GIC Deposits FAQ
- Benefits to Deposit Brokers/Agents and Clients
- About Rates – Interest, Commission, Guarantees
- Purchases & Redemptions
- Account Statements
- CDIC Coverage
How will B2B Bank / Laurentian Bank GICs benefit your clients?
GICs available through B2B Bank provide safety of principal and a steady form of income to your clients. With highly competitive interest rates, B2B Bank / Laurentian Bank GICs are an ideal savings and income solution. In addition, since B2B Bank, Laurentian Bank, Laurentian Trust and LBC Trust are all members of the Canada Deposit Insurance Corporation (CDIC) the potential coverage amounts to a combined total of up to $400,000 per eligible account type.
How will B2B Bank / Laurentian Bank GICs benefit you?
With GICs available through B2B Bank you benefit from value added features that make managing your client’s GICs easy – at a competitive rate that benefits your client. Plus you can earn commission on the GIC purchase and renewal amounts at a competitive rate.
How can I obtain B2B Bank / Laurentian Bank GIC rates?
The most convenient way to access rates for B2B Bank and Laurentian Bank broker GICs is to simply click here. For a snapshot of GIC rates across the industry, contact Cannex Financial Exchanges Limited. Rates can be obtained by either subscribing to their data feed or by visiting their website.
What are the deposit broker commission rates?
For terms of 1 to 5 years, commission is paid up front at a rate of 25 bps per year of the term. For terms of less than 1 year, commission is paid up front and is prorated based on the length of the term at a commission rate of 12.5 bps. Commission is automatically paid on renewals. Commission cheques are issued on approximately the 15th of every month for investments placed during the previous month.
How do rate guarantees work for non-registered, RRSP, and RRIF GICs?
Depending on the product type, different rate guarantee features apply:
Non-Registered - The interest rate quoted on the date of sale will be honoured if the documents are post-marked by the next business day. The issue date is the date that the documents are received. Any unreasonable delay in receiving the documents (more than 5 business days) may result in the rate not being honoured. If the instructions are sent by courier and received within 2 business days, the rate guarantee will be honoured.
RRSP and RRIF - Interest rates on RRSP and RRIF transfers-in are guaranteed for up to 30 calendar days from the date the application and transfer authorization form are signed by the client. Renewal rates are guaranteed for up to 15 days from the renewal commitment date.
NOTE: Post-dated cheques will not be accepted and the Rate Guarantee will not apply.
What is the most convenient way to purchase a GIC from B2B Bank?
We offer a direct deposit service through Royal Bank of Canada, TD Canada Trust and Laurentian Bank. Here's how the service works:
- Order deposit slips by filling out a Direct Deposit form and sending it by fax to 1.888.946.3448.
- Go to one of the aforementioned institutions to deposit your client's cheque(s).
- The deposit stamp will determine the interest rate and date of sale of the GIC.
- Forward the original deposit slip with the application, along with a photocopy of the cheque(s), to: B2B Bank, 199 Bay Street, Suite 600, PO Box 279 STN Commerce Court, Toronto ON M5L 0A2.
Don't forget to plan ahead as direct deposit slips may take 4 to 6 weeks for delivery. Please note that your client must be the age of majority in order to open a GIC from B2B Bank. The age of majority is 18 in Alberta, Manitoba, Ontario, PEI, Quebec and Saskatchewan and 19 in all other provinces and territories.
Are GICs redeemable prior to maturity?
There are no early withdrawal privileges except in the case of:
- Death of client - Full withdrawal, no interest penalty. All legal estate documents are required.
- Hardship - A written request must be submitted with documented evidence to support the claim.
Full or partial withdrawals are reviewed on an individual basis and may be subject to interest penalties, withholding taxes and/or service fees.
What is the statement frequency for B2B Bank / Laurentian Bank RRSPs and RRIFs?
B2B Bank issues quarterly RRSP and RRIF statements.
Are all GIC products offered through B2B Bank eligible for CDIC coverage?
Yes, all GICs are eligible for CDIC coverage to a maximum of $100,000 per eligible account type. And, since B2B Bank, Laurentian Bank, Laurentian Trust and LBC Trust are all members of the Canada Deposit Insurance Corporation (CDIC) the potential coverage amounts to a combined total of up to $400,000 per eligible account type.