HSBC GIC promo | HSBC | Discussion forum

non-registered GIC only. new funds only. minimum 5K.

I don't think it's really any more gimmicky than other promos. The repetition of the number 8 is, I think, a just a reflection of Chinese culture, where 8 is considered a lucky number. It's a Chinese New Year special.

Could be a good deal for those who are anticipating further rate increases this year, and who live near an HSBC branch.

I have found HSBC cumbersome at best , to deal with. I would want to know how I was going to get the money out at the end and how much that was going to cost me before I took this offer. Make sure you do not allow auto-rollover!

HSBC is one of the largest bank in the world. In term of assets they are more than twice as big as RBC.

Loonie said
non-registered GIC only. new funds only. minimum 5K.

I don't think it's really any more gimmicky than other promos. The repetition of the number 8 is, I think, a just a reflection of Chinese culture, where 8 is considered a lucky number. It's a Chinese New Year special.

Could be a good deal for those who are anticipating further rate increases this year, and who live near an HSBC branch.

I have found HSBC cumbersome at best , to deal with. I would want to know how I was going to get the money out at the end and how much that was going to cost me before I took this offer. Make sure you do not allow auto-rollover!  

Well, at least Coast's apparent "tie in" with the 4.00% GIC promo is: (a) long-term and (b) not so blatantly transparent. 2.88% for 88 days? C'mon...the only thing more gimmicky would be 8.88% for 88 days.

(That would be a short term money loser but not out of the question, even in this environment, given its extremely short duration and that it's on net new money.)

Some existing customers might "park" money with this offer, for sure, but to me and for "rate chasers" anyway, the burden of setting up an HSBC account (they don't allow virtual account openings anymore as of 2013, despite being a pioneer in that area and closing 20% of their branches in the last 10 years) is simply too great.

4%, meanwhile, for net new money for 33 months (nearly 3 years), even for non-members is not.

Cheers,
Doug

Doug, unfortunately for me Coast Capital is not an option as I do not reside in BC.

I thankyou so much for your insight as I take it you worked there in the past. I trust what you are saying which is why I love this platform! I hope we see better rates soon! I am looking for a short term home for $500K? I suppose Tangerine at 2.5% is the next best thing?

gamgam said
I thankyou so much for your insight as I take it you worked there in the past. I trust what you are saying which is why I love this platform! I hope we see better rates soon! I am looking for a short term home for $500K? I suppose Tangerine at 2.5% is the next best thing?  

Thanks for the kind words. Yes, I worked at the Westbank First Nation branch in B.C. since its inception (Feb. 2009) through Jan. 2014 plus the first year its main branch in downtown Kelowna (Jan. 2008-Feb. 2009, inclusive). 🙂

goldenhawk is correct on HSBC offering two CDIC issuers but it's worth noting, even then, there can be no assurances that all GIC promos and rate offerings are available through all of HSBC's CDIC member issuers.

It depends how concerned you are with CDIC insurance. With Tangerine, though it's a separate CDIC issuer from its parent, Scotiabank, because both are Canadian-regulated entities, OSFI and CDIC have jurisdiction that would prevent Tangerine from "failing" without Scotiabank first failing. To me, it's personally not a concern, other than with the smaller CDIC member issuer banks.

It sounds like you don't want to tie it up for even 1 year? In which case, I would say the Tangerine promo is probably your best bet but you might also look to a deposit broker and see what their best short term GIC (i.e., 9 months or less or 1 year redeemable after 30 days or 6 months without penalty). This also allows you to "spread your funds around" without opening accounts with each institution.

Cheers,
Doug

gamgam said
Hi Doug, you are correct in not opening more accounts than necessary. I am considering the 18 month term with Oaken for TFSA's @ 3% of which I already have accounts open. Otherwise I prefer to be quite liquid as we are in the market for purchasing a lakefront retirement home in Lake of the Woods, ON. Also promo rates are not far off the 1 year GIC rates. I don't like being over CDIC limits but feel Simplii (3%) and Tangerine (2.5%) for a 90 day period not locked in is worth the risk. Am considering TD Private Wealth as being taxed on T5 income at Manitoba's highest tax rates suck! Need capital gains and dividends to net more in our pocket! Also want to preserve capital with some growth?  

Which of those do you have accounts and are you (a) married and do you (b) trust your spouse?

If so, consider this scenario vis-a-vis Oaken Financial:

- $100,000 with Home Trust 3% 18-month GIC in your name
- $100,000 with Home Bank 3% 18-month GIC in your name
- $100,000 with Home Trust 3% 18-month GIC in your and your spouse's names
- $100,000 with Home Bank 3% 18-month GIC in your and your spouse's names

$400,000 fully CDIC insured in one place (one umbrella organization and online banking profile).

As long as you have some other liquid capital should you need it and you don't anticipate buying that place for 18 months, it's a fine strategy. Alternatively, leave out whatever you feel you can't tie up for 18 months and employ a similar strategy with either Tangerine (or Simplii) and be fully CDIC insured.

I'm a bit confused on the TD Private Wealth bit...what would you be invested in? You realize you're taking market and, potentially, currency and other risks there. It's not a guarantee but, generally speaking, if you're comfortable with the volatility, you should be OK in the longer run. For 18 months, I wouldn't, personally, tie up that much capital in ETFs, mutual funds or other equity investments (or even bonds, which are illiquid). I would stick with the GIC strategy above, possibly combined with HISAs. As for the Manitoba T5 comment, GIC interest is taxed as interest income in any Canadian province - it is not a Manitoba-specific issue so if you're happy, service and rate wise, sticking with a Manitoba CU is a great option, too. 🙂

Cheers,
Doug

In order to be fully insured, you should only put about 96,000 into each of these pots. The interest is included in the 100K CDIC coverage, so you have to work backwards from there to see what your max deposit should be.

I agree; wouldn't touch any other kind of investment for 18 months. Need at least 10 years, preferably 20 or, better, 30. Further, 400K is not enough to interest TD Private Wealth Mgmt in your account - unless you have other assets to offer them; and, if it did, they would likely take 1% in management fees, with no guarantee of exceeding net 3% or even meeting it.

Thankyou Saver-Mom, I was aware of how to achieve several CDIC limits. The reason I like to keep investments in my name alone is to pay less income tax. We have an accountant that seems to think a joint T5 slip has to be claimed 50/50. 50.4% tax vs. 37.9% tax? It all adds up!

Thankyou Lonnie, I too do the calculation of including paid up interest into my CDIC limit. As far as TD Private Wealth Mgmt, we are at that level we are accepted (well over 1 mil) as we have our RRSP's with TD Waterhouse now. Management fees would be 1% but we are at 1.7% now. I also am hesitant on the next 18 months as far as the stock market goes. I think TINA is coming to an end!

Lastly thankyou Doug, We would be invested in a balanced fund as we are nearing retirement and would draw this out first as we do not have pensions. Hopefully to capture a 33.25% tax bracket. Have saved very well though! As far as T5 interest taxed as income in any Canadian province? Take a look at provincial combined taxes across the provinces and look at the difference! I would have no complaints claiming the province BC on my return! As soon as we are over $68K look out! Much worse $202K!

P.S. Should start a new thread as this has nothing to do with HSBC