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4-year rate?
October 11, 2018
8:06 am
Loonie
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Four-year terms don't seem to be too popular right now and are not attracting much in rate specials. Oaken and Momentum CU (Ontario) are both offering 3.40%, which is the best I've found. This is not a bad rate, but I'm wondering if there is anything better.

Does anyone know of anything better, e.g. through a broker or a negotiated deal or an obscure CU? I should make this decision by early November. I could go for a term with an odd number of months, less than 4 years, as long as it matures in 2022. 3.5 years would be ideal, but is not likely to attract a better rate.
I live in the GTA.

Please let me know if you hear of anything.

Thanks!

December 26, 2018
3:01 pm
Loonie
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I found my solution at Ganaraska CU, thanks to gicjunkie. 4%.

December 26, 2018
5:16 pm
Retep
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B70EEFB3-79FA-4A37-8B63-B0077825E3E9.jpeg

It is a worth while effort to turn on ALERTS on your Credit Cards and Bank/Credit Union Accounts.

December 26, 2018
5:42 pm
Brimleychen
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Retep said
B70EEFB3-79FA-4A37-8B63-B0077825E3E9.jpeg  

These are structured products, which are different from those traditional insured GICs.

https://www.investopedia.com/articles/bonds/10/structured-notes.asp

December 26, 2018
6:44 pm
Norman1
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As well, those "Minimum Return for the Term" and "Maximum Return for the Term" numbers are per term and not per annum:

1. On the Maturity Date you will receive 100% of the amount you invest in the BMO Return Enhancing GIC plus an amount based on the Rate of Return for the Term. …

You should note that the Rate of Return for the Term is not an annual rate. It is the rate of return over the entire term of the GIC.

Consequently, that 4% minimum return for the 4 year GIC is actually 4% over the four years or just 0.985% per annum.

December 26, 2018
8:23 pm
Loonie
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We have discussed market-linked funds before. in other threads at length.
For this BMO one, you would be risking 3% p..a. for the unlikely possibility of gaining 5% p.a.
In my books, an uncomplicated 4% p.a. plus annual compounding is the best choice.

But if your alternative is vanilla GICs at BMO, currently advertised at 1.8%, the market-linked might look fairly good!
And that's how they manage to sell them. https://www.bmo.com/home/personal/banking/rates/gic-term-deposits?nav=tools&gclid=EAIaIQobChMImuHQppK_3wIVhDxpCh1VVALlEAAYASABEgLG5_D_BwE&gclsrc=aw.ds

December 29, 2018
2:13 pm
Canadianbull
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Loonie said
I found my solution at Ganaraska CU, thanks to gicjunkie. 4%.  

Is this offer only for Ontarian?

December 29, 2018
2:36 pm
Oscar
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Online application form says you must be an Ontario resident.

https://ganaraskacu.com/Personal/BecomingAMember/ApplyForMembership/

December 29, 2018
7:00 pm
Canadianbull
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Oscar said
Online application form says you must be an Ontario resident.

https://ganaraskacu.com/Personal/BecomingAMember/ApplyForMembership/  

Thanks for the clarification

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