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BMOIL: 2 year = 5.08% (Fairstone Bank)
October 27, 2022
12:37 pm
Norman1
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BMO InvestorLine is offering Fairstone Bank two-year GIC's paying 5.08%.

Surprisingly, the next best two-year GIC's are 5.02% from the following:

  • Bank of Montreal
  • Bank of Montreal Mortgage Corp.
  • BMO Trust
  • Canadian Western Bank
  • HomeEquity Bank

All those top the current best two-year rate of 4.88% on our GIC chart from Wealth One Bank.

October 28, 2022
8:38 am
bigzim
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Yes sir,

Bought some yesterday through RBC direct investing.

November 2, 2022
2:37 pm
rodeworthy
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I want to thank Norman1 for bringing this 'new' (to me) source of GIC investments to our attention. I had not considered GICs through broker before but decided to give it a shot.

October was fast coming to a close and I still had not made my 2-yr GIC purchase for this month. I was really looking for 5% on this purchase. Equity CU withdrew their 5% rate earlier and I was on the lookout. Norman's post was very timely.

I had little cash in my BMOIL account and the lowest interest rate at the FI's I use where I had cash to cover the purchase was at Hubert. I attempted to create a link between these accounts but it failed. Instead of working on fixing that I decided to push funds from Achieva where I did have an established link to BMOIL. The delay put me into October 28 (a Friday) to make the transfer. A 3 business day delay was advised and that meant 5 calendar days before the money would be available for the GIC purchase. The money did show up by Nov 1 and I proceeded to secure the GIC. Unfortunately, on Nov 1, the 5.02% rates had disappeared. The BMO rates were now 4.97% (Haventree was available at 5% but I decided against that FI for this first effort). I selected BMO for my GIC @ 4.97%. IL advised the settlement date would be next day Nov. 2. Moving forward 2 years puts Nov. 2/24 on a weekend so the maturity date is Nov 4/24.
I don't know if the interest will be adjusted for the extra days but I will live with the outcome. If not, I have 7 days this money will not be earning any interest - or 5 days if the extended maturity date is compensated. C'est la vie.

It's been an interesting exercise. Thanks again Norman1 for the incentive to pursue this.

November 2, 2022
7:44 pm
Norman1
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Glad to read that you were eventually able to get money into your BMO InvestorLine account and purchase a two-year GIC.

I was able to link to the associated AccountLink chequing account of my BMOIL account at Hubert. I used the account's five-digit transit number from the account's cheques. The transit number shown on the BMO InvestorLine statements is only four digits and is missing the last digit.

If one adds the AccountLink account to a BMO banking card, one can deposit to the account at a BMO ATM or by teller at a BMO branch. Had to do by BMO teller a few times as the ATM complained that the amount of the cheque was too large for it to accept.

November 2, 2022
7:54 pm
hayman
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I recently got 5.5 for 10 years paid monthly without the investor line account with BMO. I think they are the most aggressive bank around as of now. Also wondering with the yield curve inverted how that will be affecting longterm rates going forward? Hope someone on here has more experience then I. Kind regards

November 2, 2022
7:55 pm
hayman
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I added 600k so that prob helped

November 2, 2022
8:36 pm
Norman1
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rodeworthy said
… I selected BMO for my GIC @ 4.97%. IL advised the settlement date would be next day Nov. 2. Moving forward 2 years puts Nov. 2/24 on a weekend so the maturity date is Nov 4/24.
I don't know if the interest will be adjusted for the extra days but I will live with the outcome. …

One can check the fine print of the GIC.

The fine print of a Royal Bank GIC purchased through online banking says

Interest
Interest in a GIC will be calculated counting the first but not the last day of the term.

Rates are usually quoted per annum. However, the term isn't always a whole number of years. If the rate is 4.97% per annum and the term is 2 years and 2 days, then I expect the interest will be paid for two years and two days, not just for two years.

November 2, 2022
8:43 pm
Norman1
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hayman said
I recently got 5.5 for 10 years paid monthly without the investor line account with BMO. I think they are the most aggressive bank around as of now. Also wondering with the yield curve inverted how that will be effecting longterm rates going forward? Hope someone on here has more experience then I.

The yield curve doesn't affect long term rates. It is not a prediction.

Inverted or not, it is just a snapshot of the rates issuers need to pay right now to raise the amount of funds they need for the desired number of years.

An inverted curve can normalize in two ways. High short term rates drop with long term rates staying the same. Short term rates stay the same with low long term rates rising.

