Duca EMPA Deposit Rate Increase! 3.25% effective Monday, July 18, 2022 | Page 4 | DUCA Credit Union | Discussion forum

canadian.100 said
So I gather the present 3.25% Promotion is going to end very shortly and they are offering you the 4.75% Term but just to March 31 and after that you are back to 1% on the HISA?  

Yes, it looks like you can't go back to Park at 3.25,but it doesn't say what happens to your Park money if you DON'T buy this GIC.

I think it's very possible the 3.25 deal will end Dec 31 but ultimately it will depend on what their goal is for retaining money deposited there and whether that goal has been met.

I think it's likely that those who buy this GIC will be given another, longer term, GIC offer when this one ends as this is a very short term and they still won't want to let all that money go elsewhere when it ends.

COIN said

savemoresaveoften said
I did not receive this email even tho I do have an earn more park account (I did clean it out last month for the obvious reason).
 

I think only clients who had $60,000 or more got the email.  

Yes, as per the title of the email, it is an exclusive offer:
"EXCLUSIVE OFFER: For Members in current Earn More Promotion Account. "

There is no mention of an amount, so not sure how to confirm the threshold.

Talked to DUCA customer rep and she said I can bring new money over and she can put it into the Mar31 4.5% GIC. But she also said its by invitation only. I did mention I did not rec the email invite, and asked if I qualify. She says YES and no minimum req. If anything she does not give me 100% confidence what she said is indeed 100% correct.
Bottom line, I think anyone that brings new money in or already have money in the PARK account can just call them to set it up.

Personally 4.5% sounds ok to lock in for 4 months, but not a must have in my case.

Spouse pulled a chunk out of DUCA Park in the summer but didn't get the promo email. Spouse has continued to add money to DUCA Park since then from time to time.

They are aggressively soliciting 2-5yr GIC with 5.4% from brokers
Don't know if that supports or disproves your position.

COIN said

It's weird because their own branch(es) are offering less than 5.4%  

Its beyond weird, its absurd. Never makes sense to me why they are paying almost an extra 1% away thru brokers, as oppose to just do it with their own members direct. If they are pricing in their funding cost at X, that X should go to its own members...

Seems to me DUCA is "cannibalizing" their deposit business.

HermanH said

It does make some sense if DUCA wants flexibility and responsiveness in management of the funds accumulated. If DUCA only wants or needs $XXX, then the broker can stop offering them immediately, once the goal has been reached. If they make a promotional offer, then they might feel obligated to continue soliciting unwanted/unneeded funds throughout the term of the offer.

I would like for DUCA to at least match the rate offered by brokers, but can understand that brokers might specifically disallow that practice in their distribution contract. Otherwise, it might not be worth their while to agree to sell the GICs for DUCA.  

Its all true except a 1% spread is a huge premium to pay for the flexibility in my mind, at the expense of all the members, both the borrowers and the savers.

Its old school system of funding to say the least, and CUs are like 10 years behind when it comes to their treasury management...

On another note, they do let me make a new deposit and then put it into the 4.75% Mar31 GIC. Keep in mind the M2M transfer has a 1 week hold, the money can only sit in the Park account until hold is over to "purchase" the GIC.

Bacon2126 said
Up to 4.75% now for the EMPA  

New money only and only until April 30th. I also laughed when they say there are no withdrawal limits. There actually are if you try to push the funds from DUCA. The limit is $50K per withdrawal per day and, even if you call in, they will not do more. You have to wait 25 hours (24 hours plus one hour) to do your next push out.

Bacon2126 said
Up to 4.75% now for the EMPA  

Some has that money in the DUCA 4.75% lock in till end of Mar. Interesting timing they are offering a EMPA 4.75% now.