EQ TFSA Savings acc 2.3% GIC 3 mo 2.5 % Same for RSP | Page 4 | EQ Bank | Discussion forum

Loonie said
The desirability of the 3 month GIC should be evaluated alongside your assessment of the likelihood of a transfer fee being implemented by then. They are linked.

I'm with Rick in thinking it is unlikely they will introduce a fee that quickly. Perhaps they never will, as I think that would be consistent with their model in general.
But they will certainly lower the rates, and very possibly by the time your GIC matures. They could still remain competitive, even at lower rates, and you may want to leave your money there anyway.

Bear in mind that there are still 2 weeks before Jan 1, and their rates could change by then if they have already had a strong response.

I can't remember if we already determined whether they will hold the rate, waiting for a TFSA transfer, but that is also a factor. A transfer could easily take a month, especially in January and employees in quarantine or sick in increasing numbers, which seems very likely as so many are fond of ignoring the rules.
Those who can only deposit 6K may not all feel it's worth the bother if they will have to transfer it out soon. And you might miss out on better longer term offers during that 3 months. After 3 months, all the deals will likely be gone for now. That said, I am not optimistic about a lot of deals being on offer this time around.  

I agree with that assessment, transfer-out fee is very unlikely in March but it can not be ruled out completely in one's calculation as I am not going for only 6K but around 34k.

hwyc said
After browsing thru their FAQs, I am not sure one can buy a TFSA GIC from an externally linked account in a single step.

I intend to buy a TFSA GIC on Jan 1st & working the dates backwards.

• Transfer money to Savings Plus from external FI latest on Dec 22nd
• Money unhold after five business days on Dec 31st
• Open TFSA Savings Account (beneficiary setup etc) on or before Jan 1st
• Contribute money to TFSA Savings Account on Jan 1st
• Buy TFSA GIC with money in TFSA Savings Account from on Jan 1st

More lead time required if you do not already have a Savings Plus account or externally link not yet ready. Would you agree ?  

I did the following: (1) set up external link to other FI and (2) set up an EQ TSFA account. It looks like within EQ's transfer page, I can transfer from the other FI directly into the EQ TSFA account, specifying the transfer date of Jan 1, 2021. I'm guessing that amount would be on hold for five business days* before I could then transfer those funds into a TSFA GIC. If that works, it seems a better option to get 2.3% while waiting for the hold to lift, rather than transferring to EQ savings account around Dec 22/23, getting basically no interest for a week while waiting for the hold to come off so that funds can be internally moved from EQ savings to EQ TSFA.

* I chatted with an EQ rep today, and was told that all funds are now subject to five business days, regardless of amount and that they haven't updated their Hold Policy page yet (which states 8 business days if over $1500).

LK said
After a December maneuver, I'm thinking about putting maybe 1/2 or 2/3 of my TSFA funds into the 2.5% 3 month TSFA GIC, and the remainder into the 1.8% 6 month TSFA GIC. Possibly a bit of a hedge against the likely decrease in the 2.3% TSFA savings rate? Any thoughts? Anyone else taking this approach?

I'm aware that there is a risk regarding a possible change in the "no TSFA transfer fees" by going with a 6 month GIC. It's a possible downside, for sure.  

Unless their TFSA savings account rate and 3 month TFSA GIC rate is less than 1.1% when the 3 month 2.5% TFSA GIC matures, the 1.8% GIC for 6 months is not the best option. (3 months @ 2.5% + 3 months @ 1.1% = 6 months @ 1.8%)

topgun said

I have a similar plan with a different FI. I needed some of the funds from my FI HISA where I plan on investing TFSA GIC. I left enough there to purchase my TFSA GIC Jan 1st. I did not want to work out the number of days to transfer the money back. No funds on hold. On Jan 1 I will buy a TFSA GIC from my HISA. Jan 1 no hold initiate transfer Dec 25 if no statutory holidays for 5 day hold. To have funds transferred 2 days earlier Dec 23 so hold is removed. You will be fine.
Nothing wrong with purchasing more than one GIC with different term. Do what works for you.  

I'm just pushing the funds on the 28th using non-registered cash into EQ HISA. Should be in EQ long before the 1st, no hold at all. I guess I pay 1 to 3 days lost interest as a convenience. If I set it up in advance, could even make it the same day. Dec 31 take the funds out of my TFSA to replace the cash I borrowed in FI #1, and Jan 1 our contributions for 2021 moves from EQ HISA to EQ TFSA.
Easy - peazy
Might wait a couple months before I convert to a GIC so it matures in Dec (IF they keep offering a 3 month GIC to roll over) in case the funds have to abandon ship into another FI.
Not worried about transfer out fees at all. Don't usually chase rates in my TFSA's. If I think it's necessary to move any or all, the math is easy to do to see if it's worth it or not, or just do the December thing.
Quite Frankly though...I'm hoping to keep them as my second FI for my TFSA. I need one as I want to leave a bit of room for growth before maxing out in my first FI. Their rates haven't been THAT bad since I signed on with them. Need another basket for my eggs and they fit the bill.

LK said
After a December maneuver, I'm thinking about putting maybe 1/2 or 2/3 of my TSFA funds into the 2.5% 3 month TSFA GIC, and the remainder into the 1.8% 6 month TSFA GIC. Possibly a bit of a hedge against the likely decrease in the 2.3% TSFA savings rate? Any thoughts? Anyone else taking this approach?

I'm aware that there is a risk regarding a possible change in the "no TSFA transfer fees" by going with a 6 month GIC. It's a possible downside, for sure.  

I think it is a good strategy to hedge against rate drops ... thanks for the reminder. Probably will do mini GIC steps ( 3m/6m/9m ) but definitely nothing beyond Dec 31, 2021

https://www.highinterestsavings.ca/forum/eq-bank/eq-tfsa-savings-acc-2-3-gic-3-mo-2-5-same-for-rsp/#p57632

... stay safe ... play safe

Glad you resolved the issue in time.
I do it differently. If the hold is 5 days add 7 (i.e. 2 days for weekend) to transaction date. Add number of statutory holidays in the next week.
transaction = Dec 21
+7 = Dec 28th
+2 = Dec 30th
The hold will be removed in the early hours of Dec 31st while you are sleeping.
Merry Christmas.

I set up a withdrawal from hubert from eq bank on dec 23rd. The funds still show as being in hubert. Should it be gone by now? I usually use e transfers to eq and don't know how long transfers take.

I do not deal with Hubert.

I have FI's that I PUSH/PULL funds.

Tangerine must have transaction created 1 day in advance. Cutoff 12:00PM EST 1 day before transfer date.

Simplii must have transaction created 1 day in advance. Best to create TWO days in advance. Cutoff 7:00AM EST 1 day before transfer date.

My MB CU says create the transfer at least 3 days in advance. Cutoff about 11:30PM CST 3 days in advance. This is clearly stated on the transfer screen.

Each FI has different cutoffs. After a few times you know the rules.

I prefer PUSH if it is possible otherwise I revert to PULL.

Yes, it was a "pull" if you logged into EQ Bank's site to transfer the money from Hubert. EQ Bank would generate a pre-authorized debit and submit it into the clearing system.

In contrast, it would be a "push" if you had logged into Hubert's site to transfer the money to EQ Bank. Hubert would have generated a direct deposit and submitted it into the clearing system.

Thanks. I think i should have split it into etransfers instead. The rate will probably change before i'm able to transfer to tfsa.