November 3, 2022
5:55 am
bigzim
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Hey there Hayman. What kind of guaranteed investment was that 5.5 10 yr investment? Not a conventional GIC considering the monthly payout? Please enlighten us. I would take that everyday of the week

November 3, 2022
6:00 am
lisa
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I was just on their website and they are offering 5% for 10 year compounded interest and 4.9% for interest monthly or annually.
Screen-Shot-2022-11-03-at-8.58.22-AM.png

November 3, 2022
9:32 am
rodeworthy
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Norman1 said
....... I was able to link to the associated AccountLink chequing account of my BMOIL account at Hubert. .....
If one adds the AccountLink account to a BMO banking card, one can deposit to the account at a BMO ATM or by teller at a BMO branch. ....

Norman1, thanks for the info on AccountLink. My problem is that I only have a BMOIL account but no BMO unregistered account required for AccountLink. I should look into correcting that. I have always dealt with moving funds in and out of the IL account directly at a Branch. Not that convenient.

Previously I advised that I had a link to BMOIL from Achieva. That was misstated. It is really a bill-payer connection to BMOIL and the transaction was by PAD. I believe that is the only way to move external money to BMOIL directly. It got the job done this time but in the future it might be faster to move funds using the AccountLink method you describe. Thanks for the tip.

November 3, 2022
9:43 am
AltaRed
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AccountLink really should come automatically with a BMO IL non-registered account for those who do not already have BMO chequing accounts because of its convenience. It basically makes cash in the BMOIL account a chequing account with 2 free transactions per month. The AccountLink provides all the options a chequing account does, e.g. Interac-etransfers, cheques, bill payments, able to receive me2me transfers from third party institutions, ATM and teller transactions, etc.

November 3, 2022
9:59 am
rodeworthy
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Norman1 said

Rates are usually quoted per annum. However, the term isn't always a whole number of years. If the rate is 4.97% per annum and the term is 2 years and 2 days, then I expect the interest will be paid for two years and two days, not just for two years.  

I agree, especially since the issuer stated the settlement date and the maturity date, not just 2-years.

The difference between 2-years (731 days) and 733 days will be $15.04 according to my home-brew calculator which also calculates interest for the first day but not the last. Nothing to get overly excited about either way. I do appreciate your comment and your conclusion.

November 3, 2022
10:52 am
Norman1
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rodeworthy said

Norman1, thanks for the info on AccountLink. My problem is that I only have a BMOIL account but no BMO unregistered account required for AccountLink. I should look into correcting that. I have always dealt with moving funds in and out of the IL account directly at a Branch.…

As AltaRed described, the special AccountLink chequing account comes with a non-registered BMO InvestorLine account, even if one already has a BMO chequing account already.

You actually have it already! Have a look at the first page of one of your BMO InvestorLine monthly statements. Look for text "AccountLink Service".

See the answer to these two questions in the "Existing Clients" section of BMO InvestorLine Self-Directed FAQs:

  • How can I access the cash in my BMO InvestorLine investment (non-registered) account?
  • I'm already a BMO Bank of Montreal customer, do I need a special bank card to use AccountLink Service?

Page 4 of the commission and fee schedule has the AccountLink fees.

One can request an AccountLink bank card for the AccountLink chequing account if one does not already have a BMO bank card or BMO credit card to add the AccountLink account to.

November 3, 2022
11:25 am
AltaRed
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BMOIL may automatically provide AccountLink chequing account with new account applications in recent years, but when I opened a BMO IL account over 10 years ago, I actually had to tick a box on the application form requesting it. Later on, I had to phone in to request it for a USD chequing account.

Regardless, it is an easy phone call to BMO IL to get it if one does not already have it.

November 4, 2022
8:23 am
hayman
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Ask for a financial planner on the 1844 BMO number I gave Herman his direct contact info can’t find it at the moment his name is Ivan. When you are dealing with 500k plus banks fight over your business both BMO and Scotiabank would have done the same rate, I’m actually waiting for Royal bank to offer 5.7% on the 10 yr. I don’t believe in the smaller online banks that are pushed so hard on this sight. Kind regards

November 4, 2022
5:59 pm
rodeworthy
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Norman1 said

As AltaRed described, the special AccountLink chequing account comes with a non-registered BMO InvestorLine account, even if one already has a BMO chequing account already.

You actually have it already! Have a look at the first page of one of your BMO InvestorLine monthly statements. Look for text "AccountLink Service".

Sorry if I confused the situation in my earlier posts. You are correct my BMOIL statements do indicate an "AccountLink Service" with an appropriate account no. On the top right of the same statement the account is designated "Order execution only account".

