1-year cashable variable rate GIC: Prime – 2% = 3.45% | CIBC | Discussion forum

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1-year cashable variable rate GIC: Prime – 2% = 3.45%
September 9, 2022
9:43 pm
Norman1
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CIBC Variable Rate GIC. Rate is linked to the CIBC prime lending rate.

Cashable after 29 days with accrued interest.

September 9, 2022
10:17 pm
Hellohello
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If you hold the variable the rate is adjusted upward automatically without having to cash the gic

September 10, 2022
4:40 am
cgouimet
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Hellohello said
If you hold the variable the rate is adjusted upward automatically without having to cash the gic  

OK while Prime is on the rise although the rate isn't that great as it would rank 2nd from the bottom if it were on https://www.highinterestsavings.ca/gic-rates/ ...

CGO
September 10, 2022
4:46 am
cgouimet
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cgouimet said

OK while Prime is on the rise although the rate isn't that great as it would rank 2nd from the bottom if it were on https://www.highinterestsavings.ca/gic-rates/ ...  

Correction ... It would rank at the bottom of the chart, i.e. below Canadian Tire ...

CGO
September 10, 2022
5:09 am
Bill
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Can't really compare cashable to non-cashable GICs on chart, to me they are different instruments.

September 10, 2022
8:08 am
Norman1
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Cashable after 29 days with accrued interest makes them like HISA after 29 days.

September 10, 2022
8:12 am
cgouimet
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Norman1 said
Cashable after 29 days with accrued interest makes them like HISA after 29 days.  

Quite true and then I suppose it would rank quite high on https://www.highinterestsavings.ca/chart/

CGO
September 11, 2022
2:47 pm
iotama
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Norman1 said
Cashable after 29 days with accrued interest makes them like HISA after 29 days.  

While it's simple interest at maturity, still better than a non redeemable GIC.

September 11, 2022
3:49 pm
cgouimet
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iotama said

While it's simple interest at maturity, still better than a non redeemable GIC.  

Or, you could do a quarterly redeemable and quarterly compounding 1 yr GIC @ 4.25% ...

CGO
September 11, 2022
3:58 pm
savemoresaveoften
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cgouimet said

Or, you could do a quarterly redeemable and quarterly compounding 1 yr GIC @ 4.25% ...  

I would describe it as 4.1% to be comparable sf-wink

September 11, 2022
4:11 pm
cgouimet
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savemoresaveoften said

I would describe it as 4.1% to be comparable sf-wink  

OK. 4.1 for months 1-3, 4.2 for months 4-6, 4.3 for 7-9 and 4.4 10-12 ...

All gooder than 3.45%

CGO
September 11, 2022
4:53 pm
Norman1
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It's not comparable.

One needs to hang in to the end of each quarter with the Hubert one-year cashable. If one cashes in before the first three months passes, one gets 0%. If one cashes in half way through second quarter, one get the equivalent to

3 / 4.5 * 4.1% + 1.5 / 4.5 * 0% = 2.78%.

It is even worst if one cashes it in at the end of month #5:

3 / 5 * 4.1% + 2 / 5 * 0% = 2.46%.

September 11, 2022
5:15 pm
cgouimet
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Norman1 said
It's not comparable.

One needs to hang in to the end of each quarter with the Hubert one-year cashable. If one cashes in before the first three months passes, one gets 0%. If one cashes in half way through second quarter, one get the equivalent to

3 / 4.5 * 4.1% + 1.5 / 4.5 * 0% = 2.78%.

It is even worst if one cashes it in at the end of month #5:

3 / 5 * 4.1% + 2 / 5 * 0% = 2.46%.  

Good numbers on a lot of if's.

Whatever works for you...

CGO
September 13, 2022
5:20 am
savemoresaveoften
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CIBC-variable-rate-GIC-screenshot1.jpg

very confusing...only first $25k gets bonus ??

September 13, 2022
12:25 pm
HermanH
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It sure does look that way. I wouldn't put it past CIBC to try and pull a fast one, like that.

September 13, 2022
6:10 pm
Norman1
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I would contact CIBC and see if the wording is just because the rate for the first and most accessible $1,000 to $24,999 tier is what is advertised.

That would produce less complaints than advertising an attractive rate and then have fine print say that the rate is for the $1,000,000 to $999,999,999 tier with lower rates for the other tiers!

September 14, 2022
10:43 am
savemoresaveoften
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Basically all their tiers are paying 2.85% plus 60bps promotion based on their rate charts. So not sure why they need to reference 1000 to 24999 specifically.

This 3.45% variable is actually worth a look at for those who did not win the Simplii or Tangerine latest lottery. Essentially a 30 day 3.45% GIC and if bank raises 75bps on Oct26, this becomes a 4.2%, while giving 100% full flexibility after 30 days.

If you never bank with CIBC before, may not be worth the hassle.

September 14, 2022
12:19 pm
pwr1019
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I'm currently getting 4.25% with CIBC in a savings account until January 31. Seems like a better place to park money until GIC's top out.

https://www.cibc.com/en/personal-banking/bank-accounts/savings-accounts/eadvantage-high-interest-savings-account.html

Full disclosure: there are some hoops to go through to get the 4.25% your balance has to increase each month by $200 otherwise its 3.5% (it tells you when you sign on if your ontrack/eligible each month). The 3.5% is good for up to $1mil but the full 4.25% rate is only up to $200K.

September 14, 2022
2:10 pm
HermanH
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I believe that your e-Adv account also must be New, right?

September 15, 2022
9:49 am
Jackson
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Depends when bought those who got in at 3.1% now getting 3.85

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