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Some Interesting Developments In GIC Rates
June 11, 2023
10:36 am
Dean
Valhalla Mountains, British Columbia
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.
EQ Bank GIC rates are on quite a 'Tear' ... and in the Right direction : https://www.highinterestsavings.ca/profile/eq-bank/gic-rate-history/

Tangerine Bank 1Yr GIC now pays 5.00% ... unusually High, for them.

And I never thought we'd see CT Bank at the Top of this chart : https://www.highinterestsavings.ca/gic-rates/

Interesting Times ❗

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 11, 2023
2:48 pm
Rail Baron
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I've never seen a GIC rate increase on a weekend before. EQ raised their 1 year rate from 5.1 to 5.2% on a Saturday.

Do weekend rate changes happen often?

June 11, 2023
9:03 pm
Loonie
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I don't recall any either.
It could be that EQ wants to get the jump on others who may announce changes Monday. There's a lot of competition for one and two year money these days.

June 12, 2023
5:43 am
agit
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“It is highly unlikely that the Bank of Canada chose to interrupt the pause in interest rates that started in January for just the one additional 25 basis point interest rate hike announced earlier this week,” wrote RBC assistant chief economist Nathan Janzen after the jobs data.

full article here Why the Bank of Canada will likely raise interest rates again — and maybe again https://financialpost.com/news/bank-of-canada-will-likely-raise-interest-rates-again

June 12, 2023
9:16 am
Rail Baron
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Loonie said
I don't recall any either.
It could be that EQ wants to get the jump on others who may announce changes Monday. There's a lot of competition for one and two year money these days.  

So far, no other FI jumped in with a rate increase this Monday morning. This leads me to wonder whether EQ needed more deposits pronto to offset a rapid increase in loans last week? Otherwise, I just can't see why they would be raising rates on the weekend.

p.s. It worked in my case! They got a new GIC from me on Sunday.

June 12, 2023
9:32 am
ExtraSauce
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I haven't added my spouse to an EQ joint account yet and last I looked into it, my aging brain began to hurt (paper work, another login to manage and more to keep track of).

Sure wish EQ and other CDIC entities offered 250K like Ontario's FSRA! I am tiring of the cat and mouse rate chase and tend to leave most funds with credit unions offering unlimited deposit insurance.

June 12, 2023
10:05 am
Dean
Valhalla Mountains, British Columbia
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Loonie said

. . . There's a lot of competition for one and two year money these days.  

    True ⬆

And with EQ's, Motive's & W1's 3Yr GIC rates now @ 5.00% (or almost), competition for three year money is also starting to heat up.

Good Times for us savers sf-laugh

    Dean

.
P.S.

EQ also has some pretty sweet rates for their 15 & 27 month GICs, as well :
https://www.eqbank.ca/personal-banking/investments/gics

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 12, 2023
11:14 am
savemoresaveoften
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Don’t forget unless money already at EQ, there is a 5 biz day mandatory hold, and can’t even use it to buy their gic.
So ur 1y 5.2% is effectively lower as u earn 7 days on mediocre HISA rate. Others like Peoples will remove hold and let u buy GIC right the way.

June 14, 2023
10:23 am
Dean
Valhalla Mountains, British Columbia
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.
Unfortunately, EQ isn't the only one like that .

Thanks for the reminder, Savemoresaveoften.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

June 14, 2023
10:33 am
Rail Baron
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EQ has broken through the 5 year 5% GIC rate again today.

What strikes me is how far behind the Manitoba credit unions are falling in their GIC rates right now.

Ever since I started paying close attention to GICs (in 2020), Hubert and/or MAXA could be found at or near the top of the FIs in at least some of their GIC rates. Not now. I wonder if this is a new trend ?

June 14, 2023
12:48 pm
Alexandre
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ExtraSauce said
Sure wish EQ and other CDIC entities offered 250K like Ontario's FSRA! I am tiring of the cat and mouse rate chase and tend to leave most funds with credit unions offering unlimited deposit insurance.  

I've read somewhere that Ontario FSRA has $300M fund for deposit insurance. If this is correct number, you can calculate how many people with FSRA insured $250,000 deposits in CU accounts will take for that fund to run out of money.

June 14, 2023
1:44 pm
AltaRed
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Rail Baron said
EQ has broken through the 5 year 5% GIC rate again today.

What strikes me is how far behind the Manitoba credit unions are falling in their GIC rates right now.

Ever since I started paying close attention to GICs (in 2020), Hubert and/or MAXA could be found at or near the top of the FIs in at least some of their GIC rates. Not now. I wonder if this is a new trend ?  

The MB CUs have to deploy that capital at high enough rates to make a profit. Perhaps such lending opportunities within their sphere of business operations are reaching their limit?

This story (mathematics) is the same whether applied to HISA rates or GIC rates for any given institution at any given time. I think it is a waste of time trying to generate any other knowledge/belief from this.

June 14, 2023
1:49 pm
Dean
Valhalla Mountains, British Columbia
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Rail Baron said

EQ has broken through the 5 year 5% GIC rate again today.

What strikes me is how far behind the Manitoba credit unions are falling in their GIC rates right now.

Ever since I started paying close attention to GICs (in 2020), Hubert and/or MAXA could be found at or near the top of the FIs in at least some of their GIC rates. Not now. I wonder if this is a new trend ?  

Not to worry ... It's all part of the normal 'Ebb & Flow' of GIC rates.

Don't forget it wasn't all that long ago when EQ Bank was languishing in the Bottom half of this site's GIC Chart.

Give it a while, and the likes of Hubert will be back near the top again.
Of note ... they're in the top half of the GIC Chart already : https://www.highinterestsavings.ca/gic-rates/

My Two Centavos sf-smile

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

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