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Luminus Financial - 3.60% GIC offer
November 21, 2018
6:55 am
Koogie
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November 19, 2014
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Here is their latest....

For a limited time, make the most of your investment portfolio with a 5 year Luminus GIC at 3.60%!

You can use your term deposit within your RRSP.
Eligible deposits are insured by DICO up to a limit of $250,000, except for Registered deposits which have unlimited coverage.
To get started with your investments, contact one of our Member Relations Officers by calling or by emailing us.
*This is a special offer for new deposits only, available for a limited time and can be withdrawn at any time without notice.

November 21, 2018
12:13 pm
gicjunkie
Ontario
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Thanks for the "heads up". There are some decent 5 year rates around. GIC Wealth is advertising a 3.65% 5 year rate for $25,000 investments and up. Don't know which FI it is.

I have a feeling the Bank of Canada rate may stay the same in December with more increases early next year. BoC probably wouldn't want to put a damper on Christmas spending would they?

May 2, 2019
8:32 am
gicjunkie
Ontario
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Just to let you know, the 3.60% 5 year GIC promotion is gone (as of last week some time), but they still have a 5 year escalator GIC which isn't bad.

5 Year Escalator (Minimum $500 deposit, RSP and RIF eligible) Rates
1st Year 1.50%
2nd Year 2.50%
3rd Year 3.50%
4th Year 4.50%
5th Year 5.50%
Average rate of 3.50%

May 2, 2019
9:12 am
Doug
West Kelowna
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An important caveat: this requires locking your funds up for fully five years. The escalator one is better because at least it can be redeemed annually, but then you're forgoing the best interest rate in the latter years. I think even Hubert and Implicity will offer a 3.30-3.40 on a 5-7 year GIC. In short, these sort of offers can definitely still be had on the long end of the curve.

I don't buy a GIC longer than 3 years right now. Interest rates are far too volatile. We're likely heading into a BoC rate cut cycle, which will be shorter than the last, then they'll resume hiking for a couple years, before falling back on a rate cutting cycle. Keep your duration short. sf-cool

Cheers,
Doug

May 2, 2019
4:54 pm
gicjunkie
Ontario
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A couple of points.

I personally do not invest in a GIC with the intention of cashing it prior to maturity. I keep extra liquid assets around for immediate needs or emergencies. The 5 year escalator would be just that, a 5 year, locked in GIC, averaging out at 3.50%. Also, I have not asked if one may cash out the GIC early, ie. on an anniversary date. That may be an option or not. The website does not indicate this.

The idea of short term investing, when rates may decrease further is, in my opinion, backwards thinking. We recently have seen how long an interest rate slump can last. Investing short term, at lower rates, is an exercise in wishful thinking. If one has money available to invest now, and you don't need the principal for a while, take the best rate available. It's a sure thing.

Quite honestly, and I have said this before, we never know where interest rates will ultimately go and when. The so-called experts have been very wrong quite often. If one wants to sit on money awaiting the best time to invest, this in itself is a gamble, and who knows what the right time is? You could end up going short term for a long, long time. And you could have had 3.50%!

May 2, 2019
5:36 pm
Doug
West Kelowna
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Ultimately, it's a personal choice, and I have nothing further to add. sf-cool

Cheers,
Doug

May 2, 2019
8:39 pm
Loonie
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If I were looking for a five-year GIC right now, lived in the GTA, and was willing to deal with Luminus, I'd definitely take this one as there is nothing better out there, and not likely to be for the foreseeable future (not very far!).

You win some and you lose some on rates, but there are stats somewhere that show you'd usually be better off with longer terms. That's good enough for me unless I know I'm going to need the funds sooner.

May 23, 2019
5:36 am
hotmony
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Is it cashable annually

May 23, 2019
6:09 am
gicjunkie
Ontario
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hotmony said
Is it cashable annually  

Nothing on the website indicates it's cashable, but that doesn't mean that they will not cash it out early at a low rate. You'd have to call them.
Telephone: 416.366.5534
Toll Free: 1.877.782.7639

Terms on website are as follows:

"Escalator Term Deposits
A secure investment option that offers a guaranteed return at a competitive rate. A minimum deposit of only $500.00 is required to get started.

Rates increase after each year
RRSP eligible
Interest is compounded annually"

Also don't know if interest can be received annually instead of compounding.

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