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Parama Credit Union (Ontario only) Promo 1 yr. GIC 1.50%
July 26, 2021
7:00 am
GR
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Limited time offer for existing or new members. 1 year GICs, registered or unregistered, 1.50% p.a. Ontario only, especially GTA.

https://parama.ca/gic-150-1year

July 27, 2021
5:47 pm
James
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GR said
Limited time offer for existing or new members. 1 year GICs, registered or unregistered, 1.50% p.a. Ontario only, especially GTA.

https://parama.ca/gic-150-1year  

Thanks GR! I never thought I'd be seriously considering a 1.5% GIC offer.

July 28, 2021
6:45 am
Nehpets
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James said Thanks GR! I never thought I'd be seriously considering a 1.5% GIC offer.  

If you are considering 1yr 1.5%, other options might be Tandia 1.5% 15 months or Oaken 1.6% 18 months. For amounts in excess of CIDC limit, Oaken has the benefit of Home Trust and/or Home Bank..each with its own separate CDIC limit.

Stephen

July 28, 2021
7:08 am
canadian.100
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Nehpets said
If you are considering 1yr 1.5%, other options might be Tandia 1.5% 15 months or Oaken 1.6% 18 months. For amounts in excess of CIDC limit, Oaken has the benefit of Home Trust and/or Home Bank..each with its own separate CDIC limit.
Stephen  

I expect these rates are about as good as it is going to get for some time. With the Federal Govt spending like it is going out of style, the Govt/BofC policy will want to keep rates as low as possible - no doubt the deficit for FY2021-22 is going to be VERY high as will the accumulated debt. Higher interest rates would be very bad for govt financing. (and our Taxes!)

July 28, 2021
10:06 am
rodeworthy
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James said

Thanks GR! I never thought I'd be seriously considering a 1.5% GIC offer.  

I hear you on that one James. But I have had to bite the bullet. The last of our 3% GICs matured this month. 24% of our cash assets has gone to 1-yr 1.5% GICs at an old standby in Manitoba - a mix of registered and non-registered funds.

There is more to come. I am going to have to consider adding more FIs to the mix and the Parma and Tandia offers are being considered. Not really happy about adding more FIs to our repertoire.

Stephen has reminded me that Oaken has an 18-mo. rate of 1.6% and that has prompted me to consider going back there despite their unusual bookkeeping on GICs. EQ Bank's lower rates and over-CDIC coverage is prompting this. Two substantial GICs matured there today. I don't see any interest rate increases coming before 2023 and 18-mo. GICs just may tide us over until then.

What we really need is an increase in CDIC coverage. Debtors have been well served in these troubling times. It is time to help out the savers too. I don't want this thread to take on that theme - I have accumulated some history of CDIC and may share that in a new thread on that topic.

July 28, 2021
8:55 pm
topgun
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I hear you on that one James. But I have had to bite the bullet. The last of our 3% GICs matured this month. 24% of our cash assets has gone to 1-yr 1.5% GICs at an old standby in Manitoba - a mix of registered and non-registered funds.
There is more to come. I am going to have to consider adding more FIs to the mix and the Parma and Tandia offers are being considered. Not really happy about adding more FIs to our repertoire.
Stephen has reminded me that Oaken has an 18-mo. rate of 1.6% and that has prompted me to consider going back there despite their unusual bookkeeping on GICs. EQ Bank's lower rates and over-CDIC coverage is prompting this. Two substantial GICs matured there today. I don't see any interest rate increases coming before 2023 and 18-mo. GICs just may tide us over until then.
What we really need is an increase in CDIC coverage. Debtors have been well served in these troubling times. It is time to help out the savers too. I don't want this thread to take on that theme - I have accumulated some history of CDIC and may share that in a new thread on that topic.

A good option if you have problems with CDIC limits is to purchase third-party GIC's at your brokerage firm. The rates are competitive. Contact your brokerage to inquire if they sell third-party GIC's. I do not know if they are available at all brokerages.

What is unusual bookkeeping for Oaken?

Have a Great Day

August 4, 2021
7:56 am
rodeworthy
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topgun said

A good option if you have problems with CDIC limits is to purchase third-party GIC's at your brokerage firm. The rates are competitive. Contact your brokerage to inquire if they sell third-party GIC's. I do not know if they are available at all brokerages.

What is unusual bookkeeping for Oaken?  

Topgun, sorry about the slow reply. Thanks for the tip on using brokerages to purchase 3rd-party GICs to alleviate CDIC limits. I am not understanding how that works but not disputing the concept. The only 3rd-party GIC I have ever purchases ended up with Wealth One and it, and tax receipts, were issued to me by Wealth One. It was a tedious manual effort and I found I could have obtained a better interest rate dealing directly with the issuer. There was no CDIC advantage there.

I do have a broker account (Investorline) but have not been active with them in some time. They do offer GICs on their website.

I passed on the Parma Credit Union promotion this time around. Last Wednesday I initiated transfers from EQ Bank accounts to our hub at CIBC and then moved that money on to Oaken Trust and Oaken Bank where it was applied to GICs @ 1.6% for 18-mo. All was completed by Friday and I am ecstatic that this was completed so quickly. Kudos to these FIs for the good service.

With respect to unusual bookkeeping at Oaken. Most FIs tend to post the principal amount of the GIC in your account balance through the life span of the GIC and then credit the total interest payment at maturity (or when otherwise arranged). Oaken calculates the interest on a daily basis and credits, on a daily basis, that amount to your GIC balance. Not a big deal but it caused me some concern when I had many GICs active and a fanatical desire to balance my books with the vendors'. I solved the 'problem' by creating a spreadsheet separate from my accounts that tracked the daily changes. I applied the accumulated interest to my regular accounting at maturity.

August 4, 2021
2:02 pm
julio
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topgun said
A good option if you have problems with CDIC limits is to purchase third-party GIC's at your brokerage firm.

As a warning, maybe justified, is, that, if I understand CDIC limits correctly, it is for CDIC irrelevant, through whom the GICs were purchased. Thus, as I understand it, if CDIC coverage is 100K, and I purchase two GICs, one 100K directly with a FI, then another 100K through a broker to the same FI, the coverage does not increase to 200K. I encountered that problem, after I realized, that the broker had purchased a 'good rate' GIC with a FI, with which I was already maxed out. The FI was Oaken at THAT time -we know it ended well.

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