Question re: Toyota IncomeDriver Notes

[Carpediem]

Just wondering if anyone has invested in Toyota Financial Services IncomeDriver Notes. I thought I saw someone mention them. If so, do you know ....

1. What the fees are for moving money in and out?

2. Can you buy/sell them as desired or are you required to hold onto them for a required time period?

Overall, what are the pros & cons?

 

[Alex The Great]

I did not invest to these Notes. But one CONS seems obvious: these investments are not backed by government. Which means, Toyota may decide to hold on them when things go wild for Toyota.

 

[jazz4cash]

I started an application but never completed it. It was my understanding that there were no fees and I expected “normal” processing time for moving funds in and out. There were no penalties or restrictions AFAIK. I was hesitant to open another account and their rates dropped a bit.

 

[pb4uski]

I have some... not a lot though because I have a lot tied up in CDs. Essentially like an online savings account but with some credit risk... but 1% higher return (1.5% vs 0.5%). I have some 1-year CDs maturng in May and some others in August and some of that money may go into these. No fees.

I don't view Toyota Motor Credit as a particular huge credit risk.

 

[Koolau]

My Guaranteed Income Fund makes more than 1.5% right now. I could see where this might be tempting for those looking for short term cash interest-bump. Let us know how it works out, those of you who use it.

 

[Bamaman]

I used to do the same thing with Ford Credit promissary notes administered by a bank in Chicago. That was back in the high interest rate years. Ford Credit has always been Ford's best run division--and very profitable when other captive finance sources (GMAC & Chrysler Credit) folded.

I got an awakening when I found out my no income tax state (TN) had a 5% state income tax on income derived from outside the state.

 

[VanWinkle]

I used to do the same thing with Ford Credit promissary notes administered by a bank in Chicago. That was back in the high interest rate years. Ford Credit has always been Ford's best run division--and very profitable when other captive finance sources (GMAC & Chrysler Credit) folded.

I got an awakening when I found out my no income tax state (TN) had a 5% state income tax on income derived from outside the state.

I am assuming you are referring to the Hall Tax on dividends and interest?
That is supposed to phase out completely this year. Can you confirm?

Thanks,

VW

 

[fosterscik]

I am assuming you are referring to the Hall Tax on dividends and interest?
That is supposed to phase out completely this year. Can you confirm?

Thanks,

VW

Hall tax in TN has dropped by 1% each year from that 5% level. This tax year (2020) it's 1% of divs and income above $2500 for MFJ. Next year it is removed from the books.

 

[ncbill]

I am assuming you are referring to the Hall Tax on dividends and interest?
That is supposed to phase out completely this year. Can you confirm?

Thanks,

VW

Yes, phased out completely as of 1/1/2021.

Considering moving there to avoid my state's current 5.25% flat rate income tax.

 

[NW-Bound]

I used to do the same thing with Ford Credit promissary notes administered by a bank in Chicago. That was back in the high interest rate years. Ford Credit has always been Ford's best run division--and very profitable when other captive finance sources (GMAC & Chrysler Credit) folded.

I got an awakening when I found out my no income tax state (TN) had a 5% state income tax on income derived from outside the state.

About Ford Credit money market, I also had money there in the early 2000s, when they paid a decent premium above the market interest rate.

I am trying to remember why I closed the account. Was it because I was worried about their credit rating, or because I needed the money? Maybe I moved the money to Zions Bank CD, which I felt had less risk?

Darn, my memory keeps slipping away from its "excellent" status.

Well, at least I still remember that I put some money at Ford Credit. At least, that counts for something.

 

[Carpediem]

Quick update from OP...

I applied for a new account in Dec and didn't hear anything for a couple weeks and the application status showed 'pending'. I called them to find out the status and was told they needed additional documents for a 'CIP review'. (Why didn't they tell me instead of me calling) I sent them the docs (copy of DLs) and the account was opened and ready to go within a day or two. Yesterday I received mail from them dated mid-Dec asking for additional docs. (USPS sure do suck right now!)

Their website is easy to navigate and it's very easy and fast to transfer money in. I haven't attempted to withdraw anything yet.

Thanks everyone for the replies.

 

[pb4uski]

Similar story here... I applied and called 10 days later and they needed DLs and a utility bill... I emailed them those documents and they opened my account a day or two later.

 

[pb4uski]

My Guaranteed Income Fund makes more than 1.5% right now. I could see where this might be tempting for those looking for short term cash interest-bump. Let us know how it works out, those of you who use it.

Can you easily do deposits and withdrawals to your guaranteed income fund like an online savings account? If so, then that would be attractive... who is it with and is it still available to the public?

 

[Koolau]

Can you easily do deposits and withdrawals to your guaranteed income fund like an online savings account? If so, then that would be attractive... who is it with and is it still available to the public?

Like mine, I believe most GIFs are typically within such plans as a 401(k). My GIF was created by (or for, anyway) MY 401(k) plan. It's not available to the public. I've never heard of GIFs being offered outside of a "plan" but I am not an expert. That's a main reason why I kept my 401(k) upon retirement. But, yes, I can transfer funds in and out, subject to other plan rules. Of course, I can't put more non-plan funds into it - I can just move funds within the plan (or completely out - but that's a one-way move.)

I only mentioned my GIF since that's where I keep MY cash and my GIF is doing better than IncomeDriver notes right now - otherwise, I might be tempted to look more closely at these notes. YMMV

 

[pb4uski]

Sounds like a stable value fund in your 401k.... unfortunately not available to many of us. But a good reason to NOT do a rollover if your 401k has a good stable value fund.

 

[Koolau]

Sounds like a stable value fund in your 401k.... unfortunately not available to many of us. But a good reason to NOT do a rollover if your 401k has a good stable value fund.

Yeah, only place I've found a GIF (Stable Value Fund). Doesn't yield a lot these days, but it always yields. I plan to keep 401(k) with GIF to the end. YMMV

 

[catotx]

Can anyone with the Toyota Income Driver (TID) account comment if check books are offered? Can you also pull or push money into the TID account externally? Thanks.

 

[pb4uski]

I don't know on the former as I never considered getting a checkbook... but I don't think so.

On the second part, I have my TID account linked to my other main online savings account and can transfer money back and forth.

 

[catotx]

I don't know on the former as I never considered getting a checkbook... but I don't think so.

On the second part, I have my TID account linked to my other main online savings account and can transfer money back and forth.

Thanks.

I think I wasn't clear in my second question. Must all the transfers be initiated from the TID website? Or can they also be initiated from your bank, e.g. Ally bank.

 

[pb4uski]

I don't know. I think for the transfers that I've done so far that I've initiated them from the TID website. What does it really matter? Isn't it six of one or a half-dozen of another?

 

[Sunset]

Some members have reported that some institutions (possibly just credit unions) have severely restricted the daily amount to transfer out, yet pulling the money out via an outside bank like Ally has no such restriction.

Note: Ally does have a $250K daily restriction, but I don't hit that

 

[catotx]

I don't know. I think for the transfers that I've done so far that I've initiated them from the TID website. What does it really matter? Isn't it six of one or a half-dozen of another?

Thanks.

It's not really a deal killer for me if I was going to open the TID. But it just provides more flexibility if TID allows external pulls/pushes. It could also allow one to go around any limits that TID might place on transfers initiated on the TID website.

 

[pb4uski]

Got it, that makes sense. I haven't run into that very often.