Personal Finance

Hubert 1-yr Quarterly Term 1.4% avg, Savings account 1.3%, Updated Oct 29, 2020

  • Last Updated:
  • Mar 20th, 2020 2:01 pm
Deal Addict
Mar 8, 2013
2634 posts
1346 upvotes
angryaudifanatic wrote: But if I redeem within that first quarter I get nothing. Right?
I have never tried that, if it is even possible, but Yes, you can expect to get nothing.
Newbie
Dec 19, 2012
56 posts
28 upvotes
Toronto
My girlfriend parents just retired and they have 350K to there name, can someone recommend is it worth putting the money in Hubert's 1-year GIC that pays quarterly interest or IC Saving offering 3.25% GIC 16 month fixed term or sticking to a HISA that pays 3% where interest is calculated daily paid monthly. Taking the compound into consideration what would be the best option or if someone has other suggestion i am also all ears.

Thanks in advance
Deal Fanatic
Oct 7, 2007
7586 posts
3676 upvotes
promiseland wrote: My girlfriend parents just retired and they have 350K to there name, can someone recommend is it worth putting the money in Hubert's 1-year GIC that pays quarterly interest or IC Saving offering 3.25% GIC 16 month fixed term or sticking to a HISA that pays 3% where interest is calculated daily paid monthly. Taking the compound into consideration what would be the best option or if someone has other suggestion i am also all ears.

Thanks in advance
Hubert might be good for some but you may want to consider Oaken's GIC products if you don't need all of the cash in the short term. Oaken's GIC rates are some of the most competitive out there for a CDIC insured institution. But I wouldn't invest more than $100k with any CDIC institution so that your funds are fully covered.
Deal Addict
Mar 8, 2013
2634 posts
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choclover wrote: Hubert might be good for some but you may want to consider Oaken's GIC products if you don't need all of the cash in the short term. Oaken's GIC rates are some of the most competitive out there for a CDIC insured institution. But I wouldn't invest more than $100k with any CDIC institution so that your funds are fully covered.
For that amount, you should also consider those financial institutions that pay a bonus for new accounts. For example, until Feb 28, BMO Investorline will give you a bonus for $250K -$499K. You could put $250,000 there and buy GICs, and $100,000 in Tangerine which pays 3% in HISA for new accounts. There likely are other such offers around.
Newbie
Aug 31, 2014
59 posts
46 upvotes
Toronto, ON
Update: Hubert has decreased their 1 year term rate today.

New rate average is 3%.

The first three months: 2.85%.
Months four to six: 2.95%.
Months seven to nine: 3.05%.
The last three months: 3.15%.
[OP]
Sr. Member
Jul 25, 2010
575 posts
389 upvotes
Vancouver
Iverson21 wrote: Update: Hubert has decreased their 1 year term rate today.

New rate average is 3%.

The first three months: 2.85%.
Months four to six: 2.95%.
Months seven to nine: 3.05%.
The last three months: 3.15%.
Thanks, updated OP, luckily it's just a small drop.
Deal Addict
User avatar
Apr 2, 2010
2037 posts
1506 upvotes
GTA
Received an email with a rate update:

Jan 1, 2020 : Average rate of 2.50%
  • The first three months: 2.35%
  • Months four to six: 2.45%
  • Months seven to nine: 2.55%
  • The last three months: 2.65%
[OP]
Sr. Member
Jul 25, 2010
575 posts
389 upvotes
Vancouver
Thx, updated thread with latest and other historical rates since June
Deal Addict
User avatar
Apr 2, 2010
2037 posts
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GTA
UPDATE: Now 2.4% (was 2.6%)
  • The first three months: 2.25%*
  • Months four to six: 2.35%*
  • Months seven to nine: 2.45%*
  • The last three months: 2.55%*
Deal Addict
Jan 21, 2018
3623 posts
3716 upvotes
Vancouver
Historical note: it is worth checking the current rate for new GICs every quarter. While the amount Hubert adjusts upward is usually such that it's not quite worth cashing in your current quarterly-cashable GIC vs. letting it ride, that's not always true. It has happened occasionally that it's worth cashing in and immediately taking out a new GIC. But it has to be done on the first day of the new quarter to avoid losing interest, so set yourself a reminder.
Deal Fanatic
Oct 7, 2007
7586 posts
3676 upvotes
Scote64 wrote: Historical note: it is worth checking the current rate for new GICs every quarter. While the amount Hubert adjusts upward is usually such that it's not quite worth cashing in your current quarterly-cashable GIC vs. letting it ride, that's not always true. It has happened occasionally that it's worth cashing in and immediately taking out a new GIC. But it has to be done on the first day of the new quarter to avoid losing interest, so set yourself a reminder.
Even with the rate drop, this still might be a good way to go with idle cash.
[OP]
Sr. Member
Jul 25, 2010
575 posts
389 upvotes
Vancouver
martydxb wrote: UPDATE: Now 2.4% (was 2.6%)
  • The first three months: 2.25%*
  • Months four to six: 2.35%*
  • Months seven to nine: 2.45%*
  • The last three months: 2.55%*
Thanks, updated with the last set of changes since the beginning of the year. It's interesting their rates went up on March 2 when the economic downturn was already in full swing (albeit this was quickly pushed back down on March 13 and 19). When I saw the notification on March 12 I quickly opened a GIC to decide later how much to put in. Even now with the big drop the 1yr quarterly rates are going to look pretty good a few months from now when the economy really starts feeling the cascading effects of COVID19.

Also interesting to note that since March 13, they adjusted their quarterly to increase non-linearly (three 0.05% increases followed by one 0.1% increase) resulting in slightly different actual averages than advertised. Guess too many people kept pulling out early and they want to encourage holding the whole year.
Deal Addict
Jan 21, 2018
3623 posts
3716 upvotes
Vancouver
DrAcX wrote: When I saw the notification on March 12 I quickly opened a GIC to decide later how much to put in.
Are you saying that you can open the GIC account and not put in any money right away, but still maintain the same rate? It is a bit weird that it's a 2-step process at Hubert (open GIC account, then put in money), but it seems like an accidental flaw to allow people to lock in a rate with no money commitment. As far as I am aware, you can neither increase nor decrease the amount in the GIC after the original deposit, other than to close it. I once asked about partial withdrawal, and Hubert told me that's not possible, but I never asked about additional contribution to an existing GIC at the original rate. That one wouldn't make much sense to allow either.
[OP]
Sr. Member
Jul 25, 2010
575 posts
389 upvotes
Vancouver
Scote64 wrote: Are you saying that you can open the GIC account and not put in any money right away, but still maintain the same rate? It is a bit weird that it's a 2-step process at Hubert (open GIC account, then put in money), but it seems like an accidental flaw to allow people to lock in a rate with no money commitment. As far as I am aware, you can neither increase nor decrease the amount in the GIC after the original deposit, other than to close it. I once asked about partial withdrawal, and Hubert told me that's not possible, but I never asked about additional contribution to an existing GIC at the original rate. That one wouldn't make much sense to allow either.
Yes, it is a 2-step process but I've never waited more than 1-2 days anyway so I'm not sure how far you can realistically stretch this before it raises a red flag with them. I personally like this flexibility, not to abuse it or anything but allows me to move funds from other banks into Hubert after the GIC is created which takes 1-2 days to register.

And yeah, once you deposit once into the GIC you can't add more, and neither can you partially withdraw. The GIC they offer is probably the most or one of the most flexible out there. From what I've heard there are places where if you withdraw early you not only get no interest, but you also pay a fee O_o, and that's on top of having rates that are almost 0.

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