7+ Business Days and still 'On Hold' :-( | Wealth One Bank of Canada | Discussion forum

Dean: You must be the older/wiser brother?! It will be interesting to see what WS has to say in the case of your brother. I suspect it revolves around being a new customer. In theory that should not affect the availability of a push transaction to WS based upon my limited knowledge of the settlement rules in Canada and my experiences. However, WS seems to be somewhat nimble when it comes to relationship management.

I have only been a WS customer since earlier this year. Once, I reached Generation status ($500k in net assets) they seem to be reduce restrictions on your account. Also, they seem to be able to respond to concerns more readily than most mainframe banks. Even for me earlier this week I sold some ConDebs that were nearly in the money with four years to maturity at my mainframe bank. I had a margin loan at WS as they only charge Gen clients 3.95% interest. I pulled the funds (only direct method from mainframe). I pulled $78K in the first tranche and to my surprise their was no hold on the funds. So, this was a lot more that the $25K that it had previously been set at. Like most organizations, WS does not communicate such limits to their lowly customer. I only discovered through trial and error. So, on the second tranche from mainframe to WS I discovered my new hold limit on pull transactions was $100k. If I had known that in advance I would have altered my transactions.

Fortunately, it only means $4k is on hold until July 16 for me earning interest at 2.6% instead of 3.0% at Manulife. There also is an annoying issue as to when the interest clock begins to tick at WS when they have a hold on your funds. Your brother may want to do the calculation on that. What WS says about the interest clock and what their actual interest calculations are seem to be at odds with one another. I have never encountered novelty interest calculations at the many many bank accounts I have opened over the years. But since WS is not a bank, one gets noverlty calculations. It is minor amounts, but I find it to be annoying.

The thing about annoying your clients is when I have choices, they become easier to make. WS has a top tier 3% interest rate currently (with lower tiers). Manulife has a 730 day promo offer at 3.00%. CDIC insurance is clear with Manulife. With WS I have to trust their lawyers, their structure of the setup, their back office and them that their CDIC insurance is in place in theory up to $1M. I have seen too many train wrecks in the corporate world. It is much easier for me to park my $50 K at Manulife (promo offer limit is $500K max I think) than at WS and this is even with their goofy lottery going on now. No tiers at Manulife, and I trust Manulife more than WS simply put.

When, I drew funds for the first time on my WS margin account. I did it in two steps. First to my WS chequing and then to my mainframe bank. So, I am part of a WS promotion where they provide a 1, 2 or 3% match on my transfer from mainframe bank and allow me to withdraw up to 20% of the intiial funding without negatively impacting my promotional match amount. So, after doing this I noticed that I had reduced my 20% withdrawal amount by my margin loan. According to their fine print I was not expecting this. WS told me that I needed to do the transfer directly from my margin account to my mainframe bank account. Without me asking them, WS fixed the situation (not much of a surprise there as they presumably make money when I borrow funds on my margin account). A moot point at the moment now that I have repaid my margin loan. However, it did seem to reflect that they were more customer focused than following the letter of their terms and conditions of the mathcing offer.

So, I am still in the process of evaluating WS. At present their $275/monthly stipend is enough to not make me want to rock the boat too hard. Because they are not actually a bank per se, there are some nuances. They do change limits based upon their risk assessments. Your brother's pushed funds still seem to be incorrectly on hold given that they were pushed funds. Maybe, because they are not a bank, maybe standard settlement rules do not apply to them. Je ne sais pas.

Dean said
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WS = Wealthsimple (no?).

W1BoC = Wealth One Bank of Canada (what this thread/subject is about).

Dean   

Sorry, my bad.

I emptied my W1 account earlier this week. Funds are at Manulife.

Dean said
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My younger brother opened up a new W1BoC account last week, and started making deposits into his new W1BoC SA (via EFT Pushes from Oaken).

It's been over 7 business days since he made his first deposit, but it's still listed as being 'On Hold' ... in spite of their website saying funds are only put On Hold for 5 business days.

Has anyone else had this problem at W1BoC ?
Dean  

I am pretty sure, when I have had funds in Savings account on hold with Wealth One, that the CSR will "unlock" the funds if I wish to purchase a GIC with them.
I think Peoples does that too....but not too many purchasing with People's at their low rates.

Dean said

He don't listen to me, as much as he used to.
.

Alexandra said

I am pretty sure, when I have had funds in Savings account on hold with Wealth One, that the CSR will "unlock" the funds if I wish to purchase a GIC with them.
I think Peoples does that too....but not too many purchasing with People's at their low rates.  

And then there's Oaken, where you don't even have to call-in to invest in a GIC with funds still On Hold in your SA.

The biggest concern here for my brother is that W1BoC's 5 Business Day Hold period has come and gone, but the funds are still On Hold.

Something's Wrong!
Dean  

Weird. Unless I want funds in Oaken's HISA, I purchase GIC's directly from linked accounts. I like as well when a GIC with them matures and I have requested those funds to go into a linked account, the funds are there right on that day.
If they mature on a Sunday, usually get the deposit on the Saturday.

The info on holds is at the bottom of their Account service fees page in the Legal section:

Subject to the exceptions below, the normal length of time we will hold funds is 5 to 8 business days² after the date of deposit. The maximum hold periods for encoded Canadian dollar cheques or items drawn on a Canadian financial institution are illustrated below:

Amount of Deposit	Maximum Hold Period
$1,500 or less	5 business days2 after the day of deposit
Over $1,500	8 business days2 after the day of deposit

…

The hold would usually be for EFT's one originates at WealthONE to pull funds in. Not for direct deposit EFT's one originates at another bank to push funds into a WealthONE account.

Dean said
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With all that behind him now, my brother is trying to set up his first W1BoC GIC, but he's running into a bit of a roadblock . . .

It appears there is no way for him to set up a 3Yr GIC so that at maturity the principal & interest earned automatically go into his W1BoC SA. The only option he's given is that at maturity, the 3Yr GIC automatically Renews for another 3Yrs !
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How does he get past this roadblock?
Once you open your GIC it will say below "change maturity options"
from there you can change your maturity instructions for principle and interest to be transferred to your Wealth One Savings Account. You can go into your account and print the new "certificate" showing those renewed instructions.

Thanks for the help,
Dean  

Dean said
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'Thank-You' Alexandra ⬆️❗

He couldn't find the certificate, but everything else worked.
Dean  

W1 used to sent out a Guaranteed Investment Certificate Confirmation or if you called them they would e-mail one to you. (Maybe they still do that if you ask).
I put "certificate" in quotation marks meaning one can print out each gic purchased individually by going into Account Details.
They also have monthly statements that you can view/print. These list all of your holdings. I like how their statements are done. Very clear.

Glad your brother is okay with everything now.