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New and Improved GIC Rates - July 24/18
July 25, 2018
7:17 am
gicjunkie
Ontario
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Guaranteed Investments - Non-Cashable (Personal Only) Rates
WealthONE GICs - 6 Months 1.50%
WealthONE GICs - 1 Year 2.66%
WealthONE GICs - 2 Years 2.93%
WealthONE GICs - 3 Years 3.16%
WealthONE GICs - 4 Years 3.12%
WealthONE GICs - 5 Years 3.50%

Tax Free Savings and RSP rates the same as above.

July 25, 2018
7:25 am
Peter
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Thanks for sharing. According to my records, those are some pretty big jumps: 0.26% for the 1-year, 0.38% for the 2-year, 0.51% for the 3-year, 0.42% for the 4-year, and 0.60% for the 5-year.

July 25, 2018
7:56 am
gicjunkie
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Peter said
Thanks for sharing. According to my records, those are some pretty big jumps: 0.26% for the 1-year, 0.38% for the 2-year, 0.51% for the 3-year, 0.42% for the 4-year, and 0.60% for the 5-year.  

In my opinion I think they have been losing a lot of deposits since their original startup promotional interest rate was reduced to 2.00%. They tried to revive interest with a new 2.50% deposit rate , which is now only good until September 30. I know that all deposit rates are always "temporary", but I think that public perception was that this company was going to keep their rates a bit higher than the competition. Turned out not to be the case and now they are scrambling for new, longer term commitments.

July 25, 2018
2:39 pm
Loonie
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They still don't offer RIFs. They are catering to a younger crowd - who will appreciate the 10 free bill payments per month.

Most seniors probably already have free banking set-ups at BigFive, but might still find this option attractive as you don't have to transfer funds into a non-interest-bearing account just to pay bills. Getting rid of my "float" at Big Bank would save me $100-200/yr. I probably won't be bothered doing this but it's something to consider.

July 28, 2018
9:46 am
Vatox
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gicjunkie said

In my opinion I think they have been losing a lot of deposits since their original startup promotional interest rate was reduced to 2.00%. They tried to revive interest with a new 2.50% deposit rate , which is now only good until September 30. I know that all deposit rates are always "temporary", but I think that public perception was that this company was going to keep their rates a bit higher than the competition. Turned out not to be the case and now they are scrambling for new, longer term commitments.  

Yes, completely my thoughts. That 2.5 for a couple months didn't bring much, if anything at all. So to get deposits they have now boosted GICs to rival the top. Lmao, I do business with EQ now as W1 lost my business long ago.

July 28, 2018
9:52 am
Vatox
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gicjunkie said
Guaranteed Investments - Non-Cashable (Personal Only) Rates
WealthONE GICs - 6 Months 1.50%
WealthONE GICs - 1 Year 2.66%
WealthONE GICs - 2 Years 2.93%
WealthONE GICs - 3 Years 3.16%
WealthONE GICs - 4 Years 3.12%
WealthONE GICs - 5 Years 3.50%

Tax Free Savings and RSP rates the same as above.  

Just a note for anyone reading these rates, the 1 year is actually 2.76% that matches the EQ 1 year rate.

Cheers

August 3, 2018
5:31 pm
Loonie
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I just noticed that they have a 3 year Escalator which is worthy of consideration if you're looking for a 3 yr rate. It's a Promo.
Average 3.3% (2.2, 3.2, 4.2)
Cashable on anniversary dates.
TFSA, RSP eligible.

I think this is the first time I have ever seen an Escalator rate that actually offered a very good rate!

https://www.wealthonebankofcanada.com/Personal/Promotion/ESCALATOR/

August 3, 2018
5:37 pm
Loonie
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Their 4 and 5 year rates have also changed, with the following overall result:

1 Year 2.76%
2 Years 2.93%
3 Years 3.16%
3 year Escalator 3.30%
4 Years 3.30%
5 Years 3.40%

August 10, 2018
3:03 pm
Bruford
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Be careful of online WealthOnes GIC purchases. On the last page before you purchase a GIC, they have a statement that the funds will rollover to a similar GIC on maturity. I called and they told me you have to request not to rollover in person, or by phone, or it will automatically do so.

August 11, 2018
3:31 am
Loonie
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Bruford said
Be careful of online WealthOnes GIC purchases. On the last page before you purchase a GIC, they have a statement that the funds will rollover to a similar GIC on maturity. I called and they told me you have to request not to rollover in person, or by phone, or it will automatically do so.  

That's good thing to remember. It's true of most financial institutions though. They set their default for rollover, and it's up to you to intervene.

August 22, 2018
12:17 pm
Bruford
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It seems somewhat bait and switch. If you purchase a 5 year GIC, and you are not aware of this practice, you automatically get locked in for another 5 years, and maybe at a rate you don't want. Buyer beware.

August 22, 2018
1:42 pm
gicjunkie
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Loonie said

That's good thing to remember. It's true of most financial institutions though. They set their default for rollover, and it's up to you to intervene.  

I have also found that a lot of GICs, no matter for which institution, when expiring, will default to a renewal for the the same term as before, but, obviously, at the "new" rate, unless you tell the FI not to do so. What a "responsible" FI will do is send out a notice to you well in advance (say 30 days prior to maturity) reminding you that the certificate is maturing and what instructions are on file for that eventuality. Just in case they do not do this, you should always maintain some kind of "Maturity Calendar" to remind yourself of these important dates. You might also consider calling the FI about a week prior to maturity just to confirm your wishes for the funds, even if the instructions on the GIC appear to be clear. FIs make a lot of mistakes.

You also should be aware that if you miss a maturity date, many FIs will allow a grace period of about a week so that you can call them after a renewal has already been effected and change the instructions.

August 22, 2018
3:05 pm
Nehpets
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Bruford said
It seems somewhat bait and switch. If you purchase a 5 year GIC, and you are not aware of this practice, you automatically get locked in for another 5 years, and maybe at a rate you don't want. Buyer beware.  

It's not bait and switch. There's no fraud here and you do get what is advertised on the purchase of your GIC. I would say, "Buyer be smart".

It's up to the investor to stipulate at the time of purchase that proceeds will be deposited at term and not renewed. This should be confirmed in writing, preferably on a certificate issued by the FI, and it's up to the investor to monitor his/her own portfolio, as has been described by GIC Junkie.

By maintaining a calendar, either in paper form or even better in digital form, that alerts you a few weeks prior to maturity to verify that maturity instructions are carried out as directed.

Yes, some FI's will try to override the investor's instructions, but an astute investor should be ahead by maintaining accurate records using a "Maturity Calendar" as alluded to by GIC Junkie.

Stephen

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