Savers Roundup January 2023: GIC rate inversion; RRSP and TFSA deals; EQ Bank in Quebec

GIC rate inversion

GICs were one of the hottest personal finance topics in 2022, and for good reason. You can get at least 5.00% somewhere on any term from 1 through 5 years. Most recently, some GIC rates have been inching down; one exception is Peoples Trust, which increased its 2-year GIC rate to 5.30% alongside some decreases.

Historically, longer term GIC rates are higher than shorter term GIC rates. But several financial institutions currently offer higher GIC rates for shorter terms than for longer terms.

GIC broker rates continue to offer meaningfully higher rates, with the ones we track offering 5.50% or slightly more for 1- through 5-year terms. For those who are new to the topic, here’s a forum member’s explanation on whether there’s a catch with GIC brokers.

RRSP and TFSA deals

RRSP season is heating up, and Canadian adults got an additional $6,500 of TFSA contribution room on January 1, 2023. Cue the RRSP and TFSA deals. One is at Manulife Bank, where you can get 4.50% in a new RRSP or TFSA savings account until April 28, 2023. Tangerine Bank’s newest targeted 5-month new deposit promo for existing customers is 5.00% between January 10, 2023 and May 31, 2023, and includes registered accounts. As always, we’ll post all promos on our website as we find them.

Remember to consider what the rate will be when a promo ends, as well as potential transfer out fees.

EQ Bank and more in the news

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