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No longer offers 6 year GIC
July 13, 2019
9:08 am
kelbee
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Implicity no longer offers 6 year GIC.

How common are >5 year GICs?

Might they get more common when CDIC changes next year to allow for >5 year GICs?

July 13, 2019
9:14 am
GICinvestor
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Who offers a 6 year GIC at a higher rate of a 5 year GIC?

July 13, 2019
10:38 am
Doug
British Columbia, Canada
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I don't expect many FIs to seriously take up offering GIC terms greater than five years. There's likely little appetite for locking one's money up in a 6, 7, or 10 year term. Insurance companies already offer 10 and maybe even 20 year GICs (guaranteed interest contracts) and their rates are paltry (maybe you can get to the rate Motus Bank offers on their HISA, maybe, if you want to sacrifice liquidity and high fees or penalties to early redeem).

This isn't a significant loss for Implicity Financial...I'm more concerned with seeing them improve their EFT linking process and other features mentioned in another thread.

Cheers,
Doug

July 13, 2019
1:34 pm
Loonie
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Accelerate still offers 6 and 7 years, but the rates are not exemplary.
DUCA has offered 7 in the past but I don't know if currently.
As far as I know, they are the only ones that offer longer than five years.

I imagine the banks will want to tie up your money longer for you, especially since rates are so low. May be of interest to those who otherwise hold long bonds fur duration, for diversification. But bonds can be bought and sold, unlike long GICs.

In order to drum up interest, I would expect the banks to offer us GIC "products". This would be along the lines of Escalator rates or other complicated formulas where it's hard to figure out what you're actually getting. There could also be early redemption or convertible options. I imagine their marketers are already hard at work on this file.

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