GIC Rates - Aug 25, 2023 - Up to 6% (Incl. TFSA GIC) | Tangerine Bank | Discussion forum

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GIC Rates - Aug 25, 2023 - Up to 6% (Incl. TFSA GIC)
August 25, 2023
10:53 am
gta_905
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90 DayGuaranteed Investment1.50%
180 DayGuaranteed Investment3.25%
270 DayGuaranteed Investment4.80%
1 YearGuaranteed Investment5.95%
1.5 YearGuaranteed Investment6.00%
2 YearGuaranteed Investment4.20%
3 YearGuaranteed Investment4.00%
4 YearGuaranteed Investment3.90%
5 YearGuaranteed Investment3.85%

August 25, 2023
11:22 am
Mhooper
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Cancelled GICs set up mid-August to get newer rates. Phone wait was just over 30 minutes but cancellation was completed in under 5 with no push back or resistance.

August 25, 2023
11:35 am
canadian.100
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Mhooper said
Cancelled GICs set up mid-August to get newer rates. Phone wait was just over 30 minutes but cancellation was completed in under 5 with no push back or resistance.  

What is their policy re cashing in GICs before maturity? I thought GICs cannot be cashed early. Of course, you would have lost any interest accrued on the earlier GICs you set up - which you will make up with the higher rates today.

August 25, 2023
11:56 am
Mhooper
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I was told that there was 30 day grace period to cancel within. As note, accrued interest was lost.

August 25, 2023
1:57 pm
victor6433
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4.20% for 2 years. Ing knows what will happen when Trump becomes President again in 2024.

August 25, 2023
2:34 pm
Dean
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victor6433 said

. . . when Trump becomes President again in 2024.  

    That'll be 'History Making' for sure ❗

He'll be the first POTUS to rule from inside a Jail Cell ... LOL
.

.
Interesting times, eh sf-laugh

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

August 25, 2023
3:52 pm
victor6433
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Best President of All time.
But when he's elected again. Sure it will hurt me in my "pocket.
Wait for it Dean.
Ing knows whats up.

August 25, 2023
6:04 pm
victor6433
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For post 6.
Wait for it. Master -King President Trump.
2024

August 26, 2023
3:44 am
Miked
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victor6433 said
4.20% for 2 years. Ing knows what will happen when Trump becomes President again in 2024.  

I was also wondering if this nov'24 US election is part of Tangerine reasoning in rates discrepancy starting with their 2 yrs+ rates?! Also Fed expected to lower rates at some point... Powell seems to be still calling for more rates hikes or keeping them high for longer. We'll see...

So this is nice short-term (1.5yrs) but still need plan for after that (ladder? or combo of 1.5 at Tan with 5yrs elsewhere!?! In retrospect who thought rates would be where they are 1year & even 3-4 months ago (sad those gic's are frozen l.term at lower rates snif... oh well an old 1.2% gic is getting there -U now make in 1yr (6%) what used to take 5yrs geez)

As for #6 looks like he could be accompanied pretty soon... strange times indeed!!!

August 26, 2023
5:21 am
UkrainianDude
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Miked said

I was also wondering if this nov'24 US election is part of Tangerine reasoning in rates discrepancy starting with their 2 yrs+ rates?!

Tangerine is Scotia bank and Scotia bank offers 5.4% on four year GIC

August 26, 2023
12:51 pm
LK
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In the last week of August 2022, Tangerine upped its one year GIC rate for a three days, and then dropped it by 0.20%. Wonder if that will happen again? Interesting that the timing is exactly one year later of a high rate (relative to the 5.60% at the next FIs).

2022-08-27 4.40
2022-08-24 4.60

Tangerine's tendency to have a high GIC rate for a few days, then dropping it, is crappy for people who transfer funds in and have to wait for Tangerine's hold period to end, and by the time the funds clear the hold, Tang has dropped the rate.

August 26, 2023
6:01 pm
Bill
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Kinda makes sense, a leading rate might bring in a lot of dough in a few days and so they drop it again when they've gathered enough. And in your example note that a month later, Sept 27 2022, the rate was up to 4.7%.

August 27, 2023
2:46 am
RetirEd
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Let's all keep in mind the long-term tendency of US interest rates to drop in the run-up to presidential election years. Though these interesting times may prove to be one of the exceptions...

RetirEd

August 27, 2023
5:04 am
mordko
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Bond market is predicting a recession within 2 years. Rightly or wrongly. Government of Canada bond yields drop after 2 year duration. Its to do with BoC rapidly rising interest rates rather than politics. That’s what Tangerine knows. And others whose GIC rates broadly reproduce reverse yield curve. Tangerine also has risk models and cash needs for various projects which impact the exact rates and timing.

August 27, 2023
5:17 am
savemoresaveoften
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mordko said
Bond market is predicting a recession within 2 years. Rightly or wrongly. Government of Canada bond yields drop after 2 year duration. Its to do with BoC rapidly rising interest rates rather than politics. That’s what Tangerine knows. And others whose GIC rates broadly reproduce reverse yield curve. Tangerine also has risk models and cash needs for various projects which impact the exact rates and timing.  

Just to add if you apply a spread of 100-150bps GIC rates over CAD gov bond yields, whats being offered in GIC world is inline. Some offers higher, some lower, some dont care to match etc

August 27, 2023
6:21 am
agit
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No one in here knows the direction of the interest rate including myself. It is what it is lock in and risk the upside or lock in and be happy if the rate drop... No one ever win 100% of the time. Few months ago many people in here were proudly posting that rate peak and will never see 6%, simply useless info. The 6% is here and 7% soon or back to 4%

August 27, 2023
7:52 pm
UkrainianDude
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If I push money into Tangerine from another FI will there be a hold as well ?

August 28, 2023
6:36 am
mordko
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This is a gift of time.

If you put the same amount of money into Tangerine’s GiC for respective term, you end up with more after 18 months than after 2 years.

Their 2 year GIC is essentially a penalty for skipping maths at school.

August 28, 2023
8:13 am
canadian.100
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mordko said
This is a gift of time.

If you put the same amount of money into Tangerine’s GiC for respective term, you end up with more after 18 months than after 2 years.

Their 2 year GIC is essentially a penalty for skipping maths at school.  

Not exactly - this will depend on what interest rates are once the 18 month GIC expires - and what you can earn for the 6 months after the 18 month expiry.
Interest rates could drop a fair amount 18 months from now. A recession by then is a possibility.

August 28, 2023
8:39 am
mordko
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canadian.100 said

Not exactly - this will depend on what interest rates are once the 18 month GIC expires - and what you can earn for the 6 months after the 18 month expiry.
Interest rates could drop a fair amount 18 months from now. A recession by then is a possibility.  

Nope. It does not depend on what interest rates are once the 18 month GIC expires. Interest rates can drop to zero and you would still be better off if you bought Tangerine’s 18 month GIC than their 2-year one.

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