Personal Finance

1Q Bank Dream Free Installment Deposit (FID) 3.0% interest (for 3 years)

  • Last Updated:
  • Sep 16th, 2019 10:00 am
Deal Addict
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May 11, 2014
3249 posts
Iqaluit, NU

1Q Bank Dream Free Installment Deposit (FID) 3.0% interest (for 3 years)

Hey guys. For those who are looking for a way to save for say a down payment, this actually might be a decent product. 1QBank is an online bank owned by KEB Hana Bank (Korean bank) operating in Canada. They have OK chequing and savings accounts, customer service can be hit or miss but once the product is setup, you are good to go.

You can set the goal between $10-$1000/month for 36 months. How it works is you transfer in or deposit the money each month what you can. There is no obligation to make a deposit, however you must make at least 90% of the deposit amount and 90% of the months have to have a deposit to qualify for the boost rate.

In simpler terms for the max $1000 per month max, you need to contractually make $32400 of the $36000 goal in deposits and a deposit in 33(32.4 is rounded up) of the 36 months.

The nice feature? This rate is guaranteed for the 3 years. So if interest rates drop further from here, this can help protect you from interest rate drops. Also because you are allowed upto 4 accounts per person, you can also hedge your deposit risk. Say your plan is to save $1000 per month, but unsure whether you can actually commit and get 90% of your deposits. You could split them into smaller $250 goals in 4 accounts so that way if you do have a short fall, you can spread the shortfall across 4 different accounts and make sure the 90% goal is reached. And because there is no obligation to deposit money, you are safe if you can't make the deposits, plus you are still earning 2.4% should you fail to meet the 90% goal.

I have used this product previously, and it is pretty flexible although I did close the account in the end as I no longer decided to save for a downpayment. But I figured I'd put it out there for people who are in this situation.
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1 reply
Deal Addict
Apr 2, 2010
1639 posts
I like these unique products, it helps to have the flexibility and it beats fixed GICs for scenarios you mentioned.
The only other unique product like this is Hubert's 1 year redeemable GIC but the rates have dropped for a while now.
Thanks for sharing.