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Email this10:59 am
April 14, 2021
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Mapko said
2. Re: Did anyone here who noticed the favourable rate on 1 year USD GICs at SBI Canada pull the trigger and open one? If so, have you been happy with your decision or any residual regrets?
I'll be buying one on July 3.
It was a real pain opening the account, but it finally got done.
Operationally, SBI will not allow you to eLink another account to their USD chq account. The only way to move funds into the account is via paper chq or SWIFT wire-transfer. The nice thing is that they will re-imburse you for transfer charges incurred moving funds to SBI.
At maturity, they will mail a paper chq, unless you choose to re-invest with them.
11:15 am
June 10, 2022
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Dickyran, thanks. I don't see anything too close to the current 5.6% for a one year USD GIC.... The best I could actually find in the US banks for Certificates of Deposits (essentially same as GIC) is 5.28%
HermanH
That does sound a bit convoluted...
My wife looked at the SBI site and says there are monthly fees for USD accounts... Is that your understanding too?
So given that CDIC covers up to $100K CAD, I wonder how it applies to USD accounts in the unlikely event of bank failure... Is it using the exchange rate at the time of failure?
11:27 am
April 14, 2021
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Mapko said
My wife looked at the SBI site and says there are monthly fees for USD accounts... Is that your understanding too?So given that CDIC covers up to $100K CAD, I wonder how it applies to USD accounts in the unlikely event of bank failure... Is it using the exchange rate at the time of failure?
There are monthly fees, unless you are a senior citizen. Theoretically, you can open the account, make the transfer, purchase the GIC, and then close the account, in order to minimize fees.
You might also want to contact the bank directly to see if they will allow you to send a USD cheq directly and purchase a USD GIC directly, without needing to open an account. I think (but am not certain) that CWB allows customers to purchase GIC without having an account.
Your USD funds are counted the same as an equivalent amount for CAD funds. They probably use the exchange rate at the date of failure. So, you have $100K coverage for all deposits/GIC, whether they are CAD or USD equivalents.
12:47 pm
June 10, 2022
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Regarding CDIC coverage for USD accounts in Canadian institutions, I send the question to CDIC earlier.... So in short, yes, USD accounts are covered with the usual limitations, usually using the conversion rates on the day of failure. Here's what they said:
" Therefore, foreign currency deposits would be combined with other deposits in the same deposit insurance category. For example, savings in a US Dollar account would be combined with savings in a chequing account, both held as deposits belonging to one name, for the purposes of calculating deposit protection.
Foreign currency deposits would be converted into, and be payable in, Canadian dollars. In the majority of cases, CDIC would use the conversion rates published by the Bank of Canada on the date of failure. If the Bank of Canada does not publish a rate for a particular foreign currency, then the rate would be based on whatever the rate was at the failed member institution on the date of failure.
Eligible deposits in foreign currency will be protected even if the deposit was made prior to April 30, 2022."
3:47 pm
October 21, 2013
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If the USD reimbursement by CDIC is based on conversion rate on date of FI failure, that means you can never know exactly how much is insured.
12:23 am
April 14, 2021
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Sigh, just when I thought USD rates could not get better, SBI raised their 1-yr GIC to 6%
Of course, it happens after the 2-week grace period to cancel my 5.6% GIC.
My USD funds are cursed. Last year, I bought a GIC with Tang for 3.5% only to learn of 5.6% available from SBI. I only discovered SBI after the 30-day cancellation period allowed by Tang.
4:30 am
February 14, 2023
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If you don’t mind me asking, who is offering 5.6%?
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