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March 1, 2022
9:24 am
vermont
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Curious about people’s experience with GIC brokers given they offer substantially higher rates. What are the pitfalls if any? Are any better/worse than others? Thanks in advance.

March 1, 2022
10:41 am
savemoresaveoften
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vermont said
Curious about people’s experience with GIC brokers given they offer substantially higher rates. What are the pitfalls if any? Are any better/worse than others? Thanks in advance.  

I started using one this year as an experiment. To me, the higher rate is the ONLY benefit but major enough for me to test it. Its much more efficient and quicker to deal direct with the issuer online than thru a broker, which is still mostly paper / manual operation, such as writing a check to fund. and was told at maturity will be check too. The one I deal with does allow EFT for the interest payment tho.

March 1, 2022
11:04 am
Nehpets
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vermont said
...experience with GIC brokers given they offer substantially higher rates. What are the pitfalls if any? Are any better/worse than others?...

Brokers don't always offer higher rates than dealing directly with the FI, so you need to do your research. Sometimes brokers have limited time specials, that are better than the street rate, just because an FI needs funds in a hurry and they know brokers have a lists of qualified prospects.

It's worth getting on a broker's prospect list to be called when these deals come along.

I am not aware of any down side with dealing with a broker, though complete and accurate record keeping by you is always important.

There are a couple of broker networks in Canada, as well as brokers who operate independently, so check your area and ask for trusted reviews.

The brokers listed on the GIC Comparisons on the Forum would be a good place to start.

I have had good experience with Scrivens in Ottawa, for example.

Stephen

March 1, 2022
11:04 am
HermanH
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savemoresaveoften said The one I deal with does allow EFT for the interest payment tho.  

Which one might that be?

March 1, 2022
12:18 pm
savemoresaveoften
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HermanH said
Which one might that be?  

GIC Wealth. My first interest payment is in August, so that will be the test how smooth it is.

March 1, 2022
2:51 pm
GR
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Monarch Wealth allows interest payments by EFT by the issuer. Principal cheques are mailed post-dated to Monarch Wealth and forwarded to the client in advance.

Fiscal Agents shows their full list of issuers and rates on their website, but fewer issuers than other agents/brokers. Other agents/brokers show the top rates only on their websites, so issuers can be determined with a phone call.

March 1, 2022
3:04 pm
vermont
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Thanks a lot for all the great information. Very helpful.

March 1, 2022
6:59 pm
Norman1
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This previous discussion has some background about deposit brokers, what they do, and how they are paid.

Some credit unions also go through deposit brokers from time to time.

March 2, 2022
3:32 pm
semi-retired
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Nehpets said

vermont said
...experience with GIC brokers given they offer substantially higher rates. What are the pitfalls if any? Are any better/worse than others?...

Brokers don't always offer higher rates than dealing directly with the FI, so you need to do your research. Sometimes brokers have limited time specials, that are better than the street rate, just because an FI needs funds in a hurry and they know brokers have a lists of qualified prospects.

It's worth getting on a broker's prospect list to be called when these deals come along.

I am not aware of any down side with dealing with a broker, though complete and accurate record keeping by you is always important.

There are a couple of broker networks in Canada, as well as brokers who operate independently, so check your area and ask for trusted reviews.

The brokers listed on the GIC Comparisons on the Forum would be a good place to start.

I have had good experience with Scrivens in Ottawa, for example.

Stephen  

Nehpets said

vermont said
...experience with GIC brokers given they offer substantially higher rates. What are the pitfalls if any? Are any better/worse than others?...

Brokers don't always offer higher rates than dealing directly with the FI, so you need to do your research. Sometimes brokers have limited time specials, that are better than the street rate, just because an FI needs funds in a hurry and they know brokers have a lists of qualified prospects.

It's worth getting on a broker's prospect list to be called when these deals come along.

I am not aware of any down side with dealing with a broker, though complete and accurate record keeping by you is always important.

There are a couple of broker networks in Canada, as well as brokers who operate independently, so check your area and ask for trusted reviews.

