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5% 1 year GIC
March 23, 2023
6:20 pm
Jon
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link
Not particularly attractive, but maybe another alternative for some.

May 23, 2023
5:05 am
hwyc
GTA
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Offer is still good. In addition, 18 month 5.15% also on the limited time offer.

July 8, 2023
11:05 am
hayman
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Jon, curious as to what debt you do find attractive right now? I am locked in at 5.7% paid monthly for 10 years, on account I think a housing correction will take a couple more years and I can lend against GICs easier then other bonds. Still relatively new to buying fixed income. Appreciate your ideas…

July 8, 2023
6:26 pm
Jon
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hayman said
Jon, curious as to what debt you do find attractive right now? I am locked in at 5.7% paid monthly for 10 years, on account I think a housing correction will take a couple more years and I can lend against GICs easier then other bonds. Still relatively new to buying fixed income. Appreciate your ideas…  

I think globally, inflation is never going to come back down to a lower level even after the current spike of inflation caused by excessive money supply and normalization of velocity of money due to the end of lock down (more places to spend money = money flow faster in the economy) is being resolved.

(Money supply * velocity of money = price level * real GDP)

This is because:
1. Unwinding of globalization due to mistrust between government, which make the economy less efficient in making goods and services as suggested by the theory of comparative advantage.
2. Aging population reduced the size of labour forces, which increases input cost for businesses. (Think of the demographic collapse in China, and think about its impact to their manufacturing industries.)
3. Increase in investment for handling climate changes that will not significantly increase productivity, but leads to increase in tax, borrowing (this leads to higher interest rate), and insurance premium (more extreme weather events leads to higher payout and higher premium), further increasing input cost for businesses.

I don't have a crystal ball, but I think inflation of around 4 % will be the new normal. Unless a significant housing correction is going to happen.

July 8, 2023
6:40 pm
Jon
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As for hosing correction, I think the incoming conservative government may accidentally trigger that by reducing immigration.
(I do believe our country cannot handle the current level of immigrant, I also believe our country are having too many immigrants from certain nations all at once to the point that we cannot integrate them.)

However, I also know that housing price collapse is going to trigger a very serious negative wealth effect which significantly drag down consumption as a result. There is a real chance Canada going to fall into a lost decade as a result of this real estate correction.

Check this journal article out

To sum up, I think a 5.7% GIC may not be a bad thing, in light of the possible L shape "recovery" we may have for our economy base on experience in Japan. However, if a significant housing correction did not happen, than a 5.7% GIC is not that attractive in light of global factors that push up inflation.

(Peter, we may need a new thread here)

December 21, 2023
8:44 am
gicjunkie
Ontario
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FWIW 5.55% for 5 years. Limited time offer. (so, what else is new?)
No broker needed.

https://www.luminusfinancial.com/Personal/

December 21, 2023
9:28 am
althisa
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It is not clear on the website if 5.55% for 5 yr GIC is eligible for RRSP and TFSA accounts

The savings and chequing accounts seem to have more transactions where a fee is paid compared to some other FIs

If you are not doing a lot of transactions maybe an option worthwhile considering

December 21, 2023
10:13 am
canadian.100
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althisa said
It is not clear on the website if 5.55% for 5 yr GIC is eligible for RRSP and TFSA accounts

The savings and chequing accounts seem to have more transactions where a fee is paid compared to some other FIs

If you are not doing a lot of transactions maybe an option worthwhile considering  

Website does indicate is eligible for RSP and TFSA.
and yes Luminus has lots of service charges.

December 21, 2023
11:49 am
gicjunkie
Ontario
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Note the Golden Chequing Acount details, for those of us over 59. Many of the fees eliminated. Still have to pay $15.00 annual fee. They say other credit unions do this. I've never seen it. All depends whether one thinks the 5.55% for 5 years is worthy of these fees.

https://www.luminusfinancial.com/Personal/BecomingAMember/ServiceFees/ChequingAccounts/

December 22, 2023
2:40 pm
dickyran333
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canadian.100 said

Website does indicate is eligible for RSP and TFSA.
and yes Luminus has lots of service charges.  

The 5.55% 5-year GIC is also available in TFSA and RRSP for Ontario residents. Out-of-province folks can invest in their unregistered GIC but not TFSA and RRSP!

December 25, 2023
9:44 pm
althisa
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Jon said
(I do believe our country cannot handle the current level of immigrant, I also believe our country are having too many immigrants from certain nations all at once to the point that we cannot integrate them.)
  