The issue is that I do not have any other BMO accounts and according to this video from the BMO site "AccountLink is exclusive to BMO IL customers who do their personal banking with BMO". Without a personal BMO account there is no access to AccountLink. Under the present situation the only way to electronically transfer funds into BMOIL is by 'bill-payer' method which I used for my initial GIC purchase.

AltaRed said
BMOIL may automatically provide AccountLink chequing account with new account applications in recent years, but when I opened a BMO IL account over 10 years ago, I actually had to tick a box on the application form requesting it. Later on, I had to phone in to request it for a USD chequing account.

Regardless, it is an easy phone call to BMO IL to get it if one does not already have it.  

I opened my BMOIL account in August, 2004. I intended to use it more extensively than I have. It turns out I am not much of a 'trader'. More of a 'buy-and-hold' type of investor. I drifted to another form of stock purchases through a DRIP (Dividend Reinvestment Program) that I used much more extensively and still have those investments today. These investments are held with a couple of Transfer companies. My goal is to maintain 20% of our assets in equities.

If I am going to be more active with GICs or other forms of investments with BMOIL it makes sense to open personal accounts to facilitate the faster electronic form of transfers.

My method of retrieving earnings from BMOIL cash account is pretty crude. I visit local BMO Branch twice a year and get a draft that I walk up the street and deposit at a Big 5 bank that I use as a hub for links to all our other FIs.

We will leave it at that. Thanks for your guidance on this topic.

November 4, 2022
7:31 pm
Norman1
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rodeworthy said

Sorry if I confused the situation in my earlier posts. You are correct my BMOIL statements do indicate an "AccountLink Service" with an appropriate account no. On the top right of the same statement the account is designated "Order execution only account".

The issue is that I do not have any other BMO accounts and according to this video from the BMO site "AccountLink is exclusive to BMO IL customers who do their personal banking with BMO". Without a personal BMO account there is no access to AccountLink. Under the present situation the only way to electronically transfer funds into BMOIL

 

Your statement shows the transit and account number of your AccountLink BMO chequing account. You just need to request an AccountLink bank card if you do not have a regular BMO bank card to add the AccountLink BMO chequing account to.

The video at 0:30 mentions requesting an AccountLink bank card.

The video is not entirely accurate. I've been using AccountLink all these years without another BMO bank account. That AccountLink BMO chequing account is a BMO chequing account. I can link that chequing account at Hubert. At Hubert, I can push funds to and pull funds from that account.

You are actually just one step away from having ATM access to your AccountLink BMO chequing account.sf-laugh

"Order execution only account" just means the account is a discount broker account. Any investment made is not reviewed to determine if the investment is suitable. See IIROC: Order execution only account services.

November 4, 2022
7:43 pm
AltaRed
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Agree with Norman1. I never had any prio relationship with BMO when I opened my BMO Investorline non-registerd account. At the time of opening, I asked for an AccountLink related bank chequing account with all the features of a regular chequing account, albeit with limited free transactions. A bank card came in the mail and I even got a half dozen free cheques which I have never used.

November 5, 2022
8:07 am
rodeworthy
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Norman1 said

Your statement shows the transit and account number of your AccountLink BMO chequing account. You just need to request an AccountLink bank card if you do not have a regular BMO bank card to add the AccountLink BMO chequing account to.

The video at 0:30 mentions requesting an AccountLink bank card.

The video is not entirely accurate. I've been using AccountLink all these years without another BMO bank account. That AccountLink BMO chequing account is a BMO chequing account. I can link that chequing account at Hubert. At Hubert, I can push funds to and pull funds from that account.

You are actually just one step away from having ATM access to your AccountLink BMO chequing account.sf-laugh....

AltaRed said
Agree with Norman1. I never had any prio relationship with BMO when I opened my BMO Investorline non-registerd account. At the time of opening, I asked for an AccountLink related bank chequing account with all the features of a regular chequing account, albeit with limited free transactions. A bank card came in the mail and I even got a half dozen free cheques which I have never used.  

Wow! I am beginning to think this old brain of mine is not up to the task of managing all these accounts. The BMO video early on clearly led me to believe AccountLink was not available to me without BMO personal accounts. But, thanks to both of you, and your persistance, it is sinking in with me that there is a way. I will contact BMOIL next week and get this resolved. I am more inclined to believe I need this link since, in addition to GICs, I am very much interested in the ISA accounts that you have elaborated on in several posts. BMOIL will be a good place to start.
I thank you for that information and for your patience with me to finally get it.

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