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Email this3:24 pm
May 26, 2022
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Motive used to have GIC's up to 10 years but they were taken over by NBC. Anywhere else that has over 5 year GIC's?
5:08 pm
October 27, 2013
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I think most are investment (market linked) products now. I am not sure why one would actually want a GIC for more than a 5 year period. The premium over a 5 year is almost non-existent (currently only about a 30-40bp premium between a 5 and 10 year bond, about as wide as it has been for awhile). That small premium hardly compensates for potential exposure to inflation risk over that long a period.
Go to https://www.bankofcanada.ca/ra.....ian-bonds/ and select only the 5 year and 10 year government of Canada lines for a comparison.
5:48 pm
May 26, 2022
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Being retired, I'm kicking myself for not locking into 5+ years when rates were 5.6% a few years ago. I still have a few over 5% until 2028 or 9. Inflation isn't much of an issue in your 70's where CPP/OAs covers most of it
6:51 pm
May 26, 2026
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I was always under the impression that GICs over 5 years are not covered by CDIC. Not sure if this is (still) the case and/or if there are any nuances to this.
7:08 am
March 14, 2023
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The big 5 used to have them. BMO still does.
7:42 am
October 27, 2013
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Wrayzor said
The big 5 used to have them. BMO still does.
BMO today pays 3.25% for a 10 year GIC vs 3% for a 5 year GIC. That is a minimal premium for being locked in an additional 5 years...in an era of unpredictable forward inflation.
https://www.bmo.com/main/perso.....gic-rates/
8:00 am
September 11, 2013
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saver99, cdic.ca has your answer re GICs coverage.
9:31 am
January 12, 2019
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.
I can't imagine being locked-in to a 10 Yr (a whole Decade) GIC❗
It's no wonder they're rare as hen's teeth.
To each their own, I guess.
- Dean
" Live Long, Healthy ... And Prosper ! "
10:19 am
May 26, 2026
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Bill said
saver99, cdic.ca has your answer re GICs coverage.
Thanks for the post and apologies for the laziness for not looking this up before chiming in. I visited the CDIC website just now and could not locate the specific information on this question. I have since reached out to them for more details and look forward to their response.
11:43 am
March 14, 2023
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From the CDIC FAQs:
What were the changes to the coverage of term deposits?
Effective April 30, 2020, term deposits of more than five years are eligible for CDIC protection. The five-year term limit has been removed. Keep in mind that the deposits with terms of over five years would not receive separate coverage but would be combined with other deposits within the same category.
12:04 pm
May 26, 2022
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Dean said
.
I can't imagine being locked-in to a 10 Yr (a whole Decade) GIC❗It's no wonder they're rare as hen's teeth.
To each their own, I guess.
Dean
Back in the 80's when GIC rates were 19% I would have locked in for 20+ years !
2:21 pm
January 12, 2019
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.
That ⬆️ was 'Then'.
This is Now.
Careful what you with for❗
- Dean
" Live Long, Healthy ... And Prosper ! "
3:58 pm
May 26, 2022
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https://lifeannuities.com/term.....e/male.php
10 year Term certain pays 3%
20 year pays 3.7%
https://apps.royalbank.com/app.....uilder-gic
pays 3.3% 10 years
Provincial bonds and strips pay almost 5%
8:28 pm
April 6, 2013
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Dean said
Careful what you with for❗
That's right. No-one wants to see those conditions again that pushed interest rates so high:
Norman1 said
Yes, inflation was a serious problem at that time.Adding the inflation rate and 5-year GIC rates (from David Trahair's article "GICs and the Inflation Argument" mentioned by Bill earlier) to the table gives a better context for those CSB rates:
Series Issue Date 1981 1982 1983 1984 1985 1986 1987 S36 01/11/1981 19.50 12.00 10.50 11.25 10.50 10.50 10.50 Inflation (CPI) 12.50 10.90 5.80 4.30 4.00 4.10 4.40 5-year GIC 15.36 14.57 11.52 11.97 10.80 9.73 9.61
3:10 am
November 18, 2017
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I'm still collecting on high-rate 3- and 5-year paper from the peak. Wish I'd had the balls to take more, but the 3-year paid well despite the shorter span. After all, we have no crystal balls.
I guess the people who shorted Canada are cackling like vultures now.
RetirEd
7:00 pm
October 21, 2013
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DUCA , an Ontario CU, used to offer GICs at least 7 years, maybe more, but I don't know if they still do.
7:17 pm
April 6, 2013
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DUCA still offers a 7 year GIC. Rate is 3.85%. Same as their 5 year GIC.
EQ Bank offers 6, 7, and 10 year GIC's. Rates are 2.35%. Less than the 4% rate for their 5 year GIC! Obviously, EQ Bank is not keen for those long term deposits.
