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Email this5:51 am
March 30, 2017
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I started this as a new topic as its slightly different from what has been discussed. Admin can move/remove as required.
It seems like for GIC balance, some FI will report the daily account balance including the accrued interest, while other only show the principal amount.
For example I checked Hubert will only show the principal amount, while Tangerine will show accrued interest as well as the balance. Havent checked other FIs yet.
In the event that CDIC protection is triggered, if only the account balance is used to determine amount for the protected funds, that can make a big difference. I believe GIC that are compounded will have the balance updated only once a year for those FIs that dont show the daily accrual as well ?
6:15 am
September 11, 2013
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Pretty sure the manner in which an fi chooses to show online the "progress" of the gic will not impact CDIC coverage amounts. I'd imagine the terms of the gic contract will determine how much interest has been earned up to the day of fi default.
6:36 am
January 3, 2009
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I've experienced a failure with an Ontario CU years ago and the deposit insurance in that instance covered the interest accrued as if the date of failure and payout was the compounding date which was less than a year on annually compounding terms. I can't say how it is now, but I remember that very clearly because the person issuing the T5s combined all interest accrued over the life of the terms and I had to go through the CRA to force them to issue only for the year of the failure to avoid a double tax situation.
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