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Email this5:41 pm
May 26, 2022
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I keep most of my portfolio in investors edge but for my cash positions their (CIBC) GIC rates are low so I'm faced with transferring out my RRSP/TFSA from one FI to another paying the fee and getting it reimbursed. Is there an easier way? cash.to?
6:47 pm
February 16, 2013
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Have a look through this thread on brokerage investment savings accounts. I am with CIBC Investors Edge and have purchased both the Renaissance Investment Savings Account ATL5000 currently at 4.05% and DYN6000 currently at 4.35% for deposits up to $100K.
https://www.highinterestsavings.ca/forum/general-comparisons/brokerage-investment-savings-accounts/
10:30 pm
August 4, 2010
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For actual cash positions in a brokerage account, the ISA funds MG mentions (ATL5000, DYN6000, etc) would be worth a look.
If you actually want GICs, say for a long term ladder, Big5 banks quite often have wretched GIC rates. CIBC's basic 1-5 year rates are 3.5%/3.25/3/3/3. Oddly enough, TD is much better, at 4.65/4.35/3.75/4/4.05, and the other Big5 seem to be more varied than I remember.
What GICs does InvestorEdge sell and what rates can you get? TD's brokerage accounts let you buy GICs from a range of other financial institutions, and there are a number of options for 1 year at 4.8% and 5 year at 4.2%, which isn't terrible. For the very tippy-top rates (Manitoba credit unions, small aggressive CDIC banks) , you'd have to deal directly with them, or a GIC broker. Much more of a hassle with RRSP/TFSA and the transfer paperwork involved.
Depending on the amounts, if you really wanted to transfer out, other major brokerages might reimburse you for the transfer fee. But interesting GIC issuers like Oaken or the Manitoba credit unions likely won't. Also, there's no guarantee that a high-rate institution today will be so at GIC renewal time.
I tend to have my GICs non-registered, and use my registered room for other investments, especially when rates (and income tax on the interest) were so low, but then again most of my room is fully used.
10:48 pm
April 6, 2013
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For comparison, these are the best rates for each term, via BMO InvestorLine and Scotia iTRADE, from various issuers:
| 1 year | 2 year | 3 year | 4 year | 5 year | |
| BMO InvestorLine | 4.850% | 4.450% | 4.220% | 4.200% | 4.230% |
| Scotia iTRADE | 4.850% | 4.450% | 4.250% | 4.200% | 4.230% |
11:27 pm
May 26, 2022
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I did look at those 2 ISA funds - good for short term cash
IE offers CIBC GIC's with somewhat decent rates ranging from 4.8 1 yr to 4% 5 yr as well as market linked GICs and 3rd party GIC's. Most cap out at ~4% 5yr (see list below 1-5 yr rates) so almost 1% lower than the competition.
The credit unions don't offer much to offset the transfer fee but it doesn't really matter with > 100k RRSPs
I'm really looking for some long term GIC's, maybe even 10 years, so I don't have to think about it. I don't think rates will go much beyond 5% for my foreseeable future. Some of the credit unions offer > than minimum RRIF withdrawals on their GIC's each year which is part of my plan to wind these down quicker than the minimums.
Most of our portfolio is in RRSP's which I'd like to convert to TFSA's and non-reg while staying under the 1st and 2nd tax rates
I wonder why the Manitoba credit unions rates are so aggressive?
