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4 yrs @ 2.0%, 5 yrs @2.1%, through GICWealth
April 27, 2021
3:32 am
Loonie
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GICWealth is a Toronto deposit broker.

I received this notice from them yesterday by email and don't know how long these will last. Sometimes the time lines are very short; sometimes not.

The four year term requires minimum of 25k; the 5 yr requires 100k. I don't know which FIs they are with.
I forgot to mention in the title that they also had 1.8% for 3 years, which is quite high in today's market (min 25K).

I deal with GICWealth from time to time, when their rates are the best, and have no problem with them. They have been discussed in other threads.

It's been a long time since I've seen 4 years at 2% !
Perhaps it will be useful to someone here.

April 27, 2021
5:27 am
canadian.100
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Loonie said
GICWealth is a Toronto deposit broker.

I received this notice from them yesterday by email and don't know how long these will last. Sometimes the time lines are very short; sometimes not.

The four year term requires minimum of 25k; the 5 yr requires 100k. I don't know which FIs they are with.
I forgot to mention in the title that they also had 1.8% for 3 years, which is quite high in today's market (min 25K).

I deal with GICWealth from time to time, when their rates are the best, and have no problem with them. They have been discussed in other threads.

It's been a long time since I've seen 4 years at 2% !
Perhaps it will be useful to someone here.  

Unfortunately with inflation likely to be 2% this year (and probably more in 2022) and after income taxes (which are going to increase), one still loses. These rates are a bit better but still not an incentive to freeze your capital for 3 and 4 years. Perhaps being offered by lesser known Credit Union(s)?

April 27, 2021
8:10 am
Bud
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Would be nice if GicW listed who is offering these rates so investors dont have to keep messaging the office every time they come out with something new

April 27, 2021
12:37 pm
gicjunkie
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Bud said
Would be nice if GicW listed who is offering these rates so investors dont have to keep messaging the office every time they come out with something new  

Yes, it would be nice, but, to the best of my knowledge, none of the brokers reveal on their websites which FIs are making the offers . You must contact them directly for that information. Apparently they like the personal contact.

April 27, 2021
8:47 pm
GR
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gicjunkie said

Yes, it would be nice, but, to the best of my knowledge, none of the brokers reveal on their websites which FIs are making the offers . You must contact them directly for that information. Apparently they like the personal contact.  

Fiscal Agents in Ontario show names of financial institutions and their rates for GICs on their website. (Click on column heading to sort highest to lowest.)

https://www.fiscalagents.com/index.php/rates/rates-guaranteed-investment-certificates/

April 27, 2021
8:55 pm
Loonie
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canadian.100 said

Unfortunately with inflation likely to be 2% this year (and probably more in 2022) and after income taxes (which are going to increase), one still loses. These rates are a bit better but still not an incentive to freeze your capital for 3 and 4 years. Perhaps being offered by lesser known Credit Union(s)?  

All kinds of things might happen, but we don't really know, do we? Bank of Canada reversed its predictions last week, and could easily reverse them again.

There are no increased income taxes on the books for me. But I will continue to maximize RIF withdrawals within my tax bracket until they are gone. I think that's a more reliable way to deal with any possible tax hikes.

I do think inflation will be a factor at some point in the next few years, but I could be wrong.
People need to follow their financial plan, based on a balance of risks and rewards, and revise it periodically when there are significant changes.

I wouldn't assume these offers are coming from CUs, although they might be. GICWealth deals with both banks and CUs. The last GIC I bought through them was from a bank and it was the highest rate available for the term in question at the time.

April 28, 2021
11:56 am
gicjunkie
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GR said

Fiscal Agents in Ontario show names of financial institutions and their rates for GICs on their website. (Click on column heading to sort highest to lowest.)

https://www.fiscalagents.com/index.php/rates/rates-guaranteed-investment-certificates/  

I stand corrected. There is at least one broker that reveals FI names. No doubt GIC Wealth uses the same ones, so, problem solved. Thanks for the update.

April 28, 2021
12:04 pm
gicjunkie
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On follow up I noticed that MCAN, the FI offering the 2.10% for 5 years was not offering the higher rates mentioned above for the shorter terms, so, some of the mystery remains.

April 28, 2021
12:23 pm
topgun
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GIC Wealth Management
2.0% 4 year minimum $25,000.
2.1% 5 year minimum $100,000.

Have a Great Day

April 28, 2021
5:11 pm
Loonie
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gicjunkie said

I stand corrected. There is at least one broker that reveals FI names. No doubt GIC Wealth uses the same ones, so, problem solved. Thanks for the update.  

Don't assume they all serve the same FIs. Each broker has their own arrangements with FI clients. FI clients choose who they want to work with.
Let's say FI #1 needs to raise 10 million. They know from experience that broker A can do that for them within a few days at X%. They have no need to set up arrangements with brokers B,C, or D. They would go to B,C, and/or D if they needed more money than A could raise in the required time.
Sometimes however, different brokers will knowingly share a client.
(I asked questions, and this is what I gleaned from the answers.)
I suppose that if they all had identical offerings, there would be no point in separate companies.

