For Those Who Like 4.7% | EQ Bank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
For Those Who Like 4.7%
September 24, 2022
8:23 am
cgouimet
Member
Members
Forum Posts: 1533
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

All 2-10Yr GIC's now at 4.7% ...

CGO
September 24, 2022
9:14 am
Moneyman2
Member
Members
Forum Posts: 46
Member Since:
August 16, 2022
sp_UserOfflineSmall Offline

People's Trust 1 year GIC is 4.70%

September 25, 2022
11:23 am
Romnea
Member
Banned
Forum Posts: 11
Member Since:
September 22, 2022
sp_UserOfflineSmall Offline

Do you recommend a 5 year GiC that pays 4.7% compounded annually?

September 25, 2022
11:34 am
cgouimet
Member
Members
Forum Posts: 1533
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

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
September 25, 2022
1:37 pm
Romnea
Member
Banned
Forum Posts: 11
Member Since:
September 22, 2022
sp_UserOfflineSmall Offline

What rate should I expect for 5 years?

September 25, 2022
2:30 pm
MattS
Member
Members
Forum Posts: 152
Member Since:
January 11, 2020
sp_UserOfflineSmall Offline

Romnea said
What rate should I expect for 5 years?  

Refer to the chart… you should expect 5% for 5 yrs

September 25, 2022
2:32 pm
Moneyman2
Member
Members
Forum Posts: 46
Member Since:
August 16, 2022
sp_UserOfflineSmall Offline

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

September 25, 2022
2:39 pm
Loonie
Member
Members
Forum Posts: 9391
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

GICWealth, deposit broker, has been offering 5.25 , min 50K, for several weeks now. I am not sure who the issuer is.

September 25, 2022
4:32 pm
HermanH
Member
Members
Forum Posts: 1238
Member Since:
April 14, 2021
sp_UserOfflineSmall Offline

Habib Canadian Bank is offering the 5.25% for 5 yrs via GICWealth

September 25, 2022
4:36 pm
Loonie
Member
Members
Forum Posts: 9391
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

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.

September 25, 2022
6:34 pm
Dean
Valhalla Mountains, British Columbia
Member
Members
Forum Posts: 2142
Member Since:
January 12, 2019
sp_UserOfflineSmall Offline

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

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 25, 2022
9:07 pm
Moneyman2
Member
Members
Forum Posts: 46
Member Since:
August 16, 2022
sp_UserOfflineSmall Offline

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%

September 25, 2022
9:14 pm
HermanH
Member
Members
Forum Posts: 1238
Member Since:
April 14, 2021
sp_UserOfflineSmall Offline

GICWealth sells the 5.25% 5-yr GICs issued by Habib
Direct GIC purchases from Habib are only for 3%

https://gicwealth.ca/

I bought some and might buy some more. I am uncertain if rates will rise over 5.25% the next five years.

September 25, 2022
9:20 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 3122
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

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.

September 26, 2022
4:04 am
mechone
Ontario
Member
Members
Forum Posts: 178
Member Since:
January 28, 2015
sp_UserOfflineSmall Offline

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

September 26, 2022
5:34 am
savemoresaveoften
Member
Members
Forum Posts: 2981
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

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...

September 26, 2022
7:03 am
agit
Member
Members
Forum Posts: 192
Member Since:
December 12, 2021
sp_UserOfflineSmall Offline

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%

September 26, 2022
10:07 am
HermanH
Member
Members
Forum Posts: 1238
Member Since:
April 14, 2021
sp_UserOfflineSmall Offline

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.

September 26, 2022
12:18 pm
Loonie
Member
Members
Forum Posts: 9391
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

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.