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My 5.50% tangerine ending tomorrow
January 13, 2024
4:56 am
Max
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Hey everyone,

Had a GIC at 5.50% I opened last year and it’s finishing tomorrow. I have this promotional email from tangerine for a 5.40% GIC 1 year term if I open it before February 8th. Since my promotion interest rate of 6% on new deposits finishes on the 30th of January, I was planning to open a 1 year term 5.40% on my available money for next year.

Already sent money on my new Wealthsimple account to benefit from the new IPhone 15 promotion and the 4.5% interest rate. 5.40% on Tangerine still seems look promising.

Does anyone here suggest any better promotion?

Thanks

The day you become free is the day you work for fun.

January 13, 2024
5:51 am
hwyc
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This is interesting because Tangerine 1-yr non-registered posted rate is only 4.9%

January 13, 2024
6:13 am
dentgal
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Simplii is offering targeted promotions--5.5% till March 31.

January 13, 2024
7:14 am
cgouimet
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hwyc said
This is interesting because Tangerine 1-yr non-registered posted rate is only 4.9%  

And 5.1% for RSP/TFSA 1Yr GIC ...

Also, 5.4% 1Yr GIC at Oaken, any flavour ...

CGO
January 13, 2024
9:21 am
Max
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dentgal said
Simplii is offering targeted promotions--5.5% till March 31.  

Ok good to know so Tangerine 5.4% is pretty good if it saves me the hassle to open a new account and transfer funds

The day you become free is the day you work for fun.

January 13, 2024
11:57 am
Bill
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Yup, 5.4% would put you right near the top of the 1-year GIC rates listed on this site.

January 15, 2024
5:55 pm
4n2t0
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January 16, 2024
11:38 am
gicjunkie
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My wife just got 5.75% offer for savings account from Tang till end of May. Go figure.

January 16, 2024
8:14 pm
LK
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I am looking at the People's Trust 15 mo GIC (unregistered) @5.60%.
https://www.peoplestrust.com/en/peoples-trust/high-interest-accounts/rates/

January 20, 2024
9:32 pm
Max
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gicjunkie said
My wife just got 5.75% offer for savings account from Tang till end of May. Go figure.  

My 6% offer expiring on Jan30

The day you become free is the day you work for fun.

January 21, 2024
4:18 am
Max
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Just thought about this

Is there any disadvantage to making multiple smaller GICs account instead of one big one?

Instead of making one 50k GIC at 5.40%, opening 10 x 5k or 5 x 10k GICs so if something unexpected happens and I need a bit of money sooner then we just have to cash out 1 or 2 smaller GICs than cashing out the whole amount and losing interest on just a small portion instead?

Anyone doing that?

The day you become free is the day you work for fun.

January 21, 2024
5:15 am
savemoresaveoften
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Max said
Just thought about this

Is there any disadvantage to making multiple smaller GICs account instead of one big one?

Instead of making one 50k GIC at 5.40%, opening 10 x 5k or 5 x 10k GICs so if something unexpected happens and I need a bit of money sooner then we just have to cash out 1 or 2 smaller GICs than cashing out the whole amount and losing interest on just a small portion instead?

Anyone doing that?  

Majority of GIC are not early cashable, whether u willing to lose interest or not.
GICs are not like mortgages.

January 21, 2024
7:14 am
Alexandre
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Max said
...if something unexpected happens and I need a bit of money sooner then we just have to cash out 1 or 2 smaller GICs than cashing out the whole amount and losing interest on just a small portion instead?

Another option would be to buy GIC with monthly interest payout. Tangerine does not offer that, but for example Oaken does. You will lose a bit on interest with such GIC, but its interest rate should still be better than non-promotional HISA.

January 21, 2024
7:43 am
JPenterprise
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My sister got the 5.40% GIC 1 year term at the "insight" from Tangerine (i.e. no email) in Jan. 15. The offer only shown for 3 days.

January 21, 2024
8:59 am
hwyc
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JPenterprise said
My sister got the 5.40% GIC 1 year term at the "insight" from Tangerine (i.e. no email) in Jan. 15. The offer only shown for 3 days.  

Was there also a future date in your sister's offer? The original poster, as he described it, was "5.40% GIC 1 year term if I open it before February 8th." ... and I thought Tangerine is doing something new in 2024 ... targeted GIC rates

January 21, 2024
11:51 am
HermanH
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Max said
Instead of making one 50k GIC at 5.40%, opening 10 x 5k or 5 x 10k GICs so if something unexpected happens and I need a bit of money sooner then we just have to cash out 1 or 2 smaller GICs than cashing out the whole amount and losing interest on just a small portion instead?

I've used smaller GICs at Hubert for that exact same reason and flexibility. However, as noted, all banks have the option to allow for early redemption with loss of accrued interest, but not all banks will do it. You can ask, but there is no guaranty.

If you must have a guaranteed early redemption option, then you need a special product like Hubert's quarterly GIC.

January 21, 2024
5:01 pm
Norman1
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Banks will usually not allow early redeeming of a non-redeemable GIC. Instead, the bank will offer a loan using the GIC as collateral. If the loan interest would be too little compared to the cost of the paperwork, then the bank would offer an alternative, like loss of all the interest.

Some banks are not in the personal loan business and will just say no. I think someone asked EQ Bank about this. EQ Bank replied that they don't offer loans against their GIC's or any other alternative.

Redeeming a redeemable GIC early can cost more that just the unpaid accrued interest. For example, RBC Royal Bank is currently offering redeemable five-year monthly-interest-pay GIC's at 3.325%. If it is redeemed early in year 2, the rate drops to 0.10%. Interest already paid out monthly, above 0.10% per annum, will be charged against the redemption proceeds.

January 21, 2024
7:40 pm
RetirEd
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Max: I have in fact done this, but it can only be done when, as others have noted, early redemption is allowed. It was at the now-defunct Ally (absorbed later by RBC) that I took $10K+$20K+$30K+$40K when they told me there were chances to collapse at loss of interest accrued. If I became desperate for cash, I cold collapse only what I needed.

Ah, I miss you, Ally. In addition, they allowed monthly interest payout, so I was able to deposit the full $100K and only risk one month's interest if insurance was needed to be invoked.

And they always answered the phone right away, paid the interest to my external account and knew what they were talking about. And everyone got the same rate without being targeted or fiddling "new" or "old" money.

Of course, it was too good to last; a year before my 5-year 4% matured, they sold off to RBC, who dried their darnedest to get me to open fee-bearing accounts or pay withdrawal or transfer fees. (I got all my interest, mind you!) RBC feigned not having ever heard of direct debit, which I then originated at the other end and said good-bye to them!

RetirEd

January 22, 2024
4:57 am
savemoresaveoften
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Given the abundance of cash etfs and broker funds like dyn6000 available, really no reason to place the money in a GIC if flexibility is of high concern.

January 22, 2024
5:47 am
JPenterprise
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hwyc: My sister doesn't recall there was an end date for the special offer to open a 5.40% 1 yr GIC.

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