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Email this8:02 am
October 30, 2022
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Will be travelling the next 4 months and am worried about time constraints. Best Cashable 1 yr GICS vs HISA? Cashing out of stocks usually takes how long? Sorry for the hassle.
8:52 am
October 30, 2023
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1. Hubert quarterly GICS. Cash out in the quarter and loose zero. Cash out any time, but loose interest for that quarter.
The good news? You’re not locked in for the entire year — you can redeem your term after three, six, or nine months (and keep the interest that’s already been paid to you). The even better news? If you keep your funds in place for the entire year, you’ll earn an average rate of 5.20%* for the year (with compounded interest). Not too shabby, is it? Here’s what you will earn:
The first three months: 5.05%*
Months four to six: 5.15%*
Months seven to nine: 5.25%*
The last three months: 5.35%*
Again, you can choose to redeem your 1-year term at any time. If you do, all interest that has been paid to you is yours to keep, but if you redeem between a quarter you will not receive any interest from that quarter. For example, if you redeem after seven months, you’ll only receive interest up to month six!
2. Canada Western Bank. Variable GIC based on their prime rate. Cash any time after 30 days. No loss of interest.
Floating rate redeemable GIC
Put your money to work with an interest-earning investment you can redeem after a short period of time as you see fit. Calculated based on the CWB Prime rate (currently 4.6%), if the rate goes up, so does your investment. If rates decline, you can fully redeem your deposit and interest with no interest penalty anytime 30 days after investing.
The monthly interest option for Gold Leaf PLUS® clients provides a steady income stream.
9:11 am
October 30, 2023
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Actually using cashable GICS gives you an extra level of security vs HISA. But keep in mind if traveling be prepared to receive emails or text codes and would need cell service.
12:39 pm
April 15, 2015
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serendipity said
Actually using cashable GICS gives you an extra level of security vs HISA. But keep in mind if traveling be prepared to receive emails or text codes and would need cell service.
The 1 year term at Hubert actually averages 5.55% if held for a year according to the GIC chart.
12:47 pm
September 15, 2017
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semi-retired said
The 1 year term at Hubert actually averages 5.55% if held for a year according to the GIC chart.
5.55% is for the locked-in 1 yr. GIC, but 5.20% is for the redeemable 1 year GIC (if held to maturity).
1:08 pm
November 22, 2023
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As Norman pointed out last week, I think the RBC prime-linked cashable GIC is better than CWBs cashable GIC.
The rate is a bit higher at 4.75%, but the real big advantage in my view is that you can do a partial withdrawal (min $1k) without collapsing the entire GIC.
1:58 pm
August 14, 2023
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hayman said
Will be travelling the next 4 months and am worried about time constraints. Best Cashable 1 yr GICS vs HISA? Cashing out of stocks usually takes how long? Sorry for the hassle.
" Cashing out of stocks usually takes how long?"
Cashing out of stocks takes the time it takes to log into your brokerage account , click the sell button next to your securities, and setup the trade order. 5-30 seconds. More importantly, you then need to wait for the securities to clear settlement before you are able to withdraw those funds, trading day +2 to 4 days.
Trader first, Saver second
2:09 pm
April 15, 2015
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GR said
5.55% is for the locked-in 1 yr. GIC, but 5.20% is for the redeemable 1 year GIC (if held to maturity).
You are correct. I didn't realize Hubert now has the 2 choices for their 1 year GIC.
2:13 pm
August 4, 2010
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I think CASH.TO and perhaps some of the other similar liquid deposit funds settle at T+1 even now?
Canada and the US are scheduled to convert to T+1 for all securities May 27/28.
2:17 pm
August 4, 2010
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semi-retired said
You are correct. I didn't realize Hubert now has the 2 choices for their 1 year GIC.
I've suggested to Peter that there be at least an asterisk/footnote on Hubert 1-year pointing at something showing the quarterly/cashable version and rate. Back in the Sunova days Hubert didn't have a 1-year non-cashable, and gave the full 1-year rate to the cashable. Access seemed to think that was too generous, added in the non-cashable, and has been letting a gap open up between the two (currently 0.35%). You now have that penalty if you want the cashability. It will be interesting to see if they expand that gap the next time the rates change.
3:12 pm
August 14, 2023
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NorthernRaven said
I think CASH.TO and perhaps some of the other similar liquid deposit funds settle at T+1 even now?Canada and the US are scheduled to convert to T+1 for all securities May 27/28.
This is correct. An example for a T+1 security (I believe all the HISA , MMF ETFs are) is a sell order placed on Monday and on Wednesday, 2 days later, you can make a withdrawal / transfer. In post #1 Heyman mentions (stocks) which are mostly T+2. The +(n) is Trading days only and it's the day after settlement withdrawals can be made. Weekends and holidays don't count. This extends the actual time you can make a withdrawal. Next month, because of the holidays coming up , you can initiate a sell order on Dec. 22nd and not be able to withdraw those funds until Dec. 28th for a T+1 security. That's a 7 day stretch.
Trader first, Saver second
3:21 pm
August 4, 2010
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I'm with TDDI right now, so I've not used any of the cash ETFS (TDDI won't let you buy them). Their FundServ MMF and ISA products are also T+1 (if done before 3pm EST), and the cash is available on the T+1 day, although usually you don't see it post until midday at the earliest. I can transfer to my TD bank accounts, and presumably out from there. It may be different depending on the platform, or for external ETF, where there's an extra day for the post, or because the funds are being settled from outside, or whatever.
7:01 pm
October 30, 2023
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I have contacted 2 CWB account managers over the last weeks. Mainly about the Floating Rate GIC. It “could have” been part of my self made portfolio and possibly more, but mainly the floating rate GIC. After getting incorrect information from both and their website changed the interest rate and the availability to have interest paid into my savings account, back and forth, I decided the “five dime” bank advisors are not the way to go. I may have wanted the GIC but not the unreliable and slanted advice that goes with it. Been there, done that, and don’t have the patience to subject myself to it.
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