GIC Wealth Management Inc.? | RRSPs and RRIFs | Discussion forum

Ditto.

My records show I have been dealing with them since 2014. Purchased 8 term deposits from them over the years.

Never anything but good service. I have also visited their offices (years ago).

I opened a new account with them, and courier picked up the cheque on wednesday. Looks like it may be a few days before the GIC will be issued.

So in my mind:

Pro: can access the "hidden" offer, and if issued by CUs, does not need to be a member. 3y 2.5% for example.

Con: The turn around will be at least a few days given all fundings are physical and can not be done via online transfer. So ended up losing quite a few days of interest at get go and also at maturity.

For those who has been customers for years, pls confirm one way or the other whether the above is true or there is a way to get around it.

savemoresaveoften said
I opened a new account with them, and courier picked up the cheque on wednesday. Looks like it may be a few days before the GIC will be issued.

So in my mind:

Pro: can access the "hidden" offer, and if issued by CUs, does not need to be a member. 3y 2.5% for example.

Con: The turn around will be at least a few days given all fundings are physical and can not be done via online transfer. So ended up losing quite a few days of interest at get go and also at maturity.

For those who has been customers for years, pls confirm one way or the other whether the above is true or there is a way to get around it.  

It is my understanding that the delay or lack thereof is due to whether a broker can direct deposit client cheques to the relevant FI's bank account. If they have this access/permission, your GIC would begin almost immediately. If not, there will be a delay.

gicjunkie said

It is my understanding that the delay or lack thereof is due to whether a broker can direct deposit client cheques to the relevant FI's bank account. If they have this access/permission, your GIC would begin almost immediately. If not, there will be a delay.  

yes the ability for the broker to direct deposit will save some time. But still they will need courier to pick up the cheque from me and then deposit it. Either way there will be a few days of lost interest at inception and at maturity given everything is done via cheque. As long as the extra spread is high enough, its still worth it right now as HISA keeps lowering their rates.

@savemoresaveoften: Have you got documentation that shows this delay that you are talking about or are you just envisioning it? I re-read your posts and I don't hear that you have verified the delay.
The verification I received came by Canada Post. It's only been two business days since the courier came for your cheque.

It is also my understanding that the courier used by GIC Wealth in the GTA is their own courier who delivers the cheque direcly to their office. It's not like FEDEX or UPS, so there is no delay in receiving the cheque.

Loonie said
I checked my statements again. My cheque was debited at TD on the Monday, the day the GIC was issued, the first business day after I wrote it.

I suppose it's possible there are some delays now due to covid or vacations, but I doubt it's the norm. You could ask them about it. The relinquishing FI may also be a slow one.  

Yeah given this particular issuer does not have the direct deposit option with the broker, will report back once the GIC is actually issued re the timeline of the events. Thanks to all that reply and I am glad someone posted the rates offered by the GIC broker. I would not have thought the spread can be this massive over direct purchase.

gicjunkie said

In the past I have contacted credit unions that I was already a member of, chewing them out for offering better rates through brokers than direct to their own members. They will then often offer the same broker rate to me direct after I press them. Sometimes there are additional financial perks (dividends payable based on volume of investments) when dealing direct with a credit union. Other investors are happy not to join a credit union and like to leave the details to a broker, who can offer excellent service. It's all a matter of comfort level and convenience.  

Looks like CU membership fees use to be $1 to join (Meridian, Duca etc.) Now I see some CUs wanting $50-$100 ?! Given that the only purpose of me wanting to be a member is to purchase the GIC, the broker route makes more sense in my case esp with the higher rates. Not sure how it works when one dont need to be a member if the GIC is purchased thru a broker, even tho the GIC is issued under the investor's name and that the deposit guarantee still applies.

So far GIC Wealth has been very responsive so my initial impression is very good on the service side.

As far as I know, the membership fee is always refunded when you close your membership. It's a kind of no-interest loan. It's true they can range from $1 to $100. I don't look on it as a burden. I wouldn't be joining if it weren't worth my while.

All else being equal, I would choose to join rather than use broker simply because I like to know what is going on with the FIs that hold my money. As a member, I can participate in AGMs, and with the smaller ones I can speak to the CEO if I want. And, yes, with some, such as DUCA, there are patronage dividends as well. I made about $120 in patronage dividends this year and spouse got some too. It's not a huge amount but it arrived in my account automatically, with no effort on my part.