

8:47 am
February 1, 2023

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:
3:17 pm
December 12, 2009

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. 🙂
Cheers,
Doug
8:53 pm
January 30, 2018

1:10 am
April 6, 2013

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%.
3:49 am
February 14, 2023

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:
 Â
hi, is 5.25% a typo?
6:52 am
September 30, 2017

12:55 pm
February 14, 2023

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.
2:25 pm
April 6, 2013

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.
4:46 pm
November 18, 2017

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
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