Escalator GIC rates drop | motusbank | 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

sp_Feed Topic RSS sp_TopicIcon
Escalator GIC rates drop
August 20, 2019
5:00 am
Alexandre
Member
Members
Forum Posts: 1232
Member Since:
November 8, 2018
sp_UserOfflineSmall Offline

Just noticed visible drop in rates for Motus escalator GICs. 5-year escalator GIC yield is now 2.6%, used to be 3% few days ago.

I think we might see another "alignment" of Motus rates soon, because currently there is an interesting discrepancy in TFSA rates, like that:

TFSA savings account: 2.5%
TFSA 3 year escalator GIC: 2.5%
TFSA 3 year fixed rate GIC: 2.6%

Which means, that right now 3 year TFSA escalator GIC does not make much financial sense.

August 20, 2019
5:32 pm
Loonie
Member
Members
Forum Posts: 9391
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I don't know about this one, but Escalator GICs are typically cashable on anniversaries. This might be the advantage, and the reason for the rate discrepancy with fixed rate.

August 21, 2019
4:04 am
3oakwest
Ontario, Canada
Member
Members
Forum Posts: 155
Member Since:
April 7, 2016
sp_UserOfflineSmall Offline

Alexandre said
Just noticed visible drop in rates for Motus escalator GICs. 5-year escalator GIC yield is now 2.6%, used to be 3% few days ago.

I think we might see another "alignment" of Motus rates soon, because currently there is an interesting discrepancy in TFSA rates, like that:

TFSA savings account: 2.5%
TFSA 3 year escalator GIC: 2.5%
TFSA 3 year fixed rate GIC: 2.6%

Which means, that right now 3 year TFSA escalator GIC does not make much financial sense.  

Here we go, just as we expected!!

Please write your comments in the forum.