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Email this6:04 pm
January 3, 2013
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We were thinking to open a new TFSA for my spouse and contribute max limit using the new offer by Meridian.
For now, I am the only one with TFSA and it is locked with ZAG 2.5% - 2 years offer (less than 1 year left). ZAG's interest is calculated and added monthly.
Considering it is only 2.2% and interest is calculated annually and paid on maturity, should I wait for hopefully better rate or just go ahead and open / lock the money for 18 months? It will be $52K.
Thank you as always
6:46 pm
February 24, 2015
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There is already a thread about this:
https://www.highinterestsavings.ca/forum/meridian-credit-union/meridian-2-20-18-month-gic/
8:20 pm
October 21, 2013
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Having the interest added monthly is not usual, unless you accept a discount on the rate of return, so I would not hold my breath looking for another one of those. Meridian's offer is compounded after the first year although not paid out until the end.
I think the fundamental question for you is whether you want an 18 month GIC. If so, then this is your best bet. I don't see much likelihood of a better rate for that term coming this year. A bird in the hand...
If you want a higher rate, you have to go longer, tying up your money for longer time. Could/would you do that? Hubert is offering 2.4 on 5 years. Some others may match that. I'm not aware of anything better at the moment.
Outlook Financial has a 5yr at 2.35, cashable at 1% if needed. That offers a degree of insurance against a significant increase in rates during the term, unlikely though it is, if that is your concern.
4:15 pm
January 3, 2013
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2of3aintbad said
There is already a thread about this:
https://www.highinterestsavings.ca/forum/meridian-credit-union/meridian-2-20-18-month-gic/
Yes and that is were I realized this offer 🙂 However, my question is different than the discussion there and I didn't want to hijack that thread. Thanks
4:20 pm
January 3, 2013
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Thank you Loonie.
I will not lock the money 5 years for only 0.15 - 0.2 % extra interest on $50K.
Ok then. Going to take your advice and opening Meridian TFSA.
5:56 am
October 21, 2013
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I hope it works out well for you.
Don't forget the beneficiary form!
12:40 pm
January 3, 2013
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Loonie said
I hope it works out well for you.
Don't forget the beneficiary form!
Thank you. Tried but couldn't do it online. Called them and they said I have to go in person. That will need a whole day road trip. No branch here.
4:41 pm
October 21, 2013
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Hmmm...
May not be worth your while, then, considering the time and gas, but perhaps you have another reason to go to wherever it is so that it would be worth it to do both.
They are big on developing a personal relationship with members.
It will probably be easier for you when they open their online bank, but that doesn't help you right now.
If you do decide to go, be sure to make an appointment so that you don't have to wait around for someone to be available. It's the busy season for RSPs.
8:54 pm
January 3, 2013
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Loonie said
Hmmm...
May not be worth your while, then, considering the time and gas, but perhaps you have another reason to go to wherever it is so that it would be worth it to do both.They are big on developing a personal relationship with members.
It will probably be easier for you when they open their online bank, but that doesn't help you right now.If you do decide to go, be sure to make an appointment so that you don't have to wait around for someone to be available. It's the busy season for RSPs.
Yes. I totally agree. Would be nice if they be open on weekends. Have to call and check that. Thanks 🙂
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