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Good time to lock in a GIC (18 months) @5.75%
October 10, 2023
4:04 pm
Hmm
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I've been holding off on the assumption interest rates will rise a bit more. I have close to a $1 Mill, but I'll likely only invest half of that as I have some pension buy back to worry about. Any suggestions?

October 10, 2023
4:27 pm
Dean
Valhalla Mountains, British Columbia
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.
Maybe consider Motive & LGB Digital 2Yr GIC rates, then there's also the
GIC Brokers rates :

Good Hunting,

    Dean

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

October 10, 2023
4:31 pm
Hmm
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Dean said
.
Consider Motive's 2Yr GIC @ 5.70%, and then there's also the GIC Brokers rates :

Good Hunting,

    Dean

  

Thanks Dean.

I"m not familiar with GIC Brokers. I prefer not to pay any transaction fees unless the gain considerably outweighs the payment. In any event, I wouldn't know where to start in regards to GIC Brokers.

October 10, 2023
4:34 pm
Dean
Valhalla Mountains, British Columbia
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Hmm said

Thanks Dean.

I"m not familiar with GIC Brokers. I prefer not to pay any transaction fees unless the gain considerably outweighs the payment. In any event, I wouldn't know where to start in regards to GIC Brokers.  

GIC Brokers do Not charge transaction fees.

Something for you to look into, eh. sf-smile

    Dean

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

October 10, 2023
5:07 pm
Hmm
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Ha. Thanks for that.

Movements' ago, I looked at a screen shot of the interest rate Tangerine was offering just a few weeks ago and the 18 month GIC was 6.0 %. So, the trend in rates is seemingly going downward. I should've bought the GIC then. Argh.

October 10, 2023
5:14 pm
Lodown
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...how about this?: 2 yrs guaranteed @ 6.01%/year. Up to 5 yrs at TD's option.

TD Bank Semi-Annual Pay Extendible Notes October 20, 2025 to October 20, 2028
Short Description: Offering of Extendible (at Issuer's Option) Notes
Size of Issue: To be determined
Category: Fixed Income
Prospectus: prospectus.202310101324227211A.EN.pdf
Product Information: productinfo.202310101324227211A.EN.pdf
Price: $100.00 CDN per $100 par value
Coupon: Year 1: 5.93%
Year 2: 5.93%
Year 3: 5.93%
Year 4: 5.93%
Year 5: 5.93%
Rates per annum, payable semi-annually in arrears(equal payments)
Coupon Frequency: Semi-annually
Yield To Maturity: 5.93% semi-annual; 6.01% annual
Yield To Call: 5.93% semi-annual; 6.01% annual
Call Feature: A 2-year extendible senior note paying coupons semi-annually, extendible semi-annually at TD’s option to a maximum term of 5 years.
Maturity: Oct 20, 2025
Final Maturity: Oct 20, 2028
Settlement Date: October 20, 2023

October 10, 2023
6:46 pm
hwyc
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Hmm said
I've been holding off on the assumption interest rates will rise a bit more. I have close to a $1 Mill, but I'll likely only invest half of that as I have some pension buy back to worry about. Any suggestions?  

As you are in the range of half a million, MCAN is still offering 5.90% for terms ranging from 1-yr to 2.5-yr

October 10, 2023
7:15 pm
everhopeful
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Hmm said

Thanks Dean.

I"m not familiar with GIC Brokers. I prefer not to pay any transaction fees unless the gain considerably outweighs the payment. In any event, I wouldn't know where to start in regards to GIC Brokers.  

A good start to look would be the ones listed at the bottom of this page:
https://www.highinterestsavings.ca/gic-rates/
The very attractive rates come with a caveat though: the best rates are insured by the provincial credit union deposit guarantees, which I dont trust as much as CDIC. The CDIC rates were hardly different from what I was finding through Motive,Tangerine,etc so I kept self investing.

I am dealing with a much smaller balance, with your amount it would definitely be worth making an appointment and having a talk with a broker if you have one located near you.

October 10, 2023
8:45 pm
althisa
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Hmm said
Ha. Thanks for that.

Movements' ago, I looked at a screen shot of the interest rate Tangerine was offering just a few weeks ago and the 18 month GIC was 6.0 %. So, the trend in rates is seemingly going downward. I should've bought the GIC then. Argh.  

If you have a portfolio of $1M then this is not the first rodeo, and by now you know guessing interest rates is a fools game.

Indicators that interest rate will go higher:

https://www.statcan.gc.ca/en/subjects-start/prices_and_price_indexes/consumer_price_indexes

https://www.bloomberg.com/news/articles/2023-10-06/canada-jobs-gain-triple-expectations-wages-grow-faster#xj4y7vzkg

Indicators interest rate will go lower:
https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx

There are many other indicators people on this forum are watching for some direction on interest rates.

Anyone else want to share their favourite indicators for interest rate predictions?

There is a whole buffet/smorgasboard of economic indicators with release dates here:
https://tradingeconomics.com/canada/calendar

October 10, 2023
10:55 pm
HermanH
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Dean said
.
Maybe consider Motive & LGB Digital 2Yr GIC rates, then there's also the
GIC Brokers rates :

Good Hunting,

    Dean

  

I think that you mean LBC (not LGB).

Also, it would be good to note that Motive 2-yr rate can be extended to 35-month. So, just under 3-yr term.

