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[EQ Bank] EQ Bank 3-month TSFA GIC 2.5%

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  • Jan 19th, 2021 12:40 pm
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May 7, 2008
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Burnaby

EQ Bank 3-month TSFA GIC 2.5%

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EQ Bank
Just bought a eq bank TFSA GIC of a rate of 2.5%. Seems to be a good rate in comparison with what's available.
Last edited by TomRFD on Jan 7th, 2021 1:15 pm, edited 1 time in total.
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Apr 30, 2009
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Ottawa
my GIC is coming up for renewal in a few days, might be wort switching. Pardon my ignorance, are they (EQ Bank) ensured and safe?
Last edited by golden_m on Jan 7th, 2021 9:18 am, edited 1 time in total.
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Nov 16, 2004
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golden_m wrote: my ПШС is coming up for renewal in a few days, might be wort switching. Pardon my ignorance, are they (EQ Bank) ensured and safe?
Yes, they are

Deposit Insurance Information
Equitable Bank is a federally regulated deposit taking institution and is authorized to accept deposits in all provinces and territories across Canada. Equitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC). EQ Bank is a trademark of Equitable Bank.

Deposits made under EQ Bank and Equitable Bank are aggregately eligible for CDIC protection up to $100,000, per insured category, per depositor, as outlined in CDIC’s "Protecting Your Deposits", and provided such deposits are payable in Canada.
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Nov 18, 2008
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DaVibe wrote: Yes, they are

Deposit Insurance Information
Equitable Bank is a federally regulated deposit taking institution and is authorized to accept deposits in all provinces and territories across Canada. Equitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC). EQ Bank is a trademark of Equitable Bank.

Deposits made under EQ Bank and Equitable Bank are aggregately eligible for CDIC protection up to $100,000, per insured category, per depositor, as outlined in CDIC’s "Protecting Your Deposits", and provided such deposits are payable in Canada.
I wouldn't say the are the super safe. It's definitely more worry some than big banks. But I still put my TFSA in eq.
"Every marathon you run, your heart scars and you will die faster. If you think running a marathon is fitness, then you know NOTHING ABOUT HEALTH & FITNESS."
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Jan 9, 2003
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Ajax
How did you get this? I'm seeing 1.5% from my acct
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Dec 11, 2008
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Scarborough
hurricane wrote: How did you get this? I'm seeing 1.5% from my acct
Normal Savings is 1.5%.
Only for TSFA GIC account for 3 months.
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Sep 10, 2005
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hurricane wrote: How did you get this? I'm seeing 1.5% from my acct
You have to go into the TFSA GIC purchase option and select three months. It should say 2.5%


I'm curious though.. as someone who isn't super finance savvy, why are EQ's GIC rates higher for their short term GICs compared to their long term? Are they just promotional rates? Common sense would seem to dictate the longer the investment, the higher the rate, no?
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Jan 9, 2003
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Ah right. I'll learn to read one day :rolleyes:
bchow05 wrote: Normal Savings is 1.5%.
Only for TSFA GIC account for 3 months.
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Sep 10, 2005
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shroffd899279656 wrote: Was tempted, but not so great reviews on google.
I'll be honest. I love the rates on EQ but being an online only bank, you would think they'd prioritize having a stable and reliable site but there are issues quite often... like not being able to login or just being down for "maintenance". But 90% of the time, it's fine.

