November 8, 2018
With GIC rates going up, it may be useful reminder that Motusbank has 30 days grace period for Non-Redeemable Term Deposits.
I bought 18 months GIC last week, rates went up today. I made phone call and my GIC was rolled over to same 18 months period, starting today, with new rate.
Interest accrued for one week was not lost, it were added to GIC principal. They can't withdraw it from GIC, I was told, but it is not a big deal.
The conversation with an agent was nice and quick, no hesitation on their side. I am most likely not the first one to request renewal with new rates under the grace period.
Relevant section from Motusbank Account Agreement, note second part of 2.7.4:
2.7.3 Non‐Redeemable Terms
Redemption is permitted within the first 30 days and no interest is payable. Subject to the exceptions noted below (Grace Period, Hardship Cases, and Death), early redemption prior to maturity is not permitted after the first 30 days.
2.7.4 Grace Period
Notwithstanding the above, motusbank provides members with a conditional grace period for Non-Redeemable Term Deposits. If the term deposit is redeemed for cash within the first 30 days of investment, no interest is payable and no early redemption fee applies. If, during the first 30 days of a term, the owner requests early redemption for the purpose of purchasing another non-redeemable long-term investment (greater than 1 year in length) at motusbank the interest will be paid to the date of conversation and no early redemption fee will apply.