These statements are not OK in any forum, they demonstrate that we have not learned form Canadian history.

This kind of thinking is what led Canada to impose a Head Tax on immigrants form Canada from China for 1885 and 1923. 800,000 individuals paid the tax.
The Canadian government has formally apologized for the head tax:
https://www.cbc.ca/news/canada/pm-unveils-redress-for-head-tax-on-chinese-1.592363

The head tax was a financial disincentive since some Canadian believed the notion there are too many immigrants from one country, China.

Think very deeply about where these sentiments come from, and why they are deeply flawed.

December 26, 2023
6:16 am
Itellyouwutt
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What many, many people in this country do not understand is that we literally do not have enough human beings in Canada to support our labor market. We have fewer people than California.

We absolutely need immigration -- and lots of it. It doesn't matter if someone likes this or doesn't. It is not a preference.

What has to change is the focus on infrastructure; not on immigration. Trying to solve this problem by stemming immigration is categorically wrong. It will not and cannot work. We are not the U.S. We do not have enough people.

December 28, 2023
3:46 pm
RetirEd
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Off-topic and dead wrong. Sustainability is one child per person. There is no sustainable future if population grown indefinitely. Resources, wast accumulation and simple space will run out. We are vastly outgrowing our efforts to reduce all manner of environmental problems. One recent IPCC report suggests the human population may stabilize by mid-century. That's too late!

RetirEd

December 28, 2023
4:41 pm
gicjunkie
Ontario
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Question: What do posts 11-13 have anything to do with Luminus?
The quick answer is "nothing!" Move this dialogue somewhere else, or just cease altogether.

December 28, 2023
7:53 pm
Itellyouwutt
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gicjunkie said
Question: What do posts 11-13 have anything to do with Luminus?
The quick answer is "nothing!" Move this dialogue somewhere else, or just cease altogether.  

Response: forums are organic and often do not fall into cookie cutters. Save your outrage for something meaningful, "or just cease altogether"

December 29, 2023
7:46 am
gicjunkie
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Itellyouwutt said

Response: forums are organic and often do not fall into cookie cutters. Save your outrage for something meaningful, "or just cease altogether"  

I would agree if there was some kind of "trail" leading to these recent postings. We have topic headlines for a reason. These recent comments have no relevance to the topic. I'm not saying we should stifle conversation. Just create a "topic" for it to fall under, loosely or otherwise.

Also, FYI: This isn't anywhere close to "outrage." I save that for really important issues.

December 30, 2023
1:54 am
RetirEd
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Jon: As for hosing correction, I think the incoming conservative government may accidentally trigger that by reducing immigration.
(I do believe our country cannot handle the current level of immigrant, I also believe our country are having too many immigrants from certain nations all at once to the point that we cannot integrate them.)

However, I also know that housing price collapse is going to trigger a very serious negative wealth effect which significantly drag down consumption as a result. There is a real chance Canada going to fall into a lost decade as a result of this real estate correction.

Among the economic year-end commentaries on the news today was a man (can't find him right now) saying that the inflation rate drop following our bank-rate increases was singularly slower that almost all previous ones. He said it was a good sign that we would manage a "soft landing" from the current mild slowdown.

Anyone else see this and remember where? It would have been on CBC, CTV or Global, probably on national news last night or any time in the 24-hour cycle to today.

ALSO: I have no problem with correcting our hosing. sf-wink Or, for that matter, a strong correction of the insanely inflated housing prices we are suffering under.

(Sorry, not being mean, it made me laugh and I just had to share it...)

RetirEd

December 30, 2023
6:26 pm
Jon
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You must be a teacher before you retire sf-laugh

Housing correction is not what we should seek, we should seek a housing price that is stable and let inflation eat away at its value instead.

December 31, 2023
9:31 pm
RetirEd
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Jon: It would likely be 30 years before inflation corrected over-valued housing values even at 5% annual inflation.

No, I was never a teacher. It doesn't take pickiness to get a laugh out of a hosing. I'm not immune to typos ether. (pun Nintendoed!)

RetirEd

January 3, 2024
2:08 pm
pluto
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I was looking at their 5.5% for 5 year offer this afternoon. After the $15 / year membership fee and $100 transfer out fee (assuming they don't raise either of these fees by the time the GIC matures) I'm barely ahead of a 4.8% GIC at another FI without such high fees (Oaken), at least for the amount I have to invest in my RRSP (about $7,800 contribution room). Perhaps if you had a larger amount to invest the fees would be justified as they are fixed.

Please write your comments in the forum.