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Email this8:32 pm
September 27, 2020
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For example, RBC according to ratehub:
https://www.ratehub.ca/gic-rates-arent-high-enough/rbc-royal-bank-gic-rates/non-registered/1-year
5 year non-registered GIC is 4.25%
5 year registered GIC is 2.03%
8:39 pm
October 27, 2013
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Remember registered money, especially RRSP/RRIF is essentially captive funds if one's RRSP account is with RBC. Transfers are time consuming and can cost transfer fees. Few will bother to make the effort.
9:21 pm
October 27, 2013
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Beats me why RBC would do that through RateHub other than to discourage investors to buy product for registered accounts through that vehicle. Guess it proves why NOT to rely on RateHub without doing one's due diligence.
I am not all that knowledgeable on retail GICs purchased directly with the FI but any time I have purchased them via discount brokerages in the past, the rates were the same for all types of accounts. Only the minimum purchase amounts sometimes are different.
10:27 pm
May 26, 2022
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There is no difference in 1 yr rates for non-registered and registered GICs at BMO bank; same for TD bank. The brokerages for these banks offer higher rates.
It looks like Royal Bank is trying to make a little more profit on less aware customers
3:18 am
March 3, 2022
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Here's my take:
Registered accounts like the TFSA require the banks to perform a few extra steps, by law, such as reporting to the CRA, etc etc.
Even if it's all automated now, and would require a few milliseconds on the microprocessor, the banker marketing rulebook (ie, greed in less fancy terms) compels them to follow the cardinal finance rule: 'never perform any extra step without charging manyfold return'. 
7:01 am
September 11, 2013
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RBC website shows 4.25% 5-year GIC as a special, doesn't indicate there that it's just for registered accounts. The regular rate for the same GIC is shown as 3.5% for both registered and non-registered accounts.
https://www.rbcroyalbank.com/investments/gic-rates.html
9:53 am
October 27, 2013
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That is what I had also said up thread in my post #2 but that somehow got removed. I've rarely seen differences except for promos.
9:56 am
September 27, 2020
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I'm wondering why institutions bother having 2 rate lists, one for registered and one for non-registered.
12:06 pm
October 27, 2013
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limonium said
I'm wondering why institutions bother having 2 rate lists, one for registered and one for non-registered.
To accommodate promos in, for example, TFSA season and RRSP season? Maybe also because people are often confused if left to their own devices and decision making.
1:08 pm
October 21, 2013
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The simple answer is that they do it because they can. They get however much business they actually want through that channel with their crappier rates.
The solution? Take your business elsewhere. There are plenty of FIs that will treat you better. A few of them don't even charge for registered transfers. Increasingly, that's where my registered money goes. I prefer to deal with FIs that treat me well. It makes my life more pleasant - something I value.
In some cases, you'd actually be better off not bothering with the registered plan. Depending on your tax bracket, a TFSA or RSP with poor rate may not be worth having.
5:09 pm
September 11, 2013
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Not sure the premise (RateHub info notwithstanding) is correct as I checked BMO, RBC and TD and their GIC rates (per their sites) were the same for registered and non-registered accounts, far as I could see. So maybe it's more some of the smaller banks and credit unions so popular on here that are where this is happening - ??
8:13 pm
May 26, 2022
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Bill said
Not sure the premise (RateHub info notwithstanding) is correct as I checked BMO, RBC and TD and their GIC rates (per their sites) were the same for registered and non-registered accounts, far as I could see. So maybe it's more some of the smaller banks and credit unions so popular on here that are where this is happening - ??
RBC has very low GIC rates on their website. RBC has special (higher) GIC rates for 1, 2 & 5 year terms. Directly below the special GIC rates is a link, "View GIC Rates for registered invests" which leads to the very low GIC rates.
The smaller banks and credit unions are not as greedy as some of the big banks.
8:16 pm
September 27, 2020
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Greedy Guy said
The smaller banks and credit unions are not as greedy as some of the big banks.
RBC has very low GIC rates on their website. RBC has special (higher) GIC rates for 1, 2 & 5 year terms. Directly below the special GIC rates is a link, "View GIC Rates for registered invests" which leads to the very low GIC rates.
Yes, exactly. The registered rates on the RBC site are so low.
8:46 pm
September 11, 2013
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Your screen shot shows the specials, the regular rates for non-registered are further down the page and they are the same as the link you've got highlighted for the registered account rates indicates.
8:47 pm
October 27, 2013
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As Bill pointed out, the posted 5 year rate for non-registered is 3.5% and it is also 3.5% registered accounts. It is only the 'limited time offer' 5 year rate that is 4.5% per note 1. They are having to compete with their peers at the moment and hence the 'special' rates until further notice.
For whatever reason, this seems to be an unnecessary hot button for the OP. There are many alternative FIs with registered and non-registered rates that are the same.
2:01 am
November 18, 2017
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Loonie: Let's remind people that tax liability is not the only thing affected by using registered savings! If you're older and getting senior benefits of a variety of sorts, the tax calculations that don't lead to tax bills can still increase or decrease your benefits! (GIS, Senior Supplement, SAFER, free parks passes, dental/medical premiums in some provinces (maybe still?) and your calculations on when to take your CPP/QPP pension.
RetirEd
RetirEd
6:37 am
September 11, 2013
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So far there are no examples here of any fi's that have a general policy of offering lower GIC rates in registered (vs non-registered) accounts. Not saying it doesn't happen but given the title of the thread it would be helpful if anyone could do that.
11:28 am
March 30, 2017
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Greedy Guy said
The smaller banks and credit unions are not as greedy as some of the big banks.
It is more like big banks can "attract" money with a lower yield than the smaller guys. Think credit quality/risk. Most if not all that are regular on this forum feel comfortable over the CDIC limit at the big6, not so much with the smaller guys..
6:12 pm
October 17, 2018
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This broker lists different rates for registered vs. non registered.
https://www.gicdirect.com/rates-a-locations/ontario/
6:32 pm
October 27, 2013
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That link tells you nothing about which issuers they are quoting. Each box and/or column could be a different issuer, i.e. the issuer in first column might have a special going or not even offer GICs for the registered account columns. The only proper comparison for the purposes of this thread is only by issuer.
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