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Tang GIC rates
October 19, 2019
1:33 pm
Rick
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Just checking out the rates on the Tang site. All the long term rates are at 2.2%.
untitled1.jpg
The spread between 180 days and 5 years is .2% ?!? What is their logic?

October 19, 2019
5:02 pm
Loonie
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I think it's a "flattening" of rates, related to the rate inversion problem, a kind of precursor. Sounds like Tang economists are pessimistic. Are Scotia's rates showing the same pattern? If not, might be an issue with Tang's loan book? I would guess that 18 month mortgage terms are uncommon.
But it's also clear that, nowadays, deposit rates are affected by more than mortgage rates.

Perhaps someone more knowledgeable about economics will weigh in here.

October 19, 2019
7:40 pm
Bud
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they feel its enough to give the opportunity to lock-in 2 n a bit for 5yrs.

October 20, 2019
10:11 am
Dean
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Rick said

Just checking out the rates on the Tang site. All the long term rates are at 2.2%.
untitled1.jpg
The spread between 180 days and 5 years is .2% ?!? What is their logic?  

.
Interesting ⬆, Rick ... But with their SA & GIC rates having gone so far south in the last year, does Tangerine Bank (and what it does) really matter to us anymore❓

FWIW ... I think they should be Delisted from this website.

sf-cool " Live Long And Prosper " sf-cool

October 20, 2019
12:42 pm
Rick
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Dean said

.
Interesting ⬆, Rick ... But with their SA & GIC rates having gone so far south in the last year, does Tangerine Bank (and what it does) really matter to us anymore❓

FWIW ... I think they should be Delisted from this website.  

I agree. They only reason they are even mentioned anymore is to report their fees are going up and promotions. Should be delegated to the same status as the big 5...
someone will post their promo rates when they become available. Even their promo rates aren't relevant when Savvy savings' everyday rate beats it, and you have to play their games and or beg to get it.

October 20, 2019
1:10 pm
Doug
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Loonie said
I think it's a "flattening" of rates, related to the rate inversion problem, a kind of precursor. Sounds like Tang economists are pessimistic. Are Scotia's rates showing the same pattern? If not, might be an issue with Tang's loan book? I would guess that 18 month mortgage terms are uncommon.
But it's also clear that, nowadays, deposit rates are affected by more than mortgage rates.

Perhaps someone more knowledgeable about economics will weigh in here.  

Not necessary. You more or less nailed it, Loonie. sf-cool

As I've said, folks, keep your duration short. I have been sticking to GIC maturities of 3 years or less for more than 5 years now, and have no plans to change. I expect further contraction in deposit rates and we will likely see 2.00% be the new "best rate" on a 1-5 year GIC within the next 12-15 months or so before things rebound again, albeit very modestly.

Cheers,
Doug

October 20, 2019
2:40 pm
Loonie
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I understand your thinking about going short, Doug, but long is not all that long in the scheme of things - only five years - considering how long it took for them to go up , briefly, in 2018.
What is your reasoning for thinking that things will be any better in 2 or 3 years?
I'm not looking for any new GICs until the new year, but my thinking is that I will accept a longer term if it's at least 3%. Do you have an acceptable target, should it appear, for a longer term? I may be more of the "bird in the hand" school.

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