B2B BANK
4.800%
4.400%
4.180%
4.100%
4.100%
CONCENTRA BANK
4.830%
4.450%
4.210%
4.100%
4.050%
Canadian Western Bank
4.800%
4.400%
4.180%
4.160%
4.220%
EQUITABLE BANK
4.830%
4.450%
4.210%
4.100%
4.050%
FAIRSTONE BANK OF CDA (DUO BANK)
4.820%
4.440%
4.210%
4.160%
4.210%
HAVENTREE BANK
4.800%
4.150%
3.950%
3.850%
3.800%
HOMEQUITY BANK
4.850%
4.450%
4.220%
4.180%
4.230%
HSBC BANK
4.800%
4.400%
4.150%
4.080%
4.000%
ICICI BANK CANADA
4.630%
4.380%
4.050%
4.050%
4.000%
LAURENTIAN BK
4.800%
4.400%
4.180%
4.100%
4.100%
MANULIFE BANK
4.500%
4.200%
4.000%
3.900%
3.900%
MONTREAL TRUST
4.800%
4.350%
4.150%
4.050%
4.000%
NATIONAL BANK
4.800%
4.350%
4.150%
4.050%
4.050%
NATIONAL TRUST
4.800%
4.350%
4.150%
4.050%
4.000%
PEOPLES TRUST
4.600%
4.250%
4.100%
4.000%
3.950%
PRESIDENT'S CHOICE BANK
2.000%
2.250%
2.500%
2.750%
3.000%
VERSABANK
4.840%
4.350%
4.050%
4.050%
4.030%
CIBC Cashable Escalating Rate GIC (3 and 5 year)
GIC type Interest paid 1 year 2 year 3 year 4 year 5 year Yield
3 year
At Maturity 2.000% 3.000% 4.250%
-
-
3.079%
5 year
At Maturity 2.500% 2.750% 3.250%
3.500%
3.700%
3.139%
CIBC Escalating Rate GIC (3 and 5 year)
GIC type Interest paid 1 year 2 year 3 year 4 year 5 year Yield
3 year
At Maturity 2.500% 3.350% 3.800%
-
-
3.215%
5 year
At Maturity 2.500% 3.000% 3.300%
3.600%
3.800%
3.239%
CIBC Mortgages Inc. (CMI) Long Term GICs
Interest Paid 1 year 2 year 3 year 4 year 5 year
Annually
- 4.350% 4.150% 4.050% 4.000%
Semi-annually
4.675% 4.225% 4.025% 3.925% 3.875%
Monthly
4.550% 4.100% 3.900% 3.800% 3.750%
At Maturity
4.800% 4.350% 4.150% 4.050% 4.000%
CIBC Trust Long-Term GIC
Interest Paid 1 year 2 year 3 year 4 year 5 year
Annually
- 4.350% 4.150% 4.050% 4.000%
Semi-annually
4.675% 4.225% 4.025% 3.925% 3.875%
Monthly
4.550% 4.100% 3.900% 3.800% 3.750%
At Maturity
4.800% 4.350% 4.150% 4.050% 4.000%
11:31 pm
May 26, 2022
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Norman1 said
For comparison, these are the best rates for each term, via BMO InvestorLine and Scotia iTRADE, from various issuers:
1 year 2 year 3 year 4 year 5 year BMO InvestorLine 4.850% 4.450% 4.220% 4.200% 4.230% Scotia iTRADE 4.850% 4.450% 4.250% 4.200% 4.230%
Those are almost identical to CIBC investors edge 3rd party GIC's
12:11 am
August 4, 2010
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So nothing wrong as such with Investors Edge GIC offerings, they are providing what everyone else in the brokerage channel is. Other institutions offering the highest rates (the credit unions, various smaller CDIC banks) can't or won't offer them through the bulk brokerage channel. They may get added value or visibility through a customer relationship that they wouldn't through bulk brokerage GIC sales. Interesting to note, Home Bank/Home Trust (the Oaken people) don't seem to be in the GIC brokerage channel, although easily could be (and their similar competitor, EQ, is).
I suspect even with CDIC coverage now available on >5year GICs, you'll find it harder to locate those. BMO is actually offering a 10-year 4% GIC (vs 3.6% for 7 years), and my guess is that's actually higher than pretty much anything you'll find at that length. I can't remember offhand if the Manitoba Deposit Guarantee Corp covers > 5 years, but I don't think the CUs generally advertise long GICs?
