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Email this8:12 am
September 6, 2020
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I purchased a long term non-registered GIC interest compounded January 1, 2020. Many classify long term as one or more years. The interest is credited one business day before the anniversary date. Interest credited December 31, 2020. T5 reports this income on 2020 T5. As some others stated bonus interest received early January is reported on 2020 T5.
Have a Great Day
4:40 pm
April 2, 2018
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This is weird. If it is 1 year GIC staring on 01.01.2020 then interest should be credited on 01.01.2021 and reported as income for 2021.
It must be Tangerine and their tricks...
7:42 pm
October 21, 2013
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Jan 1 is never a business day; it is always a holiday. They may need to post it on or before in order to avoid complaints. Perhaps their technology doesn't allow posting on non-business days.
7:47 pm
October 21, 2013
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This thread seems as good a place as any to remind people that EQ sends info to CRA even if it is under $50.
4:15 am
September 7, 2018
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pooreva said
This is weird. If it is 1 year GIC staring on 01.01.2020 then interest should be credited on 01.01.2021 and reported as income for 2021.
It must be Tangerine and their tricks...
2020 was a Leap Year (i.e. Feb had 29 days)- 366 days total for 2020 - so I think December 31-20 would be correct.
I do not think there are any "tricks" here.
5:01 am
September 6, 2020
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pooreva said
This is weird. If it is 1 year GIC staring on 01.01.2020 then interest should be credited on 01.01.2021 and reported as income for 2021.
It must be Tangerine and their tricks...
It is more than 1 year GIC. The online details say the Next Interest Payment Date is 31-Dec-2021. It is Outlook CU.
Have a Great Day
5:10 am
September 6, 2020
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canadian.100 said
2020 was a Leap Year (i.e. Feb had 29 days)- 366 days total for 2020 - so I think December 31-20 would be correct.
I do not think there are any "tricks" here.
It has nothing to do with Leap Year. The online details say the Next Interest Payment Date is 31-Dec-2021. The payment date will be one business day before a non business day until the GIC matures.
Have a Great Day
10:03 am
November 18, 2017
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Always ask whether a GIC is being calculated on a 365-day or one-year basis. My last little RRSP, rolling over at Peoples Trust, precesses (no, spellchecker, I don't mean "processes!") one day earlier every four years because they use 365 days.
I can't remember when I last found one with a 1-year policy, but it was one of the big banks.
RetirEd
RetirEd
11:30 am
September 6, 2020
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RetirEd said
Always ask whether a GIC is being calculated on a 365-day or one-year basis. My last little RRSP, rolling over at Peoples Trust, precesses (no, spellchecker, I don't mean "processes!") one day earlier every four years because they use 365 days.I can't remember when I last found one with a 1-year policy, but it was one of the big banks.
RetirEd
I started buying GIC's in 2018. I did not think about Leap Year. All the GIC's purchased before Feb 29, 2020 and matured after Feb 29, 2020 paid an extra day of interest. I dealt with 7 FI's. A couple CU's. Other FI's non big Canadian banks. When the GIC's matured I moved the funds to one FI that pays competitive rates for consolidation. To determine interest R (rate / 365) * P (principle) * # of days in period. The only FI that I found that paid the interest one business day early is Outlook CU. I have no experience yet if an Outlook GIC matures on a non-business day yet. The maturity dates are exactly 1, 2, 3, 4 and 5 years after purchase date.
Have a Great Day
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