christinad said
I thought i read somewhere it's better to redeem your GICs at the end of the year when withdrawing from your RRIF. Is this correct or does the time matter? I was also debating buying the GIC in July and December. Not sure if i need twice a year though? Also I have a 5 year ladder. Is a three year ladder better? I haven't entered retirement age yet, just doing some planning. I'd have to rejig my GICs if it was better to buy at the beginning of the year.  

I was wandering around Oaken's site the other day, and I noticed that for RRIFs, they will extract your minimum payment requirement from the GIC(s) value without requiring they be cashed in or deregistered.

So you don't need loose cash, or timed GIC maturities. They do it in a customer-friendly fashion, starting with the lowest rate GIC, and shortest remaining duration as a tie-breaker. I'm (fortunately) not at RIF age yet myself, so I'm not sure how other institutions handle cases of non-liquid assets like GICs when it comes time to make the minimum payment.

christinad said
Thanks, that's a good point. I wondered why the end of year was suggested.  

More tax deferment provided none of the withdrawal amount was not needed earlier in the year. Doesn't matter what type of asset, i.e. GIC, stock, bond, etc.

There is a bit more tax-deferred interest in the RRIF if one withdraws the money from the RRIF near the end of the year than withdrawing earlier in the year and earning interest on the money in a non-registered account.

I check those rates regularly ... they fluctuate ⬆️&⬇️ quite often.

Check back again next week.

Dean

hwyc said
Found rates delightfully competitive

1Y 3.29%
2Y 3.65%
3Y 3.83%  

Noticed this last week, as I was late with TFSA contributions this year, and looking around for best GIC Options; easy decision to pump $7K for both wife and myself into that 3yr term.

Especially when compared to These.

Dean

1Y 3.29%
2Y 3.65%
3Y 3.83%

cgouimet said

I do not recall ever seeing Kingston CU in these forums or charts  

Kingston CU is not in this forum or charts per se. They are in the rateinfo.ca website as offering the highest rate for a 5 year GIC at 4.05%.

gicjunkie said
How often do you update rateinfo.ca?
It appears that the 4.05% and 4.0% 5 year rates from Kingston CU do not now exist, unless these rates are not now advertised.  

I do not recall ever seeing Kingston CU in these forums or charts