Wow, Duca new 6% HISA rate | Page 5 | DUCA Credit Union | Discussion forum

I sent emails following their usual email format to board chair and Doug conick for my therapy.. not expecting a reply

"Rates are subject to change without notice at any time. Offers may change or be withdrawn at any time. Other conditions and restrictions apply."
https://www.duca.com/rates

literally

MarkFog said

Oh, there is no question that "legally" (and I use that word loosely) they can do what they are doing. But, check the fine print with other financial institutions and they probably have a clause buried somewhere. Most, ifnot all, give an end date to the promo and stick with it. If everyone did like Duca is doing, none of us would trust one institution at all when it came to promos.  

Most FI will define promo rate = base rate + promo top up bonus.
I have seen FI then go further ahead and say when base rate changes, the promo top up bonus will "make up the difference or vice versa". this makes it effectively a fixed promo rate by definition.
Some will mention the base rate is subject to change, while the promo top up is fixed, total promo rate is capped. It means the promo rate MAY GO lOWER only.
DUCA is basically a HISA promo rate subject to change, not a promised rate. Dont think they use the word "promise" either, or all the legal "expert" would have launched a class action already. There is a difference between implied vs actual. Giving a promo rate an end date does not imply it has to stick, unfortunately.

I was able to get all the money I wanted into the new DUCA promo thanks to a close reading of early reports from mustang and savemoresaveoften, but had to act fast and be very careful.
Even so, I have it on my calendar now to check the rate weekly in case it falls. That's a nuisance but hopefully the offer will still be worth my while. The 6% rate is still holding as of March 28.
When you have an unusually good offer, which this one was, you have to assume some constraints will be put on it, which can be found in the fine print. Otherwise, the FI could go broke.

MarkFog said

All very true. But the base rates are usually very low to begin with ( DUCA - 0.25 - Tang 0.70. These haven't changed in years, so the top-up rate doesn't change. Some may recall a time (a few years ago) when a promo ended at DUCA but the 3.5% remained in the account well after the date. All I am saying is since January 2024, DUCA's top brass have been flexing their legal fine-print to the tee, so we should be mentally prepared going forward.  

I don’t think they are doing a bait and switch and use legal to cover their ass. Rather they are trying to be ‘more modern’ and inline with other FIs in terms of rates promotion. It’s not that hard to figure out what and what’s not to do, but they fail miserably so far. They have to retract / close the new promotion early or they just end up bleeding cash left and right.

For example, this new promo of 6% for new money, but then leave a big loop hole for old money to qualify as well is just a complete fail.
They could have easily kept the existing 5.25% prom as is, and then offer a 6% promo for brand new customers only. That is simple and achieve what’s intended.

If Duca CEO is monitoring this forum, I am available as a part time consultant for new promo design, and you won’t have any blunders. Sorry to say but ur entire new promo design dept don’t have a brain.

savemoresaveoften said
I don’t think they are doing a bait and switch and use legal to cover their ass. Rather they are trying to be ‘more modern’ and inline with other FIs in terms of rates promotion. It’s not that hard to figure out what and what’s not to do, but they fail miserably so far. They have to retract / close the new promotion early or they just end up bleeding cash left and right.

For example, this new promo of 6% for new money, but then leave a big loop hole for old money to qualify as well is just a complete fail.
They could have easily kept the existing 5.25% prom as is, and then offer a 6% promo for brand new customers only. That is simple and achieve what’s intended.

If Duca CEO is monitoring this forum, I am available as a part time consultant for new promo design, and you won’t have any blunders. Sorry to say but ur entire new promo design dept don’t have a brain.  

As Loonie pointed out earlier, the best thing is to monitor the account for a drop without notice first. Yes they could have left it at 5.25%, but opted for a transfer frenzy to attract money fast. If the rate starts dropping, you'll change your tune about their intentions of baiting and switching IMHO.

Rob59 said
Thanks to this site, I knew of the interest rate drop in their last promotional account hours before Duca sent me notice. Once they did I immediately began transferring my money out. With their daily limits, that took two days, but luckily both transfers arrived at their destinations before the weekend.

On the 20th they sent an email asking, based on my "recent online banking experience", whether I'd recommend Duca to others. I just chose 0 out of 10 and sent it back. That elicited a response email, wondering why I gave them that rating. I replied by recounting the above scenario, including that I first learned of the rate cut from highinterestsavings.ca, not them. I ended by saying that because of my experience I would not be comfortable recommending their services to others. I have not received a response, nor do I expect to, but at least they have my opinion on record.  

Good for you. I sent them a 5 out of 10, which was before this fiasco. I would have done the same. Although, I did to the same to Tangerine for screwing me out of 2% in my new promotional offer. I now have to wait until after Easter Monday to transfer out. From them.

mordko said
I don’t think this short term offer is unusually good. Recently HSBC was offering 6.35% (RIP). 6% Tang offer ended in Feb. Simplii is offering 6% on new accounts.

