7:36 am

November 7, 2014

10:42 am

November 19, 2014

11:12 am

February 27, 2018

As i said in another thread. I believe the reasons for these higher rates are... bad paper. Debts are not going to be repaid and the banks want cash. Credit card, auto, mortgage, they are all debt.

When a FI needs to make a purchase, they often offer a higher rate of interest to get an 'x' amount of dollars. Once their goal has been reached, their rates drop back down.

In todays enviroment, every week FI's seem to be increasing their rates, either their savings, gics or both. I see this as a cash grab. Why do they all want your cash?

1:23 pm

March 30, 2017

gicjunkie said

Don't know if everyone missed this, or I just missed it, or if nobody cares anymore, but TANG has new (higher) GIC rates:1 year 2.10%

2 years 2.30%

3 years 2.50%

4 years 2.60%

5 years 3.00%I guess they finally decided they weren't competitive ?

still not competitive if you ask me 🙂

According to https://www.tangerine.ca/en/rates/historical-rates/index.html

... the increases are:

1 year: 0.10%

2 years: 0.15%

3 years: 0.20%

4 years: 0.20%

5 years: 0.40%

7:50 pm

January 3, 2013

9:24 am

November 19, 2014

Peter said

According to https://www.tangerine.ca/en/rates/historical-rates/index.html... the increases are:

1 year: 0.10%

2 years: 0.15%

3 years: 0.20%

4 years: 0.20%

5 years: 0.40%

Will you be adding them to the gic comparison chart ?

12:23 pm

November 19, 2014

I've added Tangerine to the GIC chart now.

1:05 pm

January 26, 2018

It looks like the GIC interest terms have changed. I have current Tangerine GICs that pay interest annually but the fine print now says interest is paid at maturity. "Interest is calculated daily and paid monthly in the case of our Savings and Chequing Accounts; and is calculated daily and paid at maturity on a GIC."

5:23 pm

October 21, 2013

Sleazy! It's not the first itme we've seen this, but it is usually just with special promo rates. Tangerine's are not even at the top of the heap.

I believe you have to declare interest annually with CRA, regardless of whether paid out yet. This means you would be paying tax on money you don't yet have,with principal tied up.

5:38 pm

December 17, 2016

Loonie said

Sleazy! It's not the first itme we've seen this, but it is usually just with special promo rates. Tangerine's are not even at the top of the heap.I believe you have to declare interest annually with CRA, regardless of whether paid out yet. This means you would be paying tax on money you don't yet have,with principal tied up.

Where's the argument - that's the way it's always been for long term, non-registered, compounded annually GICs - trying to make a hornet's nest where there is none ... sheesh.

5:57 pm

October 21, 2013

6:11 pm

February 27, 2018

Hi,

By the wording of tangerine's "gic interest to be paid at maturity" here's the difference.

Example, $1,000 for 5 years at 3%

Compounded

Year 1 principal is $1,000, interest is $30.

Year 2 principal is $1,030, interest is $30.90.

Year 3 principal is $1,060.90, interest is $31.83.

Year 4 principal is $1,092.72, interest is $32.78

Year 5 principal is $1,125.51, interest is $33.77

At maturity Total $1,159.27. Interest paid $159.27

If the interest is paid at maturity, it becomes "simple" interest, not compounded.

Year 1 principal is $1,000, interest is $30 but not paid.

Year 2 principal is $1,000, interest is $30 but not paid.

Year 3 principal is $1,000, interest is $30 but not paid

Year 4 principal is $1,000, interest is $30 but not paid

Year 5 principal is $1,000, interest is $30 but not paid

At maturity Total $1,150. Interest paid $150.00

Norman1? Is this correct? By reading tangerine's gic policy, i take this to mean simple interest?

When the interest is compounded, it is realized at the end of each year. A T5 is issued stating the interest earned for that year.

7:55 pm

April 6, 2013

Kidd said

…

Example, $1,000 for 5 years at 3%Compounded

…

At maturity Total $1,159.27. Interest paid $159.27If the interest is paid at maturity, it becomes "simple" interest, not compounded.

…

At maturity Total $1,150. Interest paid $150.00Norman1? Is this correct? By reading tangerine's gic policy, i take this to mean simple interest?

When the interest is compounded, it is realized at the end of each year. A T5 is issued stating the interest earned for that year.

It could mean simple interest. It could also mean paid **out** only at maturity. One will need to ask Tangerine to clarify whether one will be receiving $1,159.27 or $1,150 on maturity.

A T5 can be issued yearly for simple interest as well.

Compounded rate of return is just a measurement unit. Five year, 3% per annum, compounded annually is the same as five year, 3.18548% per annum, no compounding.

Please write your comments in the forum.