1.75% on a 3-month TFSA or RSP GIC | EQ Bank | Discussion forum

I'm in. TFSA at EQ for next year … not all in for a single GIC … but baby steps towards next year

I think non-registered is also up -> 1.5% for 3 months

Yes, that's what it means.
It's clever of EQ, becauses that 3 months takes you well into "RSP season" where there are likely to be promotional rates elsewhere. Bearing in mind their previous sluggishness about transfers, you could miss out entirely on a better longer rate.

The rate appears on one of their GIC pages.
https://www.eqbank.ca/personal-banking/investments/gic-rates-arent-high-enough

It's very annnoying how difficult it is to find a rates page on their site.

It's clever of EQ too with TFSA, where they get a GIC expiry into the following year, and therefore once it matures, I'm stuck with them for 2022, or have to arrange a transfer to another bank, to keep funds in tax free.

I recall the stories previously about slow transfers, as Loonie reminded us above. However is it not correct that, unlike many other banks, they don't charge for a transfer of the plan to someone else?

I do like the 3 month non-reg 1.5% maturing in January, better than earning 1.25% for such a short period in the same place. And as the term is so short, I'm not worried that the GIC isn't joint like the savings account is, as it can only mature back into the joint account.

dougjp said
However is it not correct that, unlike many other banks, they don't charge for a transfer of the plan to someone else?

You are correct. EQ does not charge a transfer fee for their registered products.

RoughRunner said
Sorry for asking, but I haven't used my TFSA before. So once the TFSA GIC is up, the money will be put in the EQ TFSA Savings Account in January 2022, and you will be stuck with whatever interest rate that account has unless you transfer it to a different institutions TFSA account. You wouldn't want to withdraw money from the TFSA Savings Account because you have to wait till January 2023 to regain the contribution room. To avoid this you can buy the 1.5% unregistered GIC instead.

I just moved my savings to EQ from Motive due to the rate drop and was wondering how TFSAs work cause the rate looks intriguing for only three months. I haven't moved my money from Motive in like 2 years so I'm not sure if contributing up to my TFSA limit will mater since I don't transfer often.  

Welcome to the Forum!

I do wish TFSA has renamed and was made simple without the limitations. Here's the Government's TFSA guide, including how the TFSA contribution room works;

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#P44_1115

The TFSA contribution room is the total amount of all of the following:

the TFSA dollar limit of the current year
any unused TFSA contribution room from previous years
any withdrawals made from the TFSA in the previous year

You are right about the limitations as you described in your first paragraph. As you haven't used TFSA, and assuming you were over the minimum age when TFSA started, you have a ton of room.

Therefore, unless you completely 'make up for lost time' in one lump contribution, you could have remaining room to withdraw out of TFSA in January and go right back into someone else's TFSA at that time - that amount then would have 'used up' remaining contribution room. Those of us maxed out in TFSA contributions don't have that luxury.

Hope that helps.

dougjp said

Therefore, unless you completely 'make up for lost time' in one lump contribution, you could have remaining room to withdraw out of TFSA in January and go right back into someone else's TFSA at that time - that amount then would have 'used up' remaining contribution room. Those of us maxed out in TFSA contributions don't have that luxury.

Hope that helps.  

Thanks, I really appreciate your help! I'm a college student but I managed to save quite a bit so I can contribute to my limit. Thing is I don't know if I'm ready to start investing, not sure if I will need my savings for tuition after this degree, starting my own business or whatever within 5 years. I know you should invest in your TFSA first if your tax burden is low, but putting money away for life is daunting when your young and uncertain. The TSX is at an all time high right now, should have bought the pandemic dip but I didn't know better Worst that can happen is that I lose a year of investing if I max my contribution room I guess, I'll think about it...

Alexandre said
Today on EQ Bank Web page and in app.

  

KAPUT ... It's Over ❗

C'est La Vie,

Dean

hwyc said
1.50% for 3 month TFSA or RSP GIC is over as well (not sure exactly when)  

not over... just reduced to 1.3%