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Email this11:10 am
December 2, 2021
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I hold a number of GICs which I purchased online in a non-registered brokerage account with TD Direct Investing. Included are some GICs listed on their website as being with TD Bank, TD Mortgage, TD Pacific Mortgage and Canada Trust Corporation. It was my belief that CDIC would cover up to $100,000 for each of these GIC categories.
However, when I phoned TD yesterday, I was told that this is not the case and that only the total deposits in all four GIC categories up to $100,000 would be covered by CDIC. In other words, if a client had $100,000 in each of these categories, only $100,000 would be covered by CDIC. Does anyone know if this is correct?
11:33 am
January 12, 2019
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.
Anon52 . . .
I'm certainly not an expert on these matters, but I believe the CSR you were talking to at TDDI is Mistaken.
Here's the official listing of all the CDIC insured members ⬇
All four FIs you motioned above, are each individually covered by the CDIC.
Hope that helps,
- Dean
" Live Long, Healthy ... And Prosper! "
2:35 pm
April 6, 2013
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TD Bank, TD Mortgage, TD Pacific Mortgage, and Canada Trust Corporation are not categories for the purposes of CDIC coverage.
As Dean pointed out, those are actually four different issuers who is also each a separate CDIC member.
If one placed $100,000 in GIC's issued by each of the four issuers, one would have $400,000 of CDIC coverage.
9:59 am
December 9, 2018
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When trying to buy any GIC, there's a disclaimer that renewal instructions are not available on webbroker. You have to call in. I tried, but it was a 30 minute wait so hung up. All I want to know is what happens when the terms are due. Payout? Auto-renew? Surprise option? This is stupid, they should at least tell you what happens to your money without having to call in.
10:20 am
April 6, 2013
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No renewal instructions through a discount broker usually means no automatic renewal at maturity. So, at maturity, the principal and interest are paid into the cash balance of the brokerage account.
That's consistent with how other fixed income instruments, like bonds, treasury bills, and bankers' acceptances, are handled at maturity.
10:30 am
August 4, 2010
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I've only recently bought my first TDDI GIC (with no extra instructions). It would be nice to know if "renewal instructions unavailable) means that the default is "no renewal", or if it might be issuer-dependent, and some issues might auto-renew.
In the "Holdings" area for the GIC, expanding it just shows "Details for this security are unavailable", so all you have is the abbreviated issuer/term/rate/maturitydate name they display. Not one of Webbroker's finest moments.
On the bright side, I hadn't realized that they treat a GIC as a quantity of nominal $100 units, so if you buy two or more chunks from the same issuer/term on the same day, you get one lump of units, and you can transfer an arbitrary chunk of that as TFSA withdrawal or RRSP in-kind contribution without having to move the whole thing.
The other long-time Webbroker "we know, but we won't tell you" info problem is dividend reinvestment ("DRIP") settings. If you phone they can tell you the DRIP status for any holding, but it doesn't display anywhere on Webbroker, much less let you change it. The "Projected Income" tab would be a good place to display this, for instance.
12:38 pm
September 11, 2013
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I doubt anyone wants auto-renewal in a discount brokerage account, it's not the same as dealing with a single financial institution issuer directly. On maturity day I want my money and if I want another GIC I want to see which of their 20 or so banks offerings has the best rate that day.
The few GICs I've bought via various discount brokers over the years that's what happened, automatically, I don't recall seeing anything about renewal options, etc.
7:06 pm
January 7, 2023
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Several times we have had TD automatically renew GICs, although we had written proof of instructions that they were NOT to do so. As soon as we could, we stopped purchasing from them. If you do not specify, many institutions will also always auto renew. Best to get paperwork with bank/credit union person to write instructions on (if they say they can not be typed or say they can not list such instructions(which may well be bs)), ensure they date and initial and 'chop' the paperwork as your proof.
8:45 pm
September 11, 2013
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Venteicher, you're referring to TD Bank, not TD Direct Investing, I assume, correct?
8:54 pm
August 4, 2010
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Bill said
Venteicher, you're referring to TD Bank, not TD Direct Investing, I assume, correct?
Actually, "TD Bank" is their American operation, no GICs down there... 
But it does sound like Venteicher's TD experience was with the TD Canada Trust branch system (or perhaps online through Easyweb), not the TDDI brokerage system, which is a different kettle of fish.
8:02 am
September 11, 2013
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You're right, I should have said TD Canada Trust.
1:10 pm
January 7, 2023
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Except for the 1 year GIC, The TD bank group offerings in TDDI is paying a lower rate than buying directly from TD bank.
year 1 2 3 4 5
TDDI 5.4 5.0 4.65 4.65 4.65
TD 5.3 5.1 4.8 4.8 4.8
I assumed that TD bank's offerings in TDDI must be better than or at a least as good as buying directly from TD bank so I bought without checking first.
Lesson learned.
3:26 pm
September 11, 2013
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But in TDDI you can buy GICs from various issuers, were there no higher rates in the 2 - 5 yr terms?
5:01 pm
January 7, 2023
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Yes, there are a few smaller banks with slightly higher rates, but I prefer the safety of the big 5 banks over the smaller banks.
My point is that the TD bank group in TDDI and TD bank are essentially the same issuer but TD direct investing arm may offer a lower rate than TD bank directly.
6:59 pm
August 4, 2010
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There's probably some discretion between the TD groups that set the rates for retail and brokerage. I've seen TDDI occasionally do a little twiddling to move some of their issuers up to the top of the chart for a couple of days (right now only on the 1-year), and the banking people may be soing something similar to match other bigbank rates.
I don't know when and where you saw TD at 4.8% on the longer terms, but at least here they are back down to 4.7%.
TD may be governed by the Ralph Waldo Emerson saying - "A foolish consistency is the hobgoblin of little minds..." 🙂
7:21 pm
January 7, 2023
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4.8% is the current 3/4/5 yr rate if you logged onto TD online banking to purchase a GIC. Apparently both TD and RBC (and perhaps others) offered higher rates for customers via online banking. There are more discussions on this topic here:
8:01 pm
April 6, 2013
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TD Canada Trust and TD Direct Investing are two separately run channels owned by TD Bank.
TD Bank or one of the related CDIC members would be the issuer of the GIC through both channels. But, each channel has discretion on how much of the internal rate TD Bank pays for the GIC deposit is allocated to the end GIC buyer.
10:48 am
September 11, 2013
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TD Direct Investing is one of 3 divisions of TD Waterhouse Canada Inc, a separate corporation from and subsidiary of Toronto Dominion Bank.
Maybe that's why it takes a bigger cut, it has to make its own profits - ?
TD Canada Trust is just a trade name used by Canada Trust Company, TD Mortgage Corporation, TD Pacific Mortgage Corporation and Toronto Dominion Bank, per CDIC listing.
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