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Email this10:45 pm
December 12, 2009
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hey Peter,
I thought you may want to add MAXA Financial to your list of high-interest savings and higher interest GIC options on your website and even create its own forum. Like Achieva Financial and Outlook Financial, it too is owned wholly by a Manitoba-based credit union in Brandon, MB. That credit union is Westoba Credit Union. Rates match those of the aforementioned, with the exception of the savings account which stands at 3.10%. It also offers 6- and 7-year GICs paying out 5.05 and 5.1% compounded interest.
I found it in a recent Globe and Mail column by writer Rob Carrick.
Cheers,
Doug
11:00 pm
May 15, 2007
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Sounds interesting. Does anybody have any experience with MAXA Financial? Does their accounts differ from other primarily online / phone accounts?
3:53 pm
I have a small deposit with them and agree the rate is good, however, not satisfied with their very limited online technology. But would say they are another good option.
9:00 pm
December 12, 2009
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Still, considering they offer at least as good (if not marginally better) a product as Outlook Financial and Achieva Financial, they really need to be added with their own forum and, eventually, have their own product review.
Cheers,
Doug
9:05 pm
May 15, 2007
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Hi Doug, seems like you are quite knowledgeable about MAXA. Are you interesting in writing a review? You can e-mail me at peter AT keung DOT biz
11:21 pm
Excellent customer service so far for me with Maxa. Very nice girls that work there to respond to your emails. They also have a fax number so that you can setup GIC's without mailing them, if you have money in your account you wish to move to a gic. To transfer money into Maxa, without fees or time hassles, I use ICICI or Ing as my transfer system.
Maxa seems to have the same online limited system as Outlook does (CU ONLINE).
Maxa has better GIC rates. Somewhat better GIC penalty system with Maxa also, if you leave your money in for more than 2 years but still want to cash. (less percentage taken away it works out, since they penalize 12 months worth of interest.. so if you are in for 24 months it is better penalty than other banks)
Outlook has dropped their rates significantly recently, even below ICICI on the savings accounts. Maxa is still at 2.9% savings and 4.55% GIC right now.
2:29 am
I'll be calling them today to look into a 1yr GIC they are offering at 2.35%, which, while low by last years standards is THE HIGHEST 1yr GIC rate offered currently in Canada.
They savings account currently pays 2.0% as well.
They would replace our ATB GIC.
Mike
7:54 pm
July 30, 2009
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I would not lock money into a GIC for 1 year at this point of time.
You are locking it in at rock bottom interest rates.
2:59 am
definitely do NOT lock in to a GIC at this time. You want to lock in on GIC's when they are up at 5 percent or higher.. NOT NOW.
Buy an investment such as a house with cash or get a mortgage, etc. Now is NOT the time for GIC's. Put your money in high interest savings accounts but NOT gic's. Now is the time for borrowing at low interest rates, or buying homes at low cash value. NOT TIME FOR GICS!
4:53 pm
You are absolutely correct L505!!!! Now is not the time to buy any long term GIC's paying next to nothing!!!
I just got my statement in the mail from Peoples' Trust for the interest I made for the month of July....$622.59!!! That's on a balance of $325,459.00!!!!Pretty pathetic I know, but I think buying a house or rental property right now might not be the best thing for me either.
Once you factor in property taxes, mortgage, insurance, utilities, condo fees(if any)and maintenance costs of operating a house, maybe home ownership is not as profitable as it seems.....or is it???. House prices are stagnant right now, not going up in value too much because of the economy, we already know this!!!But there's hope!!!
I plan to use leverage the next time I buy a detached house in 2010(This is the year I qualify for the Home Buyers Plan since I was a home owner in 2005). Here's how I'd do it:
1)Purchase a brand new house from a builder in 2010 for $500,000.00
2)Apply for Home Buyers Plan and withdrawal $25,000.00 in RRSP's for downpayment
3)Withdrawal $325,000.00 from Peoples' Trust for cash downpayment
4)Apply for a variable mortgage for 25yrs, 5 yr term for $150,000.00@2.50%
5)Sell house in 4 yrs(When economy and market recover for $600,000.00!!!!)
This is the most simplistic example I can give to make a lot of tax free money!!!! You don't pay tax(Capital Gains) on the profit you make on the house, since you are living there. You don't repay the Home Buyers Plan($25,000.00), since you only have to add 1/15 of that to your income for the next 15 years. Since mortgage rates are low @2.50% most of the mortgage payment is principle anyway!!!!
Roc
2:48 am
July 30, 2009
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The way the US economy is going, I don't think very many people will be able to afford a 600K house in 4 years in Canada. Plus as baby boomers retire, downsize and eventually croak, there will be a glut of houses.
Only way I see real estate prices rising is if inflation kicks in and incomes follow suit (i.e. rise).
Since governments in North America piss on savers and prefer to support spenders, house flippers by inflating away their debts..etc, there's a reasonably good chance of that happening.
11:39 pm
So how long have they been around (maxa, not westoba). How are their rates compared to the other high rate savings account on the main comparison page? Thinking about moving next years tfsa money to them...
