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Email this3:23 pm
June 20, 2023
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Hello everyone,
Here is a link to their GIC page: https://www.mcccu.com/products/chequing-accounts/gics
I contacted Motor City with some questions and thought this forum might find the answers useful.
Q. Do I need to be an Ontario resident to invest in this GIC?
A. No, you do not have to be an Ontario resident but you will need to become a member with us if you are not already.
Q. Can a membership be opened online? What is the membership fee?
A. Yes, memberships can be opened online – you are able to apply by following this link: https://smartopen.mcccu.com/marketplace
The link will open a forum called “SmartOpen”, this allows members not local to us to apply for a membership online! Once you fill out and submit the form, one of our FSR’s (Financial Service Representatives) will reach out to you!
Our MemberShare is $100.00, this stays on deposit with us but should you choose to ever leave Motor City is when you will get the $100.00 back.
Q. Can the 10 month GIC special be opened online once a membership has been opened?
A. Even better – the link above has an area where you can do both. By selecting “GIC (Non-Registered)” under Filters > Filter by: > Category, it will have our 6.29% 10 Month GIC listed, you can simply “Add to Products”.
Q. How are funds transferred into and out of MCCCU? Do accounts support external linking of accounts for “bank-to-bank” transfers?
A. There are a few different ways you can transfer funds in and out of your account – you can wire the funds, e-Transfer (depending on limits at your other Financial Institution), send a cheque via mail to us, etc. The FSR who contacts you may have a better suggestion depending on your situation!
That is all for now. Please go easy on me with my first attempt to contribute to this community.
Cheers!
5:28 pm
October 21, 2013
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Thanks very much for posting, and for giving us so many details.
I note that FSR did not answer your question about getting the money out of MC. Important quesiton!
6:02 pm
September 5, 2023
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It is odd that some FIs are able to increase GIC rates when Statistics Canada indicates the economy is shrinking i.e. Bank of Canada would lower rates
https://toronto.citynews.ca/2023/11/30/economy-canada-gdp-third-quarter/
I vaguely recall something in economics class about differentials due to local conditions. Something interesting going on in Windsor, Ontario. Many autoworkers cash rich due collective agreement lump sum settlements?
My understanding is Motor City Credit Union is covered by FSRAO insurance
https://www.fsrao.ca/credit-unions/motor-city-community-credit-union-limited
Also interestingly they merged 27 credit unions into Motor City
So not a small credit union
6:51 pm
November 22, 2023
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althisa said
It is odd that some FIs are able to increase GIC rates when Statistics Canada indicates the economy is shrinking i.e. Bank of Canada would lower rates
https://toronto.citynews.ca/2023/11/30/economy-canada-gdp-third-quarter/I vaguely recall something in economics class about differentials due to local conditions. Something interesting going on in Windsor, Ontario. Many autoworkers cash rich due collective agreement lump sum settlements?
My understanding is Motor City Credit Union is covered by FSRAO insurance
https://www.fsrao.ca/credit-unions/motor-city-community-credit-union-limited
Also interestingly they merged 27 credit unions into Motor City
So not a small credit union
For the most part it's about mortgages. Lots of people on a variable mortgage who have been hoping (and praying) for the BoC to start lowering rates are starting to realize that its not going to happen until maybe the middle of next year -- or maybe not (in 2022 I recall an overwhelming number of folks in a popular Reddit cesspool saying that the BoC would "absolutely have to start" lowing rates by mid-2023...).
So, many of them are going with 5-year mortgages, both as a safeguard against potentially higher rates, and just to get some predictability. In turn, banks and credit unions compete for longer-term deposits...without that competition, they would love to pay 1 or 2% on a 5-year GIC. But they can't, thankfully.
6:55 pm
October 27, 2013
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It looks pretty small at $518M in assets https://www.mcccu.com/assets/pdfs/MCCCUAnnualReport2023.pdf Page 21 and #75 on https://ccua.com/app/uploads/private-files/top100-2Q23_22-Sep-23-1.pdf While at the same time, it is experiencing some growth.
9:06 pm
November 22, 2023
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althisa said
I vaguely recall something in economics class about differentials due to local conditions. Something interesting going on in Windsor, Ontario. Many autoworkers cash rich due collective agreement lump sum settlements?
In that part of Ontario there are a lot of commercial mortgages for agriculture. That's a big reason why credit unions in that area, such as Windsor Family Credit Union, are being very aggressive through brokers -- typically at or leading the way these days on 4/5 year terms. They're processing a lot of large mortgage renewals, so they need more deposits.
9:07 pm
April 6, 2013
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Motor City Community CU looks like a traditional branch-oriented credit union.
For personal clients, I didn't see any ability to originate a direct deposit to push funds out or originate a pre-authorized debit to pull funds in.
Business clients can originate pre-authorized debits to pull funds into a business account (customer automated funds transfers).
Looks like personal clients will need to open a FreeFlex chequing account and link to the chequing account at another financial institution. The FreeFlex chequing account has no monthly fee and pre-authorized debits are free.
The FreeFlex chequing account has free bill payment. So, if one has a brokerage account at one of the bank-owned brokers. One could bill pay funds to the brokerage account to push funds out. For an example, this is from RBC Direct Investing: I Want to Add Money to My Account:
How to Transfer in Cash from Another Financial Institution
If you bank online somewhere other than RBC, simply add "RBC Direct Investing" as a bill payee – just like you would to pay an online bill — to transfer funds from a chequing or savings account. You will also need to have your 10-digit account number, which can be found on an RBC Direct Investing account statement. This can take two to four business days.
