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Email this6:57 pm
September 29, 2020
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Was there ever a single year in Canada in when a GIC beat the inflation rate? I'm new to investing and I'd love to learn from all of you veterans.
10:12 pm
October 29, 2017
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piggybank said
Was there ever a single year in Canada in when a GIC beat the inflation rate? I'm new to investing and I'd love to learn from all of you veterans.
Plenty I’m sure. Try 2020 to start.
11:44 pm
October 21, 2013
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Vatox said
Plenty I’m sure. Try 2020 to start.
Almost all, if not all, of the GICs I bought between about 2014 and 2020 significantly outpaced inflation for their duration with the exception of the current year.
But it depends on where you buy them, what sort of rate you get, terms, etc. You can find official-looking charts which suggest much poorer GIC results but they tend to use traditional banks with poor rates in an effort to discredit GICs as an investment.
However, in the current situation, it's impossible, and that may continue to be for several years.
4:25 am
January 28, 2015
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They will this time too ,if you lock in for 5 to 10 years and hit the peak, you will be "laughing all the way to the bank"
8:50 am
April 18, 2022
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GICs never outpace inflation, maybe decades ago, we know the measure starting with Cpi is bogus they change the goalposts call it by another name whenever it suits them.
I would not lock in for more than 3yrs unless longer is very compelling. The government isn't stable anymore they can change the rules quickly. You want to be relatively liquid all the time and searching for safe alternatives.
Canada isn't Top 20 anymore on the corruption index. They blew 500-900billion out the door.
9:14 am
September 29, 2020
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https://www.transparency.org/en/cpi/2021/index/can says that it's number 13 on the list
10:10 am
January 12, 2019
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piggybank said
https://www.transparency.org/en/cpi/2021/index/can says that it's number 13 on the list
Interesting ⬆ ... thanks for the link, Piggybank ❗
- Dean
" Live Long, Healthy ... And Prosper! "
10:31 am
April 18, 2022
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No way Canada is #13 No way! In Ontario alone most big contracts they do end up in scandal. I put Canada in 35-40 range.
10:33 am
September 29, 2020
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Allanb, it could be relative. In other words all the lower-ranked countries are worse in terms of corruption than Canada.
1:27 pm
March 30, 2017
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AllanB said
No way Canada is #13 No way! In Ontario alone most big contracts they do end up in scandal. I put Canada in 35-40 range.
you can put Canada at the bottom of the list, it does not make it the truth, except in your head...
1:38 pm
April 6, 2013
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Yes, there was a time when GIC and Canada Savings Bonds rates were above inflation.
This is from a previous post:
| Series | Issue Date | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 |
| S36 | 01/11/1981 | 19.50 | 12.00 | 10.50 | 11.25 | 10.50 | 10.50 | 10.50 |
| Inflation (CPI) | 12.50 | 10.90 | 5.80 | 4.30 | 4.00 | 4.10 | 4.40 | |
| 5-year GIC | 15.36 | 14.57 | 11.52 | 11.97 | 10.80 | 9.73 | 9.61 | |
1:53 pm
August 10, 2018
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mechone said
They will this time too ,if you lock in for 5 to 10 years and hit the peak, you will be "laughing all the way to the bank"
LOL, if you ever get your money back.
2:02 pm
January 12, 2019
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AllanB said
No way Canada is #13 No way! In Ontario alone most big contracts they do end up in scandal. I put Canada in 35-40 range.
savemoresaveoften said
you can put Canada at the bottom of the list, it does not make it the truth, except in your head...
- Touché❗
.
LOL 
- Dean
" Live Long, Healthy ... And Prosper! "
3:44 pm
September 11, 2013
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You'd have to compare a 5-year gic with the cpi for those 5 years, gics are locked-in instruments.
4:48 pm
November 18, 2017
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I've also mostly kept ahead of the Consumer Price Index with mostly 5-year deposits, save for the last year or so. I took short terms when rates began to sink, and my last 1-year 1.55% comes due in a week, the only real loser vs CPI other than deposit accounts.
I'm pretty comfortable sticking with a few institutions I am satisfied with. Even if they aren't always at the top of the savings account chart, they're rarely more than two weeks behind on catching up, and always in the top tier for GICs. I don't feel the need to constantly open new accounts, and certainly not to go to online banking outfits.
RetirEd.
RetirEd
9:06 am
January 28, 2015
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AllanB said
GICs never outpace inflation, maybe decades ago, we know the measure starting with Cpi is bogus they change the goalposts call it by another name whenever it suits them.I would not lock in for more than 3yrs unless longer is very compelling. The government isn't stable anymore they can change the rules quickly. You want to be relatively liquid all the time and searching for safe alternatives.
Canada isn't Top 20 anymore on the corruption index. They blew 500-900billion out the door.
If you lock in say 6% for 10 years and next year inflation drops back to 2% range ,how are you not beating inflation ,when the boc rate drops back to 2% .
The things that you post are completely off the wall claiming Canada is like a banana republic where everyone and every contract is corrupt, only in your head as others on here have stated.
I can tell you in the 80's many seniors bought GIC's way above inflation and were living the good life . They then came due and had to renew at low rates and suffered or had to start eating their principal.
For myself my house, yacht , cars are all paid for and no debt . My savings are over 1.5 million . If I bought GIC's at 6% 90k a year without CCP, OAS or pension ,for 10 years and not even touching the principal . I'm thinking GIC's can give me an income and absorb any inflation
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