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Email this3:07 pm
September 30, 2017
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3.90% (same as their 2Y & 3Y)
effective 2026-05-29
6:12 pm
March 15, 2019
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hwyc said
3.90% (same as their 2Y & 3Y)effective 2026-05-29
How safe is W1 bank?
6:09 am
September 7, 2018
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COIN said
How safe is W1 bank?
According to the financial statements filed with OSFI, W1 is not yet profitable and has an accumulated deficit. However, depositors are insured up to $100K CDIC so what's the risk?
4:01 pm
January 12, 2019
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canadian.100 said
According to the financial statements filed with OSFI, W1 is not yet profitable and has an accumulated deficit. However, depositors are insured up to $100K CDIC so what's the risk?
CDIC (or not), I'd still be inclined to stay Well Away from that Losing FI.
One day ... it's Gonna Implode❗
'Govern Yourselves Accordingly'
- Dean
" Live Long, Healthy ... And Prosper! "
3:03 pm
April 6, 2013
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There's risk that the annual interest payments or the principal at maturity won't be there on time.
CDIC insures that the depositor eventually recovers their funds and interest should the member institution fail. CDIC does not insure that the funds and interest are paid on time.
The detail may not matter to someone who buys a five-year GIC and has the interest compounded. But, it is significant to someone who has the interest paid out annually or more frequently to cover living expenses.
9:29 am
September 24, 2019
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Norman1 said
There's risk that the annual interest payments or the principal at maturity won't be there on time.CDIC insures that the depositor eventually recovers their funds and interest should the member institution fail. CDIC does not insure that the funds and interest are paid on time.
The detail may not matter to someone who buys a five-year GIC and has the interest compounded. But, it is significant to someone who has the interest paid out annually or more frequently to cover living expenses.
I was considering putting what would be nearly 1/2 of my RIFs with them as those funds are currently with National Bank (old Motive). I am thinking now going with Home Bank as have considerable with Home Trust. Oaken doesn't have savings accounts for RIF's so would need to decide on a GIC right away. The current GIC with NB of Canada matures in late Sept. Any ideas?
10:33 pm
October 21, 2013
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I am assuming that the amount in question exceeds CDiC insurance limits. If so, I would either divide it up further or move it to a credit union which has unlimited RIF coverage.
If you go to a CU, there will be various factors for you to consider.
My RIFs have all been cashed in now, but spouse's is almost entirely at Hubert now. They simply have the best and most flexible arrangements for dealing with RIFs. You can take out GICs for whatever term you want, but can still make discretionary withdrawals from those terms when you want to. We have done this for two years now. You just phone them up and say what you want to do, and they do it. Rates may be a bit higher elsewhere but we will not be moving this account even though, in general, I would prefer to keep it in my province. Quality of service matters more as you age.
9:01 am
September 24, 2019
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Thanks Loonie. Very nice to hear from you! I will consider your sound advice.
If I were to go with Oaken, and have RIF's with both Home Trust and Home Bank,
I would be fully insured under CDIC. Also, Oaken as well as Wealth One have banks in Vancouver. My daughter lives there, so in the future, handing my estate might have fewer complications for her. I do have much smaller RIF amounts in Tangerine and CIBC, so when it makes sense, I can make withdrawals from them first. If I am still around, I'll probably start those withdrawals next year.
9:24 am
April 6, 2013
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Alexandra said
I was considering putting what would be nearly 1/2 of my RIFs with them as those funds are currently with National Bank (old Motive). I am thinking now going with Home Bank as have considerable with Home Trust. …
What I wrote about the limitations of CDIC deposit insurance is not a recommendation to avoid Wealth One Bank. One just needs to keep in mind the risks that CDIC does not insure.
If that half of the RIF is funding 5% of one's living expenses, then one can tolerate potential disruption of Wealth One Bank failing. That's not the case of if that is funding 50% of one's expenses.
Home Trust/Home Bank/Oaken almost failed in 2017! They came within hours of not being able to open for business one morning. Oaken was offering very attractive GIC rates at that time of need.
Globe & Mail columnist Rob Carrick wrote that if one can tolerate the disruption of a possible failure, then do put money into Oaken GIC's and stay within CDIC limits. However, stay away if one needs the GIC interest to be paid out monthly to cover living expenses.
