tag:blogger.com,1999:blog-5465015914589377788.post7403555804780712500..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: A Strategy for GIC Investors to Maintain Deposit InsuranceMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-5465015914589377788.post-781353921549239832014-10-28T22:43:58.853-04:002014-10-28T22:43:58.853-04:00Another option that people often don't look in...Another option that people often don't look into is credit unions. BC, Alberta, Saskatchewan, Manitoba have unlimited insurance. That means all deposits will be guaranteed. Also, New Brunswick, Nova Scotia, PEI, and Newfoundland have higher insurance up to $250,000. If you live in a province where you don't get to have these increased insurances, opening an account with the online credit unions from Manitoba (eg. Accelerate, Implicity, Hubert etc.) is a way to take advantage of this unlimited insurance coverage.Wes Nnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-250010371149418562013-03-19T10:36:45.088-04:002013-03-19T10:36:45.088-04:00Just for clarification, the 100k CDIC insurance wo...Just for clarification, the 100k CDIC insurance would apply to the individual GICs, protecting you from the GIC provider from insolvency.<br /><br />The 1M CIPF coverage would protect you from the insolvency of the Discount Brokerage account where you hold the GICs. It doesn't change the 100k limit per GIC.<br /><br />One other point, CDIC only insures GICs with a maturity of 5 years or less. Anything longer than that isn't covered:<br /><br />http://www.cdic.ca/Coverage/TemDeposits/Pages/default.aspxPaul Tnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-78470834668437393062013-03-19T09:24:08.355-04:002013-03-19T09:24:08.355-04:00@Paul: Good Point. Even if you have more than a ...@Paul: Good Point. Even if you have more than a million dollars, the odds are very good that you won't suffer a loss as explained in this CIPF web page:<br /><br />http://www.cipf.ca/Public/CIPFCoverage/WhathappensifmyCIPFMemberisInsolvent/WhatifMyAccountHasAssetsExceeding1Million.aspxMichael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-10869557787305576202013-03-19T08:01:21.709-04:002013-03-19T08:01:21.709-04:00One other point, discount brokerage accounts are c...One other point, discount brokerage accounts are covered up to 1M via CIPF insurance. So if you're invested in multiple GIC's, the DB account holding the GICS, are covered up to 1M if the brokerage goes under. Paul Tnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-84440903320303751522013-03-18T18:07:13.833-04:002013-03-18T18:07:13.833-04:00@Cory: Thanks for the information. For those who...@Cory: Thanks for the information. For those who are intimidated by the idea of handling GICs in their own discount brokerage account, this is good information. Those who like the idea of handling their accounts from home instead of negotiating with branch staff can get access to higher interest rates.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-90912368293779087712013-03-18T17:37:14.758-04:002013-03-18T17:37:14.758-04:00It usually only comes up when someone is concerned...It usually only comes up when someone is concerned about CDIC coverage, only a few advisors would bring it up on their own probably because they can't relate to the issue ;+) <br /><br />Here are the links at a few of the banks<br /><br />http://www.rbcroyalbank.com/products/depositregister/pdf/CDIC_Deposit_Register_E.pdf<br /><br />http://www.scotiabank.com/ca/en/0,,73,00.html<br /><br />http://www.tdcanadatrust.com/products-services/index.jsp<br /><br />https://www.cibc.com/ca/cibc-and-you/to-our-customers/dep-reg-info.html<br /><br />Couldn't locate for BMO. Most can cover through 3 or 4 corporations. Cory Papineaunoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-15001800259502732712013-03-18T16:56:38.757-04:002013-03-18T16:56:38.757-04:00@Cory: The member of my extended family that I...@Cory: The member of my extended family that I've helped the most with this problem has dealt with BNS and TD. Neither offered to spread around GICs to their member entities, but I suppose this family member didn't ask about CDIC limits either. Perhaps the experience differs from branch to branch or only customers who show concern are offered this solution.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-70321605387984637812013-03-18T15:02:49.467-04:002013-03-18T15:02:49.467-04:00Hi Michael,
I worked @ 2 of the Big 5 banks and i...Hi Michael,<br /><br />I worked @ 2 of the Big 5 banks and it was very common to offer this as a solution to CDIC limits. I now work for a Credit Union so this isn't an issue anymore. You are right however that the rates at the Big 5 suck. The GIC client is not one they need or want in general terms (different funding sources used, older clients usually who don't borrow and have low cost banking fees).<br /><br />Cory P.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-14409262834494729082013-03-18T13:28:57.964-04:002013-03-18T13:28:57.964-04:00@Anonymous: Do you know how easy it is for a reta...@Anonymous: Do you know how easy it is for a retail GIC customer to walk into a bank branch and get GICs at all 4 entities? I haven't heard of anyone trying this, but it seems logical that the employees in a bank branch could help with this. Of course, you're still left with the problem of fighting with them to get a decent interest rate.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-37578636341667828092013-03-18T13:17:52.898-04:002013-03-18T13:17:52.898-04:00Hi Michael, Most of the major banks also provide ...Hi Michael, Most of the major banks also provide multiple corporations to invest into to increase the CDIC coverage. For example Scotiabank has 4 different entities to invest under:<br /><br />The Bank of Nova Scotia<br />Scotia Mortgage Corporation<br />Montreal Trust Company of Canada<br />National Trust Company<br /><br />so effectively you can get $400 000 in coverage per individual name.<br /><br />Anonymousnoreply@blogger.com