Expired Hot Deals

Hubert Financial

5 year GIC 3.0% for a limited time starting Dec 15

  • Last Updated:
  • Dec 18th, 2021 6:59 am
[OP]
Member
Apr 20, 2016
375 posts
366 upvotes
Edmonton

5 year GIC 3.0% for a limited time starting Dec 15

Retailer:
Hubert Financial
I received an email from Hubert that they would be raising their rates and for a limited time are offering a 3% 5 year GIC.
We're excited to share that effective Wednesday, December 15, some of our term deposit rates (both registered and non-registered) are increasing. We will also be offering a limited-time rate special, see below for details.

Our term rates (effective December 15) are as follows:
...
5-year term - 3.00% (NEW LIMITED TIME OFFER - ACT NOW!)
Last edited by BigScee on Dec 16th, 2021 10:10 pm, edited 1 time in total.
41 replies
Deal Addict
User avatar
Jul 29, 2013
1602 posts
1273 upvotes
Ontario
Also 1 year GIC for 2%.
Deal Fanatic
Jul 4, 2004
8986 posts
1937 upvotes
Nice to see. I've been very happy with the service from Hubert Financial. Great way to get 2% for a year without begging.
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Newbie
Aug 9, 2019
29 posts
96 upvotes
I wonder if with the often discussed interest rate hikes that 3% will be low by the time the 5 years is up? Obviously rates have to actually go up to make this the case so who knows.

Certainly a good deal today.
Deal Addict
Sep 23, 2008
1551 posts
477 upvotes
Feels like easy way to make some money. Remortgage property at these low fixed rates, buy 3% GIC, write-off interest rate, profit?
Deal Addict
Aug 1, 2006
2183 posts
1731 upvotes
Toronto
Frankie3s wrote: Nice to see. I've been very happy with the service from Hubert Financial. Great way to get 2% for a year without begging.
My favourite credit union. Only for parking money since there's no debit card or cheques.
Deal Addict
Apr 6, 2017
1112 posts
844 upvotes
Westmount, QC
hingisfan24 wrote: Just buy Fortis stock instead. Pay less tax and see more gains, even just by dividend alone, plus not locked in.
yes, but there is risk.

you capital isn't guaranteed
dividends can be cut at any time.

for a pure safe investment perspective, it's really good.

But I agree that you can get way more if you're willing to take some small risk
Jr. Member
Sep 14, 2018
179 posts
112 upvotes
husamus156 wrote: yes, but there is risk.

you capital isn't guaranteed
dividends can be cut at any time.

for a pure safe investment perspective, it's really good.

But I agree that you can get way more if you're willing to take some small risk
Fortis didn't cut dividends during the financial crisis or covid. Pretty safe to say they never will. Capital swung down less than 20% and recovered within a few months.
Deal Fanatic
Jan 21, 2018
6558 posts
6853 upvotes
Vancouver
hingisfan24 wrote: Fortis didn't cut dividends during the financial crisis or covid. Pretty safe to say they never will.
I wouldn't be so sure. Have you read about an obscure thing called climate change and carbon emissions reduction? :rolleyes:
Deal Fanatic
Aug 5, 2006
7541 posts
4420 upvotes
Global Village
With inflation skyrocketing 3% might be the floor for upcoming 5 year GIC rates.
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Newbie
Apr 4, 2012
35 posts
56 upvotes
Ottawa
FYI not part of CDIC but instead protected by Manitoba's equivalent
Deal Fanatic
Jan 21, 2018
6558 posts
6853 upvotes
Vancouver
BTW, for people that don't know Hubert and don't read carefully, their 1 yr. GIC does not pay the advertised rate at the end of a year. Instead they pay quarterly at an escalating rate that averages out to the advertised rate. In this case it's:

The first three months: 1.85%
Months four to six: 1.95%
Months seven to nine: 2.05%
The last three months: 2.15%