Once they arrive in the brokerage account, the funds can be transferred to a chequing account at the parent bank.
5:35 am
March 30, 2017
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yeah no easy way to get money out, not for me
1:39 pm
June 20, 2023
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Thanks for the input, everyone. I was surprised by the $100 MemberShare. The few credit unions I have dealt with had member shares of $5.
4:36 am
September 7, 2018
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savemoresaveoften said
yeah no easy way to get money out, not for me
You can write a cheque on the Freeflex Chequing acct. In addition information by previous posters indicate that preauthorized debits are free - or you can use bill payment.
But it is the $100 membership which seems excessive. At least banks don't charge "membership fees" like credit unions.
6:27 am
November 22, 2023
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canadian.100 said
You can write a cheque on the Freeflex Chequing acct. In addition information by previous posters indicate that preauthorized debits are free - or you can use bill payment.
But it is the $100 membership which seems excessive. At least banks don't charge "membership fees" like credit unions.
I get what you're saying, and agree that $100 seems excessive. DUCA and Meridian charge $1 I believe, and most others I've dealt with charge $10-$20.
However, I think it's important to highlight that it's not a conventional fee. It's a membership share. If the credit union pays dividends (not sure if this one does), then you could get a small winfall each year (some base it on what products you have, others give all members the same amount regardless). If/when you close your accounts, you get your membership fee back.
2:34 pm
June 20, 2023
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Here is a Q&A in regard to the MemberShare:
Q. Do members earn interest or a dividend on the MemberShare? If yes, how is the rate determined?
A. No, unfortunately our MemberShares do not earn interest.
3:48 pm
November 22, 2023
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jorno319 said
Here is a Q&A in regard to the MemberShare:Q. Do members earn interest or a dividend on the MemberShare? If yes, how is the rate determined?
A. No, unfortunately our MemberShares do not earn interest.
lol not surprising (or impressive) that they totally sidestepped the 'dividend' part of your question.
As for interest -- really, it's hardly something you need to bother about. Might be $1 or $2 in interest per year, and it would be taxed at your marginal rate.
I think it's more important to know that it's a share and not a fee, which means you get it back if/when you close your accounts and end your membership. All credit unions do that.
I remember calling Motor City about a year ago to inquire about GIC rates. Forget who I spoke to -- he was pleasant and helpful...I wanna say "Joey" or something like that?
8:39 pm
October 21, 2013
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Membership fee may discourage "fair weather friends" - which may be a good thing for the CU.
I have paid 100 before, and never thought of it as a deal breaker. If I weren't going to increase my income by significantly more than the membership fee, I wouldn't plan to join.
4:18 am
May 20, 2016
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Can we do cheque e-deposit to the account using its app?
10:46 am
June 28, 2022
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I would like to add that as of this writing, as per Customer Service Representative Taylor, this offer will be available until 31-Jan-2024.
6:22 pm
November 25, 2019
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Norman1 said
Motor City Community CU looks like a traditional branch-oriented credit union.For personal clients, I didn't see any ability to originate a direct deposit to push funds out or originate a pre-authorized debit to pull funds in.
Business clients can originate pre-authorized debits to pull funds into a business account (customer automated funds transfers).
Looks like personal clients will need to open a FreeFlex chequing account and link to the chequing account at another financial institution. The FreeFlex chequing account has no monthly fee and pre-authorized debits are free.
The FreeFlex chequing account has free bill payment. So, if one has a brokerage account at one of the bank-owned brokers. One could bill pay funds to the brokerage account to push funds out. For an example, this is from RBC Direct Investing: I Want to Add Money to My Account:
How to Transfer in Cash from Another Financial Institution
If you bank online somewhere other than RBC, simply add "RBC Direct Investing" as a bill payee – just like you would to pay an online bill — to transfer funds from a chequing or savings account. You will also need to have your 10-digit account number, which can be found on an RBC Direct Investing account statement. This can take two to four business days.
Once they arrive in the brokerage account, the funds can be transferred to a chequing account at the parent bank.
I opened MCCCU HISA and downloaded my MCCCU HISA void cheque / PAD form to get the Institution, Transit, and Account numbers. I'd now like to link my MCCCU HISA and Tangerine HISA from Tangerine's side. Would I be able to do this so I can push (pull) the funds into (out of) MCCCU HISA from Tangerine?
7:11 pm
April 6, 2013
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If MCCCU will provide a form that says "Pre-authorized Debit Form" for the HISA, then I would guess "Yes." 
Now, RBC Royal Bank will provide the same for my RBC High Interest eSavings account. The catch with that RBC account is each pre-authorized debit would be $5.
Check with MCCCU to see if there is any fee for pre-authorized debits against their HISA. Their Savings Account page just says "Free in-branch withdrawals and transfers" and "Free online transfers".
My guess may not be that good. I found their full personal account services fees document. For the HISA, it says "N/A" instead of "$0.00" for cheques and PAD. Maybe one could push money only into the HISA at Tangerine and not pull money out of the HISA.
7:33 pm
September 7, 2018
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Their HISA pays 2.10% so
perhaps one should open the No Fee chequing if transfers by online banking are possible.
9:46 pm
April 6, 2013
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For reference, this is part of their full personal account services fees document showing the service fees for their FreeFlex chequing account and their HISA:
Please write your comments in the forum.