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RBC US$ GIC at 3% for one year
February 8, 2019
10:32 am
rhvic
Victoria, BC
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This GIC was mentioned in the thread "US$ GIC rate", but here I want to focus on what RBC is offering.

As mentioned in the other thread, RBC has offered a special one year US$ GIC at 3% (minimum $5000), but you won't find it on their web site. To get this offer, I had to phone (as an existing client of RBC) their 'priority number' (which they provided to me in an email) to speak to an "invest-by-phone advisor". This person confirmed that I can get the 3% rate, made a note to this effect in my file, and even opened the GIC already even though I have no funds there yet to put into it. That will be coming from an EFT from Hubert which I initiated today. So next week the funds will move into the GIC.

So, one can get this rate, and it currently is better than the 2.5% which Tangerine dropped to. And, for those worried about bank stability, RBC seems a safe place.

February 11, 2019
4:55 pm
ritawije
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rhvic,

Did you actually get a US$ 3.00% GIC rate? Today I spoke to an RBC financial planner who said he could not find it anywhere in his system. The best he can do is 2.6% for 100K or more, and a fraction less for lower amounts.

February 12, 2019
9:55 am
rhvic
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ritawije said
rhvic,

Did you actually get a US$ 3.00% GIC rate? Today I spoke to an RBC financial planner who said he could not find it anywhere in his system. The best he can do is 2.6% for 100K or more, and a fraction less for lower amounts.  

Yes, I did get the 3% rate. My funds had arrived this morning in my RBC account, and by means of speaking to the "invest by phone" advisor, the rate and term was confirmed, and it shows as such on my RBC web page. Best to speak to a knowledgeable RBC advisor, as this rate does not show up on their web page when you try to do it your self.

February 12, 2019
5:18 pm
dentgal
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I got the 3% rate a few months back for USD 1 yr GIC. (I posted about it at the time).
But I was somewhat shocked to learn that some financial advisors at RBC are on commission, and some on salary.
I guess I was naive enough to think that the financial advisors are employees. What was I thinking??

February 14, 2019
9:31 pm
Norman1
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At an RBC Royal Bank branch, one may end up dealing with staff from other than the traditional retail bank Royal Bank of Canada.

One may end up dealing with a full-service investment broker from RBC Dominion Securities or a mutual fund salesperson from Royal Mutual Funds.

If it wasn't for certain Bank Act section 416 regulations, one could have also ended up dealing with an insurance broker from RBC Insurance.

February 14, 2019
9:51 pm
ritawije
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This is an update to my post of Feb. 11. When a financial planner in a local RBC branch could only find a 1 year GIC for US dollars with a 2.60% return, I went home and called a toll-free RBC investor number I found on their website. The first person I spoke to could not find anything at 3.00%, so I read to him the paragraph posted in this thread that includes the line "speak to an invest-by-phone advisor" whereupon he said, "Oh, you want invest-by-phone, not us" and transferred me. The next guy said, "Oh sure, we have a 1 year GIC, US funds, 3.00%" and I'll send a message to the planner at your local branch so he can give it to you.

I went back to the branch and met the planner again, and he had the 3.00% GIC up on the screen in seconds. (The screen showed that the offer began on Nov. 18, 2018 and could change at any time.) Today I opened that account, as well as a (free) US funds savings account so there will be a simple place to park those funds 365 days from now, should I not roll them immediately into another GIC.

Some background: Until today I was not a current RBC client, but in the past I did have both a mortgage and a GIC (Canadian funds) there. I was still in their database.

The end result is very satisfactory to me, but it sure felt like a complicated bit of maze navigating to get there. I extend my thanks to you others who have posted. Without the information posted here, this would not have happened for me.

February 14, 2019
10:11 pm
Loonie
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Congrats to ritawije and everyone who helped her/him achieve this goal!sf-cool

The big banks seem to specialize in these convoluted offers!

February 14, 2019
10:58 pm
Norman1
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Looks like the mentioned Invest-By-Phone advisors are with Royal Mutual Funds.

They are mentioned in the answer to these two questions from the FAQ for the Investment Advantage Account (IAA) offered by Royal Mutual Funds:

What value is there to family grouping besides lower fee rates?

Accounts small or large can benefit from the advice offered by an RBC financial planner, Digital Financial Specialist, or an Invest-by-Phone advisor, including family goal planning, family wealth transfer and estate planning.

