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Email this12:36 pm
November 21, 2015
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FastJonny, post 20, is correct.
1:08 pm
April 6, 2013
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RetirEd said
Norman1: I confess to not having read up about this, but is all the year's interest from payments during the year deemed income at the anniversary date, or would shorter payout periods (such as monthly or those off boutique ones with 8+8 months) deemed to be paid at time of crediting? I think it wouldn't affect taxes, as the total would only be reported to CRA when the T5 was issued, right? Or am I missing some circumstance where it would make a differerence?
More frequent payout or compounding than annually does affect taxation.
If the instrument contractually pays or compounds more frequently than annually, then one needs to report interest as it is paid or compounded.
If the GIC compounds monthly, like the Simplli GIC's, then one needs to report interest in the year it is paid or compounded. Same with a GIC that pays after 8 months and then again at maturity in 16 months.
The full answer to interest reporting is complicated. There are different rules for individual taxpayers than for corporations, partnerships, and trusts. Corporations, partnerships, and trusts are required to report by annual accrual and not anniversary dates.
Also, the anniversary date for reporting by individuals is the "anniversary day of the contract" which is not necessarily the anniversary date of when the investment was made. If I buy a pre-owned GIC on October 11, that was originally issued on June 8 to its first owner, the anniversary date for me is June 8 and not October 11.
6:35 am
September 30, 2017
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Brokerage GIC rates are very good recently. TDDI also offer semi and monthly interest payout options.
~0.115% less for monthly
~0.075% less for semi ... bought one today 
10:09 am
February 14, 2023
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FYI, decent monthly pay GICs via Itrade
11:29 am
September 7, 2018
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re iTrade rates above -
5.25% 1 Year - Community Trust - rate is not bad but there is no rating for the FI?
Guess it does not matter because CDIC will pick up the pieces in the event..........
11:44 am
September 30, 2017
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I currently see no match to 5.25% monthly on TDDI, 5.07% monthly at best 
. It's also a rather limited FI selections.
7:01 am
September 30, 2017
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I see 5.25% monthly on TDDI too now.
9:03 am
April 6, 2013
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Best that BMO InvestorLine has for one-year with monthly payment of interest is 5.20%, issued by Bank of Montreal, Bank of Montreal Mortgage, and BMO Trust.
6:00 am
September 30, 2017
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1-year term 5.40% monthly by TD MTG, TD PAC MTG & CDA TR on TDDI today.
6:58 am
April 6, 2013
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1-year term is 5.47% for monthly interest by Community Trust Company on Scotia iTRADE. $5,000 minimum.
1:19 pm
October 30, 2022
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BMO pays monthly, I have 600k @ 5.7 paid monthly and 60k GIC paid yearly at 5.5 both for 10 years. Loving it!
1:29 pm
February 14, 2023
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hayman said
BMO pays monthly, I have 600k @ 5.7 paid monthly and 60k GIC paid yearly at 5.5 both for 10 years. Loving it!
in general, how does one get the rate specials out there? TIA
6:00 pm
May 11, 2023
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Sandy999 said
I can only find Oaken Financial and Motive Financial that have a GIC which will payout a monthly interest to a savings account. Does anyone know of any others that will do this? Oaken drops the rate if you want interest paid monthly. Motive you must be over 57 to get this but they keep the same rate.
It’s kind of normal that the % rate lowers if you take interest payments more frequently than annual.
Oaken offers annual payout on the application.
Peoples Trust gives annual payout on non registered and TFSA’s if you call them as does Hubert.
You might be surprised who will do what for you, if you call and ask.
I am happy with my 5 year ladder that pay annually in every quarter. My quarters are not close to equal, but am getting there.
Also just wondering if you called Hubert.....would they pay quarterly on the one year GIC. Or would that throw the annual average rate out of whack?
7:21 am
September 30, 2017
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1-year term 5.50% monthly by TD MTG, TD PAC MTG & CDA TR on TDDI today.
9:39 pm
January 22, 2020
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hwyc said
1-year term 5.50% monthly by TD MTG, TD PAC MTG & CDA TR on TDDI today.
Here's a scenario for TDDI, is there anything wrong with it?
- Buy a 1-year GIC, interest payed monthy (5.50% issued by either TD MTG, TD PAC MTG & CDA TR)
- Every month use the payed-out interest to buy ISA TDB8150 (4.55%)
This will get a bit of extra interest vs. annual payout for a 1-year GIC (for which the interest is "simple").
If my quick calculation is correct, it would be an extra 0.125% interest rate => overall 5.625%
Another advantage would be the principal amount (locked-in for the 1 yr term) can be higher for full CDIC protection, i.e. (100K - monthly interest) vs. (100K - annual interest), as TDB8150 is issued by TD with separate coverage from those GIC issuers mentioned above.
5:28 am
September 30, 2017
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1-year term 5.60% monthly by TD MTG, TD PAC MTG & CDA TR on TDDI today.
5:50 am
September 30, 2017
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Today I see 1-year term 5.65% monthly by TD MTG, TD PAC MTG & CDA TR on TDDI.
5:18 am
September 30, 2017
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1-year term 5.70%, interest paid monthly, by TD MTG, TD PAC MTG & CDA TR on TDDI.
9:34 am
September 5, 2023
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MyUsername said
Here's a scenario for TDDI, is there anything wrong with it?
- Buy a 1-year GIC, interest payed monthy (5.50% issued by either TD MTG, TD PAC MTG & CDA TR)
- Every month use the payed-out interest to buy ISA TDB8150 (4.55%)This will get a bit of extra interest vs. annual payout for a 1-year GIC (for which the interest is "simple").
If my quick calculation is correct, it would be an extra 0.125% interest rate => overall 5.625%
Another advantage would be the principal amount (locked-in for the 1 yr term) can be higher for full CDIC protection, i.e. (100K - monthly interest) vs. (100K - annual interest), as TDB8150 is issued by TD with separate coverage from those GIC issuers mentioned above.
That calculation does not make sense to me, but someone can explain if it does.
If you blend a 5.5 % return with a lower 4.55 %, the average interest rate is LOWER, NOT higher at 5.625%
There are also opportunity costs of difference between investing in 4.55% and the interest rate for the 1 yr GIC rate at that point
10:08 am
September 7, 2018
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hwyc said
1-year term 5.70%, interest paid monthly, by TD MTG, TD PAC MTG & CDA TR on TDDI.
Could someone who deals with TDDI give me the screenshot similar as hwyc's June 28th Post 27 above with the 5.7% rate on it?
Thanks.
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