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Email this1:50 pm
September 6, 2020
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Fed's Evan says Monetary Policy will be accommodative for a Long Time. Over the years I purchased 5 year GIC's. The premium was more than short term. With interest rates so low these days the difference is not going to change us. I purchased a 5 year GIC today @ 1.75%. It will be interesting to see how long is long.
Have a Great Day
2:44 pm
January 12, 2019
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.
For myself, I'm going no further out than two (2) years, for now. No, I don't have a crystal ball, but with GIC interest rates being So Low now, I can't bring myself to lock in for any longer than that.
Example:
I recently purchased a 18 month GIC from Oaken @ 1.60% (the same rate as their 3 year GIC).
Who's right ❓
Time will tell.
- Dean
" Live Long, Healthy ... And Prosper! "
1:35 am
January 11, 2020
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Don’t invest right now until the seasons RRSP/TFSA offers come out. Each yr I have done .25-.50 % better February 1st over January 1st rates. You will do better 30 days from now if you look at what’s available.. don’t have time to look? Don’t worry the sharks on this board will report any new deals within hours of being available
5:18 am
May 20, 2016
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I renewed a 5 year GIC today @ 1.90%, the best available rate for 5 year GIC now.
9:33 am
October 29, 2017
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I Agree with Dean. I think rates will be better in a year or two.
2:43 pm
January 12, 2019
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davidgeorge said
I renewed a 5 year GIC today @ 1.90%, the best available rate for 5 year GIC now.
Caveat Emptor ❗
The problem is (according to my newly purchased crystal ball) in ~ 2 years time, 5yr GIC rates will be back up in the 3.50% area.
See below for details . . .
- Dean
" Live Long, Healthy ... And Prosper! "
4:19 pm
February 17, 2013
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Dean said
Caveat Emptor ❗
The problem is (according to my newly purchased crystal ball) in ~ 2 years time, 5yr GIC rates will be back up in the 3.50% area.
See below for details . . .
Dean
Hope you got the 2020 model...2018 model sucked.
My ladders are pretty much set. The last one renewed at 1.9, but still have several earning around 2.75 - 3.6. Factoring in the new one, I think my average rate is about 2.8 something.
5:55 pm
September 6, 2020
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I wrote a spreadsheet that keeps track of average yield. I use a 5 year ladder. My average is 2.8%.
Have a Great Day
4:18 am
May 20, 2016
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Dean said
Caveat Emptor ❗
The problem is (according to my newly purchased crystal ball) in ~ 2 years time, 5yr GIC rates will be back up in the 3.50% area.
See below for details . . .
Dean
If you think that in ~ 2 years time, 5yr GIC rates will be back up in the 3.50% area, why have you purchased a 18 month GIC from Oaken @ 1.60%? You should just leave fund in savings account with rates from 1.50% to 1.8%.
9:37 am
January 12, 2019
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davidgeorge said
If you think that in ~ 2 years time, 5yr GIC rates will be back up in the 3.50% area, why have you purchased a 18 month GIC from Oaken @ 1.60%? You should just leave fund in savings account with rates from 1.50% to 1.8%.
.
And just how long do you think those ⬆ HISA rates will last, until they fall into the toilet, like all the others ❓
I'm guessing sometime within the next two to three months ... but 'Good Luck' with that.
- Dean
" Live Long, Healthy ... And Prosper! "
1:29 pm
February 20, 2018
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There's a loss of confidence in the system more investors want to remain liquid due to unforeseen government events and actions. Your trapped in the 5yr it's like being in jail when there's a fire.
3:53 pm
September 6, 2020
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Nothing wrong with 20% of your GIC's maturing each year. You need a liquid reserve fund to balance out your cashflow.
Have a Great Day
2:36 pm
October 15, 2015
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MS said
Don’t invest right now until the seasons RRSP/TFSA offers come out. Each yr I have done .25-.50 % better February 1st over January 1st rates. You will do better 30 days from now if you look at what’s available.. don’t have time to look? Don’t worry the sharks on this board will report any new deals within hours of being available
I would keep an eye out as to when the next bank of canada interest rate announcement is. I just read rates could go lower.
Looks like next ones are jan 20 and March 10
5:19 am
January 11, 2020
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Thx for the tip. Jan 20 I will check it out.. what’s amazing to me is that money is currently free, interest rates at 100 yr lows but the gov’t thinks one more .25 % lower fixes any of their issues. Money at zero percent imagine how the Lib’s could spend then
2:33 pm
September 6, 2020
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A friend had a 6 month GIC mature at Tangerine last month. A rate of .60% for 6 months to renew. Although the rate is low it will not affect him. He will stay with Tangerine.
Have a Great Day
5:27 pm
October 21, 2013
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There seems to be more to it than BoC rates. Rates have been falling steadily without additional help from BoC. But, with hel, they will undoubtedly fall further.
11:59 pm
February 17, 2013
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Loonie said
There seems to be more to it than BoC rates. Rates have been falling steadily without additional help from BoC. But, with hel, they will undoubtedly fall further.
Maybe this has something to do with it?
https://nationalpost.com/news/politics/household-savings-in-canada-skyrocket-during-pandemic-as-ottawa-doles-out-billions-in-emergency-benefits
9:02 am
January 12, 2019
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Rick said
Maybe this has something to do with it?
https://nationalpost.com/news/politics/household-savings-in-canada-skyrocket-during-pandemic-as-ottawa-doles-out-billions-in-emergency-benefits
That's ⬆ not the only factor of course, but it does have a 'LOT' to do with it . . .
- "A new report by CIBC on Tuesday estimates that Canadians are sitting atop $90 billion in excess cash — easily the highest in the country’s history and equal to about four per cent of consumer spending. Canadian businesses, the report said, are hoarding another $80 billion. The savings rate in the second quarter of 2020 surged to 28.2 per cent, up from 3.6 per cent before the COVID-19 pandemic struck."
With all that cash sitting in the FI's, there's no incentive for them to increase SA & GIC interest rates, and a Lot of incentive for them to continue to lower those rates.
I'm guessing it could be two years (or more❓) before things turn around.
Time will tell ...
- Dean
" Live Long, Healthy ... And Prosper! "
12:10 pm
December 27, 2020
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I find the TD Canadian Banks GIC - 5 yr term interesting:
The good:
- Guaranteed Minimum Interest Return is 2.50%
Maximum Return is 7.00%
The bad:
- 5-year term
Any comments?
12:31 pm
April 6, 2013
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That's 2.5% and 7% per term, not 2.5% and 7% per annum!
That 7% per term maximum over five years works out to be just 1.36% per annum.
One relative got bamboozled into a market linked GIC like that at RBC thinking the quoted returns were per annum.
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