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Email this11:56 am
September 30, 2017
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Warwick111 said
TDDI top GIC rates from TD Bank Group today:1Y 3.33%
2Y 3.72%
5y 4.07%Those are very competitive rates. The catch is if I deposit a cheque today at TD the fund is on hold for a week. If I make a ETF transfer the fund will only be available after market closed tomorrow so I won't be able to buy a GIC until two days later, and their rates may no longer be at or near the top.
You made me look 
I'm selling some ISA in my registered account Tuesday today ... planning for a 3-year monthly at 3.84% Wednesday tomorrow
Interac *request* money can pull money in at $3,000 per day per FI per person(?) Alternatively, bill payment before a certain cut-off time today will arrive tomorrow morning ... but I supposed you are doing a larger amount.
12:44 pm
January 7, 2023
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AltaRed said
There is no need to buy an in-house RBC GIC at RBC DI. I suspect the highest yield GIC at RBC DI will be something like Home Trust or Equitable Bank or Home Equity Bank. They often are the highest, or almost the highest yields at BMO Investorline and Scotia iTrade where I have my accounts. There should be no reason for RBC DI or TDDI for that matter to be any different.The highest yields at TDDI or RBC DI are usually not from the in-house TD or RBC group. That is why I started this post because TD bank group has the highest yields for their 1/2/5 year terms. I still prefer the safety of the big 5 banks over smaller banks and when TD Bank also offers the highest yield, that makes my choice easier.
P.S. Is the ability to lock in not as simple as about a 50-50 proposition of win or lose?
Yes, it is a 50-50 odds but I prefer to avoid surprises and would much rather know exactly what I am getting before making a commitment.
12:49 pm
January 7, 2023
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hwyc said
You made me look I'm selling some ISA in my registered account Tuesday today ... planning for a 3-year monthly at 3.84% Wednesday tomorrow
Interac *request* money can pull money in at $3,000 per day per FI per person(?) Alternatively, bill payment before a certain cut-off time today will arrive tomorrow morning ... but I supposed you are doing a larger amount.
I am glad I made you look.
Yes, I am doing a much larger amount so etransfer does not work.
9:36 am
April 6, 2013
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It is unfortunate that TD Direct Investing does GIC purchases with T+0 settlement.
BMO InvestorLine does T+1:
Settlement
All GIC purchases settle the next business day. The settlement date is also the issue date.
Same with Scotia iTRADE:
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.
11:16 am
December 7, 2023
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Warwick111 said
TDDI top GIC rates from TD Bank Group today:1Y 3.33%
2Y 3.72%
5y 4.07%Those are very competitive rates. The catch is if I deposit a cheque today at TD the fund is on hold for a week. If I make a ETF transfer the fund will only be available after market closed tomorrow so I won't be able to buy a GIC until two days later, and their rates may no longer be at or near the top.
You can Pay a Bill to your TD DI account at a big amount, if you pay the bill from another banking account before the deadline ( 9: 00 PM or 10:pp PM, depends on which bank it is), you will receive your fund in TD DI next business day, sometime around 11:00 am at noon.
NO HOLD in TD DI in this way.
It is alittle bit complicated to move out a fund from TD DI. You may go to a TD branch to sign a form to link another banking institute account. Then call TD DI to do an EFT.
11:31 am
October 27, 2013
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usephrase said
You can Pay a Bill to your TD DI account at a big amount, if you pay the bill from another banking account before the deadline ( 9: 00 PM or 10:pp PM, depends on which bank it is), you will receive your fund in TD DI next business day, sometime around 11:00 am at noon.
NO HOLD in TD DI in this way.
I agree Bill Pay to one's brokerage account (TDDI in this case) is the way to make funds likely immediately available the next business day. It is the best way to move funds.
11:50 am
January 12, 2019
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Dean said
.
What a Difference a Month makes ... they're back Up again❗TDDI top GIC rates, as of today (July 26th) . . .
1Y 3.33%
2Y 3.70%
3Y 3.90%
4Y 3.93%
5y 4.02%A good example of the normal Ebb & Flow of GIC rates.
Dean
As of today (20 days later) . . .
- 1Yr 3.38%
2Yr 3.74%
3Yr 3.97%
4Yr 4.00%
5yr 4.10%
.
Dean
" Live Long, Healthy ... And Prosper ! "
12:26 pm
October 27, 2013
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There is a subtle trend to higher rates due to, I believe, bond investors demanding more return for longer terms for perceived future inflationary risk due to governments ultimately wanting to inflate away their ever increasing debt burden.
