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Discussion Starter · #1 ·
If anyone is interested in GIC rates there's a good rates table at:
financialpost.com/personal-finance/rates/gic-annual.html

It lists the GIC rates for about 3 dozen institutions in one nicely formatted table that prints out well. It also lists a summary of the average by year.

I found the rates were the same rates as what TD Webbroker lists for GICS, except that TD only lists a dozen in comparison.
Makes me wonder how TD Direct Investing makes money from me putting money into a 5 year GIC at another bank? There must be some hidden fee or commission somewhere?

Anyone have any good thoughts or suggestions when investing in GICs?
 

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If anyone is interested in GIC rates there's a good rates table at:
financialpost.com/personal-finance/rates/gic-annual.html

It lists the GIC rates for about 3 dozen institutions in one nicely formatted table that prints out well. It also lists a summary of the average by year.

I found the rates were the same rates as what TD Webbroker lists for GICS, except that TD only lists a dozen in comparison.
Makes me wonder how TD Direct Investing makes money from me putting money into a 5 year GIC at another bank? There must be some hidden fee or commission somewhere?

Anyone have any good thoughts or suggestions when investing in GICs?
I checked link you provided for Peoples Trust and it's wrong... everything , amounts and interests ... it's 2.1% for 5 years
 

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Scotia offers a 5 year GIC at 2.0% which is a very good rate. Big five bank. However I can't see this rate through the GIC brokerages like TDDI or iTrade; I got the 2.0% GIC through Scotia proper.
 

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Discussion Starter · #6 · (Edited)
I checked link you provided for Peoples Trust and it's wrong... everything , amounts and interests ... it's 2.1% for 5 years
Ok good to know. Maybe the data is delayed in this summary table?

@koogie good tip, thanks!
@James that is a good rate for one of the big 5 banks. I wonder if TDDI will match it but we have to call in to get it?
@ Eder... what do you mean by " losing guaranteed .13 of your capital"?

http://www.globeinvestor.com/

has a table as well... may be delayed as well...
 

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@ Eder... what do you mean by " losing guaranteed .13 of your capital"?
January inflation 2.13%. If you lock in 5 year GIC @2% your loss will be much larger as inflation imo is ready to grow. Silly to work hard for 50k, buy a GIC and pay the bank .13% to hold your money.Much more loss if held in investment account.
 

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Discussion Starter · #9 ·
January inflation 2.13%. If you lock in 5 year GIC @2% your loss will be much larger as inflation imo is ready to grow. Silly to work hard for 50k, buy a GIC and pay the bank .13% to hold your money.Much more loss if held in investment account.
So where do you suggested investing 50k to avoid any loss of principle? If you keep it in cash you lose to inflation. Stock market could have a significant pullback this year. At least a 2% GIC can prevent loss of principle and generate a return near inflation.
 

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So where do you suggested investing 50k to avoid any loss of principle? If you keep it in cash you lose to inflation. Stock market could have a significant pullback this year. At least a 2% GIC can prevent loss of principle and generate a return near inflation.
Stock market "could have a significant pullback" every year :). EQ bank gives 2% on HISA
 

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So where do you suggested investing 50k to avoid any loss of principle? If you keep it in cash you lose to inflation. Stock market could have a significant pullback this year. At least a 2% GIC can prevent loss of principle and generate a return near inflation.
I keep significant cash around, most times. The cost of inflationary and interest losses are offset by opportunity gains during periods of opportunity.
 

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I checked link you provided for Peoples Trust and it's wrong... everything , amounts and interests ... it's 2.1% for 5 years
The rates on that link are the broker rates. The 2.1% is what a customer gets from People's Trust directly. I think brokers get about 0.25% per year in commission. So People's is effectively saying that using a broker costs them around 0.30% (commission plus costs in dealing with them) and they are willing to give it to the customer if they avoid the broker.

I hope that makes sense. I don't believe all financial institutions do this, but it looks like People's Trust does.
 

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The rates on that link are the broker rates. The 2.1% is what a customer gets from People's Trust directly. I think brokers get about 0.25% per year in commission. So People's is effectively saying that using a broker costs them around 0.30% (commission plus costs in dealing with them) and they are willing to give it to the customer if they avoid the broker.

I hope that makes sense. I don't believe all financial institutions do this, but it looks like People's Trust does.
From what I see, looks like you can always get higher GIC rate if you buy this GIC with company that issues it .... not only PT, I've seen same with other institutions... also if you buy directly , min amount freq will be less, for ex. PT has 1K min, and discount brokerage with same PT GIC has 5K min
 

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Yes. The exceptions tend to be the Big 5 banks. They take quite the advantage of their trusting and unsuspecting customers who mindlessly walk in and buy their GICs, with few questions asked. They will offer a much more fairer rate through the broker channels who tend to be a little more sophisticated.
 

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Actually, the same can happen with CU. I deal with a deposit broker sometimes and they definitely get better deals as well. I've been there while they've done it on the phone. And CU are supposedly more fair to the "little guy"
 

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January inflation 2.13%. If you lock in 5 year GIC @2% your loss will be much larger as inflation imo is ready to grow. Silly to work hard for 50k, buy a GIC and pay the bank .13% to hold your money.Much more loss if held in investment account.
Have to take the math past that of Newton to sine & co sine of cycles. Deflationary crash by next 5 yrs
 
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