October 11, 2023
4:58 am
savemoresaveoften
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Lodown said
...how about this?: 2 yrs guaranteed @ 6.01%/year. Up to 5 yrs at TD's option.

TD Bank Semi-Annual Pay Extendible Notes October 20, 2025 to October 20, 2028
Short Description: Offering of Extendible (at Issuer's Option) Notes
Size of Issue: To be determined
Category: Fixed Income
Prospectus: prospectus.202310101324227211A.EN.pdf
Product Information: productinfo.202310101324227211A.EN.pdf
Price: $100.00 CDN per $100 par value
Coupon: Year 1: 5.93%
Year 2: 5.93%
Year 3: 5.93%
Year 4: 5.93%
Year 5: 5.93%
Rates per annum, payable semi-annually in arrears(equal payments)
Coupon Frequency: Semi-annually
Yield To Maturity: 5.93% semi-annual; 6.01% annual
Yield To Call: 5.93% semi-annual; 6.01% annual
Call Feature: A 2-year extendible senior note paying coupons semi-annually, extendible semi-annually at TD’s option to a maximum term of 5 years.
Maturity: Oct 20, 2025
Final Maturity: Oct 20, 2028
Settlement Date: October 20, 2023  

except i think its only offered to TD customers exclusivey ?

October 11, 2023
7:00 am
COIN
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hwyc said

As you are in the range of half a million, MCAN is still offering 5.90% for terms ranging from 1-yr to 2.5-yr  

How safe is MCAN?

October 11, 2023
8:32 am
Norman1
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I can't find any debt ratings for MCAN Mortgage Corporation.

Without an investment grade debt rating, their uninsured deposits are considered to be like junk bonds.

October 11, 2023
9:02 am
Rail Baron
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Norman1 said
I can't find any debt ratings for MCAN Mortgage Corporation.

Without an investment grade debt rating, their uninsured deposits are considered to be like junk bonds.  

But isn't MCAN insured through CDIC?

October 11, 2023
10:18 am
canadian.100
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Rail Baron said

But isn't MCAN insured through CDIC?  

GICs issued by MCAN are definitely covered under CDIC.
You can look at the list of FIs covered on the CDIC site.

Similarly, many other FIs have no credit rating but GICs issued by them are covered under CDIC.

October 11, 2023
1:49 pm
Alexandre
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If you don't have account with Tangerine, consider this:

6.00%
Enjoy a 6.00% Savings rate
Open your first eligible Savings Account within 30 days of becoming a Client.
That’ll get you a 6.00% Savings rate for 5 months (on up to $1,000,000 in deposits).

Link to offer

October 11, 2023
2:07 pm
Hmm
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everhopeful said

A good start to look would be the ones listed at the bottom of this page:
https://www.highinterestsavings.ca/gic-rates/
The very attractive rates come with a caveat though: the best rates are insured by the provincial credit union deposit guarantees, which I dont trust as much as CDIC. The CDIC rates were hardly different from what I was finding through Motive,Tangerine,etc so I kept self investing.

I am dealing with a much smaller balance, with your amount it would definitely be worth making an appointment and having a talk with a broker if you have one located near you.  

Thanks. The current balance is only temporary. It's inheritance but in about 24 months I expect the balance to drop substantially and I'll need access to liquid funds. I used a "broker" at a bank before and I got "burned" and I simply don't trust them to look out in my best interest.

October 11, 2023
2:11 pm
Hmm
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althisa said

If you have a portfolio of $1M then this is not the first rodeo, and by now you know guessing interest rates is a fools game.  

Thank you for the links. Well, this is my first rodeo, actually.

I feel it was a bold move by Tangerine to lower their GIC rates. I shouldn't have been procrastinating the last few weeks and invested when the rates were higher. There's even talks in the US that the rates will hold steady.

October 11, 2023
7:23 pm
Norman1
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Rail Baron said

But isn't MCAN insured through CDIC?

Only $100,000 in a category is CDIC insured.

The rate on the MCAN GIC won't be 5.9% if one is placing less than $100,000.

October 11, 2023
8:28 pm
althisa
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Hmm said

Thank you for the links. Well, this is my first rodeo, actually.

I feel it was a bold move by Tangerine to lower their GIC rates. I shouldn't have been procrastinating the last few weeks and invested when the rates were higher. There's even talks in the US that the rates will hold steady.  

Plenty of places to temporarily 'park' funds at good rates until you figure out the optimum strategy for your own personal financial situation.

DUCA credit union 6.25% non registered HISA up to Jan 31st 2024
https://www.duca.com/earnmore

Meridian Credit Union 5.75% HISA for 5 months
https://www.meridiancu.ca/offers/terms-and-conditions/meridian-good-to-grow-high-interest-savings-account-(gtg-hisa)-boost-interest-rate-offer

Wealth One Bank 5.98% for 1 yr and 1.5 yr GICs
https://www.wealthonebankofcanada.com/Campaign/2023+Fall+Prosperity+GIC+Campaign

Do heed the advice of others in this forum about insured limits e.g. CDIC $100,000 and distributing assets over different FIs to keep within those limits.

When you have figured out which portion of your funds you need now, may need in a year etc. I have learned GIC laddering is appropriate the long term strategy (with some caveats about Inverted Yield curves)

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