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Any Chinese New Year GIC promo this year ?
February 1, 2023
9:24 pm
Bill
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That's interesting, though I doubt a CRA agent would know the Act says something different than their website, instead would probably direct you to do as their site says.

No diff to me, I've always matched my returns with T5s issued for the few times I've had >1 year GICs in non-registered accounts, CRA seems to like it when your interest income reported matches your T5s is my experience. Far as I know T5 is issued based on when interest is actually paid out, no?

February 2, 2023
4:38 am
savemoresaveoften
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Bill said
That's interesting, though I doubt a CRA agent would know the Act says something different than their website, instead would probably direct you to do as their site says.

No diff to me, I've always matched my returns with T5s issued for the few times I've had >1 year GICs in non-registered accounts, CRA seems to like it when your interest income reported matches your T5s is my experience. Far as I know T5 is issued based on when interest is actually paid out, no?  

A 5y compounding pay at end GIC you won’t rec interest for 5 years, but u will rec a T5 every year.

February 2, 2023
4:48 am
Norman1
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There won't be a T5 issued for the first taxation year when the GIC compounds annually as most GIC's do.

Under Income Tax Act 12(1)(c), a T5 would be issued as the interest is compounded or paid out when the interest is compounded or paid out annually or more frequently. The interest doesn't have to be paid out.

When the interest is paid out or compounded less frequently than annually, then the investment is an "investment contract" and the anniversary date reporting prescribed by Income Tax Act subsection 12(4) applies.

CRA likes it when the interest is reported according to the Income Tax Act. The T5 issuers generally know the Income Tax Act requirements.

February 2, 2023
8:14 am
COIN
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savemoresaveoften said

A 5y compounding pay at end GIC you won’t rec interest for 5 years, but u will rec a T5 every year.  

Where it gets weird is when one redeems a redeemable GIC prior to maturity. Let say the coupon rate on the GIC is say 5% and one has been receiving T5's every year at the 5% rate and paid taxes on the 5% rate. Let say the GIC is redeemed in year 4 and the interest for years 1-3 is revised to say 3% and not 5%.

I ran into this issue a few years ago but forgot how it was resolved. I think the institution simply adjusted the current year's interest to reflect that the actual interest for years 1-3 was 3% and not 5%. The problem is what happens if the adjustment results in a negative.

February 2, 2023
8:42 am
GR
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Wealth One Bank is another financial institution with poor customer service. I called and got a message from the CSR that he is not available, so "call me later or text me" and the voice mailbox is full!

February 2, 2023
8:47 am
Norman1
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COIN said

…. I think the institution simply adjusted the current year's interest to reflect that the actual interest for years 1-3 was 3% and not 5%. The problem is what happens if the adjustment results in a negative.

Tax treatment of GIC interest penalties discusses the subsection 20(21) deduction to deal with that possibility.

February 2, 2023
9:26 am
sothisistheinternet
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GR said
Wealth One Bank is another financial institution with poor customer service. I called and got a message from the CSR that he is not available, so "call me later or text me" and the voice mailbox is full!  

Yup, same here. Decided then and there that I'm not opening up an account.

Like, actually answering your phone -- or at least, clearing out your voicemail -- is *table stakes* for customer service. A chimp could do it. So if they aren't meeting this low, low bar for the most clerical of customer service functions, what happens if I have a legitimate issue down the road?

I love high rates, but an extra .28% year isn't worth the potential aggravation.

February 2, 2023
9:57 am
Bill
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So if I understand correctly, for GICs that compound or pay annually then reporting on the basis of T5 slips received is the way to go. Which makes sense as that's what everyone would expect anyway.

February 2, 2023
10:06 am
HermanH
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GR said
Wealth One Bank is another financial institution with poor customer service. I called and got a message from the CSR that he is not available, so "call me later or text me" and the voice mailbox is full!  

I don't disagree, but have had some success reaching someone via e-mail. I had to ask twice, but at least got a response from Andy Chong.
help@wealthonebank.ca

I've dealt with him in the past and he has handled my GIC purchases smoothly enough, usually on the same day. So, credit where it has been earned.

February 2, 2023
11:36 am
COIN
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I don't have much contact with Wealth One but I did purchase a GIC from them during the height of the COVID plague and found Patrick Moon very helpful and responsive. Not sure if he is still with Wealth One.

February 2, 2023
11:43 am
Canadianbull
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I 100% agree. They are also not very knowledgeable. He kept enforcing me to send them direct deposit form and I kept asking him why do I need to send the form when I am transferring funds from external account. He was not able to give me the reason. I barely understand him as he was mumbling a lot.

February 2, 2023
12:53 pm
HermanH
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COIN said
I don't have much contact with Wealth One but I did purchase a GIC from them during the height of the COVID plague and found Patrick Moon very helpful and responsive. Not sure if he is still with Wealth One.  

Patrick did answer a subsequent question for me, but I think that his position changed. I believe that his former duties were assigned to Andy Chong.

February 3, 2023
8:26 am
GR
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GR said
Wealth One Bank is another financial institution with poor customer service. I called and got a message from the CSR that he is not available, so "call me later or text me" and the voice mailbox is full!  

Here's a good one! After finally getting a call back from a CSR (not Andy) at Wealth One, this is what he told me. If I renew the one year GIC I purchased a year ago, the renewal be for the same term AND INTEREST RATE 2.81% as the maturing GIC!!! Incredible! It's great to be dealing with so many incompetent staff at so many businesses!

February 10, 2023
5:34 pm
Canadianbull
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These guys are not honest. They told us 5.28% will stay until March 1st now the rate has been reduced to 5.08% except 1 year!

February 10, 2023
5:54 pm
HermanH
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Canadianbull said
These guys are not honest. They told us 5.28% will stay until March 1st now the rate has been reduced to 5.08% except 1 year!  

I called it right from the beginning.
https://www.highinterestsavings.ca/forum/wealth-one/any-chinese-new-year-gic-promo-this-year/#p82662

HermanH said

Be wary of the final date. Most offers will honour the terms set out but, occasionally, an offer will be withdrawn prior to the previously announced final date.

February 11, 2023
6:14 am
savemoresaveoften
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Canadianbull said
These guys are not honest. They told us 5.28% will stay until March 1st now the rate has been reduced to 5.08% except 1 year!  

From the get go, to guarantee a high rate for for 1-5y GIC term never make any sense to me for such a long period.

They helped me to make up my mind NOT to park my money with them.

February 11, 2023
6:41 am
hwyc
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Canadianbull said
These guys are not honest. They told us 5.28% will stay until March 1st now the rate has been reduced to 5.08% except 1 year!  

Perhaps you're overwhelmed by disappointment! This is what really happened.

Screenshot_2023-02-11-09-38-00-098_com.android.chrome.jpg

February 11, 2023
8:26 am
Canadianbull
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Last night everything except 1 year was showing 5.08%. This morning it changed.

February 11, 2023
8:34 am
hwyc
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Canadianbull said
Last night everything except 1 year was showing 5.08%. This morning it changed.  

... Wasn't there when you saw what you saw. Bank websites posting incorrect rates, these things happened. But I also checked GIC chart history which is taken around noon yesterday.

February 11, 2023
11:16 am
Greedy Guy
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"The interest rates are subject to change at any time without prior notice to You, at Our sole discretion." per paragraph A5 of Terms & Conditions:

https://www.wealthonebankofcanada.com/Bank/Account+terms+and+conditions

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