The way its handled seems unusually worrying though. I had moved everything I wanted up to the insurance limit when they stopped allowing further contributions. I know that small print lets FIs do anything but there was no warning. Don’t recall it ever happening to me before. Found it very disconcerting. Like FIs to act in a predictable manner.

Apart from that… They made me go into the branch. Twice. Like to set up joint account. And separately to arrange “me-to-me” transfers. The alternative was faxing. Who does that any more?

And then the rep tried to flog market-linked GICs. Thats a shameless marketing gimmick. Isn’t the story line “CUs are acting in the interest of their members unlike predatory banks”? And he tried to sell their business account which happens to be more expensive than RBC’s.

They haven’t done anything terrible to make me wash my hands off them just yet but enough to avoid in the future.  

I would say that this was indeed an unusually good offer, albeit subject to change. Tangerine is not making such an offer at this time; Simplii must be a new account only, and HSBC is defunct. Nobody else offering potential 6% to June 30 at the same time DUCA was. And that's why the offer was so popular that they had to shut it down.

I didn't encounter any of the difficulties that you seem to have. Joint account was opened with a simple phone call, following their online instructions to do so after one-name account opened. No fax, no visits to branch for anything related to this offer. Friendly CSR dealt with joint account, no attempt at upselling.
If you do need to fax, there are free online accounts for doing so without a fax machine. Some legal situations still require it.

I warned when this offer began, either on this thread or the other one, that when DUCA had all the money they could afford to reward at 6%, they would reduce the rate. Instead, they chose to cut off deposits. Because it was such a great offer, it was predictable that they would do something to limit their liability. They owe that to all members.

Yes, of course they hope a certain percentage of deposits will migrate to GICs of some kind. The purpose of all promos at every FI, be it bank or CU, is to ultimately get a longer and bigger commitment from you. They can't thrive if all they get is 6% promo seekers.
It's not the first time a FI has pulled back on an offer, and it won't be the last. That fine print exists for a reason, and is prudent for the survival of the FI. Our job is to pay attention to it, be prepared, and plan accordingly.

Loonie said

I would say that this was indeed an unusually good offer, albeit subject to change. Tangerine is not making such an offer at this time; Simplii must be a new account only, and HSBC is defunct. Nobody else offering potential 6% to June 30 at the same time DUCA was. And that's why the offer was so popular that they had to shut it down.

I didn't encounter any of the difficulties that you seem to have. Joint account was opened with a simple phone call, following their online instructions to do so after one-name account opened. No fax, no visits to branch for anything related to this offer. Friendly CSR dealt with joint account, no attempt at upselling.
If you do need to fax, there are free online accounts for doing so without a fax machine. Some legal situations still require it.

I warned when this offer began, either on this thread or the other one, that when DUCA had all the money they could afford to reward at 6%, they would reduce the rate. Instead, they chose to cut off deposits. Because it was such a great offer, it was predictable that they would do something to limit their liability. They owe that to all members.

Yes, of course they hope a certain percentage of deposits will migrate to GICs of some kind. The purpose of all promos at every FI, be it bank or CU, is to ultimately get a longer and bigger commitment from you. They can't thrive if all they get is 6% promo seekers.
It's not the first time a FI has pulled back on an offer, and it won't be the last. That fine print exists for a reason, and is prudent for the survival of the FI. Our job is to pay attention to it, be prepared, and plan accordingly.  

Yes, I realize one shouldn’t be required to come in in person. And that bothers me. We followed their instructions to the letter. Electronically all was fine. And then we got a call a couple of days later, saying something didn’t quite work for my spouse. She has valid identity, high credit score, etc. “The system didn’t work for her”. Never mind, she can come. “No, both of you have to come now”. Does not even make sense. Why exactly did they pick on us? Never properly explained.

And I am sorry, but having been banking for a looong time I can’t recall last time I was asked to fax or come in person to link an account. Perhaps “legal situations” like this arise, just not for me.

Did you link a “me to me” account without being asked to fax or turn up? Is this the first time you are dealing with DUCA? I am wondering if they are particularly focused on upsetting new clients like myself so they can try to cross sell BS products.

MarkFog said

savemoresaveoften said
No need to monitor the rate, they send out the email to let us know. For those who says they did not rec anything, its already proven chance are they opt out of advertising material in the first place. I dont have that issue and rec every email communication so far.

They did not send an e-mail until AFTER they had shut the door at midnight of March 27. The promotion disappeared from their site and I could not transfer into the promo account. For a second, I thought it was a technical issue, but it quickly dawned on me it was DUCA pulling the plug; because that's what they do. The e-mail on March 27 at 9:32 a.m. called the 27th a "closing". Basically, DUCA telling us the door shut on you yesterday. That's why we said we will monitor closely..  

I never received any emails about them closing the promo and cutting out capability of adding to my DUCA savings account. Did that on the quiet, zero communication of any sort. You discover it if you try to transfer funds in. Not that I would want to.

The only email they sent was about recommending DUCA to others. It's a no-no.