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Peoples Trust 2 year GIC 5.65 %
September 21, 2023
8:10 am
Martster
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People Group and Peoples Bank

Both currently have 1 yr GIC @ 5.80% and 2 yr GIC @ 5.70%
And really good short-term rates [30 day - 270 day] - but Tangerine is still better for cashable [4 months or less methinks]

September 21, 2023
8:25 pm
althisa
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rodeworthy said

Three GIC brokers that I monitor are:
GIC Wealth Management
Monarch Wealth Corp
Scrivens Financial Services

Their rates track closely.
I hope this helps.  

Thanks that makes sense how you get a better GIC rate than the one that is posted on the FIs own web page. I find it odd that an FI would offer a better rate through a third party than directly to customers

September 21, 2023
9:34 pm
Loonie
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althisa said

Thanks that makes sense how you get a better GIC rate than the one that is posted on the FIs own web page. I find it odd that an FI would offer a better rate through a third party than directly to customers  

It may seem odd, especially when you add in commission to broker, but it is more efficient for the issuer to get one $50,000 GIC than 50 customers at $1000 each; it saves a lot of time and effort (= money). In addition, brokers have wide reach to people with money looking for GICs, so they can usually raise the money faster.

September 22, 2023
8:53 am
althisa
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Loonie said
It may seem odd, especially when you add in commission to broker, but it is more efficient for the issuer to get one $50,000 GIC than 50 customers at $1000 each; it saves a lot of time and effort (= money). In addition, brokers have wide reach to people with money looking for GICs, so they can usually raise the money faster.  

I understand its an cost efficiency strategy. But why not state the minimum investment for rate X is $25,000, rate Y is $75,000 on the FIs own website. Many FIs such as BMO have different posted GIC rates for different limits. I guess there is the number of inquiries etc. that adds to administration costs that is being outsourced to the deposit broker.

September 22, 2023
9:46 am
HermanH
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althisa said

I understand its an cost efficiency strategy. But why not state the minimum investment for rate X is $25,000, rate Y is $75,000 on the FIs own website. Many FIs such as BMO have different posted GIC rates for different limits.

They probably do not do it because customers do not read and would still demand smaller GICs. Also, the broker probably has a clause in their contract prohibiting the FI from matching. Why should they go through the effort only to be under-cut by the home institution?

September 22, 2023
10:03 am
Norman1
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BMO may wish to offer those higher rates for larger deposits on an ongoing basis. But, others may not.

The others just want to offer the higher rates to quickly raise a targeted amount of a certain kind of deposits and then withdraw the rate at the end of the day the target is reached.

Deposit brokers set the expectations of their GIC buyers. I was told if I liked the rate for that GIC, then I need to act that day. When the new ratesheets are received next morning, that GIC issuer and rate may not be still there.

September 22, 2023
11:06 am
Loonie
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althisa said

I understand its an cost efficiency strategy. But why not state the minimum investment for rate X is $25,000, rate Y is $75,000 on the FIs own website. Many FIs such as BMO have different posted GIC rates for different limits. I guess there is the number of inquiries etc. that adds to administration costs that is being outsourced to the deposit broker.  

They could do as you suggest, but experience has probably taught them that they won't get the number of takers they need - especially the smaller FIs.
On this forum, we toss around amounts like 50K and 100K and then we complain that CDIC insurance isn't large enough, but the majority of people are not in that league, carry big debt loads and live paycheque to paycheque according to news reports.

And, yes, they have contractual agreements which specify that the FI may not undercut the broker.

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