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Email this6:22 am
September 11, 2019
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Not sure who else uses motusbank here but I locked in my money at motusbank at the beginning of February on a 5-year escalator GIC at 2.85% with annual compound.
Interest Rate: 2.250%, 2.400%, 2.900%, 3.200%, 3.500%
8:27 am
March 30, 2017
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Bruford said
Do yourself a favour and stay in cash, or a redeemable GIC. I anticipate some bank failures going forward, you may have to act quickly to preserve assets.
it wont happen, not the schedule 1 in Canada. For CU, as long as one is under the limit, no issues either.
10:09 am
February 27, 2018
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Looking to the future to try to decide whether a 3 year or a 5 year GIC ladder is the best way to go, is dependent upon ones outlook on life and the economy.
When covid 19 ends, will we all spend like crazy In celebration? Bankers and stock brokers say we will.
Me myself, I've had my eye on a nice fall jacket but I'm NOT buying it because... i don't know if I'll be alive in the fall AND I'd like to see a great sale price, to encourage me to buy it.
I do try to ladder my gic purchases. i took tangerine's recent gic offer out to only 3 years. If Canada's in a shit hole now and these are the rates... hopefully we're in better shape in 3 years and the rates will be higher.
12:59 pm
October 21, 2013
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For those who want to hedge their bets, Meridian offers a "Raise the Rate" GIC.
Current offer is 3-Year 2.10%, 5-Year 2.15%.
If a better rate comes along during the course of your GIC, you can change it. You can do this once for the 3 year and twice for the 5 yr.
As starter rates, these are not great, but it does give you a hedge.
https://www.meridiancu.ca/Personal/Investing/Products-and-Account-Types/Raise-the-Rate-GIC.aspx
1:50 pm
September 7, 2018
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Loonie said
For those who want to hedge their bets, Meridian offers a "Raise the Rate" GIC.
Current offer is 3-Year 2.10%, 5-Year 2.15%.
1. 2.10% for 3 years is truly paltry; and
2 The likelihood of rates going up anytime soon is extremely low.
5:00 pm
September 7, 2018
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Duplicated in error.
9:45 pm
October 21, 2013
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canadian.100 said
1. 2.10% for 3 years is truly paltry; and
2 The likelihood of rates going up anytime soon is extremely low.
I agree, it's very low, but not as low as some other FIs.
I imagine there is a market for it as some will think that w rates could improve and there's not much to lose especially if a smallish investment.
I consider it roughly a hybrid between regular GICs and market-linked GICs but with a better minimum guarantee and less upside potential than market-linked.
10:33 am
April 15, 2020
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Rick said
Isn't the whole point of laddering to average out total investment? I have one at 3.62% and the one I'm about to take out at 2.4% and my average combined rate is 3.01%....extrapolate over a 5 year ladder.Can abandon this years rung for a better savings or short term rate ...it's not impossible. Reintegrate when maturity rolls around but you're gambling rates will go up (who knows...got in on CC's 4% special but missed Tangs' 3.2 special earlier), there's a missing rung in the ladder that can take years to reset, and it kind of defeats the purpose of setting it up and just letting it keep rolling over....if that's your goal.
Yeah...sux locking in for 2.4% for 5 years. Then again....maybe 3 years in, 2.4 will be looking pretty good. It's already better than the current 2.25 or 2.2 of the HISA leaders.
Currently my average rate is 3.02%. I have a small GIC that matures later this month. My average rate drops to 3.01%. I plan on holding funds in a savings account. The difference between a savings account and a 5 year GIC is very little over eight months currently. I have a couple more GICS that mature later this year. I can merge into one 5 year GIC at that time. I have no idea what interest rates will be in one month or eight months. Eventually I will have 5-5 year GICS. It makes sense to me. I have to make a decision what to do with the matured funds once a year. I learned this from a friend. Each individual is unique. Best wishes.
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