Bond returns have been lackluster both short term based on short term XSB https://www.blackrock.com/ca/i.....-index-etf and medium term XBB https://www.blackrock.com/ca/i.....-index-etf
XSB with a duration of 2.8 years is the closest there is to that of a 5 year GIC ladder.
5:51 am
January 1, 2018
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Dean said
As of today Aug 14th . . .
1Yr 3.38%
2Yr 3.74%
3Yr 3.97%
4Yr 4.00%
5yr 4.10%
.
Dean
I had a GIC in my TDDI RIF mature this past week, and was a bit surprised to see that of the long list of banks to choose a renewal from, TDBK itself was at the top of the list @ 4.15% [5 yrs].
Could it be that the brain trust at TD believes 'Inflation' isn't going anywhere in the short to medium term ?
7:44 am
October 27, 2013
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Increasing government deficits are inflationary and the US bond market in particular has been seeing substantial increases in yield. Bond markets in other OECD countries tend to follow, partly as currency support and partly because so many other OECD countries also have increased deficits.
GIC rates are simply a reaction to the 5 year bond. As to why TD is competitive, it is hard to know other than they appear to have a need for deposit funds relative to other sources of funding and are willing to pay to it.
8:03 am
April 21, 2022
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Yeah, I'm thinking they're topping up their loss provisions balances. Wouldn't surprise me if others are doing the same thing. It may also explain why we're seeing somewhat improved HISA promotional rates.
9:03 am
August 27, 2026
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AltaRed said
Increasing government deficits are inflationary and the US bond market in particular has been seeing substantial increases in yield. Bond markets in other OECD countries tend to follow, partly as currency support and partly because so many other OECD countries also have increased deficits.GIC rates are simply a reaction to the 5 year bond. As to why TD is competitive, it is hard to know other than they appear to have a need for deposit funds relative to other sources of funding and are willing to pay to it.
This is about more than rising debt. It also involves the Fed, which in the U.S. has chosen to be less transparent than at other times in the recent past, increasing risk.
Do you think there have been some behavioral changes in the U.S. as well?
And then there is the effect of tariffs, which bring up the cost of goods and contribute to inflation. The economic theory that Howard Lutnick has subscribed to in the U.S. is not mainstream. His view that tariffs do not create inflation is certainly outside the conventional economic consensus.
These factors, as well as what you have said, have increased risk and therefore led to higher rates.
How large do you think the gap between interest rates and inflation will get?
I think that after the midterms, Donald Trump’s wing will be clipped, and that may lead to lower rates. But there is a lot of runway between that point and today, provided we do not see core inflation rise rapidly.
What do you think?
9:21 am
October 27, 2013
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I tend to agree with you the behaviour of the Trump administration is to create more tailwind to inflation and cause it to accelerate while at the same time brow beating the Fed to decrease, or at least hold, interest rates. Asset inflation is what the billionaires, including Trump, ultimately want to the detriment of the common man.
I believe the bond markets are now realizing it and are demanding higher yields to take on a higher probability of higher inflation. Bond yields have mostly moved upward since Warsh became Fed Chairman on the belief he will more likely bend to Trump's demands.....but he has been remarkably steady so far. He is also only one vote on the FOMC.
My take is Warsh will not risk runaway inflation but will be reluctant to push it lower than the current ~3%. Hence deposit rates will reamin higher than inflation but real rates after tax will be less. That makes borrowing continue to be 'cheap'. I don't think mid-terms will have any real impact even if the Dems take over Congress. The Administration has a lot of power, especially this Administration populated with bullies and billionaires.
12:19 pm
August 27, 2026
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AltaRed said
I tend to agree with you the behaviour of the Trump administration is to create more tailwind to inflation and cause it to accelerate while at the same time brow beating the Fed to decrease, or at least hold, interest rates. Asset inflation is what the billionaires, including Trump, ultimately want to the detriment of the common man.I believe the bond markets are now realizing it and are demanding higher yields to take on a higher probability of higher inflation. Bond yields have mostly moved upward since Warsh became Fed Chairman on the belief he will more likely bend to Trump's demands.....but he has been remarkably steady so far. He is also only one vote on the FOMC.
