Does anyone have experience with CWB's (Motive's parent company) "Flex Notice" account? | Motive Financial | Discussion forum

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Does anyone have experience with CWB's (Motive's parent company) "Flex Notice" account?
February 4, 2023
8:47 am
sothisistheinternet
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Hello, a few days ago I was told about Canadian Western Bank's recently-introduced "Flex Notice Account."

Does anyone have experience with this? I'm going to call them Monday, it looks kind of interesting. I was told that with a min. balance of $25,000 the rate (which is linked to prime) is currently 5.25%.

BTW keep in mind for CDIC purposes, Motive is a brand of CWB, not a separate entity.

Here's the website, and here's a video for your viewing enjoyment:

https://youtu.be/DAc3l-96zVQ

February 5, 2023
3:17 pm
Doug
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Notice deposits are nothing new, and, as far as I know, CWB has always had a notice deposit account. They're essentially very similar to short-term GICs (i.e., GICs of at least 30 and less than 365 days) and even more similar to redeemable GICs with a minimum 30 day or six-month holding period in that, in order to receive the interest accrued, you must notify the financial institution in advance of your intended withdrawal date. So they're broadly similar, but different to short-term GICs in how they're implemented. ūüôā

Cheers,
Doug

March 15, 2023
8:53 pm
fairwindw1
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I just opened one for myself and my wife.

originally planned to transfer 1 million there but now really doubt it because SVB fiasco.

with the 91 day notice requirement, you can't do a quick RUN

March 16, 2023
1:10 am
Norman1
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For a possible quick run, something like the one-year RBC Prime-Linked Cashable GIC would be a better fit.

For $1 million or more, the current rate is P - 2.0% = 6.7% - 2.0% = 4.7%.

March 16, 2023
3:49 am
kesa
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sothisistheinternet said
Hello, a few days ago I was told about Canadian Western Bank's recently-introduced "Flex Notice Account."

Does anyone have experience with this? I'm going to call them Monday, it looks kind of interesting. I was told that with a min. balance of $25,000 the rate (which is linked to prime) is currently 5.25%.

BTW keep in mind for CDIC purposes, Motive is a brand of CWB, not a separate entity.

Here's the website, and here's a video for your viewing enjoyment:

https://youtu.be/DAc3l-96zVQ  

hi, is 5.25% a typo?

March 16, 2023
6:52 am
hwyc
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It s month old. One thing I learned - CWB got a location in Markham, Ontario … Alberta is calling sf-surprised

March 18, 2023
12:55 pm
kesa
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does anyone have an opinion regarding the risk profile w.r.t. CWB?

I suppose anything within CDIC limits makes this simple, or am I missing something….

for CAD funds (min $25k):

-31 day notice rate is 4.95% (ie CWB Prime @6.70% - 1.75%)
-93 day notice rate is 5.25% (ie CWB Prime @6.70% - 1.45%)

Not really seeing anything similarly promoted from other FIs.

March 18, 2023
2:25 pm
Norman1
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No-one else is promoting something similar probably because the product is an inconvenient one.

Having to give 31 days or 93 days notice is inconvenient. Receiving one's money sometime "within five days" of the expiry of the notice period is also inconvenient.

Canadian Western Bank has a DBRS debt rating of A(low). So, its uninsured deposits are a bit riskier than those of a bank like Royal Bank, with a AA(high) rating, or Bank of Montreal, with a AA rating.

March 18, 2023
4:46 pm
RetirEd
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In theory, the notice requirement would allow the deposit-taking institution more time to react to sudden withdrawals, limiting the effects of a run on it. This could allow them to offer higher rates even if holding bonds whose rates are no longer competitive.

So there is some reason for some investors to consider them.
RetirEd

RetirEd

June 8, 2023
12:35 pm
kesa
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CWB getting greedy here w/ flex notice…prime up but SPREAD up even more, lower returns ahead.

June 9, 2023
1:40 pm
savemoresaveoften
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kesa said
CWB getting greedy here w/ flex notice…prime up but SPREAD up even more, lower returns ahead.  

They followed CIBC's example of so called variable rate GICs. As prime goes up, so are the spread against it...

June 9, 2023
6:34 pm
Briguy
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Seems like CWB is getting more interesting. Does anyone think that CWB is going to eventually absorb Motive back into the main bank? I noticed on the regular GIC page for Motive it stated :

New Motive clients will be required to open a Motive bank account with Canadian Western Bank to buy an Eligible GIC.

June 9, 2023
6:54 pm
Norman1
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Motive Financial is actually Canadian Western Bank already.

Motive and Motive Financial are just names used by Canadian Western Bank. This is under the CDIC logo on Motive's main page:

Motive Financial is a trade name of Canadian Western Bank, which is a member of CDIC.

I would interpret that requirement on their GIC page as:

New Motive [product] clients will be required to open a Motive[-branded] bank account with Canadian Western Bank to buy an Eligible GIC.

June 10, 2023
4:25 am
Briguy
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Norman1 said
Motive Financial is actually Canadian Western Bank already.

Motive and Motive Financial are just names used by Canadian Western Bank. This is under the CDIC logo on Motive's main page:

Motive Financial is a trade name of Canadian Western Bank, which is a member of CDIC.

I would interpret that requirement on their GIC page as:

New Motive [product] clients will be required to open a Motive[-branded] bank account with Canadian Western Bank to buy an Eligible GIC.

  

So if one only has a Motive account and buys a GIC, do they need to create a separate CWB account even though they are owned by CWB? If so, then it seems to me that they could be in the process of phasing out Motive.

June 10, 2023
5:32 am
hwyc
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I think the text mean to say a new client cannot apply for just the GIC product(s) *alone*. An accompanied Motive banking account is required. Quite a few others have that same requirement.

June 10, 2023
6:31 am
Norman1
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A Motive Savvy Savings Account or a Motive Cha-Ching Chequing Account will meet the requirement. Both Motive-branded accounts are issued by Canadian Western Bank.

Doesn't really make sense to also require a Canadian Western Bank branded account when one already has a Motive-branded account issued by the bank.

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