– Of course, 2.6% is better than 1.6%. You don’t need an expert to tell you
that. And both CIBC and Oaken Financial are covered by deposit insurance up
to $100,000 per depositor.
But you may not be aware that Oaken is part of the Home Capital Group. If
you’ve been paying any attention to the business news recently, you’ll be
aware that Home Capital is in deep financial trouble and recently
experienced a classic “run on the bank” as investors withdrew millions of
dollars when it appeared that Home Capital might get into trouble with
regulators. However, with a change in management and the injection of
substantial capital from Warren Buffett’s Berkshire Hathaway Inc., it
appears the crisis has now passed, but many people are still reluctant to
put money into Home or any of its subsidiaries, despite CDIC coverage. It
appears your wife is in that group. – Gordon Pape
Transferring GIC to TFSA
– I have a GIC I purchased five years ago that is coming near its date of
maturity. I didn’t purchase this GIC in a TFSA account, but is it somehow
possible to add it to a registered account before maturity? – Gurbaz S.
– If you have a self-directed TFSA, you could move the GIC into it if you
have contribution room, but it won’t do you much good. The tax people will
view that as a deemed disposition, and all interest earned up to the date
of the transfer will be taxable. You would be better off taking the money
at maturity, contribute it to a TFSA, and then buy a new GIC within the
plan, if that is how you want to invest. Frankly, with interest rates so
low, I would look at some more aggressive options for reinvesting. – Gordon Pape
If you have a money related question send it to me at
. Write “Fund Library Question” in the subject line. I can’t guarantee
a personal response, but I’ll include the most interesting ones in this
Gordon Pape is one of Canada’s best-known personal finance commentators and
investment experts. He is the publisher of
The Internet Wealth Builder and The Income Investornewsletter, which are available through the Building Wealth website.
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Notes and Disclaimer
© 2017 by The Fund Library. All rights reserved.
The foregoing is for general information purposes only and is the opinion
of the writer. Securities mentioned carry risk of loss, and no guarantee of
performance is made or implied. This information is not intended to provide
specific personalized advice including, without limitation, investment,
financial, legal, accounting, or tax advice. Always seek advice from your
own financial advisor before making investment decisions.
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