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Email this10:25 am
November 3, 2022
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canadian.100 said
If one has the minimums required, I think one should go with the GIC agents? Oaken would never be able to match the agents' rates.
I have had very mixed results dealing with deposit brokers, in both Toronto and Vancouver. The GIC certificates, and the T slips never arrive without follow up, and extra effort on multiple fronts. I, personally, am not willing to put up with these additional inconveniences unless the rates are >20 basis points above what I can get through digital FI's, which have always provided all the documentation for my investments, and tax slips, without drama.
10:49 am
August 4, 2010
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I’ve only dealt with a local Monarch/ GICDirect agent once, for a couple of $25K long term with Haventree. The broker was fine, but the Haventree back office screwed up a couple of times.
Given the way money goes in and out avoiding the brokers books, there has been no incentive to keep on.
10:50 am
February 7, 2019
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Rail Baron said
I have had very mixed results dealing with deposit brokers, in both Toronto and Vancouver. The GIC certificates, and the T slips never arrive without follow up, and extra effort on multiple fronts. I, personally, am not willing to put up with these additional inconveniences unless the rates are >20 basis points above what I can get through digital FI's, which have always provided all the documentation for my investments, and tax slips, without drama.
Have those issues been at specific broker(s) or specific FI(s)?
| CGO |
11:32 am
April 6, 2013
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Only one RRSP GIC certificate didn't show up after two months. The RRSP receipt was received weeks before.
Deposit broker recommended I give issuer a few more weeks to get through any RRSP season backlog.
Canada Post must have lost that one certificate. I contacted issuer directly. Issuer confirmed that the RRSP GIC was issued on the day expected. Issuer mailed me a branch stamped screenshot of my RRSP GIC in their system!
No issues with receiving the GIC certificate or RRSP receipt for the many other RRSP GIC's through the same deposit broker.
8:02 am
September 7, 2018
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Rail Baron said
I, personally, am not willing to put up with these additional inconveniences unless the rates are >20 basis points above what I can get through digital FI's, which have always provided all the documentation for my investments, and tax slips, without drama.
One year GIC at brokers is 4.20% and 3.80% at digital FIs - not insignificant.
9:23 am
November 3, 2022
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cgouimet said
Have those issues been at specific broker(s) or specific FI(s)?
I've used two of the three brokers listed in Peter's charts under GIC rates. FIs were Habib Canadian Bank and MCAN.
Another disadvantage for me is that the Toronto brokers require a cheque in hand to purchase a GIC at most of the FIs they represent. Only Habib would take funds through a pre-authorised debit. And while the cheque is in transit (at my expense), there is no rate guarantee.
9:56 am
April 6, 2013
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Rail Baron said
…
Another disadvantage for me is that the Toronto brokers require a cheque in hand to purchase a GIC at most of the FIs they represent. Only Habib would take funds through a pre-authorised debit. And while the cheque is in transit (at my expense), there is no rate guarantee.
That's normal for deposit brokers. That's why one should go through a local one and not one that is provinces away.
The deposit brokers help raise targeted, controlled amounts of deposits for the issuers in a short time frame. The rate is yanked at the end of the day when the target is met, hopefully not overshooting the target significantly.
The issuers want the deposits that day, not next week, to know what day to yank the rate.
10:17 am
September 11, 2013
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Why would a bank, which presumably is managing large pools of money, be so desperate for funds TODAY, i.e. next week's too late, that they have to offer far above market rate interest rate to get money immediately?
10:20 am
April 14, 2021
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Rail Baron said
Another disadvantage for me is that the Toronto brokers require a cheque in hand to purchase a GIC at most of the FIs they represent. Only Habib would take funds through a pre-authorised debit.
It's been awhile, but I think that DUCA was also able take funds directly from my chequing acct.
10:40 am
December 18, 2018
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Bill said
Why would a bank, which presumably is managing large pools of money, be so desperate for funds TODAY, i.e. next week's too late, that they have to offer far above market rate interest rate to get money immediately?
I'm no expert in bank management but I'm guessing that even though they're managing large pool of money, it does not mean that the pool of money is readily available to do what they need to do (ie loan money to business and/or individuals), nor should it be either. It is after all how banks do their profits.
So if they suddenly have a larger than anticipated influx of request for mortgage or business loans, they might need to get some cash quickly in order to fulfill those loans. that how I understand it, I might be wrong.
10:46 am
September 7, 2018
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HermanH said
Rail Baron said
Another disadvantage for me is that the Toronto brokers require a cheque in hand to purchase a GIC at most of the FIs they represent. Only Habib would take funds through a pre-authorised debit.It's been awhile, but I think that DUCA was also able take funds directly from my chequing acct.
Yes - DUCA, Habib and Equity CU will all pull funds from your chequing acct to purchase GICs - so if your GIC broker is not in the same city it makes things easy.
I think it is best to deal with a GIC broker in your own city if possible rather than mailing a cheque to the broker when u are depending on Canada Post which is not the most reliable.
11:59 am
April 6, 2013
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chamnic said
…So if they suddenly have a larger than anticipated influx of request for mortgage or business loans, they might need to get some cash quickly in order to fulfill those loans. that how I understand it, I might be wrong.
That's what can happen: More worthy loans approved than expected. Also, lower GIC deposits sold than expected.
Lenders don't have huge pools of idle funds to lend. Costly to be paying GIC interest on large amounts of funds parked in low yielding treasury bills.
GIC funds also have limited shelf life. In six months, that unlent money from a 2-year GIC only has 1½ years left before the GIC matures.
Lenders try to match the inflow of GIC funds with the outflow for approved loans.
3:03 am
September 21, 2022
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looks like Oaken just raised again‼️
wonder if this one will be retroactive...
4.5% reached... who would have thought just a couple weeks/months ago --oh well
Long Term GICs
Term Annual (%) Semi Annual (%) Monthly (%)
1 Year 3.80 3.75 3.70
18 Mon 3.85 3.80 3.75
2 Years 4.25 4.20 4.15
3 Years 4.30 4.25 4.20
4 Years 4.35 4.30 4.25
5 Years 4.50 4.45 4.40
Long-term GICs are non-redeemable...
5:03 am
December 18, 2018
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Miked said
looks like Oaken just raised again‼️
wonder if this one will be retroactive...
No it won't. Oaken does not retroactively changes GIC rates anymore.see my thread about this here
https://www.highinterestsaving.....new-rates/
