2022 01 25 Selective Rate Increases | Wealth One Bank of Canada | Discussion forum

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2022 01 25 Selective Rate Increases
January 25, 2022
10:14 am
Nehpets
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From email received today:

Dear Valued Client,
In celebration of The Year of Tiger, Wealth One Bank of Canada offers limited-time GIC special promotional rates* on 1 to 5 year terms.

Terms
1 year 2.08%
18 month 2.18%
2 year 2.28%
3 year 2.68%
4 year 2.78%
5 year 3.18%

Use promo code CNY2022 to purchase any time from January 25 to March 1, 2022.
...............
HISA 1.25%
TFSA HISA 1.50%
RRSP HISA 1.50%

Stephen

January 25, 2022
11:05 am
COIN
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Question: Are all these rates only for "NEW" money?

January 25, 2022
3:44 pm
frugal lady
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COIN said
Question: Are all these rates only for "NEW" money?  

*Terms and conditions apply. This special GIC Rate Offer is available only until March 1, 2022. Applications and funds must be received on or before the deadline. This Offer is valid only for new deposits which are made using the special promotional code CNY2022 on the account application. A minimum investment of $1,000 is required for this promotion. Only applies to personal accounts. All GICs are non-redeemable. Wealth One Bank of Canada, in its sole discretion, reserves the right to modify or terminate this Offer at any time, without notice. Rates are subject to change without notice. For GICs with a term of more than one year, interest is paid through one of two options of your choice 1) interest is compounded on each anniversary date of the GIC and then paid on the maturity date; or 2) interest is paid annually to the savings account opened for you on your behalf. For terms of one year or less, simple interest is calculated and paid at maturity. Deposits are eligible for Canada Deposit Insurance Corporation (CDIC) insurance. Offer applies to registered and non-registered GICs. See Terms and Conditions for more details.

January 25, 2022
4:06 pm
AR
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"reserves the right to modify or terminate this Offer at any time, without notice."
This means, at their discretion, modify or terminate anytime after they accept the money? Whenever would you receive notice of this modify or terminate? Oh yes, "without notice".

January 25, 2022
5:05 pm
COIN
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"This Offer is valid only for new deposits"

January 25, 2022
9:54 pm
AR
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"modify" means they can hold it indefinitely ie. forever? What about the issue of bail in and/or bailouts. Then what?

January 26, 2022
6:16 am
savemoresaveoften
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COIN said
"This Offer is valid only for new deposits"  

this may be a new trend as u mention Tandia is doing similar.
So instead of letting someone to "lock in" a higher rate migrating from HISA to GIC, the GIC "special" is only "new money".

So those in HISA will transfer out to another FI to qualify for new money GIC elsewhere, new money from new customers flow into GIC, end result is their funding base more fixed than floating going forward. Maybe they all hunker down for much higher short term interest rate over the next 12 months...

January 26, 2022
7:47 am
Loonie
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I don't understand the logic.
To me, it doesn't make sense to go to all the bother and expense of attracting so much HISA money only to let it float away again in a few months. Same goes for the RBC HISA deal last year. RBC did nothing whatsoever to attempt to keep our money, a substantial amount, except for a perfunctory conversation when we closed the account - at which point our decision had already been made anyway.
Are people really so lazy or inattentive that they will leave the money there after the deal ends? Perhaps so.

January 26, 2022
7:54 am
savemoresaveoften
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Loonie said
Are people really so lazy or inattentive that they will leave the money there after the deal ends? Perhaps so.  

You will be surprised how many people are like that.
I know someone who is bay street veterans (so called) that have cash sitting in RRSP earning effectively 0 last few years waiting for a crash....When the crash did happened in 2020, she spent 20% of it, the remaining 80% still in cash... now says wait for next crash... Some people are just beyond lazy, its dumb....

January 27, 2022
2:14 pm
Bill
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Just confirmed on the phone with Wealth One that you can get these rates if you already have funds there and use them to buy a gic. If you do it online he said you can enter the promo code in the "How did you hear about us section?", or else you can just phone or email them with your purchase instructions.

He said the "new money" reference was because it's aimed at bringing in new business but it's available to existing client money too. I suppose you can always confirm your rate after you buy, it'll show online. Whenever I've called Wealth One they've been unfailingly polite and helpful, so I'm pretty comfortable that even if for some reason the above info is wrong you'd be able to unwind the transaction by calling them.

February 7, 2022
6:14 am
Bruford
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Anyone know if you can purchase these with "funds on hold"? Just wondering how late I can transfer into WealthOne and still get this promo.

February 7, 2022
8:07 am
cgouimet
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I don't worry much about why any bank or credit union does. Why I do look at is the offer and what it's worth to me.

1. HISA to 1.25%. Same as Hubert. Less than my current Tangerine offer of 2% through Apr 2022. So, no real need to think of a Wealth One account.

2. 1 Year GIC @ 2.08%. I have quarterly cashable 2% 1 year at Hubert. Not enough to think about Wealth One either.

3. 5 Year GIC at 3.18%. No way I'm locking in for 5 years at 3% in the current environment. Rates are on the rise. 5 years at 3% will look awful in 6-9 months ...

So, not enough incentive to open an acccount. If I had an account, not enough incentive to move $.

My 2¢ ...

CGO
February 7, 2022
12:56 pm
MattS
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Will it look awful in 6-9 months? I think it’s unbelievable we can even get 3% when the BOC rate is still sitting at .25%
It’s been higher before and we had lower rates than now
I do not think it’s a certainty we for sure get better rates.. I’ll stick with laddering.. chip in a little extra when I’m tickled by the offer.. new money coming due each year

February 7, 2022
1:06 pm
cgouimet
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No certainty they'll go up, no certainty they won't.

I'm betting with the economist that they'll be up.

I do agree with your laddering strategy and I'm inching my quarterly 1yr Hubert GIC's up the ladder every month and I'll go longer when I feel the rates have plateaud ...

CGO

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