GIC Wealth Management Broker Rates | Page 11 | GIC discussions | Discussion forum

JenE said
Email just received:
(I don’t have any other info.)

1 year 5.90%*
18 month 4.85%**
2 year 5.90%*
30 month 5.20%***
3 year 5.59%*
4 year 5.59%*
5 year 5.64%*  

Would love to know who needs 1&2 year money that desperately ?!

oltunde said
One more question, any chance the cheques you send brokers , even though in your own name, can be just deposited in their own account by fake endorsements, and they just send you a fake gic certificates, which are easy to make?  

technically all possible, which is why one should only stick with established GIC brokers. And one can check with the issuer to confirm GIC is indeed purchased under ur name but thats after the fact, wont stop the fraud in the first place.
But the check is under ur own name, so they have to forge ID to match ur name and then withdraw it as cash after deposited it initially.

One can retrieve the cleared cheque afterwards and examine the back for any unexpected endorsements. The cheque shouldn't have any endorsements as no endorsement is needed when a cheque is deposited to an account under a name that matches the cheque's payee.

Payments Canada Rule A4, subsection 6(a) allows six years for a cheque to be bounced because of a forged endorsement. Some of Earl Jones' victims were able to recover money that way.

Jones had changed the address on life insurance policies. When the insured passed away, he submitted the required paperwork and the cheques, payable to the beneficiary, were mailed to his office. He fraudulently endorsed them and deposited them into his own RBC Royal Bank account.

Some of the beneficiaries didn't even know there was a life insurance policy! The deceased had trusted Jones to take care of everything.

It may very well be as I recall Kevin Rotenberg asked if I was in Ontario.

I would ensure that both the principal and any potential interest was fully covered under the $250K.

dickyran333 said

2) I called LDCU and explained them my concerns (not able to get access to online banking to confirm my GIC(s). After speaking with a couple of people, they told me that they would get back to me. I thought nothing would happen further. But to my surprise their Manager of Lending Service called me, patiently listened to my concerns, then called me back after 20 minutes to inform that they would register me for online banking so I can confirm my GICs with them. I just need to call them after my GIC is opened through the broker. (Wow!)

DUCA will do the same, assuming they do accept out of province investors

I feel that I'd be better off to limit my exposure to LDCU. And this is despite the fact that my investment will be 100% insured by CUDIC.
DUCA is also very new to me. But just a quick glance at their 2021 financials (a balance sheet of $5.5 billion and NI of over $25 million) tell me that they are far bigger (and hopefully better).

I have same thoughts here. Even tho it may be insured, I dont want the hassle to deal with it and have money tied up if something does happen. I dont need to squeeze extra bps to take unneccessary risk / hassle

Would love to hear thoughts / suggestions of others.

PS: I don't know whether DUCA accepts out of Ontario investors. Or maybe it doesn't matter if I go through a GIC broker.  

oltunde said
The good thing about LDCU, is small so any trouble the insurance has enough money to cover it all, while big ones….?  

that means u will get ur money back, but not sure how long it takes if that happens. People said in the past, its very fast.
Also I dont know how it calculates the "earned but not paid" interest on a GIC for example.

gicjunkie said

First of all, yes , money does get distributed quickly after a CU failure but, you should also know that, historically, many floundering CUs are happily "gobbled up" by other CUs. In these cases your GIC investment just continues under a new name or the new CU pays out the GIC principal and accrued interest to you. In any case, as long as you are insured, your risk of loss is very low.  

You'd think that's how it would work all the time, but I had this happen where an ON CC I had money with went under and was purchased by someone else, but they didn't take over our GICs, they were cashed out and mailed to us. We also got the money back quickly, about a week, but DICO screwed up and submitted out T5's twice and that was the biggest PITA of the experience.

gicjunkie said

Isn't that what I just said? (except for the T5 error)  

No, because this was not done by the new CU. It was all handled by DICO.