12:24 am
May 26, 2022
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https://www.motivefinancial.com/en/rates 10 yr is 4.95
https://www.acceleratefinancial.ca/rates 7 yr is 5%
These have both come down from ~5.2% iirc
https://dgcm.ca/ They do cover > 5 years
12:36 am
August 4, 2010
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Rates are coming down a bit generally, so that isn't surprising, but that ballpark seems a bit aggressive. I guess they've got useful ways to put long money to work at that price.
12:57 am
May 26, 2022
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My thinking is that once inflation is under control rates will go back to sub 3%
5:22 am
March 30, 2017
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Unless you are 100% risk averse, take a look at the money market funds. The CIBC one in particular is quite juicy.
But it ain’t for you if you style is must be CDIC insured, which is basically 0 risk tolerance.
Check it out.
7:20 am
September 11, 2013
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Investors Edge offer 2 DYNs, 2 MIPs and ATL ISAs, so you can have 5 different ones there.
You can get Home GICs via discount brokers, RBC Direct has them, I think I've seen them in others too, you can check.
7:57 am
October 27, 2013
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Bill said
You can get Home GICs via discount brokers, RBC Direct has them, I think I've seen them in others too, you can check.
Yes, the various discount brokerages offer Home Trust GICs and rates are almost always the same across the discount brokerages. Minimal variations at most.
There has been a divergence recently between primarily the CUs and digital banks on the longer term GICs, with the rates at banks falling faster. I recall another thread where Norman1 and I traded a few posts on this matter. It may well be that the customer base of CUs is quite different than that of the digital banks and that CUs don't have the same broad access to deposits (funds) that the banks do.
The discount brokerages do not carry GIC issuers that are not CDIC insured to the best of my knowledge.
8:52 am
August 4, 2010
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TDDI does not have HomeBank/HomeTrust GICs available, and they weren't in the CIBC list that NCC1701Z posted ("HomeEquity Bank" is a completely unrelated company). Can anyone confirm Home GICs available at other brokerages? If they are in the channel, then TD and CIBC must be blackballing them for some reason (rate capping?).
[Later] - Questrade makes their GIC ratelist public, and there are Home GICs on that. So it looks like there are quirks in who offers what.
9:30 am
March 18, 2021
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NCC1701Z said
My thinking is that once inflation is under control rates will go back to sub 3%
All you have to know is next year is an election year in America in November meaning the first Fed funds rate cut will be in March 2024 or whatever month the meeting is if its April. Whatever the inflation rate is that doesn't matter.
10:16 am
April 6, 2013
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NorthernRaven said
… Can anyone confirm Home GICs available at other brokerages? If they are in the channel, then TD and CIBC must be blackballing them for some reason (rate capping?).[Later] - Questrade makes their GIC ratelist public, and there are Home GICs on that. So it looks like there are quirks in who offers what.
Scotia iTRADE offers GIC's issued by Home Trust Company.
Yes, there are quirks as deposit brokerage requires an agreement between an issuer and the deposit broker. That includes the brokerage ISA's. One ISA terms and conditions requires the dealer to enter into an agreement to be able to offer the ISA. It wasn't enough for the dealer to be on the FundSERV system.
11:10 am
August 4, 2010
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Yeah, the question is why TD for instance wouldn't pick up a large issuer like Home as a matter of course, given the number of providers they do work with.
11:12 am
October 27, 2013
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As does RBC Direct Investing carry Home Trust GICs, but not BMO Investorline. The list of issuers does vary a bit from brokerage to brokerage for reasons unknown and it changes over time as well.
It is one of those 'shrug shoulders' and move on.
11:49 am
September 11, 2013
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Investors Edge doesn't have Home GICs today so some have them, some don't. My experience is like AltaRed's, there is some variability of issuers over time even by the same brokerage.
4:31 pm
May 26, 2022
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savemoresaveoften said
Unless you are 100% risk averse, take a look at the money market funds. The CIBC one in particular is quite juicy.
But it ain’t for you if you style is must be CDIC insured, which is basically 0 risk tolerance.
Check it out.
How so? The rates max out at 4.45.
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