5-year: 3.15% (non-registered & RRIF), 3¼% (TFSA & RRSP) | Manulife Bank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
5-year: 3.15% (non-registered & RRIF), 3¼% (TFSA & RRSP)
March 19, 2022
6:50 pm
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline
1 year 2 years 3 years 4 years 5 years
Non-registered and RRIF 1.85% 2.60% 3.00% 3.00% 3.15%
RRSP and TFSA 2.10% 2.60% 3.10% 3.00% 3.25%
March 19, 2022
7:20 pm
MattS
Member
Members
Forum Posts: 45
Member Since:
January 11, 2020
sp_UserOfflineSmall Offline

Side note
When my Dad passed away in 2013 he had some non registered Gic that escaped probate fees.. apparently with insurance Co. They can assign beneficiaries to non reg. Gic too. Not sure why.. anyway little added feature and knowledge in case someone needed it

March 19, 2022
8:46 pm
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Your Dad likely had an insurance company issued GIA (Guaranteed Interest Annuity) and not a GIC issued by a bank, credit union, or trust company.

A GIA is a life insurance contract and not a deposit.

See How GIAs work.

March 19, 2022
9:33 pm
COIN
Member
Members
Forum Posts: 576
Member Since:
March 15, 2019
sp_UserOfflineSmall Offline

Norman1 said
Your Dad likely had an insurance company issued GIA (Guaranteed Interest Annuity) and not a GIC issued by a bank, credit union, or trust company.

A GIA is a life insurance contract and not a deposit.

See How GIAs work.  

Were GIA's called "deferred annuities" years ago?

March 20, 2022
5:26 am
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Deferred annuities don't pay a lump sum at the end like a GIC does. They are more of an annuity that doesn't start payments within a short period of time.

March 20, 2022
9:33 am
Jim Sherat
Member
Members
Forum Posts: 121
Member Since:
January 1, 2018
sp_UserOfflineSmall Offline

MattS said
Side note
When my Dad passed away in 2013 he had some non registered Gic that escaped probate fees.. apparently with insurance Co. They can assign beneficiaries to non reg. Gic too. Not sure why.. anyway little added feature and knowledge in case someone needed it  

My Mother-In-Law now has most of her holdings with Manulife Investments GICs, after she sold her home a little over 2 yrs ago and moved into a Retirement Residence. That's the term they use ... GIC, not GIA, or something else.

She has a Financial Advisor, who deals with Manulife on her behalf, most recently building a 5yr ladder with the house proceeds.

The rates are not as good as Banks, but when she passes, her 3 children will get the remaining funds immediately; no probate, no delay, no hassle.

This sounds like the exact same situation as you describe, Matt.

March 20, 2022
9:34 am
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

For deferred annuities, there was an earlier discussion Budget: Advanced Life Deferred Annuities when the federal government introduced ALDA's.

March 20, 2022
11:20 am
Bill
Member
Members
Forum Posts: 3001
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

How do you avoid probate, etc with non-registered GICs?

March 20, 2022
11:59 am
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

With non-registered GIC's, probate can only be avoided by holding them jointly. That's provincial property laws.

What Jim Sherat and MattS describe are not GIC's. They are insurance contracts that resemble deposits but are not legally deposits. If they were deposits, then they would be insured by a deposit insurer, like CDIC, and not Assuris.

The issue with GIA's is their rates are lower. If one looks at the GIA's from Manufacturers Life Insurance Company, the five-year rate is 1.95% to 2.15% per annum. Note that the issuer is not Manulife Bank or Manulife Trust.

To save that one-time 1½% probate tax in Ontario, for example, one is accepting a 1% lower return each year.

March 20, 2022
12:25 pm
Dean
Valhalla Mountains, British Columbia
Member
Members
Forum Posts: 948
Member Since:
January 12, 2019
sp_UserOfflineSmall Offline

Norman1 said

With non-registered GIC's, probate can only be avoided by holding them jointly. That's provincial property laws.

. . .

    Curious . . .

As of yet, we've never had a 'Jointly Owned' non-registered GIC, but my Wife & I would now like to consider it.

Q:
When tax time comes, which spouse pays the income tax ... or is it somehow split ?

