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5 Year GIC rate better through online broker
November 23, 2017
8:07 am
pebbles
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I noticed this week that I can yet a 5 year non redeemable ICICI GIC through InvestorLine at 2.75% (minimum $5000). Checking the ICICI site, their rate is only 2.05% with a minimum $1000 deposit. Anyone else see this with other online/discount brokers?

November 23, 2017
8:16 am
Top It Up
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You can do better than that, check the G&M list of rates

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

November 25, 2017
10:57 am
pebbles
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Yes, there is also FP
http://www.financialpost.com/p.....nnual.html

My point being is that you can sometimes obtain a better interest rate through you online broker that is what is posted on these charts.
Canadian Tire was another one. For months the CT sight offered a 5 year GIC at 2.5%, but through InvestorLine, you could get 2.70

November 25, 2018
9:56 am
gicjunkie
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This happens a lot. I have addressed this issue with a couple of credit unions. They say that they are saving administration costs, etc. by offloading the paperwork. I have suggested to the credit unions that they're doing a disservice to their members by offering better rates through brokers. The result has been that they either matched the rate directly or stopped the practice. As a member of the credit union you often accrue additional benefits, example, profit sharing, that you will often not get by investing through a broker. Of course if you don't want to join the credit union, sometimes using a broker is an option. Often investment with a credit union through a broker requires no membership. Also, sometimes it is more convenient to deal with a broker depending on where they are located and how interest is paid. My broker pays interest directly to my personal bank, something some other institutions will not do. Of course, dealing with banks doesn't have the same membership issues. Some of them will also match the broker rates.

November 25, 2018
10:45 am
AltaRed
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pebbles said
My point being is that you can sometimes obtain a better interest rate through you online broker that is what is posted on these charts.
Canadian Tire was another one. For months the CT sight offered a 5 year GIC at 2.5%, but through InvestorLine, you could get 2.70  

I only ever buy GICs through my discount brokerage accounts, e.g. BMO IL and Scotia iTrade so I welcome the 'better' rates that are sometimes there, as you have so noted. RBC DI is another discount brokerage with a good GIC issuer list.

To the best of my knowledge, discount brokerages will only sell from CDIC insured institutions which is probably a good thing for folks like me that only buy GICs for some fixed income 'ballast' in their portfolio.

November 26, 2018
5:54 am
NorthernRaven
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pebbles said
I noticed this week that I can yet a 5 year non redeemable ICICI GIC through InvestorLine at 2.75% (minimum $5000). Checking the ICICI site, their rate is only 2.05% with a minimum $1000 deposit. Anyone else see this with other online/discount brokers?  

Looking at ICICI's regular rate page, their non-redeemable 5-year rate is 3%, not 2.05%. Perhaps you were looking at the 1-year redeemable rate (that is 2.05%)?
Subtract a standard 25 basis points as commission for the brokerage from 3%, and you get the 2.75% rate you mention from InvestorLine.
And they have a GIC special running from October to the end of the year giving a bonus 15 basis points, which takes the 5-year rate to 3.15% in the retail channel.

November 26, 2018
6:00 am
Top It Up
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This is a year-old thread that got bumped - I'm sure @pebbles has long moved on from ICICI - but just in case not -

RBCDS GIC rates showing ICICI 5-year @ 3.41%

http://www.rbcds.com/gic-rates.html

November 26, 2018
6:15 am
NorthernRaven
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Ah, the system doesn't stamp a time on quotations like AltaRed's recent one of pebbles, which is what I was reading.

If ICICI is offering 3.41% in the 5-year brokerage channel (TDDI doesn't provide ICICI GICs), they are probably paying anything up to 25 points to the brokerage, so they might be willing to pay 3.65% for this money, even though they max out at 3.15% for their retail customers. A higher minimum might be part of that, or reduced effort and overhead of acquisition.

November 26, 2018
7:12 pm
AltaRed
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My bad.... I should have clarified that was an 'old' post I was quoting from. Was just using it as a means to support my comment.

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