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Meridian 3.5% 5 year GIC
March 29, 2018
12:45 pm
Wayno
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Meridian 3.5% 5 year GIC

•Low minimum investment ($100)
•Guaranteed principal and interest
• Offer is limited to new deposits only
• Deposits are insured by DICO up to $250,000 for non-registered and unlimited for registered
•Available for non-registered, TFSA, RRSP and RRIF investments

Just announced... They finally are offering a good GIC rate..sf-smile

regards,
Wayno

March 29, 2018
4:08 pm
gicjunkie
Ontario
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There is a broker (Fiscal Agents in Oakville) that has been offering a Meridian 5 year GIC at 3.25% for a while now. This is a nice improvement. Thanks for the "heads up".

March 30, 2018
2:50 am
Loonie
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If you are considering this for non-registered funds, bear in mind that you will have to count the income annually on your taxes, although you will not receive it until the end.
You need to be sure you are OK with this and that you can take the money to pay the tax from another source.

It's not suitable for those who need an income stream from their GICs and not ideal for those of modest means (as non-reg'd investment), but good otherwise.

March 30, 2018
6:11 am
gicjunkie
Ontario
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As Loonie stated above, this is one of the conditions for this GIC:

"The interest rate is an annual rate; interest earned is paid on maturity"

When I have seen this wording in the past, it hasn't always been true so I called the Meridian help line about this and was told that you could actually receive the interest annually. BUT, when I called the Meridian branch in Richmond Hill, Ontario, they weren't so sure you could. They said they would have to check with head office on Monday (HO closed until then) to confirm if you could actually receive the annual interest on the anniversary date or it had to be compounded. Tune in on Monday.

March 30, 2018
9:45 am
Loonie
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I spoke to the manager at another branch on Thursday. While I did not ask specifically about changing the interest payout, she did reiterate, without pausing to look it up, that it is paid at the end. I actually had the impression that this promo is a bit of a come-on to get you in the door so that they can try to direct more of your finances, which didn't sit too well with me. Or maybe I imagined it and am just still in recovery from my visit to TD the previous day!

This is a promo offer. They still have a listing for a regular five year at something like 2.75. If you got the regular GIC, you would be more likely to be able to get annual payout, I think. It may be more cost-effective for them to do it this way, given that they are offering a superior rate.

March 30, 2018
12:25 pm
gicjunkie
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As I said in comment #3 above, you can still get 3.25% with Meridian for 5 years through a broker. I also know that Meridian has, on request, in reference to the broker offer, matched the broker rate for their members. So, you don't necessarily have to settle for the 2.75%.

This is another comment in their "conditions" area regarding this GIC:
"Meridian reserves the right to vary, delete or add to any of these Terms and Conditions from time to time without prior notice."

Maybe if the investment is large enough, they will "vary" the rules. Wouldn't be the first time. I still intend to check with Meridian on Monday to see if their conditions are as they say or not.

March 30, 2018
4:41 pm
Nehpets
Ontario
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Loonie said
I actually had the impression that this promo is a bit of a come-on to get you in the door so that they can try to direct more of your finances  

It appears Meridian has recently expanded their "wealth management" services with new personnel having been hired to assume these positions in a few branches.

When the front line staff identify a high net worth client they offer to get the two together.

I've been invited to meet with the new wealth management person at my local branch, which I will do out of curiosity, and to maintain rapport with the staff.

Meridian's everyday rates may not be competitive, but I have found some of their periodic promos are worth keeping an eye open for.

Stephen

March 30, 2018
6:57 pm
Loonie
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Ah-hah!
Do let us know how you make out, Stephen.

I'm planning on at least one of these GICs , but I'll be coy about my assets! None of their business, really.

March 31, 2018
7:26 am
2of3aintbad
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Do you have a link for this? I couldn't find this offer.

March 31, 2018
7:31 am
Top It Up
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It's right on their website under Long-Term GIC rates

March 31, 2018
7:59 am
2of3aintbad
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Thanks, I should have gone straight to the home page rather than Search.

March 31, 2018
8:02 am
Norman1
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2of3aintbad said
Do you have a link for this? I couldn't find this offer.  