11:03 am
September 24, 2019
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Norman1 said
Alexandra said
I was considering putting what would be nearly 1/2 of my RIFs with them as those funds are currently with National Bank (old Motive). I am thinking now going with Home Bank as have considerable with Home Trust. …
What I wrote about the limitations of CDIC deposit insurance is not a recommendation to avoid Wealth One Bank. One just needs to keep in mind the risks that CDIC does not insure.
If that half of the RIF is funding 5% of one's living expenses, then one can tolerate potential disruption of Wealth One Bank failing. That's not the case of if that is funding 50% of one's expenses.
Home Trust/Home Bank/Oaken almost failed in 2017! They came within hours of not being able to open for business one morning. Oaken was offering very attractive GIC rates at that time of need.
Globe & Mail columnist Rob Carrick wrote that if one can tolerate the disruption of a possible failure, then do put money into Oaken GIC's and stay within CDIC limits. However, stay away if one needs the GIC interest to be paid out monthly to cover living expenses.
Thanks Norman. I know what you meant. I only take yearly payments and I don't need the funds for living expenses. But I understand it would be nerve racking if someone depended on their RIF income to have their daily/monthly needs met, and then funds got held up because of bank failure. Still most would be sitting on pins and needles until they got paid out. Sometimes I think, especially after having cancer two years ago and at my advanced age, I shouldn't be so focused on getting the best rate anymore. Just be like Loonie and be happy with a lower rate and relax with the knowledge that you are totally safe and comfortable. Old habits die hard. Maybe it is simply just to be a participant in playing the game. National Bank is currently paying 2.75% for one year and up to 3.35% for five. I'm getting 5% for the RIF until September's maturity. 
9:20 pm
October 21, 2013
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A couple of additional thoughts:
The improved interest rates at a different FI will be softened by the marginal tax rate you must pay on all RIF withdrawals, not to mention possible impact on "Age Amount" and OAS clawback. Sometimes there isn't much left!
Your daughter will definitely thank you for reducing her executor workload by reducing number of RIF accounts.
Our goal is to have spouse's RIF all cashed out by 2031 so that there is no RIF left at death, so no executor role in regard to RIF. This may not be possible for everyone, and it depends on living that long. If not, I anticipate Hubert will not be too hard to deal with at that time. One could phone them and ask for clarification now to avoid future surprises.
Eventually, if we live long enough, I suspect we all get to a point where we just don't care as much about rates. I care more about service now, if rates are reasonable. Everybody's different.
10:17 pm
April 6, 2013
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Alexandra said
… Sometimes I think, especially after having cancer two years ago and at my advanced age, I shouldn't be so focused on getting the best rate anymore. Just be like Loonie and be happy with a lower rate and relax with the knowledge that you are totally safe and comfortable. Old habits die hard. Maybe it is simply just to be a participant in playing the game. …
It can still be worthwhile. If one had $2 million in deposits, an ½% per annum improvement means an additional $10,000 per year. Another $10,000 per year may not make much difference to someone with $2 million+. An additional $10,000 donation each year to a hospital or a food bank is not just a higher score in a game.
11:13 am
September 24, 2019
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I for one don't have $2M plus in bank accounts. Do you? Certainly don't require that much to not "need" RIF payouts in order to live a relatively modest life style. Many retiree's own their own home, maybe have rental income and or a defined pension, no longer use a car on a daily basis and because of health problems, are no longer able to vacation.
I personally am grateful for all I have. Especially considering I didn't have much of a formal education and had been a single parent. Gave a small amount to charity all my working career. Volunteered my time to some seniors. Now my "charity" is my daughter and granddaughter and all the little wild animals that wonder the property. SPCA will receive something too from me one day.
Always did enjoy games though.
2:27 pm
April 6, 2013
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Alexandra said
…
Always did enjoy games though.
Recreation that pays is good too.
One retiree enjoyed fishing. He became quite good at it and caught more fish than he could eat himself. He obtained a commerical fishing license. That legally allowed him to sell the extra fish and offset some of the expenses from his hobby.
