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Rate increases at Motive for long terms
April 29, 2022
1:41 am
Loonie
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If anyone is interested, Motive now offering 4.20% on 6 or more year GICs.

April 30, 2022
2:02 pm
canadian.100
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Loonie said
If anyone is interested, Motive now offering 4.20% on 6 or more year GICs.  

6 Years! Can't believe anyone would lock up their money with no access to it for 6 or more long years, unless it was for a very specific circumstance. At least with marketable bonds and debentures, one can sell them on the market if need be.

April 30, 2022
3:23 pm
HermanH
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I'd consider it, for a portion of my funds. Of course, I expect 4.50%+ to commit for 6 years. It's just one more year past 5, so no big deal.

April 30, 2022
3:49 pm
Doug
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Loonie said
If anyone is interested, Motive now offering 4.20% on 6 or more year GICs.  

It's even worse than that. 4.20% is only offered on the 10 year term!

Per https://www.motivefinancial.com/en/rates, I've noticed Motive has sneakily switched from describing terms in years to months, ostensibly to make them not sound so long. sf-cool

1 year - 3%
2 year - 3.6%
3 year - 3.9%
4 year - 3.9%
5 year - 3.95%

I would not recommend anything longer than 3 years with this financial institution currently, not in a rising interest rate environment. The difference between the 3 and 4 year is nil, so no benefit. 4 and 5 year is a measly 5 bps.

6 year - 4.2%
7 year - 4.2%
8 year - 4.2%
9 year - 4.2%
10 year - 4.2%

They should honestly just shelve the 7-10 year terms. There's absolutely no benefit to those.

Cheers,
Doug

April 30, 2022
4:34 pm
HermanH
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Doug said

It's even worse than that. 4.20% is only offered on the 10 year term!

[snip]

6 year - 4.2%
7 year - 4.2%
8 year - 4.2%
9 year - 4.2%
10 year - 4.2%

I don't understand why you say that the 4.2% is only offered on the 10-yr term, when you can obviously get 6,7,8, and 9-yr terms, too.

I was of the same mentality as you and agree that Motive is not rewarding anyone who buys a term longer than 3-year. However, I have been changing my thinking somewhat. I acknowledge that there is no additional/bonus benefit after 3-yr (or after the 4.2% for 6-yr), but I prefer to think of it as getting the first five years at 4.2%

As long as the 1-yr term doesn't exceed 4.2%, I will consider myself ahead. I am not certain that the 1-yr will break 5%. So, I think that I will hold out for 4.5 to 5% and might put some away for that 6-yr term.

I don't like giving my patronage to any business that does not provide fair reward, but I might swallow my pride a bit, if I don't think that any other rate will beat the 4.5% / 5% for 6-yr term.

I find it somewhat insulting for GIC Direct to actually penalize me for buying 4-yr terms:

GIC Direct Apr 30 3.48 3.65 3.91 3.86 3.97

April 30, 2022
6:55 pm
turquoise
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HermanH said
I'd consider it, for a portion of my funds. Of course, I expect 4.50%+ to commit for 6 years. It's just one more year past 5, so no big deal.  

Yep, same here.

And although I am very optimistic that rates are going to rise, I've been buying GICs for long enough to know that things can happen that derail 'the best laid plans.' I remember even in early 2020 before the pandemic erupted in this part of the world, every pundit out there was saying that "the long dark night for savers was finally over." Then within about 6 months, you were lucky to get 2% on a 5-year GIC.

May 2, 2022
1:27 pm
RetirEd
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Wait a minute... Isn't CDIC coverage limited to terms of five years or less?
RetirEd

May 2, 2022
1:35 pm
turquoise
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RetirEd said
Wait a minute... Isn't CDIC coverage limited to terms of five years or less?
RetirEd  

Not anymore. No term limit -- just dollar limit ($100k per category).

https://www.cdic.ca/newsroom/industry-news-events/cdics-strengthened-deposit-insurance-framework/

May 4, 2022
12:48 pm
RetirEd
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Ah, I see... that just happened on the weekend! Good to know!
RetirEd

May 5, 2022
10:08 am
kelbee
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Even if you think interest rates will keep going up, and currently real interest rates are still negative, but let's say regardless you still wanted to receive interest in May, then is 4.2% for 6 to 10 years really so bad? It is better than any municipal bond currently on Questrade.

May 5, 2022
10:09 am
kelbee
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questrade.com/docs/librariesprovider7/default-document-library/questrade_bonds_list.pdf

May 24, 2022
5:43 am
gicjunkie
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According to CANNEX this morning, looks like Motives rates are moving up again:

Motive Financial GIC Rates
1 year 3.5500
2 years 4.1000
3 years 4.2500
4 years 4.2500
5 years 4.2500

May 24, 2022
10:50 am
Loonie
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Confirmed on Motive website

May 30, 2022
9:45 am
hwyc
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New leading GIC rates posted today sf-smile

June 7, 2022
8:39 am
MattS
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Motive again leads the pack moving ahead of next BOC announcement

12 Month Term
3.700%
24 Month Term
4.250%
36 Month Term
4.350%
48 Month Term
4.350%
60 Month Term
4.380%
72 Month Term
4.850%
84 Month Term
5.000%
96 Month Term
5.000%
108 Month Term
5.000%
120 Month Term
5.000%

June 7, 2022
2:06 pm
JenE
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I’ve been ‘downsizing’ my number of bank accounts but confess that Motive’s rates are making me think again. Pros and cons anyone who has an account with them?

June 7, 2022
6:41 pm
Loonie
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I have accounts with them but have not been using them the last couple of years as rates have not been good enough. Also, they used to have a very annoying habit of changing their rates weekly, usually by a small amount, but they seem to have stopped that now.

I didn't have any problem with them at the time.

Downside: no RIFs; not based in my home province (for estate purpose ease etc.)

Upside: generous daily transaction limits (at that time at least); monthly GIC payouts for seniors if you ask for this, at no extra charge (or at least someone said they do this).

Good luck with the 'downsizing'. I tried. I failed. I got rid of 4 of them. And I acquired more! LOL If it weren't such a pain to set then up again if needed, I'd likely close more of them.

June 7, 2022
7:16 pm
HermanH
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Loonie said Good luck with the 'downsizing'. I tried. I failed. I got rid of 4 of them. And I acquired more! LOL If it weren't such a pain to set then up again if needed, I'd likely close more of them.  

The pain of re-creating them is almost the same as the irritation of making sure they do not fall into dormancy (and subsequent penalty fees.)

June 10, 2022
6:39 am
GR
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GIC rates are up again.

1, 2 & 3 yrs - 3.78%, 4.33%, 4.45%. Also, 7 yrs. - 5%.

https://www.motivefinancial.com/en/rates

June 10, 2022
11:09 am
Loonie
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Right now, Motive says:

12 Month Term
3.780%
24 Month Term
4.330%
36 Month Term
4.450%
48 Month Term
4.500%
60 Month Term
4.500%
72 Month Term 4.850%
84 Month Term
5.000%
96 Month Term
5.000%
108 Month Term
5.000%
120 Month Term
5.000%

Are they back to their old trick of changing the rates every few days again? It's OK as long as they're going up!

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