Thanks in advance,

    Dean

sf-cool " Live Long And Prosper " sf-cool

March 20, 2022
12:46 pm
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Line 12100 – Interest and other investment income instructions say

Completing your tax return

Complete the chart for line 12100 using your Federal Worksheet and enter the result on line 12100 of your return.

Generally, you report your share of interest from a joint investment based on how much you contributed to it.

March 20, 2022
12:56 pm
julio
Member
Members
Forum Posts: 110
Member Since:
November 21, 2015
sp_UserOfflineSmall Offline

It is somehow split, namely: A person himself/herself calculates his/her percentage from the amount shown on the T5 slip, according his/her percentage of 'personal' funds contributed to the joint account (GIC, HISA,...). It could be even zero for one person, if all the funds had originated from the other person (done for insurance coverage reasons, and having full trust in the other person). And it could be more joint persons, for the same reason. The T5 gets issued in the name of the first name on the account, thus, if needed, the FI needs to be told before opening the account, who's name goes first as first applicant. It doesn't matter for CRA, only for your bookkeeping.

March 20, 2022
1:24 pm
JenE
Member
Members
Forum Posts: 360
Member Since:
May 24, 2016
sp_UserOfflineSmall Offline

Thanks, Norman1. That’s the best rate I’ve seen so far for 5 year registered funds. I’m really tempted. How do others feel?

March 20, 2022
1:34 pm
Loonie
Member
Members
Forum Posts: 8136
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Dean said

Norman1 said

With non-registered GIC's, probate can only be avoided by holding them jointly. That's provincial property laws.

. . .

    Curious . . .

As of yet, we've never had a 'Jointly Owned' non-registered GIC, but my Wife & I would now like to consider it.

Q:
When tax time comes, which spouse pays the income tax ... or is it somehow split ?

Thanks in advance,

    Dean

  

Income and Tax are supposed to be split according to who contributed how much, so nothing would change in terms of your Assessment.

March 20, 2022
2:06 pm
cgouimet
Member
Members
Forum Posts: 366
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

Loonie said

Income and Tax are supposed to be split according to who contributed how much, so nothing would change in terms of your Assessment.  

As I understand it ...

If you own a GIC, after your death your last income tax prepared by the executor will pay income tax on the interest earned. The inheritor will pay probate (~1.5%) on the value of the GIC. If the inheritor is a joint owner of that GIC, there is income tax on interest earned but no probate ...

... as I understand it.

CGO
March 20, 2022
3:11 pm
Loonie
Member
Members
Forum Posts: 8136
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I was referring above to the period when both joint owners are still living.

March 20, 2022
3:17 pm
cgouimet
Member
Members
Forum Posts: 366
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

Loonie said
I was referring above to the period when both joint owners are still living.  

Sorry as I was responding to a post that talked about probate. I erroneously attached to the wrong post ....

CGO
March 20, 2022
3:23 pm
Bill
Member
Members
Forum Posts: 3001
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

My wife and I always report income from joint accounts/GICs based on whoever's SIN and name are on the T slip, i.e. the primary, and never once been questioned in all these many years, despite CRA's instructions about reporting based on contribution. And now we use pension splitting to move income to the other if it's beneficial at tax time. I don't even know how we'd figure out who contributed what, we treat all our assets and income as in common.

March 20, 2022
5:36 pm
Loonie
Member
Members
Forum Posts: 8136
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Yes, I've often wondered how anyone would track their joint account contributions to original source. I could do it, but it would be huge hassle to explain it all. And even harder for those of us who switch FIs often or have multiple FIs for insurance purposes. Our accountant defaults everything to 50:50 unless directed otherwise.

March 20, 2022
8:00 pm
Norman1
Member
Members
Forum Posts: 4916
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

JenE said
Thanks, Norman1. That’s the best rate I’ve seen so far for 5 year registered funds. I’m really tempted. How do others feel?

One could divide the funds for five-year GIC's this year into something like four parts.

Put one part into the best five-year rate now. Put the remaining parts into whatever is best in June, in September, and in December. One could call it interest rate averaging.

The situation is strange right now with the five-year GIC rates. Issuers like Manulife Bank and Bank of Nova Scotia are offering 3.15% while Home Trust is offering only 3.10% through Oaken. Not sure if Home Trust rates will go up or the Manulife Bank and Bank of Nova Scotia rates will drop to correct the anomoly!

No permission to create posts

Please write your comments in the forum.