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CDIC limits and perceived safety of some FIs
July 19, 2021
8:09 am
pooreva
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Bobbyjet11 said

It is??... been lackadaisical lately when checking but last I checked the CT savings interest was 1.55%. Will check again - thanks for the heads up.  

Yup. CT High Interest Savings 1.25%.

History repeats... They attract you with higher interest rate, get your money and then they drop rate to average or below expecting you 'trust' them to be 'the best on the market' and leave money there.
ICICI, Peoples Trust, ING/Tang, EQ, Hubert, etc. did the same.
CT is retail business buying aggressively every other business. Just go and look what they own... The only non-grocery company constantly filling my mailbox with their annoying flyers (CT and Shoppers).
I did consider them due to their higher interest but now I am very glad I did not go through their archaic registration process to get few bucks more.
I would stick with regular FI.
Are you willing to open an account with Loblaws, Sobeys, Balk Barn, Metro, Tim Hortons, etc. if they offer you 1.5% on saving account??? Not me, thank you.

As for exceeding CDC limit, I did that few times with Tang. It might be a gamble but I doubt subsidiary of a 5 Big Bank will go under these days.

July 19, 2021
1:25 pm
dougjp
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Agree. IMO, its a good time for those who exceeded CDIC limits with CT to do a 'portfolio re-allocation'.

Not a good day, add to this rate drop, the stock market, especially banks/dividend payers. sf-cry

There are 3 kinds of people: those who can count & those who can't.

July 19, 2021
4:44 pm
canadian.100
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dougjp said

Not a good day, add to this rate drop, the stock market, especially banks/dividend payers. sf-cry  

Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.

July 19, 2021
4:48 pm
dougjp
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canadian.100 said

Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.  

Yes, I'm watching closely, on the "buy" side of the market, not the "sell". A correction was overdue IMO, and today wasn't enough.

There are 3 kinds of people: those who can count & those who can't.

July 19, 2021
5:49 pm
Bobbyjet11
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BNN's Andrew McCreath has a broader view on today's (and Friday's) dismal market performance?
I.E. Inflation worries and rate of economic growth are the main reasons for recent investor sell-off as well as the rising Covid variant cases in the U.S.

https://www.bnnbloomberg.ca/video/mccreath-people-are-fearful-of-the-economy-s-forward-rate-of-growth~2244769

July 19, 2021
6:26 pm
topgun
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canadian.100 said

Apparently the reason is that Americans fear that Covid 19 cases are increasing again and this could affect recovery of the economy. Just hang in there and keep collecting your dividends - the economy will ultimately recover and the banks will do just fine.  

Personally I like it when stocks have a correction. I am setup for dividend reinvestment on some stocks. I automatically buy more shares when price is lower. It takes the guesswork out of buying. A couple rules on buying. 1. Keep the stock portfolio small. Up to 5 dividend blue chip stocks are plenty. 2. Buy enough shares to buy at least one more share with the dividend. This second rule will eliminate many stocks that you should not consider because of stock price. i did not use this rule when I started. There were many stocks that I owned that I never bought one more share with the dividend.

Have a Great Day

July 20, 2021
10:38 am
Alexandra
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Bobbyjet11 said

It is??... been lackadaisical lately when checking but last I checked the CT savings interest was 1.55%. Will check again - thanks for the heads up.  

I have a few GIC's maturing at EQ bank this month. I think I will do their 1.3% for either 3mo. or 6mo. which would either mature in late Nov 2021 or Feb 2022. Hopefully the rates will improve around that time as many purchasing/renewing RRSP's & TFSA's then. Maybe that would suit you rather than a HISA @ 1.25%?
Also, as my GIC's are maturing with them, I won't lose any "transfer of fund days" to another institution that is only offering 1.25% anyway.

July 24, 2021
7:53 am
COIN
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I have had GIC's with Home and Pace in recent years. Had some nervous moments but got back all my principal plus interest on each maturity.

July 24, 2021
11:20 am
Dean
Valhalla Mountains, British Columbia
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Alexandra said

I have a few GIC's maturing at EQ bank this month. I think I will do their 1.3% for either 3mo. or 6mo. which would either mature in late Nov 2021 or Feb 2022. Hopefully the rates will improve around that time as many purchasing/renewing RRSP's & TFSA's then. Maybe that would suit you rather than a HISA @ 1.25%?
Also, as my GIC's are maturing with them, I won't lose any "transfer of fund days" to another institution that is only offering 1.25% anyway.  

Ditto ❗

When it comes to GIC's, I think a lot of us are staying 'short' for now. For myself, that means no farther out than 18 months.

Fingers crossed we'll see some significant GIC rate increases in a few months (early next year❓).

    Dean

sf-cool " Live Long And Prosper " sf-cool

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