Santander is a trade name used by Santander Consumer Bank, a CDIC member. Eligible deposits under Santander are combined with deposits held at Santander Consumer Bank for up to $100,000 of deposit protection, per category.

Currently they are the highest in RBC DI for the 2 yr at 4.16%
I believe SANTANDER BANK and Santander Consumer Bank are the same entity operating in Canada? I guess RBC DI just entered it as SANTANDER BANK in their system.
Just wanted to confirm with you guys.
Thanks

Excellent comparison posts but nobody will find them in a few months because they'll be buried under this thread topic.

Norman1 said
It is likely that Peoples Trust is doing a short-term flash sale to raise a certain amount of two-year deposits. The rate will be yanked once the targeted amount is reached.

Today, Fairstone Bank is stepping up at BMO InvestorLine:

1 year
3.74%
HomeEquity Bank

2 year
4.13%
Fairstone Bank

3 year
4.35%
Fairstone Bank
HomeEquity Bank

4 year
4.36%
Fairstone Bank

5 year
4.45%
Fairstone Bank
HomeEquity Bank

A couple of weeks ago, I did two 2yr GIC's with Peoples Bank. Monarch's rate for them was then 3.77% and Peoples posted was and is at 3.0%. I called Peoples to see if they would match Monarch's rate and they did. Right now, Monarch is offering the 2 yr rate for a People's GIC at 4.1%. (wouldn't you know it). Don't know if People's would go for that much of an increase. Problem is every time you have to call them....so that is a pain.

GIC orders are accepted until 4:00 pm ET on business days. All GIC purchases settle the next business day. The settlement date is also the issue date.

With enough Buying Power in the account, one could buy a GIC to renew a maturing GIC the day before maturity. The settlement date of the new GIC will align with the maturity date of the existing one.

RBC DI, for example, posts (or used to post) the settlement transactions a day in advance so that if one is online that day, they can see that and come back the next day to re-invest the funds into whatever security they want, GIC or otherwise.

As an example, a GIC matures Sept 15th. RBCDI will (used to) show that transaction on Sept 14th but it will be dated Sept 15th. I don't know what current practice is.

Scotia iTrade however, does not post (or did not used to post) anything until the next day, e.g. that maturing GIC on Sept 15th won't show the actual transaction until Sept 16th. I don't know about BMO IL since I never did buy a GIC there.

As you note, automatic renewals are not possible but that is understandable. The brokerage is 'execution order' only requiring the client to take action, and secondly, the brokerage is only the agent for the GIC issuer. We should not expect anything different.

I don't think we should expect more from DIY brokerages. Their customers are primarily into exchange traded securities. GIC offerings are a sideline out of, I think, competitive need with other brokerages. Some boutique discount brokerages do not offer GICs.

P.S. When I purchased GICs, I had a digital reminder in my Google calendar and also in my Quicken regarding maturity date...so that I wouldn't overlook/forget about it.

A very minor point with buying 3rd party GICs in a self directed investment account is, when they come due we may lose day(s) of interest because (a) automatic renewal is not possible, (b) information displayed on clients computers is prior day, (c) might be weekend days immediately following, and (d) have to diarise to phone and talk to a broker on expiry day to do a renewal/alternate purchase as, at some point unlike us, they should be able to see the same day credit for P & I.

dougjp said

I do 1 year terms and Peoples has pretty consistently offered more than 25 BP less when dealing directly than I can buy through my investment account (where they are quite competitive but not the best) AND on top of that, they pay a fee for selling this way!

Looks to me like they think they can save money, believing their own clients are uninformed, an attitude which really bothers me. I have 4 coming due this year and because of this, they are probably going to lose all my business. I wrote to them about this a week ago, no reply.  

I have opined before that a GIC issuer, while it pays a commission of 25bp times face value times years of term to the agent (brokerage), one reason why it can do this economically is it eliminates the CSR client interface burden that would otherwise go with serving retail clients directly. It costs money to have CSR staff.

The other, probably primary, reason is the degree of and type of competition in each of the two markets (retail and brokerage). An issuer will pay only what it needs to pay to attract the funds it needs. Over years of observation, I think I can say that retail yields have generally been higher by 25-50bp than through a brokerage but is not always the case, like now. That may due to competing yields of other products through a brokerage, e.g. short term (1-5 year) bonds, and money market mutual funds and ETFs et al.

I don't think anyone should take it personally. It is simply the market in which one decides to play.

Today, Fairstone Bank is stepping up at BMO InvestorLine:

hwyc said
Peoples is absent on TDDI's GIC rate sheet as well 🙁

… double sadness - rates on Peoples own site (2Y 3%) is unrealistically out of line!  

I do 1 year terms and Peoples has pretty consistently offered more than 25 BP less when dealing directly than I can buy through my investment account (where they are quite competitive but not the best) AND on top of that, they pay a fee for selling this way!

Looks to me like they think they can save money, believing their own clients are uninformed, an attitude which really bothers me. I have 4 coming due this year and because of this, they are probably going to lose all my business. I wrote to them about this a week ago, no reply.

… double sadness - rates on Peoples own site (2Y 3%) is unrealistically out of line!