So if you have short term cash needs, maybe don't put all your eggs in one basket
Member
Nov 20, 2014
228 posts
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Stouffville, ON
A little off topic but I'm looking to get my mortgage with EQ Bank with rate 1.54% for 5 years fixed. Anything I should be aware/careful of?
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Mar 15, 2010
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I have EQ but good luck calling them and gettinf them to make the switch so to avoid penalty. Gave up after 45 mins of waiting on phone. Money stuck in reg tfsa for now
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Apr 2, 2010
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mr2711 wrote: Already have money in EQ TFSA. Can I just move funds from EQ TFSA to EQ TFSA GIC without messing up my contribution room? Would it be transfer in kind?
It should be a sheltered transfer as you are expecting. I did this with my EQ bank account and I specifically recall seeing a note on the final step of buying the GIC where it reads something like:
"...It will count as a contribution except if you Transfer from your EQ Bank TFSA to EQ Bank GIC..."
Jr. Member
Apr 19, 2020
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langley
All banks seem to have long wait times I use them for my extra cash cause of the 2.5 remember if u take our of a tsfa at one bank and move to EQ it counts as new money on your tsfa and they hit you with charges I'd you go over your limit
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Dec 23, 2003
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L4cky wrote: I wouldn't say the are the super safe. It's definitely more worry some than big banks. But I still put my TFSA in eq.
I respectfully disagree. I have worked in banking for over 20 years with one of the big 6 banks. As long as they are CDIC backed, you can invest money with the big bank, EQ bank, Oaken, etc. your money is safe.

Banks like to scare people about this and there is lots of misinformation about things. I would encourage people to check out this site and become familiar with CDIC and what is and is not covered: https://www.cdic.ca/your-coverage/prote ... r-deposit/. Keep in mind that the CDIC limit is per insurer not bank. In the case of Oaken, there is Home Bank AND Home Trust. Each is CDIC backed so you can keep up to $100K (which is principle + interest combined) under each insurer (https://oaken.com/cdic/). My suggestion is to calculate the amount of interest you will earn over the period of the deposit term and subtract that from $100K. The balance is what you should invest in so that you don't exceed $100K if you are extremely safety conscious.

When I invest money, I make sure they are CDIC or (in the case of credit unions) backed by the provincial government. I then see what type of accounts are covered and then look for the highest interest rate you can find.
for provincial government backing, it would be good to check the province credit rating as that would give you a better indication of safety.

3 months @2.5% is an ANNUAL rate, which means that your rate of interest for 3 months is 0.625%. This translates to a maximum of $37.50 in interest on your $6K investment.

If you want to play it safe, this is decent given the ultra low rate environment we have now. That being said, 0.625% is nothing to write home about, let alone create a thread about it IMO.

Personally, I would just put the $6K into a TFSA trading account and buy bank stocks. You can easily make this on dividend income on top of the capital appreciation of stocks. Alternatively, you can get an ETF like XIC or XUU which covers the TSX and the S&P for a very low fee. Yes there is risk in investing, but $6K is not a huge amount of money and the interest you are making at a bank is pretty laughable these days.
Last edited by hightech on Jan 11th, 2021 4:56 pm, edited 4 times in total.
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Mar 15, 2010
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martydxb wrote: It should be a sheltered transfer as you are expecting. I did this with my EQ bank account and I specifically recall seeing a note on the final step of buying the GIC where it reads something like:
"...It will count as a contribution except if you Transfer from your EQ Bank TFSA to EQ Bank GIC..."
This. Can we do this on our own? According to canada revenue we need to have bank do this for us. And as i said above, i cant get a hold of them im on hold for too long lol
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Apr 2, 2010
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Dave98 wrote: ...I'm curious though.. as someone who isn't super finance savvy, why are EQ's GIC rates higher for their short term GICs compared to their long term? Are they just promotional rates? Common sense would seem to dictate the longer the investment, the higher the rate, no?
You are right for what's expected in general.

However think of this as more of a sign up bonus where you are rewarded for the money you bring in.
The TFSA Savings are at 2.3% and GIC 2.5%, these are far above the market rate generally offered outside a promo, see:
official-rfd-thread-high-interest-savin ... 20-698055/
official-rfd-thread-tax-free-savings-ac ... 20-681290/

I believe they have a new product and are trying to get as many customers on board.

I would not be surprised to see this offer disappear in a few weeks. This is the TFSA limit refresh/increase time of the year after all. After that I would expect the rates to align with what you were expecting.

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