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Escalator GIC rates drop
August 20, 2019
5:00 am
Alexandre
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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
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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
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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!!

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