April 28, 2021
9:06 pm
Norman1
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If FI #1 is a small financial institution, it may wish to raise $10 million and only $10 million.

Had it also given the X% offer to brokers B, C, and D, a total of $30 million could come in before it could withdraw the offer at the end of the business day.

$10 million would be lent out as planned. But, the remaining $20 million would be toxic. It would have to pay X% on the extra $20 million but only earn ¼% or less while the money is parked in banker's acceptances or government treasury bills.

April 28, 2021
9:21 pm
Loonie
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i had the impression, from my inquiries, that the contract between the FI and the broker would specify how much they wanted, including a ceiling or the right to cut it off without notice.
That's why some of these offers only last a day or two. The higher the rate offered, the faster they will raise the money.
Anybody wanna offer me 3%? sf-laugh

April 28, 2021
9:54 pm
Norman1
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The financial institution cannot retract the offer before the end of the business day.

The deposit broker will end up with a serious client relationship situation if it contacts its GIC buying clients about the X% offer in the morning and the offer is gone when the clients drop by in the afternoon to finalize their purchase.

Same should Bob call the deposit broker, is given the X% offer, accepts, and tells his friend Alice about it. Alice calls two hours later and is given a lower rate. sf-surprised Just imagine some of the possible accusations that could end up being hurled!

Deposit brokers prep their GIC buying clients that any rates and financial institutions quoted are only good for today. Tomorrow, it could be a different financial institution offering that rate or there could be no financial institution offering that rate anymore.

I've never been told by a deposit broker that the quoted rate and financial institution are only good for the next few hours.

April 29, 2021
12:58 am
Loonie
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There is nothing to prevent them cutting it off if that's the agreement, but it probably doesn't happen within the 1st day.
People are used to being too late for a specific deal. Happens all the time.
Right now, this thread has been read 453 times, which is 439 more times than the number of posts - and they all have friends. If a significant number pursued this deal, and it ended today, they would not all get it, simply because of insufficient workforce. Would they be disappointed? Yes, but it would not stop them trying again another time.

If you contact your deposit broker at noon and they say the offer may only be good for "today', do you not think that is the equivalent of "a few hours"? Remember, he has a toothache and has to get to the dentist by 4pm, LOL! These are not huge businesses, from what I've seen, although they deal with huge amounts of money. Some people could easily miss out, even on the first and only day.

April 29, 2021
5:29 am
canadian.100
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Loonie said
Anybody wanna offer me 3%? sf-laugh  

Diversify your savings and buy ultra conservative Canadian bank shares (RY, BNS, TD etc.) and you will earn at least 3% dividends quarterly and tax advantaged with the dividend tax credit. Probably almost 0% likely a major i.e. (big 6) Canadian bank will go under - Justin will ALWAYS have your back.

April 29, 2021
9:31 am
gicjunkie
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Loonie said

Don't assume they all serve the same FIs. Each broker has their own arrangements with FI clients. FI clients choose who they want to work with. 

First of all, I never assume. I have often suggested to readers of this site that they go straight to the FI (or deposit broker) to confirm information presented herein. It is often the case that the same offers are made through numerous brokers.

Regarding limited offers, as far as I am concerned, every offer, whether it be a current bank account interest rate or a GIC rate, is a limited offer in that it doesn't last forever. Market conditions dictate change. I have often been told by a broker that the current interest rate is in effect until the FI attains its investment goal and that goal may be achieved by the end of the week. Sometimes the broker has the flexibility to extend the offer by a day or two with the FI's approval. Every situation is unique and should be treated as such by the investor. No assumptions!

April 29, 2021
9:53 am
Loonie
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I sometimes consider buying a few bank stocks, but only so that I could go to the AGM and complain.

Which one offers the best treats, and meets in Toronto?

Spouse went to an annual meeting for something we had a stake in once. I can't remember what it was now. I think it was something to do with insurance. They served very high quality treats, which were enjoyed by all. I believe they came from Daniel et Daniel, an excellent local caterer.

April 29, 2021
10:30 am
topgun
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I have gone to several AGM in Toronto. One company disappeared in a buyout. One company moved west. You do not need to own the stock to attend a AGM. Investigate big banks excluding BNS. I think their annual meeting is down east ALLWAYS. A couple other with AGM in Toronto are Canadian Tire and Barrick Gold. Canadian Tire had good treats as I recall. Do quickly. Many AGM happened this month. I do not keep track. I trash the information they send me quickly.

Have a Great Day

April 29, 2021
10:48 am
Loonie
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Thanks for the info, topgun.
This is not a good year for in-person AGMs, and thus not good for treats.
Maybe next year...

April 29, 2021
11:55 am
topgun
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Excellent idea.
My dentist called on Monday about Tuesday appointment. I declined.

Have a Great Day

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