EQ 1 year GIC is 3.45% | EQ Bank | Discussion forum

Alexandre said
For registered and non-registered. Should put EQ on the top of GIC rates chart for 1 year GICs. I wonder, for how long.  

Yep ... See https://www.highinterestsavings.ca/forum/eq-bank/gic-rate-increases-again/ ...

I would, if EQ offered joint accounts. I’ve just asked about this again and was encouraged to write to Contact@eq.ca to register my request.

lifeonanisland said

BoC will raise rates on June 1st...maybe worth waiting until then to pull the trigger?  

Maybe I will the other GIC with them matures on the 10th of June.....so

lifeonanisland said

BoC will raise rates on June 1st...maybe worth waiting until then to pull the trigger?  

This ⬆

'Patience Pays'

Unless you're between a rock and a hard place (have no choice), I wouldn't be putting much money in long-term GIC's right now. Like many, I'm convinced the future (4 to 6 months from now) will hold Much higher rates.

Warning ... I've been both right and wrong before. Time will tell.

My two nickels,

Dean

It's really hard to know what to do. I did bend on my resolve not to buy GICs until the end of the year. I bought one-year about a month ago at 3.3%, knowing perfectly well that this rate would go up.
I was prompted to do this for two reasons. First, I simply had way too much money in HISA as percent of total. It was hard to justify. I still have too much, but not so much as before! Second, our income situation is such that it behooves me to push some income forward to 2023, which a GIC can do but a savings account can't.
I am considering possibly buying additional one year GICs, one after each BoC rate increase or every time GICs go up by 50 bps, but will still leave significant amount available for the end of the year as I have to "feed" my ladder sometime this year.

But there is still much uncertainty and I could change my mind at any time - which is why I like the large balance in HISAs which I can quickly redirect by writing a cheque.
I think we are headed for a recession within 2 years. The internet tells me rates usually decline during recessions but I wasn't paying attention in past recessions.

I can't help but notice that many are saying they will not lock in for longer rates right now. Why? Am I alone in my thinking that long-term, rates will head back down? I am not a glass half empty type, but I see nothing but hard times ahead, sooner rather than later. I see recession in 2023 based on what I've read; some unaffiliated economists are suggesting we're already in the early stages of recession. I have no faith in governments and central banks; in order to resurrect election chances, they will capitulate as soon as they possibly can, lower interest rates back down, and try to get the party re-started. So for these reasons, I am very interested in longer terms, five years and more. Given that you can already get 4.55 for six years, I'm hoping for 6 percent and maybe more later in 2022, and won't hesitate to pull the trigger. But wondering why others aren't feeling the same way.

lifeonanisland said

.....To me, it seems likely that, by August 2023, there will be an easing of central banks rates, if they've been raised above neutral and are bringing inflation under control. That's the last thing I need...maturing GICs just as interest rates are plummeting. Thoughts? In other words, I'm asking if anyone else sees these interest rates as a short term opportunity?  

Yes.
No.
Maybe.
Everyday I can shift my view a bit. I have hedged my bets somewhat by buying up to 3 years (partial of my goal). Some days I don't see longer term (5 yrs ish) going much higher so I think I should buy some, other days when the shorter term rates keep going up I manage to sit on my hands. I believe rates will come down - but when and how much did they go up first. So, I have a bit of some things (1,2,3,cash) - I like to think of it as a form of diversification since I can't predict the future and I could imaging many different scenarios possible.

HermanH said

lifeonanisland said
I can't help but notice that many are saying they will not lock in for longer rates right now. Why? Am I alone in my thinking that long-term, rates will head back down? I am not a glass half empty type, but I see nothing but hard times ahead, sooner rather than later. I see recession in 2023 based on what I've read

I see much the same as you. I believe that most folks anticipate rates to rise for a few months more and hope to buy longer-term GICs near the crest. Once the recession hits (looks like the banks anticipate 3 yrs.), the rates will crater (1-2%) and we will be happy with the relatively high rates of 4.55%.  

Yes, that's my thinking. But I do think we're going to crest 6 percent before they go down, as it seems to be a given that we'll have at least three more hikes of .5 percent, with the next one just a few days away. If we end up with 6, I'll be ecstatic.

HermanH said

lifeonanisland said But I do think we're going to crest 6 percent

Just to be clear, you are suggesting 6% 1-yr GIC rates and not BoC rates, correct?  

unfortunately no chance 1y will hit 6%, even tho we all wish for it.

@lifeonanisland, yes the BoC will hike at least another 150bps total before they pause, but that wont move the 5y rate from 4.5% to 6%. At best one will see a 5.25% rate for 5y. Think about it, if the BoC pauses at say 3% o/n rate, why would a bank pays 6% for the next 5 years...

For me, I am waiting for another 6-9 months, and start locking into a bunch of 3-5 years rate, depends on the level at the time. For now 1y or less.

What determines the spread from BOC rate and the 5 yr GIC rate. At times in past you could hardly get 1% higher than the BOC rate.. why now can we get 3-4% higher and why will that trend continue as everyone suggests? I guess I’m asking why is it not possible BOC could go to 3 but gic rates could again only be a percent more?!