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4 yrs @ 2.0%, 5 yrs @2.1%, through GICWealth
April 29, 2021
6:51 pm
Norman1
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Loonie said
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"? …

It isn't the same. One gets to the end of the day. It just happens to be a few hours if I call at noon.

If 300 buyers show up on the first day of the offer for $11 million in total, then the offer will be yanked at the end of the day. The financial institution can allow the broker a few days to do up the paperwork for those 300 takers from the first day.

Someone calling the next day would be told that the rate was for only for those who dropped by yesterday.

As for the $1 million overshoot, that's life. It's not going to be exact. The financial institution is not going to give the broker a tongue lashing for only hitting $9 million of the target $10 million or overshooting the target a bit.

The relationship is more of a joint venture. The deposit broker knows the financial institution would like to raise a certain amount of deposits but not too much over. The financial institution knows not to put the deposit broker in a bad situation with the GIC buyers.

April 30, 2021
4:46 am
Bill
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canadian.100, I agree, do that and you won't need to care what GICs rates are. GICs rarely beat inflation by other than a pittance, after taxes, at BEST you stay even. House prices in Canada have gone up 25% in the last year, lumber, gas, food, you name it, way up percentage wise and people regurgitate the nonsense that costs are up maybe 1- 2%! All GICs are good for is the "guaranteed" part, a joke to call them an "investment".

April 30, 2021
7:05 am
Norman1
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I agree. GIC's and bonds are not really investments. One is just parking money.

There was a time when five year GIC's were yielding more than 10% per annum. People thought they were "investing". As Bill noted, one wasn't really beating inflation much after taxes back then either with inflation running around 7%.

Real investments were stocks. I remember a large ads in the Globe & Mail at that time trumpeting the 18% per annum, 18 year performance record of the Industrial Horizon mutual fund.

May 2, 2021
4:07 am
Loonie
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If you want to call them Guaranteed Parking Certificates, I suppose you can do that, but everywhere in the Cdn financial industry they are known as Guaranteed INVESTMENT Certificates.

I don't care what you call them or whether anybody but me invests in them. It's better for me if you don't want them.sf-wink

I addressed the nomenclature and taxes/inflation arguments in other threads, for those who are interested.

As always, everyone has to make these important investment decisions according to their own situation, with full consideration of risks on all sides.

At the time of posting, the rates cited are still available on the GICWealth website.

.

May 2, 2021
4:47 am
canadian.100
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Loonie said
If you want to call them Guaranteed Parking Certificates, I suppose you can do that, but everywhere in the Cdn financial industry they are known as Guaranteed INVESTMENT Certificates.

It's better for me if you don't want them.sf-wink

At the time of posting, the rates cited are still available on the GICWealth website.

Guess there was no stampede for these rates, Loonie - so they are all yours.

While Banks and FIs call GICs "Investments", professional Accountants/Auditors categorized Stocks and Bonds as Investments while GICs and Deposit Receipts were generally considered Cash or Cash Equivalents. Whatever you want to call them, it does not matter - at present interest rates one loses when factoring in tax and inflation. As someone indicated above the only thing that is good is the "guaranteed" factor - guarantee of the principal, guarantee of a low interest rate and guarantee of loss/reduced purchasing power after tax and inflation.

May 2, 2021
11:28 am
HermanH
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canadian.100 said
While Banks and FIs call GICs "Investments", professional Accountants/Auditors categorized Stocks and Bonds as Investments while GICs and Deposit Receipts were generally considered Cash or Cash Equivalents.

I think that the best term to describe them is 'Term Deposits'.

May 2, 2021
12:39 pm
canadian.100
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HermanH said

canadian.100 said
While Banks and FIs call GICs "Investments", professional Accountants/Auditors categorized Stocks and Bonds as Investments while GICs and Deposit Receipts were generally considered Cash or Cash Equivalents.

I think that the best term to describe them is 'Term Deposits'.  

You are absolutely correct!
GIC probably originated as a marketing term from the institutions/firms who sell Term Deposits. Buyers love that word "guaranteed" - which is understandable.

May 2, 2021
1:08 pm
topgun
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Decades ago they were named GIC's. Interest rates were 7%-8% then. Rates rocketed to 17%-19% in late 1981. Rates at historical lows now. FI's still use GIC term. ING Direct called their account investment savings at start. Tangerine changed name when rates dropped.

Have a Great Day

May 2, 2021
3:11 pm
Loonie
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Historically (and still true in many FIs), "Term Deposits" refers to terms of less than one year; "Guaranteed Investment Certificate" refers to terms longer than that.
The use of "Term Deposit" seems to be waning.

"Guaranteed" may sound attractive, but one has to read carefully. In some cases, it is only the principal that is guaranteed, not the return.

May 3, 2021
9:02 am
Alexandra
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Loonie said
Historically (and still true in many FIs), "Term Deposits" refers to terms of less than one year; "Guaranteed Investment Certificate" refers to terms longer than that.
The use of "Term Deposit" seems to be waning.

"Guaranteed" may sound attractive, but one has to read carefully. In some cases, it is only the principal that is guaranteed, not the return.  

I always thought the Credit Unions said "term deposit" and the banks said GIC's
None of the credit unions that I can remember called your investments with them Guaranteed Investment Certificates.

May 3, 2021
3:59 pm
Loonie
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For starters, Meridian, one of the largest CUs in Canada, calls them GICs.
https://www.meridiancu.ca/Personal/Meridian-Rates-Fees.aspx

I am not going to spend any time researching them further. You may be thinking more of Manitoba, where I think "term deposit" is a bit more popular with the CUs. I noticed one of those earlier today.
But, really, what difference does it make? Whatever you call them, it's not going to get you any more interest.

May 4, 2021
9:07 am
Alexandra
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Loonie said
For starters, Meridian, one of the largest CUs in Canada, calls them GICs.
https://www.meridiancu.ca/Personal/Meridian-Rates-Fees.aspx

I am not going to spend any time researching them further. You may be thinking more of Manitoba, where I think "term deposit" is a bit more popular with the CUs. I noticed one of those earlier today.
But, really, what difference does it make? Whatever you call them, it's not going to get you any more interest.  

Sorry Loonie, I wasn't trying to display one upmanship!! It doesn't matter. They are all set term deposits what ever an institution may name them. I only have had "term deposits" with credit unions from either BC or Manitoba. Vancity, Community Savings and Island Savings and a few others in BC and loads of the Manitoba ones. They all called them that, so I just assumed the banks called them one thing and credit unions the other. I never really gave it a thought except when it was brought up here. But as you say it makes no nevermind!!

May 4, 2021
1:50 pm
Jim Sherat
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to add a little more levity to the discussion, back in March, 2019 when my wife and I jumped at the Meridian 3.25% rate for 18 months within our TFSAs, the actual piece of paper we ended up with had the header in Big, Bold print:
TFSA TERM DEPOSIT RECEIPT
however, within the details therein the term GIC was also used. Go figure. 🙂

May 5, 2021
4:45 am
Loonie
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Just to clarify, Alexandra, I took no offence at your comment and there is no reason to apologize. Was just trying to clarify/verify.sf-smile

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