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Email this7:09 am
November 26, 2008
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Since I finished my studies 1 year ago and started working as a resident in orthopedic surgery 1 year ago I didn't have time to check these forums for a while (working between 90 to 110 hours per week and training 2 hours per day) which wasn't a problem at first because I had no real big savings and couldn't get any interests out of it.
But now, I just checked my ING THriVE and Savings account and was surprised on how fast savings adds up when you don't have the time to go out and speend all your money (I'm more of an eBay buyer anyways and only buy the things I have thee need for and which I have been doing quality and comparative reaserch.
So here I am, with some savings of my girlfriend and I who have been working for 1 year full-time now having some money on the side with an extremely low-rent appartment, not planning to buy a house too soon and we're traveling about 6 weeks per year doing bike and ski trips.
I have an account with HSCB, ICICI and ING which all seem to be from the past and non competitive from what I read on the forums so now I am searching to open a new account with highinterest and good functinnality for Paying bills online, have a conjoint account with my girlfriend as we have all our pay checks going in the same account and we share the same credit card (MBNA smartcash), and of course the biggest problem: available for residents of Quebec.
What do you experts recommend me to do since I have been out of here for a long time?
Thanks
Max
The day you become free is the day you work for fun.
8:40 am
November 26, 2008
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I have just ready on People's Trust located in Vancouver offering service in Quebec but they seem to have no online banking campabilities meaning you cannot see your savgins and you can't pay any bills.
Which is the bank that is offering service in Quebec province, having online banking capabilities approaching the extend of what ING offers and giving the highest interest rates?
The day you become free is the day you work for fun.
11:05 am
Max said:
I have just ready on People's Trust located in Vancouver offering service in Quebec but they seem to have no online banking campabilities meaning you cannot see your savgins and you can't pay any bills.
Which is the bank that is offering service in Quebec province, having online banking capabilities approaching the extend of what ING offers and giving the highest interest rates?
9:02 pm
I think you may have options open to you as an MD that the rest of us working stiffs don't have. Try calling your bank and asking about their "private banking" options for high net worth individuals (or soon-to-be high net worth). I don't think you need to bother with online savings acocunts.
1:52 pm
January 30, 2009
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Welcome back Max, and congratulations on finishing your studies!
Guest, I'm not aware of any Canadian banking institutions that offer private banking services for individuals or groups with a 'high net worth' Do you have an example?
I believe, when it comes to guaranteed investments, we all get the advertised rate.
12:54 pm
http://www.rbcwealthmanagement.....tebanking/
That's just an example. The other banks offer similar services. For ultra high net worth individuals you can get your assets managed by someone like Gluskin Scheff:
http://www.gluskinsheff.com/index.aspx
But you'll need at least 3 million to open an account.
12:52 pm
January 30, 2009
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Thanks for the links Guest. (I'll bet Max wishes he'll be making $3 million in cash as an orthopedist.) From what I can tell, it looks like they offer investment options (not high interest savings). Also, I don't think I'd want to put $3 million in an uninsured account - no matter what type of services they offer!
3:23 pm
If you are an MD, check out Doctors' Trust! After being to busy to mange their cash and getting screwed for generations, the CMA opened their own institution and it is a great deal and very suited to physician's needs!
RetirEd
5:23 pm
In my view, the best self-serve virtual institution with among the best rates for daily savings, terms & RSP investments with a 100% deposit guarantee is Achieva Financial. http://www.achieva.mb.ca
I have banked for years with PC Financial, ING and others, however, Achieva has offered among the best rates compared to all of them since 1998. This suits my personality best, as I don't have the time, nore the desire to negotiate every deposit I make.
Once your account is set-up, everything is done online with Achieva and they also pay me $1 per month for taking my statement online.
Just one guy's opinion.
11:18 am
Yes 1 dollar a month is nice but only worth about .1% on >10,000 dollars. So if someone is offering 2.1 % and the Achieva 2, then no difference in rates and one should not be anymore loyal to either marketing.
11:05 am
I've been sitting on money for a year now waiting for interest rates to go up on GIC's, ING is at 2.5% for 5 years. Does anyone have any notion if rates will go up?
8:15 am
mlee said
I've been sitting on money for a year now waiting for interest rates to go up on GIC's, ING is at 2.5% for 5 years. Does anyone have any notion if rates will go up?
It all boils down to the Bank of Canada and Mark Carney. They say that rates will only go up to fight inflation, essentially reining in the money supply by curbing borrowing. Reports keep saying that Canadians are in debt up to their eyeballs, and companies are sitting on quite a bit of cash. That tends to say that not much borrowing is going to be happening in the near to intermediate future. So rates are likely to be staying low for quite a while yet. That said, nobody can really predict the future. I suggest you ladder your GICs, so that if rates do rise, you will have a GIC maturing and can roll it into another one at the higher rate.
11:05 pm
December 12, 2009
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Great advice and tips, Jim! You have a solid understanding of how the Canadian monetary and bank funding systems work and your GIC laddering strategy is a good one. 
A good friend & former co-worker of mine uses this strategy. I asked them one time if they ever put GICs into terms of less than 5 years and their advice was that they've tried it but, generally speaking, the best returns are straight non-redeemable 5-year GICs in a laddered strategy so that you always have one renewing every year and then you average out your overall portfolio return.
Cheers,
Doug
8:13 am
Seems interesting but whatb is 5-year GICs in a laddered ? Thanks Michel
4:12 pm
May 15, 2007
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Hi Michel,
Laddering isn't a special type of GIC, but rather a strategy to take advantage of longer terms and higher rates without having to give up access to all your money for 5 years at a time. In short, you split your savings into several parts and invest them at different times so that they mature at different times. Here's a more in-depth explanation:
8:30 am
November 26, 2008
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Well to update my financial situation, here's how I'd like to invest my money:
I have been with ING for ages paying all my bills from their Thrice checking account and transfering my payrolls in the Savings account for 1.35% interest , exiled my money from HSBC due to their lack of competitivity, went out of ICICI since I saw an article about them being risky but still have an account with them. Now i'm looking forward in investing a governmental study loan of $10 000 for 4 years till I have to refund it and I would like to invest a $50 000 placement for about 1 or 2 years till the BMW i3 electric car becomes available here in Canada.
What would be the highest interest I could get on a short term let's say 1 year or 18 months GIC *just saw a special offer with NortShore CreditUnion at 2.3% https://www.nscu.com/Campaign/TermDeposit/ but I don't know if they deal with residents of Quebec.
And for the $10 000 I was thinking of investing for a 5 years redeemable at 2.65% back with ICICI http://www.icicibank.ca/person.....posits.htm or a 2.50% 4 years non-redeemable GIC http://www.icicibank.ca/person.....posits.htm
Anybody knows what happens if I redeem a redeemable GIC after 4 years, do I get the 2.35% rate for the previous 4 years or do I get a penalty?
Thanks for the hints everyone.
P.S. Now that I just read cmore post on Achieva I'm hesitating to open up an account with them for a 4 years GIC at 2.60% instead of 2.50% with ICICI, the only factor that influences me is that I already have an active account with ICICI and wouldn't have to go through all the subscription and sending checks over again but with Achieva I would get 0.10% and 4 years of 1$/month credit for going paperless....
The day you become free is the day you work for fun.
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