1 year 3.60%
1½ year 3.75%
2 year 3.85%
3 year 3.95%
4 year 4.00%
5 year 4.05%

Never had a problem getting a credit card in the past, if I ever need a new one and am rejected due to TransUnion's incorrect info I'll sort it out then.

Same with those pre-approved mortgages: Remax: Can I Be Denied a Mortgage After Pre-Approval?

dommm said

In post 9, I asked a question because the statement in post 5—"2. GIC liquidity: A non-redeemable GIC may restrict access to principal before maturity, regardless of it being held inside a RRIF"—and the explanation in post 7—"Tangerine will partially redeem a non-redeemable GIC to satisfy the mandatory annual RRIF minimum withdrawal. Its contractual terms explicitly provide for this. CRA requires this"—seemed somewhat contradictory. Since I may face this situation, I am trying to fully understand the implications. I was not trying to ruffle feathers. PS: I do not have any GIC's with Tangerine.  

A good rule of thumb is to avoid non-redeemable GICs if you need that cash within the term. For everything else, be sure to carefully read T&Cs.

But in direct-to-retail situations, a FI like Tangerine knows that RRIF annual withdrawal obligations are mandatory so hence the breaking of a GIC for the necessary withdrawal amount takes precedence..... OR the FI should have an algorithm in place that could have foreseen the issue ahead of time and stopped the customer from buying that GIC in the first place.

It is different in a DIY brokerage account where the FI is only an agent for the issuer and for the client. It is thus up to the client to manage his/her affairs to make sure s/he can meet his/her obligations....or if that incompetent, to be paying a third party advisor to make more savvy decisions in the first place.

mordko said

It is correct. Partial redemption up to required minimum withdrawal as per terms does not negate the fact that there are restrictions on redemption of non-redeemable GICs.

The only thing that isn’t correct here is you complaining about Tangerine because you made a mistake.  

In post 9, I asked a question because the statement in post 5—"2. GIC liquidity: A non-redeemable GIC may restrict access to principal before maturity, regardless of it being held inside a RRIF"—and the explanation in post 7—"Tangerine will partially redeem a non-redeemable GIC to satisfy the mandatory annual RRIF minimum withdrawal. Its contractual terms explicitly provide for this. CRA requires this"—seemed somewhat contradictory. Since I may face this situation, I am trying to fully understand the implications. I was not trying to ruffle feathers. PS: I do not have any GIC's with Tangerine.

RetirEd said
I'm sure most of us are aware that all of those "pre-approved" offers are BS. The "pre-approved" applicant still faces the exact same screenings as any other.

Not only do I know many people who get rejected from "pre-approved" applications, I have always made as habit of asking the legitimate FIs that offer me a product by phone, and I have never encountered one that didn't admit what would actually be fraud if it wasn't for the fine print that says, in effect, you're not guaranteed credit.

The reps often say they, too, were denied "pre-approved" offers.

Interestingly, when changing my credit card type or revising my limits, I have been told that my taxable income was insufficient. Then I have to submit a copy of a partially blacked-out MAILED statement showing one of my large GIC deposits, Then they're happy to take my cash. (I leave name, address and amounts and expiry dates visible. Not other accounts, etc.)  

I've always interpreted "Pre-Approved" as meaning "Pre-Approved to Apply" and receive your "Free Information Package" ...

Not only do I know many people who get rejected from "pre-approved" applications, I have always made as habit of asking the legitimate FIs that offer me a product by phone, and I have never encountered one that didn't admit what would actually be fraud if it wasn't for the fine print that says, in effect, you're not guaranteed credit.

The reps often say they, too, were denied "pre-approved" offers.

Interestingly, when changing my credit card type or revising my limits, I have been told that my taxable income was insufficient. Then I have to submit a copy of a partially blacked-out MAILED statement showing one of my large GIC deposits, Then they're happy to take my cash. (I leave name, address and amounts and expiry dates visible. Not other accounts, etc.)

Anyway even as late as this week I'm still getting snail mail offers from banks saying I've been pre-approved for one credit card or another so life's still good!

One possibility is that there was a mixup between you and someone else with a similar name. His employer info was added to your file by mistake instead of to the file for the other Bill.

You can *cancel or undo* a Tangerine GIC *within 30 calendar days* following the issue or purchase date (or upon a GIC re-investment)

No need for me to stay away though because i do not plan with make a withdraw whatever whenever.

My two cents

Response by AI

1. TD Canada Trust (Retail Bank Branch Accounts)

If your RRIF is a standard retail banking account holding TD-issued GICs, the bank will prioritize fulfilling the federal legal obligation to pay out your minimum withdrawal:
• Forced Partial Redemption: TD will automatically break or "force redeem" a portion of your GIC equal to the cash amount required to make the payment.
• Order of Liquidation: If you hold multiple GICs, TD generally liquidates from the GIC earning the lowest interest rate first to minimize your lost earnings.
• No Penalty for Minimums: In most cases, because the financial institution is legally bound to fulfill the government's minimum payout, they will not charge an early-redemption penalty or break fee on the portion of the GIC sliced off specifically for the minimum required amount. However, interest on that broken portion stops accumulating.

2. TD Direct Investing (Self-Directed WebBroker Accounts)

If you manage your RRIF yourself through a TD Direct Investing brokerage account, TD will not automatically sell or break your GICs, stocks, or mutual funds to cover the cash shortage:
• Negative Cash Balance (Overdraft): If your scheduled withdrawal date arrives and you lack cash, TD Direct Investing will process the minimum withdrawal anyway, forcing your cash balance into the negative.
• High-Interest Penalties: A negative cash balance means your account is effectively borrowing money from the brokerage on margin. You will be charged hefty margin interest rates on that negative balance until it is resolved.
• Your Responsibility to Liquidate: You will need to manually log in to WebBroker or call a TD representative to sell an asset or request a manual GIC break to bring your cash balance back to zero.

If one has a $50,000 five-year GIC RIF and the minimum RIF withdrawal is 3%, the GIC issuer can divide the GIC into two five-year GIC's: a $1,500 one and a $48,500 one. Then, withdraw the $1,500 GIC from the RIF in-kind to a non-registered GIC account.

That satisfies the 3% minimum RIF withdrawal for the year. But, the annuitant will be in a bind if he was hoping to have that $1,500 in cash to spend that year.

Not every financial institution handles RIF's the same way that Hubert or Oaken does. One person reported that Motive does not allow more than the annual minimum to be withdrawn from their RRIF GIC account, even if there are GIC's maturing to provide the required liquidity.

mordko said
The only thing that isn’t correct here is you complaining about Tangerine because you made a mistake.  

In fairness, it was the OP complaining, not poor ol' dommm.....