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
- Oaken Financial has the highest nationally available savings account interest rate at 3.40% on our comparison chart, followed by 6 other financial institutions at 3.25%. Saven Financial still tops the list for Ontario at 3.75%. Neither Oaken Financial nor Saven Financial offer savings accounts in an RRSP or TFSA, though.
- Have you had a duplicate transaction problem at Oaken Financial recently? You are not alone!
- Forum member Norman1 has been regularly updating a brokerage investment savings account comparison table, where rates are higher than regular savings accounts
- EQ Bank has been very busy lately: launching in Quebec; releasing a prepaid Mastercard with no-forex fees, 0.5% cash back, and interest on the loaded balance; and publicly advocating for increasing the CDIC limit to $200,000 per account