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Email this2:25 pm
October 21, 2013
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I think they have raised the 1 yr rate, which is now higher than 2 yr rate, BUT THESE RATES ONLY APPLY TO NON-REGISTERED MONEY. This confirms my earlier suspicion that the 1yr rate is where the competition is right now. Daily rates unchanged.
1 year -2.300
2 year -2.250
3 year -2.350
4 year -2.400
5 year -2.600
4:39 pm
August 28, 2013
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Thanks for the info!!!!
Should we expect 1 year interest rate war? Should we wait until it gets to 2.5% and then buy some GIC???
Mortgage rates are falling; what if interest rates start falling too????
8:11 pm
October 21, 2013
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In my opinion, there is a mild rate war at the relatively short term level because there is a lot of speculation that rates may rise in a year or so. There is a reluctance to invest for the longer term because of the hope that rates may rise. It seems that the banks think this way themselves, as the difference between 1 and 5 year rates is relatively small everywhere.
This MAY foretell one of those relatively rare periods in history wherein 5yr terms do not give the best results. The conventional wisdom is that, over time, you will always be better off laddering with 5yr GICs than with shorter terms. However, we're not there yet, and this is best assessed through the eyes sin the back of your head!
In this case, Peoples Trust may be trying to build up their customer base for the longer term, and it's not a bad way for them to go.
8:54 pm
October 21, 2013
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Rate for the 1 year GIC (non-registered only) has gone up a little bit again.
1 year -2.350
2 year -2.250
3 year -2.350
4 year -2.400
5 year -2.600
As far as I know, this is the best 1yr rate going at this time.
I wish I was confident I understood the reasoning. Why would 1yr and 3yr be the same, and 2yr lower?
10:56 pm
May 9, 2013
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Get people to go into the first year. Some forget and auto locks into the second year.
Probably...
12:21 am
October 21, 2013
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Maybe you're right, CharlieFox, but they didn't do it this way before.
I have another theory since I posted the above. Hubert is offering a 1 year GIC, cashable after 3 months with some interest, at 2.35% for the year with a complicated interest ladder. It's actually 2.37% if you keep it for the whole year because interest is paid quarterly. Maybe they are trying to compete.
Short-term is where the heat is right now in terms of competitive rates.
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