1-year prime-linked cashable GIC: Prime - 2.45% = 3% | RBC Royal Bank | Discussion forum

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1-year prime-linked cashable GIC: Prime - 2.45% = 3%
September 9, 2022
9:32 pm
Norman1
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RBC Interest-Linked GIC's. Cashable with accrued interest after 29 days. Cashable during first 29 days with $25 admin fee and no accrued interest.

Principal Amount of Deposit Interest Rate
$5,000.00 - $249,999.99 Prime Interest Rate minus 2.45%
$250,000.00 - $999,999.99 Prime Interest Rate minus 2.25%
$1,000,000.00 or more Prime Interest Rate minus 2.00%
September 10, 2022
5:35 am
RetirEd
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Calling such a product a GIC seems sort of oxymoronic, as the "interest" is not "guaranteed." (It's VARIABLE!) Mind you, it's been a very long time since any of us actually got a "certificate" for our term deposits, hasn't it?
RetirEd

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September 10, 2022
10:18 am
Norman1
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The name is a relic of the past. In the US, they are called CD's for Certificates of Deposit.

A confirmation is issued now instead of a certificate. That avoids the hassles of receiving the certificate back at maturity before returning the principal and dealing with lost certificates.

September 11, 2022
3:05 pm
RetirEd
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Actually, I remember buying my very first $5K term deposit at ScotiaBank (then The Bank of Nova Scotia), when they were first offered as an alternative to Canada Savings Bonds or unsecured corporate bonds. It was sold as a CD, or Certificate of Deposit. I noted confusion with Contraceptive Devices (now called IUDs) and Compact Discs (which won the popularity contest) and the others started moving to alternate acronyms.
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September 12, 2022
9:43 am
Righand
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Norman1 said
RBC Interest-Linked GIC's. Cashable with accrued interest after 29 days. Cashable during first 29 days with $25 admin fee and no accrued interest.

Principal Amount of Deposit Interest Rate
$5,000.00 - $249,999.99 Prime Interest Rate minus 2.45%
$250,000.00 - $999,999.99 Prime Interest Rate minus 2.25%
$1,000,000.00 or more Prime Interest Rate minus 2.00%

  

Looks good, Norman. Thanks for the heads up.
Pays 3 % or more, cashable without penalty after 30 days. sf-coolsf-cool

September 12, 2022
10:31 pm
rebel88
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However, I noticed that the CIBC is offering a one year prime linked cashable GIC at Prime - 2% which equals 3.45%. It appears that the Royal Bank is not very competitive. Will the Royal Bank match what the CIBC is offering?

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