My take is Warsh will not risk runaway inflation but will be reluctant to push it lower than the current ~3%. Hence deposit rates will reamin higher than inflation but real rates after tax will be less. That makes borrowing continue to be 'cheap'. I don't think mid-terms will have any real impact even if the Dems take over Congress. The Administration has a lot of power, especially this Administration populated with bullies and billionaires.
It is about the midterms. If Trump’s power is diminished, then some of the inflationary pressures may be reduced, perhaps because he could be forced to withdraw from bombing Iran and there could be some tariff relief.
If that seems likely, is it not also likely that we are seeing a peak in interest rates around now, or perhaps around the US midterms?
Is this a buying opportunity now, or do you think rates will be higher a year from now?
2:33 pm
October 27, 2013
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Obviously I have do not know but I suspect overnight rates will be slightly higher a year from now. Whether that means across term deposits out to 5 years (GICs) or 10 years (bonds) is anyone's guess. I make no guess and I do nothing but 'stay the course'.
4:07 pm
November 18, 2017
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Historically, US interest rates have tended to be at a low point in their cycles near US elections, most strongly presidential years. As has been noted, the current president has been trying to force interest rates down to spur economic activity - particularly consumption, since that also weakens investment - but inflation is pushing for higher rates.
The US republican party is all about wealthy people not paying taxes. This is aligned with their push for tariffs, which are regressive consumption taxes, coupled with regressive income-tax cuts. It's a classic "take from the poor and give to the rich" scenario, from the era of the "trickle-down" argument that has led to huge government debts and astonishing concentration of wealth.
This upcoming midterm is really on a knife-edge in terms of what's coming, but it will quite likely be followed by higher central bank rates. Wars don't help. The bond market seems to be expecting this.
RetirEd
5:04 pm
August 27, 2026
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AltaRed said
Obviously I have do not know but I suspect overnight rates will be slightly higher a year from now. Whether that means across term deposits out to 5 years (GICs) or 10 years (bonds) is anyone's guess. I make no guess and I do nothing but 'stay the course'.
But I would like to know your rationale for thinking that, so I can see if it looks better than my reasoning. You do not believe that Donald Trump will have less power after the midterms, and that this will alleviate inflationary pressures and lower interest rates?
Why would they be higher a year from now?
And the midterms will have an effect on policy if the Democrats win.
this stament is it true Historically, US interest rates have tended to be at a low point in their cycles near US elections
Midterm 12 mo. before Election Nov. 12 mo. after Before → Election Election → After
1958 3.28% 2.27% 4.00% ↓ 1.01 ↑ 1.73
1962 2.61% 2.94% 3.00% ↑ 0.33 ↑ 0.06
1966 4.10% 5.76% 4.13% ↑ 1.66 ↓ 1.63
1970 8.85% 5.60% 4.91% ↓ 3.25 ↓ 0.69
1974 10.03% 9.45% 5.22% ↓ 0.58 ↓ 4.23
1978 8.45%* 9.76% 13.18% ↑ 1.31 ↑ 3.42
1982 13.31% 9.20% 9.34% ↓ 4.11 ↑ 0.14
1986 8.05% 6.04% 6.69% ↓ 2.01 ↑ 0.65
1990 8.55% 7.81% 4.81% ↓ 0.74 ↓ 3.00
1994 3.02% 5.29% 5.80% ↑ 2.27 ↑ 0.51
1998 5.52% 4.83% 5.42% ↓ 0.69 ↑ 0.59
2002 2.09% 1.34% 1.00% ↓ 0.75 ↓ 0.34
2006 4.00% 5.25% 4.49% ↑ 1.25 ↓ 0.76
2010 0.12% 0.19% 0.08% ↑ 0.07 ↓ 0.11
2014 0.08% 0.09% 0.12% ↑ 0.01 ↑ 0.03
2018 1.16% 2.20% 1.55% ↑ 1.04 ↓ 0.65
2022 0.08% 3.78% 5.33% ↑ 3.70 ↑ 1.55
6:39 am
October 11, 2015
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For what it's worth, my ex husband is a tax lawyer. He also said that interest rates are at their lowest at the time of a US election, so we timed our mortgage renewals to coincide with US election year.
7:43 am
April 21, 2022
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dentgal said
For what it's worth, my ex husband is a tax lawyer. He also said that interest rates are at their lowest at the time of a US election, so we timed our mortgage renewals to coincide with US election year.
Well, seeing what global bond markets have been doing recently, I would not be too sure of that occurring this time. All bets are off.
