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Forced auto-renewal of Motive GICs?
December 9, 2021
8:20 am
limonium
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I wanted to buy a 12-month GIC from Motive at 1.45%. They call it a "12 to less than 24 months" GIC.
But then I saw this:
"Renewal Frequency: every 12 months
Interest calculated and transferred to another one of your accounts.
The term will be renewed for the same term type and length at the interest rate effective on the maturity date."
It looks to me as though I cannot cash it out at 12 months, or that Motive would make it difficult to do so. Anyone had experience?

December 9, 2021
8:29 am
Peter
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I had a set of Motive Financial GICs expiring every year. Each year, I called or emailed them about month before the expiry asking to have the GICs NOT auto-renew. Each year, it worked out as per my instructions, with the balance transferring back to the savings account.

December 9, 2021
8:36 am
savemoresaveoften
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limonium said
I wanted to buy a 12-month GIC from Motive at 1.45%. They call it a "12 to less than 24 months" GIC.
But then I saw this:
"Renewal Frequency: every 12 months
Interest calculated and transferred to another one of your accounts.
The term will be renewed for the same term type and length at the interest rate effective on the maturity date."
It looks to me as though I cannot cash it out at 12 months, or that Motive would make it difficult to do so. Anyone had experience?  

All FI and CU under regulation has to give you a "cooling period". Dont remember how many days that is, but essentially even after they auto renew, you can tell them to cancel it and do another term, move to savings account, or cash out to another FI completely.
Obv less messy if you give them the precise instruction before maturity.

December 9, 2021
8:42 am
limonium
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savemoresaveoften said

All FI and CU under regulation has to give you a "cooling period". Dont remember how many days that is, but essentially even after they auto renew, you can tell them to cancel it and do another term, move to savings account, or cash out to another FI completely.
Obv less messy if you give them the precise instruction before maturity.  

`

Good to know, thank you. Yes, obviously less messy . . . I feel like this is a sneaky practice and it makes me reluctant to buy a GIC from them.

December 9, 2021
8:44 am
limonium
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Peter said
I had a set of Motive Financial GICs expiring every year. Each year, I called or emailed them about month before the expiry asking to have the GICs NOT auto-renew. Each year, it worked out as per my instructions, with the balance transferring back to the savings account.  

Were they described like the one I am looking at, where by default they would autorenew?

December 9, 2021
9:02 am
Peter
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Yes, all of my Motive Financial GICs were described as auto-renewing by default. I found this annoying, but they always (at least 5 times) followed my instructions to turn it off.

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