Personal Finance

The EQ Bank Savings Account thread

  • Last Updated:
  • Oct 13th, 2019 3:57 pm
Member
Apr 13, 2017
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Tangerine offered me 3.15 for 120 days. Just wondering if 0.18% is worth it to put the money in 3.33% gic.
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headleygrange wrote:
Nov 19th, 2018 3:57 pm
Tangerine offered me 3.15 for 120 days. Just wondering if 0.18% is worth it to put the money in 3.33% gic.
That depends on (a) you think you might need the money in the next 3 months and (b) the amount of money involved.

FWIW in making a decision, the extra 0.18% on $10k for 3 months is about $4.50.
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Apr 13, 2017
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bylo wrote:
Nov 19th, 2018 4:12 pm
That depends on (a) you think you might need the money in the next 3 months and (b) the amount of money involved.

FWIW in making a decision, the extra 0.18% on $10k for 3 months is about $4.50.
Although I dont normally need that amount liquid, flexibility is nice to have. Its about 150k. Difference is ~66$. Its a decent amount, but I'll most probably keep in tangerine, considering the flexibility.

Btw, I had issues moving money to EQ from simplii. Transfer was reversed and I lost interest for few days.
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headleygrange wrote:
Nov 19th, 2018 3:57 pm
Tangerine offered me 3.15 for 120 days. Just wondering if 0.18% is worth it to put the money in 3.33% gic.
Yes, because even with another rate hike it's not likely that you'll be offered anything near 3.33%. It would probably be with the next 2 rate hikes that you'll get something close to 3.33% and 3 months isn't too long. You can create any amount of GICS up to $100,000 (ex: 5 x $20,000) in-case you may need the money in an emergency and don't want to redeem the whole $100,000 an once in advance. Plus with the power of compound interest.
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headleygrange wrote:
Nov 19th, 2018 3:57 pm
Tangerine offered me 3.15 for 120 days. Just wondering if 0.18% is worth it to put the money in 3.33% gic.
Personally I'd still move out of Tangerine. Tired of their rate game, I can't be bothered calling in at the end of each promo. I have to do that enough with my cell phone and cable bill lol.
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Feb 1, 2006
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If I pull money into EQ from Tangerine today will the funds be withdrawn from Tangerine on Monday?
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minimalist wrote:
Nov 23rd, 2018 4:21 pm
If I pull money into EQ from Tangerine today will the funds be withdrawn from Tangerine on Monday?
Yes, most likely Monday and you'll double dip on the interest over the weekend. Don't be surprised if your deposit into EQ is on hold for 5 business days. You will not be able to deposit those funds into the 3.3% 3 month GIC until the hold is released; if that's what you were thinking.
Member
Oct 7, 2013
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Completed purchasing the 90 day gic from EQ bank for just slightly more than 50k @ 3.33%


Comes due on February 23rd - love the rate- like the bank. Happy they're strongly back in the mix.
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headleygrange wrote:
Nov 19th, 2018 3:57 pm
Tangerine offered me 3.15 for 120 days. Just wondering if 0.18% is worth it to put the money in 3.33% gic.
Besides the 0.18% difference, you will defer the interest into 2019, tax payable April 2020. That will make a difference for tax installments, OAS clawback, etc. if applicable. If you are setting aside money for a fixed date, such as income tax annual filing or installments, liquidity shouldn't be necessary.
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Jan 20, 2007
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Niagara
akaManny wrote:
Nov 23rd, 2018 8:11 pm
Besides the 0.18% difference, you will defer the interest into 2019, tax payable April 2020. That will make a difference for tax installments, OAS clawback, etc. if applicable. If you are setting aside money for a fixed date, such as income tax annual filing or installments, liquidity shouldn't be necessary.
hmm I don't think it works that way, I believe you need to pay the taxes on the accrued interest for the year regardless of when it's finally paid to you.
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ancodia wrote:
Nov 24th, 2018 8:20 am
hmm I don't think it works that way, I believe you need to pay the taxes on the accrued interest for the year regardless of when it's finally paid to you.
If it was a multi-year compound interest GIC then yes, each year's accrued, but not yet paid, interest has to be declared and tax paid.

However with simple interest GICs CRA allows financial institutions to issue T5 slips only for interest actually paid out on anniversaries and at maturity. So for example if you buy a 5-year GIC today and you get annual interest payments every 24Nov, your first interest payment will be on 24Nov19 for which you'll get a T5 in Feb20 and on which you'd pay tax by 30May20. The current 3 month GIC works the same way since its duration crosses a year end.
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Jan 20, 2007
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bylo wrote:
Nov 24th, 2018 8:44 am
If it was a multi-year compound interest GIC then yes, each year's accrued, but not yet paid, interest has to be declared and tax paid.

However with simple interest GICs CRA allows financial institutions to issue T5 slips only for interest actually paid out on anniversaries and at maturity. So for example if you buy a 5-year GIC today and you get annual interest payments every 24Nov, your first interest payment will be on 24Nov19 for which you'll get a T5 in Feb20 and on which you'd pay tax by 30May20. The current 3 month GIC works the same way since its duration crosses a year end.
Thanks for posting this .. I didn't know it worked that way
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Apr 13, 2017
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How is the simple interest on EQ gic calculated over 3 month period ? Day 2 interest = (Day 1 balance + day 1 interest) * daily Rate ?
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headleygrange wrote:
Nov 27th, 2018 10:50 pm
How is the simple interest on EQ gic calculated over 3 month period ? Day 2 interest = (Day 1 balance + day 1 interest) * daily Rate ?
Each GIC shows "Value at the end of your 3 Months term". For one purchased on November NN, maturing February NN, this amount works out to be:
3.33% x Day 1 Balance x 92 days / 365.
For a GIC purchased in December, maturing in March, this will be probably be based on 90 days since February will have 28 days.
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Jun 23, 2017
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unclefester wrote:
Nov 23rd, 2018 5:22 pm
Completed purchasing the 90 day gic from EQ bank for just slightly more than 50k @ 3.33%


Comes due on February 23rd - love the rate- like the bank. Happy they're strongly back in the mix.
decent 90-day rate if you're sure you don't need that pocket-change in the next 90 days.

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