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Email this7:06 pm
November 3, 2022
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canadian.100 said
I was told by my GIC broker (not GIC Wealth Mgt) that pre authorized debits are generally unacceptable because of FINTRAC/money laundering rules. You can call FINTRAC and OSFI if you wish the specific details. A poster above indicated that Habib and DUCA will do it which is apparently true but no other FIs will do from my conversation with my broker. My broker does deal with DUCA, but my agent asks for cheques and does not accept preauthorized debits for GIC purchase payment. My agent does not deal with Habib Bank.
That's interesting. I wonder why one bank and one credit union (that we know of) are able to transfer funds through pre-authorised debits working through deposit brokers, and others are not?
And why are PAD more problematic with deposit broker transactions than they are when purchasing GICs through FIs like Oaken or Tangerine directly?
2:48 am
November 18, 2017
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HermanH: I suspect you already know this, but for the benefit of others I will remind that Oaken issues products via TWO entities, Home Trust and Home Bank. Each can provide $100K of CDIC coverage for three categories: non-registered and two categories of registered. I am less clear on joint accounts because I have nobody to be joint with.
So if you hit your $100K limit on one of these accounts and want more, you can get another $100K by switching to the other title.
RetirEd
10:41 am
April 14, 2021
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Thanks for the reminder. I am already at maximum with both Home Trust and Home Bank.
11:07 am
August 4, 2010
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And of course, TFSA and RRSP GIC money are both separate CDIC categories, with their own $100K coverages at each CDIC issuer like Home Trust or Home Bank.
You could get even more pots of CDIC coverage with Home by also holding GICs in a stock brokerage account (again, separate CDIC category, as a trust), but Home doesn't offer the high Oaken direct rates through the brokerage channel, so there isn't much point. For instance, a 2-year GIC direct from Oaken is 3.95% right now, but a 2-year HomeTrust/Bank GIC is 3.52% through TDDI. They may be paying a quarter point or something as commission to the brokerage, but they are still valuing the direct client connection through Oaken to some extent.
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