Can I open an RBC IAA online?

No, you will need to contact a Financial Planner, Digital Financial Specialist or an Invest-by-Phone advisor, depending on your total assets.

I'm guessing the 3% rate on one-year Royal Bank US$ GIC's is a special offer from the Invest-By-Phone section of Royal Mutual Funds and not from the Royal Bank retail bank.

February 15, 2019
7:28 pm
Newcommer_80
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Just wanted to add my 2 cents when I went to further inquire about the 3% USD GIC. The advisor I talked with was on a leave so I spoke with a cashier first who told me he cannot find it and then he went and asked the manager who confirmed this. When I asked him to please print me the information he said he doesn't have access to this promotion webpage and that only advisors have access to. So I'm guessing the advisor you spoke with did not have full access to the RBC (in-branch) promotion. By the way this webpage had other promos for CAD that I did not go through as I was so focused on the USD.

February 16, 2019
7:37 am
Norman1
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The RBC Royal Bank branch has employees from at least three companies:

  1. The bank Royal Bank of Canada
  2. Mutual fund dealer Royal Mutual Funds
  3. Investment dealer RBC Dominion Securities

That the branch manager and teller didn't have access to the offer suggests that the 3% rate on the one-year US$ GIC's wasn't a bank branch offer.

It is likely an offer negotiated by Royal Mutual Funds with its parent, Royal Bank of Canada, rather than by the bank branches with the bank.

February 16, 2019
7:45 am
Top It Up
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Curious now, who is the issuer of record shown on the customer's RBC online accounts, for the US$ GIC?

February 16, 2019
8:12 am
Norman1
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I expect the issuer of the US$ GIC to be one of the usual issuers, as if the GIC was purchased through one of the Royal Bank of Canada branch representatives:

  • Royal Bank of Canada
  • The Royal Trust Company
  • Royal Trust Corporation of Canada
  • Royal Bank Mortgage Corporation
February 16, 2019
10:23 am
ritawije
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When I login to online banking at RBC and look at my GIC, this is the info displayed:

Type of GIC... USD Term Deposit
Issued by... Royal Bank of Canada
Ownership... Joint
Redeemable... No
Purchase Date... 14 Feb 2019
Term... 1 Year
Interest Rate(s)... 3.0000% Per Annum

February 16, 2019
3:10 pm
rhvic
Victoria, BC
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Top It Up said
Curious now, who is the issuer of record shown on the customer's RBC online accounts, for the US$ GIC?  

On my RBC account it states:

Type of GIC - USD Term Deposit
Issued by - Royal Bank of Canada

February 20, 2019
3:45 pm
rhvic
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I got a paper copy in the mail of my GIC investment confirmation. Interestingly, it is issued by Royal Trust, under an RBC banner. Royal Trust was absorbed by RBC in 1993; hence all my Royal Trust accounts at that time became RBC accounts. I did not know they are still operating under their own name - first time I have seen them mentioned in decades. Their address is the same as the RBC branch.

February 21, 2019
6:39 pm
Norman1
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Both "Royal Trust Corporation of Canada" and "The Royal Trust Company" have been alive and well all these years. They have continued to be deposit insurance premium paying members of CDIC too. sf-laugh

What happened was their ownership was transferred from Royal Trustco to the Royal Bank of Canada. Afterwards, all the account statements and bank cards were rebranded with the Royal Bank colours and logo.

But, if one looks at the details of the monthly account statements since then, one sees that Royal Trust is still there as the issuer of the accounts.

The grandfathered Royal Trust accounts are included in the Royal Bank Discontinued Accounts brochure.

Situation is similar with Canada Trust accounts after TD Bank bought Canada Trust. This is from the bottom of the last page of Account Related Information and Administration Fees:

Account Issuers: Chequing, Youth, TD Wealth Private Banking, and U.S. Dollar Accounts offered by The Toronto-Dominion Bank. Savings Accounts offered by TD Mortgage Corporation, except in British Columbia or Yukon, which are offered by TD Pacific Mortgage Corporation. All Savings Accounts are guaranteed by The Toronto-Dominion Bank. Any accounts opened at Canada Trust prior to conversion to TD Canada Trust are issued by The Canada Trust Company.

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