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GIC rate increases again
April 21, 2022
6:08 am
frugal lady
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From EQ:
1 Year 3.00%
15 Mo. 3.15%
2 Year 3.65%
27 Mo. 3.70%
3 Year 4.00%
4 Year 4.00%
5 Year 4.05%

April 21, 2022
7:00 am
Bruford
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None of them worth the risk.

April 21, 2022
7:05 am
Pythagoras
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Bruford said
None of them worth the risk.  

Risk of? Could you please expand?

April 21, 2022
7:18 am
hwyc
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I placed a little at 4% compounded since I don't know if (a) rates will go higher at the longer terms or (b) the 4% rate will come down to shorter terms in the next few months. At this point I still can't image HISA rates (excl. promo/targeted) will be near that mark.

April 21, 2022
7:31 am
savemoresaveoften
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hwyc said
I placed a little at 4% compounded since I don't know if (a) rates will go higher at the longer terms or (b) the 4% rate will come down to shorter terms in the next few months. At this point I still can't image HISA rates (excl. promo/targeted) will be near that mark.  

u r right that HISA will NOT get anywhere close to that. Not in the FIs interest to offer that type of rate in HISA anymore.

April 21, 2022
11:30 am
rodeworthy
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if only they would issue joint GICs........(sigh)

RIF could be useful too.

April 21, 2022
12:26 pm
Bruford
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Pythagoras said

Risk of? Could you please expand?  

Some of the more obvious risks are:

1) existing inflation 7% claimed, probably 15%+ actual, end result 10% (+ taxes) loss on capital guaranteed. This is return free risk.

2) Systemic collapse risk, all money locked in will be lost. The longer the term, the higher the risk.

April 21, 2022
12:38 pm
Pythagoras
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Bruford said

Some of the more obvious risks are:

1) existing inflation 7% claimed, probably 15%+ actual, end result 10% (+ taxes) loss on capital guaranteed. This is return free risk.

2) Systemic collapse risk, all money locked in will be lost. The longer the term, the higher the risk.  

When you say "systemic" collapse risk - do you mean EQ Bank specifically, or all banks?

April 21, 2022
1:06 pm
Loonie
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If it's systemic loss, it will be just as lost in HISA as in GICs, seems to me. Why do you think not, and what else would you do with the money? I don't see any place to run to.

April 21, 2022
1:40 pm
Bruford
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No not a whole lot of places to hide, you are correct. The preferred concept is to lose as little capital as possible. HISA is better than GIC in that you can remove it quickly from the banking system, and cash in hand is better than a Government promise to repay, don't you think? We all need to transfer wealth into items that will hold value, and fiat is not one of them. What will hold value, that is another can of worms. My preferred idea is to spread wealth to many different asset classes. All cannot lose.

April 21, 2022
2:53 pm
Loonie
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If a bank fails, I think you are going to be waiting for that cheque regardless of whether it was in HISA or GIC. The GICs would be collapsed and interest paid to date of collapse is my understanding, in which case I'd rather have the higher rate.

April 21, 2022
6:25 pm
Bruford
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When a single bank fails, there would be some prior warning signals, affording attentive individuals time to evacuate funds before the event. Funds locked in GIC's would not allow that.

In a systemic collapse, cash would be better than a Government (read CDIC) promise to repay.

April 21, 2022
6:41 pm
AllanB
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hwyc said
I placed a little at 4% compounded 

Who's offering 4%

April 21, 2022
7:48 pm
Vatox
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AllanB said

hwyc said
I placed a little at 4% compounded 

Who's offering 4%  

EQ 3, 4 and 5 year GICs

Note first post.

April 21, 2022
7:48 pm
AltaRed
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AllanB said
Who's offering 4%  

Post #1 in this thread shows EQ Bank paying 4% or better for 3, 4, 5 year money.

April 22, 2022
10:21 am
thegov
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Question: Bought a small 15mos EQ GIC at beginning of the week. Rate has gone up since. Does EQ bump you up to the higher rate - as I believe Home Bank, for example, goes back about a week? Just curious as it's only a few bucks. Thx

April 22, 2022
10:58 am
Norman1
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I've only known EQ Bank to give an adjustment when the GIC rate drops and one could not have purchased the GIC before because the funds were still on hold in the savings account.

April 22, 2022
11:37 am
frugal lady
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thegov said
Question: Bought a small 15mos EQ GIC at beginning of the week. Rate has gone up since. Does EQ bump you up to the higher rate - as I believe Home Bank, for example, goes back about a week? Just curious as it's only a few bucks. Thx  

"You may cancel your purchase of an EQ Bank GIC within one day after the Effective Date without penalty and you will be entitled to a refund of all principal invested."

May 12, 2022
9:28 am
hwyc
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4% now for only 27 months sf-smile
... & to put into perspective it's 3.95% for 24 months

May 19, 2022
5:41 am
hwyc
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Now
4.10% for 27 months (4.05% for 24) ...1st to cross 4% at 2-yr GIC sf-smile
3.60% for 15 months (3.45% for 12)

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