The brokers listed on the GIC Comparisons on the Forum would be a good place to start.

I have had good experience with Scrivens in Ottawa, for example.

Stephen  

Just contacted Scrivens.1 year Non-registered GIC 2.81%.It is with Wealth One Bank of Canada.The GIC can be a joint GIC.The rate is higher than the listed 1 year rate on this gic webpage.25000.00$ minium.

March 2, 2022
4:26 pm
Loonie
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It would be interesting to know what is the next best brokers' rate. Many of us are either up to CDIC limit with WealthOne or are becoming nervous about why their rates are higher than everyone else's.
canadian100 reported that they hadn't turned a profit yet. Maybe it's a case of "you have to have money to make money'.

March 2, 2022
4:34 pm
GR
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Loonie said
It would be interesting to know what is the next best brokers' rate. Many of us are either up to CDIC limit with WealthOne or are becoming nervous about why their rates are higher than everyone else's.
canadian100 reported that they hadn't turned a profit yet. Maybe it's a case of "you have to have money to make money'.  

As of this past Monday, for the 1 year GIC rate through brokers/agents, Wealth One was highest, followed by WFCU (Windsor Family C.U.), followed by Parama C.U. and Motor City C.U.
Ask your broker for the issuers with the top 4 rates for the term you want.

March 2, 2022
4:46 pm
HermanH
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Loonie said
It would be interesting to know what is the next best brokers' rate. Many of us are either up to CDIC limit with WealthOne or are becoming nervous about why their rates are higher than everyone else's.
canadian100 reported that they hadn't turned a profit yet. Maybe it's a case of "you have to have money to make money'.  

I was also able to ask the broker for offers other than WealthOne, since I was at CDIC limits. They were happy to let me know.

If they need the money to make more money, that might be a good sign. If all their current assets are working at maximum output, getting more fuel for the machine would be a good thing. sf-smile

March 2, 2022
11:01 pm
Loonie
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Do tell! Who were the runners-up, and how far behind WealthOne were their rates approximately? I realize they may have changed, but it gives us a rough idea. I'm one of those people who hates making phone calls.sf-embarassed

March 2, 2022
11:45 pm
HermanH
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When I was told WealthOne had the highest, I said that I was already at their maximum CDIC limit. The broker then told me the next one, but it was, IIRC, 0.12% lower at Haventree Bank.

March 3, 2022
12:04 am
Loonie
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thanks. Still a good rate at HT under current circumstances.

November 19, 2022
6:10 am
bigzim
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Scrivens offering high GIC rates right now 5.47% 5 year and

November 19, 2022
11:07 am
HermanH
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GIC Wealth Management Nov 19 5.32 5.36 5.37 5.38 5.48
Credit Union Atlantic

November 19, 2022
1:56 pm
Loonie
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Credit Union Atlantic appears to be based in Halifax.
The formula for credit union deposit insurance coverage in Nova Scotia appears to be different from those in other provinces. Non-registered GIC coverage is capped at 185K.
https://www.nscudic.org/coverage/coverage-chart/

November 19, 2022
3:32 pm
HermanH
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I'm not sure you are interpreting the chart correctly. I believe that they have set it up as an example.

The example shows a total deposit of $265,000 consisting of:

Account Details ................................Amount ..Covered..Not Covered
Chequing account in your name.....$20,000 $20,000
Savings account in your name.......$45,000 $45,000
Term deposit maturing in 5 years..$200,000 $185,000 $15,000
Total deposits...................................$265,000 $250,000 $15,000

The $15,000 in excess of the $250,000 coverage just happens to be the last item on the list.

I believe that if someone held only $250,000 in GIC, he would be completely covered.

All deposit accounts – the combined total of each member’s chequing, savings and term deposit accounts – are covered up to $250,000, including principal and interest.
https://www.nscudic.org/coverage/faq/

November 19, 2022
3:44 pm
Loonie
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You may be right, but they could be clearer. In any event, it's more like ON and not as good as MB or BC.

Buyer beware!

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