Did RBC honor Ally GIC's? | General financial discussion | Discussion forum

pebbles said

When RBC took over Ally, did RBC honor the GIC's held at Ally (period and interest rate?) I have GIC's with AcceleRate and have wondered if another bank/CU took them over, what would happen to my GIC's? Just curious.

Hi, do you know something about Accelerate? Please share?
I too think about all of the virtual spin offs in Winnipeg and wonder what would happen if their parent decided they were no longer viable.

I would think:
The parent CU would take over as is but would not take on new investments at the rates that we are used to.
In the event of a take over by another CU I would think the same as the latter.

Keep in mind how good Citizens was and their parent was Vancity CU. They were too good. I remember calling in for a new GIC and say it was .25% higher and they would redo all of my existing GICs at the new rate and that is something that does not happen any more. Also keep in mind that these spin offs are not for day to day banking and for us long term savers so I imagine they are striving as a result. The rates they offer are, in my opinion, the real rate while the banks are holding back just being greedy. Coast Capital CU in BC usually has the highest rates and my investment adviser can usually get .20% more and he is likely getting .30% as a commission. So the bank offers say 1.2 and Coast Capital is offering 1.2 + .20 + .30 = 1.70. Make sense?

From http://www.rbcroyalbank.com/ally/

Non-Registered and/or TFSA Guaranteed Investment Certificate (GIC):

The current term, interest rate and terms and conditions governing your existing GIC will continue until maturity.

If your GIC is maturing on or before September 20, 2013 you will continue to have the option to reinvest in an Ally‡ GIC. For information on current rates, please visit ally.ca or contact 1-866-247-2559. Non-Registered GIC clients will also have an option to invest in any RBC savings or investment product. Please visit the RBC Royal Bank branch (opens new window) nearest you to take advantage of our competitive rates.

If your GIC is maturing after September 20, 2013 please note that at maturity the GIC will be governed by the RBC Client Agreement – Non-Registered Guaranteed Investment Certificate pdf and RBC Client Agreement – TFSA Guaranteed Investment Certificate pdf including the conditions of renewal.

Please note

We will notify you prior to the maturity of your GIC, and you will have time to provide us with maturity instructions. In case we do not receive any maturity instructions from you, your GIC will be renewed under the RBC Client Agreement into a redeemable GIC with a term of one year for a TFSA GIC or one year or the same term as the original deposit, whichever is less, for a Non-Registered GIC at the interest rate posted at that time on http://www.rbcroyalbank.com/pr.....rates.html.

If you have invested in an Ally Raise Your Rate GIC, please note that RBC will honour the terms and conditions of this product, including the ability for a one-time interest rate increase. After the transition to RBC, the posted interest rate for this product will be benchmarked to the RBC 2 Year Redeemable GIC. If you wish to exercise this option you can call 1-866-220-7532 and request the one-time interest rate adjustment.