April 6, 2013
Just received an e-mail from Hubert that the rate on their one-year term deposit is going up:
Our one-year quarterly term rate is changing for the better! Starting tomorrow, our one-year quarterly term rate is increasing to 2.05%. This great rate is available for all 1-year quarterly terms including TFSAs, RRSPs, and non-registered products.
Here’s the rate you’ll earn broken down into quarters:
October 21, 2013
This brings it back to what it was in June.
Let's hope others follow suit.
For anyone who has taken out one of these GICs recently or whose quarterly interest payment was recently credited (on the 1.95% annual rate), it may be worth your while to cash it in and buy the new ones. But remember that you will get no interest for the time since your last interest payment if you cash in early. Calculations required! I think odds are pretty good that the new rate will still be in effect when you get your next quarterly interest payment, whenever it is.
Alternatively, you can, if you have the cash, buy one or more of the GICs at the new rate and then cash in the older one after the next interest payment, thus ensuring that you get the new rate.
This is one of the main reasons why I am so fond of the Hubert 1 year GIC. You can take advantage of any improvement in rates but have the security of knowing what you'll get if they go down or don't go up, with no penalty.