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Email this8:23 am
February 7, 2019
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All 2-10Yr GIC's now at 4.7% ...
| CGO |
9:14 am
August 16, 2022
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People's Trust 1 year GIC is 4.70%
11:23 am
September 22, 2022
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Do you recommend a 5 year GiC that pays 4.7% compounded annually?
11:34 am
February 7, 2019
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Romnea said
Do you recommend a 5 year GiC that pays 4.7% compounded annually?
No.
I just thought it cute that their 2, 3, 4,...,10Yr GIC's are all at 4.70% ...
| CGO |
1:37 pm
September 22, 2022
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What rate should I expect for 5 years?
2:30 pm
January 11, 2020
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Romnea said
What rate should I expect for 5 years?
Refer to the chart… you should expect 5% for 5 yrs
2:32 pm
August 16, 2022
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For sure north of 5%. Wealth One, I believe is 5.18% now for a 5 year GIC. October 26th Bank of Canada no doubt will be raising rates again. I think 5.25% on a 5 year is achievable ++
GL
2:39 pm
October 21, 2013
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GICWealth, deposit broker, has been offering 5.25 , min 50K, for several weeks now. I am not sure who the issuer is.
4:32 pm
April 14, 2021
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Habib Canadian Bank is offering the 5.25% for 5 yrs via GICWealth
4:36 pm
October 21, 2013
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Thanks, Herman; good to know.
I bought a Habib GIC from GICWealth a couple of years ago and have had no issues.
To Romnea: It may depend on where you live as to whether you can access the Habib GIC at this rate.
6:34 pm
January 12, 2019
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Moneyman2 said
. . . October 26th Bank of Canada no doubt will be raising rates again. I think 5.25% on a 5 year is achievable ++
GL
Unfortunately, the notion that GIC rates are tied to the BoC rates, is mistaken. The recent Drop ⬇ in several GIC rates are good examples.
There are many factors involved in the setting of GIC rates ... the BoC rate is only one of them.
- Dean
" Live Long, Healthy ... And Prosper! "
9:07 pm
August 16, 2022
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I'm talking 1 year GIC not 5. Who wants to lock their money up for 5 years with no access whatsoever? Habib site says 5 year is only 3.00%
9:14 pm
April 14, 2021
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GICWealth sells the 5.25% 5-yr GICs issued by Habib
Direct GIC purchases from Habib are only for 3%
I bought some and might buy some more. I am uncertain if rates will rise over 5.25% the next five years.
9:20 pm
October 27, 2013
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Moneyman2 said
I'm talking 1 year GIC not 5. Who wants to lock their money up for 5 years with no access whatsoever?
It is fairly common investing practice to build and operate a 5 year GIC ladder of five year GICs. That optimizes yield while still having a five year GIC maturing every year (using 5 GICs) or every 6 months (using 10 GICs) or every 4 months (using 15 GICs), etc, etc. Rinse and roll over every time a maturity occurs.
I used to do that, but not necessarily just with five year GICs. I'd include term notes, bonds and debentures in that 5 year ladder.
4:04 am
January 28, 2015
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Moneyman2 said
I'm talking 1 year GIC not 5. Who wants to lock their money up for 5 years with no access whatsoever? Habib site says 5 year is only 3.00%
Depends what you want .I took out 100k@ 5.1% at Motive for 10 years that pays the interest monthly 425.00 into an account that pays 3% and I have another 100k at motive coming due that also pays monthly that I will flip into another 10 year paying monthly . I know for the next 10 years I will have a steady income stream and at the end still have 200k. Although I'm only locking up 1/3 cash on hand the rest is in high interest savings accounts if I need money now
5:34 am
March 30, 2017
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Moneyman2 said
I'm talking 1 year GIC not 5. Who wants to lock their money up for 5 years with no access whatsoever? Habib site says 5 year is only 3.00%
Both BoC and Fed "thinks" terminal rate is around 4-5%. Currently we are like 1% away from that terminal rate too. Any FI that offer 5% or more in 1year need to have a "real reason" to do so. One such reason will be cuz they have a lot of 1y loan demand that they can lend it out at 7% or more...
7:03 am
December 12, 2021
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savemoresaveoften said
Both BoC and Fed "thinks" terminal rate is around 4-5%. Currently we are like 1% away from that terminal rate too. Any FI that offer 5% or more in 1year need to have a "real reason" to do so. One such reason will be cuz they have a lot of 1y loan demand that they can lend it out at 7% or more...
FO5%
10:07 am
April 14, 2021
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mechone said
Depends what you want .I took out 100k@ 5.1% at Motive for 10 years that pays the interest monthly 425.00 into an account that pays 3% and I have another 100k at motive coming due that also pays monthly that I will flip into another 10 year paying monthly .
I was thinking along the same lines, but declined to do so because of the Habib offering for 5.25% for 5-yrs. Also, Maxa offering of 5.1% for 5-yrs. Why should I be penalizing myself for yrs 1-5, by taking less? I prefer to take my chances for decent or similar rates at maturity.
12:18 pm
October 21, 2013
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I think it's a good strategy if you have a reasonable life expectancy of at least ten healthy years. If you're not that healthy, you might want to consider if you may need access to more than one year's capital at a time.
Sure, rates might go up in the interim. But, then again, they might go down. If you buy the same amount every year, you are evening out the odds as best you can. In the meanwhile, you are getting best available rates.
I have a friend who doesn't bother with laddering. He just takes the best available rate, however long it may be, when his GICs mature. He seems to be doing as well as anyone, on average. He lucked out with his timing and put a lot into the 4% four year GIC at Ganaraska CU four years ago, maturing soon.
The monthly income arrangement at Motive is great, and allows you to maximize your investment under CDIC.
If you depend on this income stream to meet expenses, you might want to gradually annuitize some of it when inflation gets too high, for the longer haul.
Please write your comments in the forum.