This is actually a big advantage, because you can terminate the GIC at the end of any quarter and keep the interest earned to date. And a very good reason to do that is if you can get a higher rate elsewhere, including a new higher rate from Hubert. Anyone who has an earlier 1 yr, GIC from Hubert at a lower will be running the calculations on whether it's worthwhile to switch.
Member
Nov 26, 2018
352 posts
344 upvotes
Scote64 wrote: BTW, for people that don't know Hubert and don't read carefully, their 1 yr. GIC does not pay the advertised rate at the end of a year. Instead they pay quarterly at an escalating rate that averages out to the advertised rate. In this case it's:

The first three months: 1.85%
Months four to six: 1.95%
Months seven to nine: 2.05%
The last three months: 2.15%

This is actually a big advantage, because you can terminate the GIC at the end of any quarter and keep the interest earned to date. And a very good reason to do that is if you can get a higher rate elsewhere, including a new higher rate from Hubert. Anyone who has an earlier 1 yr, GIC from Hubert at a lower will be running the calculations on whether it's worthwhile to switch.
are there penalties for cancelling early?
Deal Fanatic
Jan 21, 2018
6558 posts
6853 upvotes
Vancouver
konig1 wrote: are there penalties for cancelling early?
No penalties. I've done the cancel-old and switch-up-to-new-rate before. I have a spreadsheet that tells me if I should do that when Hubert announces a new higher rate. It's basically trading off interest earned to date in the quarter which will be lost vs. the higher amount to be earned in the remaining part of the quarter by switching up.
Deal Guru
User avatar
Mar 22, 2005
11730 posts
4465 upvotes
3% yield -5% inflation = 2% loss in purchasing power per year X 5 years = -10% loss in real value.
Deal Fanatic
User avatar
Apr 9, 2006
9765 posts
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GT-EH
when i try to open a 1 year term account, it's displaying only 1.5% (for 12 months)...

The 5 year one (60 months) is @ 2.2% (not 3%) ??
What's the best credit card for...
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Deal Expert
User avatar
Dec 23, 2003
16220 posts
4646 upvotes
Toronto
kool1 wrote: 3% yield -5% inflation = 2% loss in purchasing power per year X 5 years = -10% loss in real value.
Exactly!

Current inflation rate in Canada sits at 4.7% (https://www.cbc.ca/news/business/inflat ... -1.6286464)

This means at 3% locked in over 5 years, you are losing 1.7% a year due to inflation.

There is a reason why people suggest going into Equities with solid dividend stocks. Sure, there is risk, but taking the safe route means losing money every year compared to what you can get. Something as simple as Bank Stocks which have pretty much doubled since April 2020 and pay great dividends. I think Telco's like Bell/Telus/Rogers are also good to look at. Like them or not, they do offer value to people.
Deal Fanatic
Jan 21, 2018
6558 posts
6853 upvotes
Vancouver
GiOBoY wrote: when i try to open a 1 year term account, it's displaying only 1.5% (for 12 months)...

The 5 year one (60 months) is @ 2.2% (not 3%) ??
Their interest-rate landing page also still says 1.5%, but you see the 2% deal when you click through. I guess they're a bit slow to update this morning. I see a fair share of these little glitches from Hubert, but I forgive them because they have fantastic customer service, the best of any institution I deal with. I hope that doesn't change with the 3-way merger they are doing with other Manitoba credit unions.

Update: since it does appear with the old 1.5% rate when I click "open account" for a new term deposit, I just called Hubert to verify. Got an agent on the line in 60 seconds. Agent confirmed that the email is correct, 2% rate applies now, the web site has not been updated correctly yet.
Last edited by Scote64 on Dec 15th, 2021 2:53 pm, edited 2 times in total.
Deal Guru
User avatar
Mar 22, 2005
11730 posts
4465 upvotes
greg123 wrote: Suggest alternative? Everything is ATH right now, stocks, real estate…
ATH doesn't mean it goes down the drain from here.

If your time horizon is 5 years - Buy any of the big 5 bank stocks. You will definitely return > 5%/yr over 5 years.

Bank stocks are not "expensive".

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