I found this on Meridian: Fixed Rate GICs with a link to the terms and conditions:

3.50% 5 Year
Available only on new deposits to Meridian. Terms & Conditions apply.

March 31, 2018
3:22 pm
Loonie
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I went into the branch and got one of these today. no problems. They are on skeleton staff on weekends, so did not have time to ask about my assets etc. He did wonder if I really wanted to lock my money away that long but accepted my response.

Interest is compounded.

April 3, 2018
9:06 am
AlainJF
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Loonie said
... Interest is compounded.  

3.50% Compounded Yearly ? But not deposit/visible until the end ?

I did not find any information about this here: https://www.meridiancu.ca/Meridian/media/images/PDFs/TC-5Y-350-GIC-Non-redeemable.pdf

Thanks !

April 3, 2018
9:26 am
Top It Up
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NO question, the Meridian language is imprecise with respect to annual compounding!

April 3, 2018
9:51 am
Loonie
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I agree; the language is imprecise.
That's why I contacted the manager in advance to confirm. If the response had been negative, I would have posted it.
I now have the document confirming my investment, which is very clear.
And, yes, it's all paid out at the end, as indicated.

Alain, I think what you're getting at is that it is not paid out annually. If it were, there would be nothing to compound. The difference between this GIC and some others is that you don't have the option of annual payouts.

For non-registered investments, the income will be taxable annually, even though you won't have yet received it, so you would need to pay the tax from another source.
For that reason, it is best suited to an RSP or TFSA - for those who put GICs in these plans. But it's still fine for non-registered, provided you take this factor into consideration.

April 4, 2018
4:30 am
AlainJF
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Loonie said
...
Alain, I think what you're getting at is that it is not paid out annually. If it were, there would be nothing to compound. The difference between this GIC and some others is that you don't have the option of annual payouts.
...  

Thanks for the reply, but, I really just wanted to make sure that it is compounded annually. (I am not interested by annual payouts, unless it is not compounded !)

If not compounded, the advertised 3.5% would be in reality a little short of 3.28% compounded annually over the 5 years timeframe (3.277941543624% if you want some more decimal).

April 4, 2018
8:00 am
Wayno
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AlainJF,

It looks like Meridian updated the GIC terms and conditions ( April version) to make it clearer.

Perhaps Meridian is reading this forum ! sf-wink

regards,
Wayno

https://www.meridiancu.ca/Meridian/media/images/PDFs/TC-5Y-350-GIC-Non-redeemable.pdf

Meridian 2018 – 5 YR Non-Redeemable GIC Special
Terms & Conditions
3.50% 5 Year Non-redeemable GIC Offer
1) Offer is limited only to new deposits to Meridian. New deposits are defined as dollars not currently on deposit with Meridian or money that has been on deposit for 30 days or less from inception of the offer (March 12, 2018). Deposits that have been withdrawn and re-deposited within the Offer period are not eligible for the Offer.
2) The Offer is available to Retail Members only.
3) The maximum investment is $1,000,000 per Member.
4) The Offer is available for all plan types (non-registered, RRSP, TFSA and RRIF).
5) Offer is available for a limited time and cannot be combined with any other promotional offers.
6) Rate subject to change without notice.
7) The interest rate is an annual rate; interest is paid annually. Interest may be added to the principal of the term and compounded or paid into a Meridian account.
8) The Offer may be modified or withdrawn at any time and without notice.
9) Meridian reserves the right to suspend, disqualify, limit or revoke this Offer to any Member it finds or believes to be manipulating or otherwise abusing the process, fairness, or integrity of the Offer.
10) Meridian reserves the right to vary, delete or add to any of these Terms and Conditions from time to time without prior notice.
Version Apr.

April 4, 2018
11:25 am
gicjunkie
Ontario
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I had put in a request to Meridan on Thursday about clarifying the interest payment situation. Finally got a call this morning confirming the updated wording noted above. I think that the restrictions on the interest payouts were causing an unanticipated loss of potential investment revenue. They must have gotten a lot of calls about it. Thanks for the update Wayno.

April 4, 2018
12:45 pm
Saver-Mom
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What happens if you have a savings account there, bring in more money for a GIC, then want to withdraw money from the savings account?

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