6:25 am
March 25, 2009
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Hornswoggler said:
I would not lock money into a GIC for 1 year at this point of time.
You are locking it in at rock bottom interest rates.
I agree with all your thoughts on the GIC rates and also agree that rates will go back up, there is no question of that fact.
Savings rates and GIC's, T-bills, etc are just so low that anything over 2% right now is a real boon. Not vs what it was (or will be) but at the moment a 2.XX% GIC is the highest offered. I don't like it any more than any of you do, but 2% is double 1% at HSBC (and many other banks).
But if we look at 1% difference of having your money at hand vs locked up, it's not worth it having it locked up for 1% gain. Looking at it another way, it's not worth having it in a bank at 1% (withdrawl limits) either.
Ah, low savings rates stink all around.
Mike
Have a great day
6:42 am
March 25, 2009
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Roc said:
but I think buying a house or rental property right now might not be the best thing for me either.
Once you factor in property taxes, mortgage, insurance, utilities, condo fees(if any)and maintenance costs of operating a house, maybe home ownership is not as profitable as it seems.....or is it???. House prices are stagnant right now, not going up in value too much because of the economy, we already know this!!!But there's hope!!!
I plan to use leverage the next time I buy a detached house in 2010(This is the year I qualify for the Home Buyers Plan since I was a home owner in 2005). Here's how I'd do it:
Roc, since you are serious about growing your investment (like all of us), RE is a good option, but your timing is really bad. You missed the "easy money" RE boat, it left in late 2007.
Now, RE is a negative growth vehicle at this time. I could talk to you about RE investments for weeks on end with the knowledge I have in it. It doesn't mean I'm right or know everything, but I do know a lot. I definately couldn't be where I am today without RE. But I sold the last of my RE in 2008 (thank god) and I'm in an all-cash position to jump into RE again in the future. Let me give you some inside answers to your questions:
1)Do not Purchase a brand new house from a builder. You pay GST on the price, plus the price is not as negotiable as buying a resale home. The builder price is top market price and you are buying a non-existant product with unknown quality with no landscaping, huge volumes of dust and live in a construction site. Services, schools, shopping, transit, are all a distant memory to come (years) in a new build area.
2)A good idea, as long as you can pay it back within the time frame.
3)A great idea to have a huge downpayment. But keep $50k of it for reno's, emergency funds, property taxes, fees, etc on the side or even as an investment. Don't put all your eggs in one basket (At this time in RE).
4)"Apply for a variable mortgage". Not such a good idea. Those 2.65% var's are sucker bait. You know, we all know rates are going up so too will fixed rates. I'd grab a 10yr 5.65% myself as in 5 years that rate definately won't be available for even a variable.
5)"Sell house in 4 yrs for big profit". Ya, if this was 2002, sure! You'd make 100% in 5 years. In 2009? RE is going down, unemployment up, it's a bad time to buy. Your 1% HiSave account is doing way better than RE.
Just some quick thoughts for you.
Mike
Have a great day
4:27 pm
Hello Mike,
Thanks for the tips and recommendations, I am still clueless as to what to do with my close to $450,000.00 cash invested at Peoples Trust and ICICI Bank.
I'm going to play it safe and split half of the money with Peoples' Trust and MAXA since MAXA offers 2.00% and Peoples at 2.10%. Moving my RRSP's from ICICI earning 1.75% over to MAXA Financial which pays 2.00% might be my best move!!!
Roc
10:24 pm
July 30, 2009
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Roc,
ING was offering a 1 year GIC (RRSP) at 3% if you transferred over your RRSP from another institution to them. I don't know whether the offer has ended but you might want to call them and find out.
I am a customer of ING and I wanted to transfer my existing RRSP investments at ING into that GIC but they refused. It has to be from another institution.
What a bunch of idiots. You don't get rewarded if you are a loyal customer to them but you do get rewarded if you banked with someone else! I'll be saying goodbye to them soon with the bulk of my funds.
2:06 am
March 25, 2009
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Roc said:
Hello Mike,
Thanks for the tips and recommendations, I am still clueless as to what to do with my close to $450,000.00 cash invested at Peoples Trust and ICICI Bank.
I'm going to play it safe and split half of the money with Peoples' Trust and MAXA since MAXA offers 2.00% and Peoples at 2.10%. Moving my RRSP's from ICICI earning 1.75% over to MAXA Financial which pays 2.00% might be my best move!!!
Roc
Sounds good. IMO .25% more isn't much per year, make sure it's worth any fees moving your RRSP over for that before you do it.
With MAXA, the bank says you are 100% covered over $100K, not sure about Peoples.
Admin: Could you consider adding MAXA Fiancial to our comparison chart? 🙂
Mike
Have a great day
4:21 pm
July 24, 2009
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People's Trust and Canadian Direct Online are both CDIC covered to 100K
1:26 am
May 15, 2007
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I have finally given MAXA Financial its own sub-forum and added it to the comparison chart.
8:41 am
March 25, 2009
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Peter said:
I have finally given MAXA Financial its own sub-forum and added it to the comparison chart.
That is great, with 100% guarantee (non-CDIC) and a high interest rate (2%, which is high today), they earned it.
Mike
Have a great day
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