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Hubert Increasing Savings Accounts and Some GIC Rates
February 13, 2018
6:49 am
GR
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Watch for official confirmation that rates are going up today, as follows:
Savings Accounts 2.10%
GICs 2.45%, 2.75%, 2.75%, 3.25% and 3.15% for 1, 2, 3, 4 & 5 years, respectively.

February 13, 2018
7:24 am
SG
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Hello Hubert Members,

Our daily interest rate is going up again and this time, we are introducing a limited-time rate special as well.

High-interest savings: 2.10%
2-year term: 2.75%
4-year term: 3.25%

As usual, you can use these rates for all Hubert products including non-registered, TFSAs, RRSPs, and RRIFs.

If you have any questions or if you would like to start a term with one of these rates, give us a shout. We can be reached by phone at 1-855-4HUBERT (1-855-448-2378) or by email at hubert@happysavings.ca. We’re happy to help!

Sincerely,

Hubert Financial

February 13, 2018
7:50 am
davidgeorge
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interesting, 4 year rate is higher than 5 year rate.

February 13, 2018
8:38 am
2of3aintbad
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This is a good lesson for people that ask how to build a GIC / bond ladder. Put 20% into the best 5 year GIC, and 80% into a HISA. Then when there are promotions, take advantage - in this case, invest 20% for 4 years at 3.25%, and maybe 2 years at 2.75%. New era, new strategy.

February 13, 2018
1:51 pm
Doug
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davidgeorge said
interesting, 4 year rate is higher than 5 year rate.  

Yes, 5-year GICs are seemingly becoming the "ugly step-child" of the GIC world. Lots of B.C. credit unions, including Coast Capital Savings as I mentioned elsewhere, are increasingly offering higher 1-4 year rates and leaving their 5-year rates largely untouched, with only incremental increases with the BoC rates.

In a rising rate environment, I fail to see how the old fashioned "all 5 year GIC terms" works out better in the long run. When your shorter term GICs mature, there will be higher rates for you to roll them into.

Perhaps, just like bonds, the strategy could be simplified in the following IF/ELSE statement:

IF BoC rates go up, then choose either 1-3 or 1-4 year GIC terms

ELSE BoC rates go down, then choose traditional 5-year GIC terms, subject to shorter term cash flow needs.

Cheers,
Doug

February 13, 2018
4:49 pm
Jon
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davidgeorge said
interesting, 4 year rate is higher than 5 year rate.  

I think this show what I mention before. FI is preparing for increase rate in the short to medium term, but not so much for the long term. This maybe cause by the fact that FI want to match the demand for loans/mortgage of similar terms as people try to lock in. However, I think it also imply FI is expecting a recession is on the horizon and rate will climb down again to a much lower level in a few years.

February 13, 2018
5:47 pm
Save2Retire@55
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Jon said

However, I think it also imply FI is expecting a recession is on the horizon and rate will climb down again to a much lower level in a few years.  

You don't need to scare people by saying "recession". We can expect not as strong economy as we have now but recession is too much. Maybe a correction. It can't be worse than what falling Oil caused.

February 13, 2018
6:26 pm
Loonie
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The original message from Hubert referred to a limited time rate special. So I don't think we should assume that these rates necessarily reflect a trend.

A year or two (or more?) ago, when pundits were re-evaluating investment return expectations, they suggested that in future, for some years to come, one shouldn't expect more than 4-8% range (depending on who you talked to.) Most were on the more conservative end, around 5%. That was for an overall ROI on balanced portfolio, as I recall. If forecasts are any good, this should still stand.
Interest rates are not likely to continue indefinitely in an upward spiral as they did in the 1980s.

February 13, 2018
11:53 pm
Doug
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Loonie said
The original message from Hubert referred to a limited time rate special. So I don't think we should assume that these rates necessarily reflect a trend.

A year or two (or more?) ago, when pundits were re-evaluating investment return expectations, they suggested that in future, for some years to come, one shouldn't expect more than 4-8% range (depending on who you talked to.) Most were on the more conservative end, around 5%. That was for an overall ROI on balanced portfolio, as I recall. If forecasts are any good, this should still stand.
Interest rates are not likely to continue indefinitely in an upward spiral as they did in the 1980s.  

I think they're calling it a "limited time only offer," to give them an easy "out" to retract it. That being said, if the BoC goes again with a rate increase in April or July, I think we'll see these lopsided interest rates on the short end, but not necessarily in HISAs. Banks and CUs are finding a new "love" for GICs again. 🙂

You're right that interest rates aren't headed drastically up, though. I suspect, at most, the BoC has maybe another 100-125 bps over the next 5 years of "room to run". 🙂

Cheers,
Doug

February 15, 2018
4:07 pm
Sky
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With Hubert 1 year quarterly term at 2.45% it makes it hard to lock into anything longer with potential BoC rate increase in 2018 if you need money in less than 2 years. Currently I use the financial post link to check best GIC rates. Does anyone have better site? http://www.financialpost.com/p.....nnual.html

February 16, 2018
5:35 am
Nehpets
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Sky said
Currently I use the financial post link to check best GIC rates. Does anyone have better site? http://www.financialpost.com/p.....l.html  

Sky,

Welcome to the Forum! I've always had difficulty for the Financial Post page to display for me so I use several others:

http://www.globeinvestor.com/s.....ndicator=N

http://www.cannex.com/public/t.....rm02e.html

http://moneyguide.ca/mggold/gi.....nual.shtml

http://www.fiscalagents.com/ra.....sort.shtml

The last two also list offers available from brokers (agent).

Additionally it can be worthwhile to form a relationship with a good GIC broker so you can move quickly when they may have special offers, not available directly from the financial institution itself.

Stephen

February 16, 2018
6:11 am
Save2Retire@55
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Sky said
With Hubert 1 year quarterly term at 2.45% it makes it hard to lock into anything longer with potential BoC rate increase in 2018 if you need money in less than 2 years. Currently I use the financial post link to check best GIC rates. Does anyone have better site? http://www.financialpost.com/p.....l.html  

It never shows me any data. "Sorry, data currently unavailable."

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