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Tax Free HISA
April 29, 2020
9:26 am
Alexandra
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While talking with a Coast Capital Savings rep the other day she said that it is mandatory for all Credit Unions to have a TFSA HISA if they sell TFSA term deposits. Explaining when one GIC/Term Deposit TFSA matures, the new TFSA investment comes out of the HISA.

I know Oaken Financial does not have a TFSA/HISA as discussed in this forum earlier, but why wouldn't there be the same regs for banks in this situation as there is for credit unions? Would have the credit union rep been wrong in her statement?
Doug, do you know?

April 29, 2020
10:35 am
GICinvestor
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Oaken is the only ODD DUCK out there in regards no savings accounts for registered plans.

But I will warn you; you will find some oddities at CC.

April 29, 2020
12:38 pm
Rick
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Coast Capital has their own playbook and they rarely deviate from it....no matter how much you have with them. CSR may be under the impression that they are being governed by the same rules they operated under as a BC CU, assuming that they are mandatory rules instead of policy (which they may be...I have no idea), just telling you what you wanted/needed to hear to support the statement, was just plain ignorant, or maybe even correct. I think I would have asked how can Oaken offer TFSA GICs yet doesn't have a TFSA HISA?

GICinvestor said
But I will warn you; you will find some oddities at CC.

That's a nice way to put it.

April 29, 2020
1:26 pm
Doug
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Alexandra said
While talking with a Coast Capital Savings rep the other day she said that it is mandatory for all Credit Unions to have a TFSA HISA if they sell TFSA term deposits. Explaining when one GIC/Term Deposit TFSA matures, the new TFSA investment comes out of the HISA.

I know Oaken Financial does not have a TFSA/HISA as discussed in this forum earlier, but why wouldn't there be the same regs for banks in this situation as there is for credit unions? Would have the credit union rep been wrong in her statement?
Doug, do you know?  

I am not aware of any legislative or regulatory requirement to maintain a TFSA HISA for the purposes of GIC redemptions. I don't see why a credit union couldn't just hold the matured funds in the matured GIC account pending maturity instructions on internal or external transfer, without paying any deposit interest on or after the maturity date of the GIC.

It's possible their registered plan trustee (believe it's Concentra Bank or Concentra Trust) may require or, more likely, suggest that a TFSA HISA be opened. However, that would be unique to only those institutions that utilize that registered plan trustee.

Rick's and GICinvestor's comments are also helpful here, and I generally agree with them. sf-cool

Cheers,
Doug

April 29, 2020
3:46 pm
Loonie
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We don't have much experience thus far with federally regulated CUs.

I do find that Ontario CUs typically open a savings account as a route to a GIC, whether I want one or not. The money must be deposited to the savings account and then transferred to the GIC, which just creates additional unwanted lines on my statements, otherwise known as clutter. I've always thought this was operational rather than regulatory, probably dictated by Credit Union Cetral.

April 29, 2020
4:12 pm
GICinvestor
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I doubt if this leopard has changed its spots.

Take a read. I can only say every time I walk by that place....I say....I’m sure glad I don’t bank there any more. Banking should be a pleasant experience with competent people that have exemplary customer service skills and recognize that customer comes first over anything else they have to do. You won’t find the latter at Coast Capital. They are 200% profit and goal oriented at the cost of you, the customer.

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