We have some US dollars in a savings account at Tangerine, currently earning 0.6 % interest. We know our trip to the US to spend this money is a bit over a year away, though. So when I noticed Tangerine was currently offering 3.0% for a one-year non-redeemable US Dollar Guaranteed Investment Certificate, aka GIC, I decided to buy one.

Can I Redeem my US Dollar GIC at Tangerine Early if my Plans Change and I Need the Money?

No.

So be very sure you won’t need the money before you lock it up in a GIC. It will be stuck there until the GIC matures at the end of its term.

I know we won’t desperately need the money even if our plans change so I’m prepared to lock it in for a higher interest rate for a year.

What’s the Minimum US Dollar GIC Purchase at Tangerine?

As of November 22, 2018, the minimum size of the GIC is 10 US dollars.

What Do You Need to Have Nearby to Complete the USD GIC Purchase?

If you already have a Tangerine account, you won’t need anything.

If you don’t, you will need your banking details including your Social Insurance Number (SIN) for Tangerine to report your GIC interest to the CRA so you pay your taxes on it.

The process will be more complicated if you are not a Tangerine customer. This article only lists the steps needed for a customer with a US dollar Tangerine bank account, like me.

Buying a USD Guaranteed Investment Certificate at Tangerine If You Already Bank with Tangerine

1. Go to the Tangerine website.
2. Click on the Log Me In button and sign in to your account.
3. Near the top of the screen, click on the link: Products
4. Under the Saving column, click on the link: Guaranteed Investment
5. Although it does not say US anywhere on it, under the heading Tangerine Guaranteed Investment (GIC) (Non-Redeemable) click on the button: Open an Account

The Confirm Accounts Step

A big messy screen is displayed listing everything from regular Canadian dollar GICs at the top, to Chequing Accounts, HELOCs, Credit Cards, and way way down almost at the bottom:
US$ Guaranteed Investment (GIC)

1. Read through the details. If desired, click on the Learn More button.
2. Click on the button: Add
3. It appears nothing has happened—but it has!
   Way down at the bottom of the screen, you will see a message
   2 Account(s) added.
   Scroll way up to the top of the page.
   If it says Guaranteed Investment (GIC), click on the button: Remove.
   That one was there because when I clicked on the choice Guaranteed Investment it started a regular Canadian dollar one for me, which I didn’t want.
   You should be left with only a
   US$ Guaranteed Investment (GIC) under the heading
   Account(s) you’re opening
4. When that’s all that is listed, click on the Next button.

The Confirm Information Step

1. Read through and review your information is correct.
2. If it is ok, click on the Next button.
3. Read the information presented. Notice to make the GIC a joint one you will have to PHONE in!
   Click on the Next button.

The Set up Account Step

1. Read and answer the Third Party Information & Intended Use question.
   I clicked on No.
2. From the drop-down list, answer the question What is the Intended Use of this Account?
3. Read through the US$ Guaranteed Investment (GIC) Account Terms.
   If they are acceptable, click to check the box beside them.
4. Read through the documents electronically information.
   If it is acceptable, click to check the box beside them.
5. Click on the Next button.
6. From the drop-down list select the term for the GIC noting that you will NOT be able to get your money back until the end of that term.
   The interest rate for that term will be offered.
7. Click to select at maturity to
   Reinvest the original amount in a GIC with the same term
   Or
   Payout the original amount in case to a selected account
8. Click to select to
   Pay the interest back into the GIC annually to keep earning more interest
   Or
   Pay the interest annually into a selected account.
9. Click on the Next button.
10. If you are depositing the matured GIC into a bank account, click to select the account to pay it into, or click to open a new USD savings account.
11. If you are depositing the interest into a bank account, click to select the account to pay it into. Note if you select a Canadian $ account, Tangerine will convert the USD to Canadian before depositing them.
12. In the text box, type the amount of US $ you want to deposit in the GIC. You will not be able to get at those $$ again until the GIC matures at the end of its term.
    This is a non-redeemable GIC.
    The minimum is $10.
    As usual, note that CDIC does not insure US$ GICs or US$ savings accounts.
13. Click on the Next button.
14. If you’d like to buy the US$ GIC now, click on the Now button, otherwise
    Click on the In the Future button and set the date to buy the GIC.
15. Review the details of your GIC purchase.
    Interesting to note
    They MAY allow early redemption if an application is approved for hardship reasons.
    If you do choose to have the GIC automatically renew for the same term when it matures, you will have 30 days after that to change your mind and cash it out.
16. If it all looks ok, click on the Submit button.

The Wrap Up Step

1. Make a note of the information about your GIC purchase.
2. If you want to have a joint owner for the GIC, phone in to Tangerine.
3. Click on the Done button.
   It may take you back to the “Add an Account” page.
4. If you are finished banking, Log Out of your accounts. For increased security close your browser session and clear your cache.

Can I Have a Joint Owner on a Tangerine US Dollar GIC?

Yes. But you will have to set it up as a single owner, then PHONE IN to get the second owner listed.

And worse yet, you both have to phone in, either at the same time, or the secondary owner can phone in after the person who bought the GIC phones in. What a pain!

In each case, the person phoning in will need to know

• their own client number
• the co-owners client number and
• the purpose of the GIC purchase as selected when the GIC was purchased

Hint: Make sure that the person who will be paying the tax on the interest earned is the primary holder if you want the T slips to be easier to work with come tax time.

Personally, I think that having this phone in step required is not a great design. It took me 15 minutes on hold (from 11 38 till 11 53 a.m. on a Thursday) to try to add my husband as co-owner to my GIC–and then I found out he will also have to phone in!

Overall, though, I’m glad I bought the GIC. It has increased the interest rate on that money from 0.6% to 3.0% for a year. That should be enough to buy one of us a flip flop when the time comes to spend it!

Related Reading

• US Dollar Savings Account at Tangerine

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Do you park your US dollars in a savings account or GIC between US purchases? Please share your experiences with a comment.