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GIC product that moves with prime
March 23, 2023
3:15 pm
butterflycharm
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I see there is variable prime rate GIC products from big 5 but at around 4%.
Are there any rates attached to prime that is 5%+?

March 24, 2023
11:23 am
Jon
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CWB flex notice, no quite a GIC through.

March 28, 2023
10:47 am
butterflycharm
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Jon said
CWB flex notice, no quite a GIC through.  

Interesting product.

It is CWB prime rate of 6.75% and following:
Prime -1.75 for 31 + 31 days notice to withdraw => 4.95% net
Prime -1.45 for 93 + 31 days notice to withdraw => 5.25% net

Spread stays constant but CWB prime rate *may move with BoC rates. So this is probably the highest *locked short term HISA found out there. The lock is for interest amount only and not principle. Interest not given if deposit taken out before 62 or 127 days.

March 28, 2023
6:41 pm
RetirEd
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"Principal," not "Principle."
(main) ------- (rule or procedure)
RetirEd

RetirEd

March 28, 2023
7:56 pm
Norman1
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That's not how a notice account works.

Withdrawals will require either 31 days or 93 days notice depending on the type of Flex Notice Account opened. Funds will be blocked from leaving without the required notice given to the bank. It doesn't matter if the funds are interest or principal.

Notice accounts are not demand accounts where funds can leave freely.

March 28, 2023
8:07 pm
butterflycharm
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Norman1 said
That's not how a notice account works.

Withdrawals will require either 31 days or 93 days notice depending on the type of Flex Notice Account opened. Funds will be blocked from leaving without the required notice given to the bank. It doesn't matter if the funds are interest or principal.

Notice accounts are not demand accounts where funds can leave freely.  

Rep said it is not locked and can be taken out without notice anytime but will not receive the interest if taken out before notice. He specifically said because this is not a term deposit that is how it works; Otherwise, it will be a GIC product anyway. Maybe their accounts allow it...

March 28, 2023
8:43 pm
Norman1
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It is not a GIC because one can add funds anytime and not just on the day the GIC is opened.

Their page Flex Notice Account vs GIC makes it clear that funds are not accessible on demand:

… “It operates like a savings account in that you can continue to add money to it whenever you like, and you can redeem money from it. It operates like a GIC in that you can’t just withdraw money from it whenever you’d like. But you can give a notice of withdrawal and get access to some or all of those funds for when you need them – you just need to plan ahead and abide by the withdrawal notice period, which is either 31 or 93 days, depending on the type of Flex Notice Account you have.”

I think there is confusion between "notice can be given anytime" and "having access to the funds anytime."

March 31, 2023
11:03 am
Jon
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I was in a branch today and I am told you can withdraw money anytime, you just lost the interest accrued if you want the money before the withdrawal period.

March 31, 2023
1:10 pm
butterflycharm
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Jon said
I was in a branch today and I am told you can withdraw money anytime, you just lost the interest accrued if you want the money before the withdrawal period.  

That is what I was told too. The quote Norman provided is a quote from another employee on their website and not from the terms. Also, that quote is confusing as in the first line it says you can withdraw and subsequent lines not without notice.

If there is a lock then this product might not survive as it will be a GIC.

March 31, 2023
6:40 pm
Norman1
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The question now is which Canadian Western Bank employee should one believe!

Kind of like calling CRA multiple times and receiving two or more different answers to the same question.

The Flex Notice Account could still survive if it pays 4.95% and just requires 31 days notice of withdrawals. BMO InvestorLine is offering one-month bankers' acceptances that pay around 4.6% net after commissions.

April 1, 2023
5:03 am
savemoresaveoften
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What they have in the T&C fine print is what will determine the outcome when there is a disagreement. The bank has no legal obligation to honour an employee’s misinformation that were provided over the phone and even if recorded.

April 1, 2023
11:05 am
HermanH
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A simple test would be to just start a new account and throw a dollar into it, before trying to withdraw it. Case confirmed/refuted, either way.

April 1, 2023
1:14 pm
Jon
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The employee also told me this product cannot be place in register account.

April 5, 2023
7:05 pm
Fritz23
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I have 4 Flex Acc with CWB, It doesn't matter if it is principal or interest. I am sending a notice every 10 - 15 days. They deposit the money in my savings and if I didn't need the money I move it back into the Flex Acc the same day and send a new notice in parallel. Pretty simple, but a bit more work to do.

April 9, 2023
9:30 pm
butterflycharm
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Fritz23 said
I have 4 Flex Acc with CWB, It doesn't matter if it is principal or interest. I am sending a notice every 10 - 15 days. They deposit the money in my savings and if I didn't need the money I move it back into the Flex Acc the same day and send a new notice in parallel. Pretty simple, but a bit more work to do.  

Smart strategy.

One can also try and see if it is possible to take out without notice one day after the deposit. There will probably be only one day interest deduction with that trial process because the monies can be put back into the account the next day.

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