Ganaraska Credit Union - 4% for 5 Years | GIC discussions | Discussion forum

That's a very good rate. Maybe I should stop by on my next trip to Toronto.

Thanks for the additional information. Sounds promising.

I'm wondering about the "cashability" provision. Normally, with other CUs, this involves some kind of penalty, but it can vary.
I'm also not 100% clear if it applies to non-registered funds; probably yes, but it doesn't say precisely.

I just noticed that the online membership application form wants to know the total value of all your assets and liabilities. I have never been asked that before when signing up at any bank or CU. I think it's none of their business. In fact, I don't think I've ever been asked those questions, even for mortgage or credit card.

Thanks OP for sharing this -- would never have known about this.

I've emailed the CU and asked some basic questions (e.g. cash-out rate, etc.). Once I hear back, I'll post the details.

****later that day...***

Here's what I learned:

- Minimum $500. No Maximum.
- 4% for 5 years. Interest paid annually or compounded.
- Cashable rate is 1.25% (see note below)
- Can be cashed at anytime during the term -- not just on an anniversary, etc.
- In-person application. 3 branches: Peterborough, Cobourg, Port Hope. One visit required.
- $50 membership fee, returned when closing account.
- DICO coverage
- Available in non-reg and reg (RRSP, TFSA)

Note: The cashable rate is retroactive. For example, let's say you invest $50,000. Fast forward 2.5 years. If you need to cash out, then you will not effectively get 4% for year 1, 4% for year 2, and 1.25% for half of year 3. You will effectively get 1.25% over 2.5 years. The CU will do the math and deduct the interest overpayment before giving you access to your money.

I think this is fair and don't have a problem with it. But I'm just mentioning it in case it helps.

Also, nothing above is assumed (which you could have guessed anyway, since their website is about as illuminating as a grilled cheese sandwich). All of this information was sent to me in email.

DUCA has a 1.75% early cash-out rate. I think it only applies to 40 month GICs, with a one year minimum deposit. In any event, it's the best I've seen for withdrawal rate.
Of course, neither they nor Outlook are offering 4% rate!

Agree, the best way to manage this if you might need early access to your funds is to make several smaller GICs. Still, this should only be considered for unpredictable expenses. It's probably a better idea to keep emergency funds somewhere else.

I remain surprised about the question regarding total assets etc. I have opened accounts at a few new FIs in the last few years and have never been asked this. Yes, I know they do credit checks, but had understood that was more about capacity to pay, record of doing so, and income, than about net worth. Creditors want monthly payments, and my house will not provide that unless they go to court for it. Besides, we are not asking for credit. I understood the soft check was for opening an account and the hard was for credit, although they are not always consistent about that.
I regard it as a bit of a fishing expedition, for information they are not really entitled to.
If you apply for a credit card, all they seem interested in is how much you earn, where you work, maybe something about your housing.

I would be interested to hear, from anyone who goes into the branch for this, whether they get asked the same question in person.
An awful lot of people, if the media are to believed, don't even know their total assets and liabilities accurately.

I wonder what would happen if you answered, "greater than X" for assets, and "less than Y" for liabilities, said "I don't know" or "can't be sure and don't want to lie" or just left it blank - more possible in person than online. Who really know what their house, their jewelry, their art, etc., are worth anyway if they're not on the market? Who is really willing to list amounts owed to CRA on their RSP as liabilities, and knows how much that will bw? - nobody - yet it is surely a liability, and even moreso if accessed in a lump sum to pay a big bill, which is all that needs to interest the FI.

I sure wouldn't want to give the credit agencies any more info than I had to, especially with their record of errors and security leaks.

"Grilled cheese sandwich" - lol. So true!

I appreciate the responses.

Thanks for bringing this to our attention! I'll add a few other thoughts. Remember that DICO now insures $250,000 and registered funds have unlimited coverage. On the topic of registered funds, Ganaraska Financial charges $100 transfer out fees for both RRSP and TFSA (link to fees below).

https://www.ganaraskacu.com/SharedContent/documents/accountfees.pdf

I found another service fee page on the website. This one is more up to date:

https://www.ganaraskacu.com/SharedContent/documents/REV5personalbanking.pdf

Note that it now says charge for TFSA transfer is $50 (RRSP is still $100). I spoke to them on the phone Loonie and they said the only fee for the purposes of the GIC is the $50 refundable membership fee until you transfer out. Now if you want a savings or chequing, maybe gicjunkie can tell us if there is still a monthly fee.

I'm also curious what others are doing. It's an interesting time. This might be a sign of things to come (ie. increased rates) but I'm also mindful that we're (almost) setting the record for the longest bull market run in history and in the event of a crash, interest rates usually drop (although this took a while back in 2008).