Any Chinese New Year GIC promo this year ? | Page 3 | Wealth One Bank of Canada | Discussion forum

Late e-statements are not a big deal, just annoying and not timely in today's context, as has been noted. I review my monthly statements (historical document) in the following month and it's a first-world annoyance to have to wait 3 weeks, far later than any other fi, to do that with Wealth One activity only. Which then also raises the question of what's so unique about Wealth One's system, these things should come out automatically immediately, no human effort? So far no-one's been able to explain this uniqueness, which is odd to me.

Also Wikipedia says "In November 2016, The Globe and Mail published an article claiming that the banks website included inaccurate profiles of its key investors and that its founder previously faced allegations of mishandling client insurance claims......." I've been assured the Globe and Mail is a reputable media outlet, their 2016 article was headed "The murky beginnings of a new Canadian bank", it's available online. So I admit I'm a bit more leery than I am of fi's that don't have similar reporting about their origins, especially in the context of their continual losses.

Having said all that, my Investors Edge December statement is also not available yet.

Bill said
Also Wikipedia says "In November 2016, The Globe and Mail published an article claiming that the bank's (ie WOB) website included inaccurate profiles of its key investors and that its founder previously faced allegations of mishandling client insurance claims......." I've been assured the Globe and Mail is a reputable media outlet, their 2016 article was headed "The murky beginnings of a new Canadian bank", it's available online. So I admit I'm a bit more leery than I am of fi's that don't have similar reporting about their origins, especially in the context of their continual losses.

I read that Globe and Mail article etc. from 2016 - WOW!!

WealthONE Bank of Canada is a Member of the Canada Deposit Insurance Corporation (CDIC). Your deposits are eligible for CDIC insurance.

Can they get kicked out of CDIC ? Or that would mean automatic bank failure and pay out of insured deposits including GIC and HISA?

Norman1 said
Yes, CDIC can terminate the deposit insurance of a member.

Existing deposits continued to be covered for at least two years afterwards.

It is not an automatic bank failure. But, I remember reading that uninsured deposits cannot be offered like insured ones are. So, losing CDIC coverage would mean the end of a bank's retail banking business.  

Okay thanks.
Am I reading this correct? If I were to open the term deposit (for instance 5 years GIC) and this bank goes belly up in one year, I should still get my money plus one year interest back, and I obviously don’t have to wait another four years tills maturity?

Effect of termination or cancellation
34 (1) If the policy of deposit insurance of a member institution is terminated or cancelled by the [Canada Deposit Insurance] Corporation, the deposits with the institution on the day the termination or cancellation takes effect, less any withdrawals from those deposits, continue to be insured under the terminated or cancelled policy of deposit insurance for a period of two years or, in the case of a term deposit with a remaining term exceeding two years, to the maturity of the term deposit.

So far, the only product I have from WealthOne is a five year GIC @ 2.88 from a previous promo. I wouldn't be at all unhappy if CDIC paid me off!

It was a best-available choice that year from point of view of GIC ladder, and I only put in a limited amount that year due to low rates, so no big deal, but I'd be just as happy to be rid of it!

In answer to previous issue raised, yes, I was referring to personal monthly statements. I note though that some FIs only provide statements every 3 months. Meridian is one.

I'd still like to know how long it is supposed to take for a bank (or, better, this particular bank) to make a profit. If we don't know that, then it seems to me our hypotheses about failure are moot.

Norman1 said

UkrainianDude said

Okay thanks.
Am I reading this correct? If I were to open the term deposit (for instance 5 years GIC) and this bank goes belly up in one year, I should still get my money plus one year interest back, and I obviously don’t have to wait another four years tills maturity?
…

That's up to CDIC and OSFI to decide.

Regulators can wind the bank up shortly or run the bank until its assets are sold with assuming the deposit liabilities being part of the purchase price.

So, one could be stuck for another four years until the term deposit matures.  

I am stuck for another four years will get interest paid for this time ?
Never thought there’s so much risk involved with Canadian banks even if it is a member of CDIC.

UkrainianDude said

I am stuck for another four years will get interest paid for this time ?
Never thought there’s so much risk involved with Canadian banks even if it is a member of CDIC.

Yes, if the regulators decide to keep the bank running, then the GIC's will continue earning and paying interest until maturity.

When Central Guaranty Trust failed in the 1990's, CDIC made it worth TD Bank's while to buy parts of the loan book that were good, the branches, and the trust business. TD Bank assumed the deposit liabilities as part of the purchase price. None of the Central Guaranty Trust GIC's were paid out early.

You probably already know this, but just in case of interest, one can find a complete list of CDIC insured FI's that have failed in Canada since 1967. See "CDIC History of Failures". Except for the Bank of British Columbia, the rest on the list were all Trust, Mortgage and Loan Companies.

I had a mortgage many years ago with Crown Trust and they are on that list.

Loonie, don't feel badly about your GIC at Wealth One, I have a 5yr GIC with them @1.9% interest. One of the only ones that I have interest compounded instead of paid out annually!!

savemoresaveoften said
This will be an interesting and rare scenario. Why don’t you ask CDIC and report back ?  

Oh come on this is Canada, and I lived long enough already here. Good luck trying to get any meaningful response from federal or provincial regulators.