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)5:17 pm
October 21, 2013
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Good research, Jon!
"Canadian First Financial", CDIC-insured http://www.cdic.ca/Pages/Members.aspx#CC
They recently bought up MonCana and seem poised to make an impact. I guess this is their first offering to build deposits.
They also have 3 and 4 years, both at 3.0% - perfect for laddering TFSA.
They are also offering a promotional TFSA savings rate of 3.0%, competing directly with Peoples Trust, but it is only until March 31. Still, it's a guarantee, which Peoples doesn't offer, but Peoples does offer online convenience.
They only offer TFSA and a savings account, as well as mortgages, but I see no correlation between interest rates offered and mortgage rates. Strange.
5:29 pm
August 9, 2014
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I see no sense in the way they can offer deposit rate higher than mortgage rate either, but I guess is the same reason why PT will offer 3% in TFSA saving account - to attract deposit and make sure you will consider their other products, especially TFSA only have limited contribution room.
3:52 pm
November 4, 2014
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Jon, thanks for the information about the 3.30% TFSA GIC's and 3.00% TFSA savings account but we it only represents 8.57% of our total investments so the extra money of 5 year 3.30% versus 3.05% GIC's is about $892.38 compound interest over 5 years.
I am surprised that it would not be more interest for us. Remember, we have the maximum TFSA's contributed and invested so for most people it will be much less. Jon, again, thanks for the information.
1:57 am
November 4, 2014
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The 3.30% TFSA rates are great and the 3.00% TFSA savings account is great as well but people should be aware of TFSA transfer fees.
I believe that they are about $50+ H.S.T at most financial institutions but I would not be surprised to see $75 or $100+H.S.T TFSA transfer fees as well.
Also, if someone has invested for 3 or 4 or 5 year GIC's, they could increase the fees later before they mature and recoup someone of the cost to them paying depositors currently the highest GIC rates.
Take care and it pays to shop around.
3:57 pm
August 9, 2014
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Good call Greg, I didn't see that.
But if you have a 5 years GIC with large sum of money, I think it is still worth it as you can earn a large sum of interest, alternatively, you can withdraw money at the end of the year and contribute it to another account later after January 1st.
3:29 am
October 21, 2013
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There is no transfer-out fee listed on their "Services and Fees" page. http://www.cffbank.ca/sites/de.....harges.pdf
They may introduce one at a later date, but, then, so can any institution, so that is not really a deal-breaker. Almost all of them charge $50, and it is not an area that receives a lot of competitive pricing. The future is unknowable.
By my calculations, you don't need an overly large amount of money. $8000 in 5yr GIC should cover any transfer fee, should there ever be one. People who are interested should do their own calculations.
6:49 am
November 4, 2014
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Jon, I am assuming you are talking about putting that money in a 3.00% CFF TFSA savings account first and then maybe later a 3.30% CFF TFSA GIC in 2015. This makes sense and is a good point, Jon.
The point about the $50 to $100+ H.S.T possible TFSA transfer fee that maybe added in the future is that the extra 0.25% per year of 3.05% versus 3.30% maybe be eaten up.
I calculated that is around $4,000 to $8,000 per TFSA contributor on a 5 year term that the extra interest maybe lost. If you choose a 3 or 4 year term it will be higher than that.
This makes more sense for each person that have $10,000 and more in TFSA's or unused TFSA contributions.
Take care and it pays to shop around.
12:10 pm
November 16, 2014
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Just came across this forum.
As far as TFSA transfer fees are concerned - I realize that when transferring TFSA contributions during the year, most financial institutions now charge a fee/penalty (I had to pay $50 a few years ago when switching my TFSA account from PC to another institution). However, when I took out all of my TFSA contributions at the end of the year from that bank, and then made a fresh new (full-limit) deposit on the 1st of January the following year at another bank, there was no penalty - or has that changed recently?
12:22 pm
November 4, 2014
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Rron, I never heard of any fee as well when withdrawing TFSA's and turned into cash, non-registered money so that might be a way to save the TFSA transfer fees.
However, I would not be surprised if they see too much people doing that they might start charging a fee to withdrawal TFSA money.
I know many places charge a withdrawal fee for RRSP's but I don't know if that was the case in the beginning or it happened gradually after many years RRSP's were already in existence.
Rron, this is a good point about withdrawing TFSA's and waiting until 2015 or whatever the next year is so you don't get charged with a 1% per month over contribution penalty with CRA.
Take care and it pays to shop around.
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