Meridian Credit Union 2.90% for 5 Years | GIC discussions | Discussion forum

Thanks. Can I ask which broker ?

Only because the Meridian CU website shows 2.0/5yr, so if I go to buy one it'd be nice to give specifics.

The GIC broker FISCAL AGENTS is in Oakville, ON, not Ottawa. They use a courier to service clients in the GTA.

blockquote class="spPostEmbedQuote">Norman1 said

Loonie said
As for Meridian, I, as member, do not appreciate these kinds of shenanigans. I suggest members complain in writing, as we are getting shafted. I also suggest showing up at the AGM and complaining there also. This is not just about a few bucks. There is a big difference between 2.0 and 2.9
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The two 5-year GIC rates have different conditions.

The Meridian CU 2.9% rate, through Fiscal Agents, is for $10,000 minimum. It drops to 2.15% for $5,000 minimum.

The direct Meridian CU 2% rate is for only $100 minimum.  

I appreciate the distinction, although I don't know where you found this information.
However, most of us here are probably looking at more than 5 or 10K.
In any event, Meridian fails to disclose the better rates for higher investments, which means they don't intend to offer them voluntarily.
It's not like they don't know how to use banner ads or promo pages to let us know.

If you tried to buy a five year GIC with them online (which I have never tried to do), I'd be really surprised if a page pops up and says, "Congratulations! Today's your lucky day! Because of your investment of over $10,000, you have qualified for a Special Rate of 2.9%!"

gicjunkie said
. Also, I have in the past been somewhat successful in convincing institutions to give me a slightly higher rate than what is quoted on line.  

What strategy (approach) works for you in presenting your case for negotiating an increased rate?

Stephen

Loonie said
As for Meridian, I, as member, do not appreciate these kinds of shenanigans. I suggest members complain in writing, as we are getting shafted.   

I have some promo GIC's with Meridian, both direct (negotiated with the local branch manager as well as booked through a broker.

I monitor a variety of sources, including the helpful posts here, to form a global picture of the market on any given day.

Just like FI's vary their rates from one day to the next, I vary my GIC bookings from one institution to the next, to wherever I can get the best rate.

I don't have any particular affinity or brand loyalty to any FI, though I do like dealing with some (like Meridian) more than others, but brand loyalty doesn't drive my decision to purchase. I'll call the Meridian manager and give them a chance to bid, while comparing on the open market both direct and with brokers as I'm sure most here do as well.

It almost sounds like you feel betrayed by Meridian when they are simply weighing their options as we, as consumers do in discussions such as we enjoy here, for example..

For me, it has nothing to do with the question of brand loyalty per se.
I want to hold credit unions accountable to their principles, not to act like banks. This is a value that I hold. I do business with both.
And, yes, I am always disappointed when a CU does not live up to its principles.

Yes, but in this case the discrepancy between the two rates is enormous, so I don't think it's justified. Further, Meridian can put whatever minimums it wants on the required investment - through either route - and be clear about it. Also, is it not also good business to draw in your own existing client / member base rather than alienate them when they find out later they could have done better elsewhere with the same institution? That is precisely the business they are in - catering to their members. Most banks welcome an opportunity to get you in the door and talk to you.
It would be good too if they explained what they were up to, and why. Members have a right to know. But they never talk about it.
I really have no idea what the average person puts into a GIC at the branch, but perhaps you have some experience with this.

I don't think they are more interested in borrowers than investors. They make money off of both. If you don't have much money and are only able to buy small GICs, then they will be interested in you as a borrower - but still should be glad to see you come in so they can get your business on the borrowing side, and the GIC is door opener to that discussion. If you have lots of money, they will want to convert you to their other investment products.
Keeping up a chatting relationship with people is why they have bricks and mortar, so that you will think well of them, trust them, say nice things to your friends about them - and come back with more business later. I have no doubt they all go to mandatory seminars o 'building relationships" and that one's potential to do so is a hiring consideration. My Meridian rep started off our relationship trying to talk to me about sports! Waste of time, thought I. But for him it's a relationship builder. Unfortunately for him I have no interest in sports. The last two times I emailed him with a question, he never responded, and that matters to me. I think he's giving up, but, then, so am I, and the consequences are worse for him than for me. Now, if he were to contact me, even in a broadcast email, and tell me he could offer me a 5yr GIC at 2.9% for a limited time, minimum $100K, reminding me that DICO insurance coverage is going up in January, I might very well respond - and I would like him a whole lot better just because he kept me in the loop.
If I bake a bunch of cookies, and only offer them to strangers, my friends and family are not going to be happy! And they're not going to appreciate my reasoning, whatever it is.

I've been retired for a fair while now. So can't really comment on some of what you've said.

Meridian may indeed be experiencing growing pains. They are expanding rapidly, and may not be keeping pace in terms of new hires, new managers, new facilities, even new promos(!). They may not have sorted the wheat from the chaff yet. The next question will be if the wheat is identified and stays with them. They seem to be mostly getting their staff from for-profit FIs where the corporate culture is different. From what I can see, those folks were eager to leave, but they may not have fully changed gears yet.

They have also made some strategic decisions which I consider stupid. The BoC has raised rates twice. At about the time of the first rise, Meridian in its wisdom lowered their HISA savings rate. After the second rise, they lowered something else, I forget what. Very few FIs did this. Really stupid timing gives terrible optics to the members. Seems like they are so busy pursuing growth and a model to compete with big banks that they have lost sight of their membership.

My Meridian rep has never phoned me to tell me of an offer! - or sent an email to that effect. Ironically, Tang does better on that score. And he knows perfectly well that we have the funds to qualify for any of his special promo rates.
I've been a member for about a year.
They did once invite me in for a seniors day event or something like that, where they said they wanted to hear what we thought. I'd already told them what I thought.

I've only dealt with the manager a couple of times and couldn't say if service is better there.

We can call it growing pains, but next year they'll be launching their bank - or at least they planned to last time I looked - so that may create even more havoc as people try to sort out the bank vs the CU. Alterna has had problems with that.

My jury is out on whether bigger is necessarily better for CUs. Little Talka in Hamilton offers some of the best rates going and they are more stable than most. A modest little building, minimal overhead as they are not building new outlets. No growing pains. Their mortgage rates are on the high side, but they seem to be making a go of it.