or lending balances. It's a payment, as interest income due to credit unions already receiving favourable income tax treatment, based on your "share" and "surplus" balances.

We're actually discussing the Hubert/Sunova member share program here (https://www.highinterestsavings.ca/forum/hubert-financial/sunova-credit-union-2018-annual-dividend-payment/), if you're interested.

Cheers,
Doug

May 29, 2019
7:27 pm
GICinvestor
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I am similar to others. I usually only have 0 - 2 dollars in my savings account as funds flush in and out. So I could have had 2 dollars or less but have never been charged for inactivity. So this year I will have an RRSP Account with 0....as I had as well, last year and no charges. And will have a RRIF Account with 200 or so till next year for TFSA ....so how will I swing that one...take a dollar out?

May 29, 2019
7:38 pm
moneyhelp
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Okay, so if I understand both Doug and GICInvestor, you can have less than $1,000 in the account as long as there is activity in the account less than every 6 months, then you won't be charged $25 inactivity fee.

For example , let's say I have $10.25 in the account for 5 months with NO transactions, then I transfer $1.00 into my Hubert account, now making my balance $11.25 and again no other transactions for another 5 months AT ALL (10 months passed with only 2 transactions), then I won't be changed $25 inactivity fee, correct?

May 29, 2019
8:32 pm
GICinvestor
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moneyhelp said
Okay, so if I understand both Doug and GICInvestor, you can have less than $1,000 in the account as long as there is activity in the account less than every 6 months, then you won't be charged $25 inactivity fee.

For example , let's say I have $10.25 in the account for 5 months with NO transactions, then I transfer $1.00 into my Hubert account, now making my balance $11.25 and again no other transactions for another 5 months AT ALL (10 months passed with only 2 transactions), then I won't be changed $25 inactivity fee, correct?  

Heck....I don’t know!

All I can tell you or can assume is that when you have RRSPs all in GICs you also have a RRSP savings account. My RRSP savings account had no cash at all in it for a year and no inactive charge.

The question I now think that needs to be asked....what is the definition of an account? Does my RRSP GIC Account(s) and RRSP savings account count as one RRSP account or 2?

May 29, 2019
8:50 pm
moneyhelp
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GICinvestor said

Heck....I don’t know!

All I can tell you or can assume is that when you have RRSPs all in GICs you also have a RRSP savings account. My RRSP savings account had no cash at all in it for a year and no inactive charge.

The question I now think that needs to be asked....what is the definition of an account? Does my RRSP GIC Account(s) and RRSP savings account count as one RRSP account or 2?  

Gee thanks and 2 of course!

May 30, 2019
5:35 am
Doug
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moneyhelp said
Okay, so if I understand both Doug and GICInvestor, you can have less than $1,000 in the account as long as there is activity in the account less than every 6 months, then you won't be charged $25 inactivity fee.

For example , let's say I have $10.25 in the account for 5 months with NO transactions, then I transfer $1.00 into my Hubert account, now making my balance $11.25 and again no other transactions for another 5 months AT ALL (10 months passed with only 2 transactions), then I won't be changed $25 inactivity fee, correct?  

That's exactly it, moneyhelp, you've correctly summarized my interpretation. Basically, to be absolutely safe, initiate a manual debit or credit from/to your Hubert Happy Savings Account once every six months if your balance is less than $1,000, and you won't be charged an inactivity fee. Note, though, Hubert won't immediately charge a $25 fee right at 6 months - they don't say when it would be charged, but I suspect it would be at the 12 or 18 month mark. If your balance is above $1,000, you won't be charged an inactivity fee but your account can still go inactive and they usually mail you a letter and/or send you an e-mail after 12 months to warn you.

The dividend payment and calculation methodology is definitely paid on your share account(s). You can buy up to $1,000 in shares at any time and, during special offerings such as the one opening up Monday, June 3, 2019, amounts in excess of that. The shares should be held for the longer term, at least 5 years; however, the Board can approve you to redeem a portion (usually 20%) of your shares each year on amounts above $1,000. If you own $1,000 or less in shares, though, the only way to redeem them is to fully close your accounts and membership.

Cheers,
Doug

May 30, 2019
5:39 am
Doug
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GICinvestor said

Heck....I don’t know!

All I can tell you or can assume is that when you have RRSPs all in GICs you also have a RRSP savings account. My RRSP savings account had no cash at all in it for a year and no inactive charge.

The question I now think that needs to be asked....what is the definition of an account? Does my RRSP GIC Account(s) and RRSP savings account count as one RRSP account or 2?  

The RRSP account is like a variable savings portion of your RRSP, so they don't usually go dormant like bank accounts do. Thus, no inactivity fee applies to the registered (RRSP/RRIF/TFSA) accounts.

Cheers,
Doug

May 30, 2019
8:48 pm
moneyhelp
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Doug said

That's exactly it, moneyhelp, you've correctly summarized my interpretation. Basically, to be absolutely safe, initiate a manual debit or credit from/to your Hubert Happy Savings Account once every six months if your balance is less than $1,000, and you won't be charged an inactivity fee. Note, though, Hubert won't immediately charge a $25 fee right at 6 months - they don't say when it would be charged, but I suspect it would be at the 12 or 18 month mark. If your balance is above $1,000, you won't be charged an inactivity fee but your account can still go inactive and they usually mail you a letter and/or send you an e-mail after 12 months to warn you.

The dividend payment and calculation methodology is definitely paid on your share account(s). You can buy up to $1,000 in shares at any time and, during special offerings such as the one opening up Monday, June 3, 2019, amounts in excess of that. The shares should be held for the longer term, at least 5 years; however, the Board can approve you to redeem a portion (usually 20%) of your shares each year on amounts above $1,000. If you own $1,000 or less in shares, though, the only way to redeem them is to fully close your accounts and membership.

Cheers,
Doug  

Great, thanks Doug, appreciate you taking the time to clarify and explain.

June 13, 2019
2:03 pm
GICinvestor
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If you have a balance in a HISA account at Hubert and the balance is less than $1000 you will NOT be charged an inactivity fee if you have in total in all of your accounts GIC and HISA over $1000.

ie. You have $25 in your TFSA HISA account and you don't plan on any activity other than interest for the next 12 months AND YOU DO HAVE balances in your other HISA accounts and GICS that total over $1000 then there will be no inactivity fee.

The fee is not per account type.

June 14, 2019
9:41 am
mubulon3
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I can confirm Hubert told me the same thing as GICInvestor mentioned above, a couple years ago.

June 14, 2019
11:28 am
Doug
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I can also confirm that for the institutions I've dealt with or worked for, typically, accounts held within registered plans do not go either "inactive" and/or "dormant" as non-registered chequing and savings accounts can do. This is likely because they are not intended to be transactional accounts, on the one hand, and, on the other, being registered plans, there is supporting documentation that is required for every withdrawal. Thus, it is much more difficult for embezzlement by unscrupulous bankers (the reason for inactive and/or dormant accounts requiring a supervisor override to process transactions), or at the very least, a much greater chance of it being caught (i.e., by next-day audit and follow-up with regard to missing transaction documentation or by the client, in quarterly registered plan statements).

Cheers,
Doug

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