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Tangerine parent company, Scotiabank, offering 3.00% non-promotional 1 year GIC
April 30, 2022
12:14 pm
Doug
British Columbia, Canada
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Just noticed while scanning the Scotia iTRADE brokered GIC rates...

Tangerine Bank's parent company, The Bank of Nova Scotia, together with ADS Canadian Bank which is in the process of being legally amalgamated with The Bank of Nova Scotia Trust Company, is offering a non-promotional, non-time limited regular 1 year GIC rate of 3.00% to anyone.

BNS/BNSTC GIC rates (as at 30 April 2022):

* 1 year: 3%
* 2 year: 3.45%
* 3 year: 3.50%
* 4 year: 3.65%
* 5 year: 3.70%

Of course, it bears reminding that, given the current inflationary environment, you can expect the real value of your GICs, adjusted for inflation, to be lower than the present value of your GICs (today) at their maturity.

Cheers,
Doug

April 30, 2022
1:55 pm
canadian.100
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Doug said
Just noticed while scanning the Scotia iTRADE brokered GIC rates...

Tangerine Bank's parent company, The Bank of Nova Scotia, together with ADS Canadian Bank which is in the process of being legally amalgamated with The Bank of Nova Scotia Trust Company, is offering a non-promotional, non-time limited regular 1 year GIC rate of 3.00% to anyone.

BNS/BNSTC GIC rates (as at 30 April 2022):

* 1 year: 3%
* 2 year: 3.45%
* 3 year: 3.50%
* 4 year: 3.65%
* 5 year: 3.70%

Of course, it bears reminding that, given the current inflationary environment, you can expect the real value of your GICs, adjusted for inflation, to be lower than the present value of your GICs (today) at their maturity.

Cheers,
Doug  

I see those rates on Scotia iTrade site - but these rates do not appear on the Scotiabank site - rates are considerably lower on Scotiabank site. Catering to a different clientele - which has been noted previously. Nice to know iTrade clients are offered better rates!

April 30, 2022
3:16 pm
Loonie
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It's typical of Scotia / Tangerine to target some customers over others.

If you want this rate and don't want iTrade, you could ask at a branch for a price match. It will depend on how much money you are putting in and demographics.

I see it as a retention offer. They are afraid iTrade customers will sell off stocks and move to greener GIC pastures.

April 30, 2022
4:41 pm
canadian.100
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Loonie said
I see it as a retention offer. They are afraid iTrade customers will sell off stocks and move to greener GIC pastures..  

Really? Greener pastures? Well I certainly am not selling my bank, utilities, telecom stocks which pay me 4% to 6% dividends these days. To me it would not be greener pastures to sell those and buy locked in GICs paying 3%. I am not interested in 3, 4 and 5 year GICs - for now anyways.

Also, when people sell off stocks, there is a purchaser on the other side of the transaction, so iTrade benefits by collecting the selling commission AND on the buying commission. (I realize the seller and buyer of a transaction may not both be iTrade clients but they could be.)

April 30, 2022
5:23 pm
Bill
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Actually 4 - 6% is if you buy now, but in fact many folks have held these stocks for many years and the current yields on their original purchase price is WAY higher. So I agree, why would I sell something I'm making 15 or 20% on for a 3% GIC when official inflation is about 6% (we've just been notified our hockey ice rentals increase by exactly 75% starting in July)?

But it makes sense that if the market does continue to tank the usual suspects will sell and maybe want to sit on the sidelines for a while thus iTrade keeps their money in their account if they go for the 1-year term. So it makes good business sense to target only those folks you want to, some of whom might also see it as a bit of a goodwill "reward" for their prior commission revenue provided to BNS.

May 1, 2022
7:52 am
Doug
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Bill said
Actually 4 - 6% is if you buy now, but in fact many folks have held these stocks for many years and the current yields on their original purchase price is WAY higher. So I agree, why would I sell something I'm making 15 or 20% on for a 3% GIC when official inflation is about 6% (we've just been notified our hockey ice rentals increase by exactly 75% starting in July)?

But it makes sense that if the market does continue to tank the usual suspects will sell and maybe want to sit on the sidelines for a while thus iTrade keeps their money in their account if they go for the 1-year term. So it makes good business sense to target only those folks you want to, some of whom might also see it as a bit of a goodwill "reward" for their prior commission revenue provided to BNS.  

Exactly right, Bill. Officially, to new investors, TD Bank common shares yield 3.84% (not bad), but for many of us who bought the shares much earlier, our yields on our original or adjusted cost bases are much higher. I haven't calculated my true ACB, so likely would be even lower than my quoted book value, my Scotia iTRADE book value of my TD shares is around $33.00, which works out to a compounded annual dividend yield of 11%. That doesn't take into account the expected growth rate of the dividend payout, nor does it take into account capital appreciation of the share price.

For my CIBC and Great-West Lifeco shares, my true dividend yield is even higher.

Cheers,
Doug

May 1, 2022
8:29 am
savemoresaveoften
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I know a lot of you likes to look at current div $ / ur original cost and said your yield is super high / much higher than current.
Even tho that makes you a happier person, that’s not the proper way to look at the true meaning of yield.
If u buy 1 share of a stock at $10, now it is at $100 and pay $3 dividend, your yield is still 3% and not 30%. Reason being now you are risking $100 to earn $3, not risking just $10. Or I will describe it as you have $90 unrealized capital gain but your current yield is still 3%.

May 1, 2022
8:47 am
Alexandre
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On a point about unrealized capital gain.

If I write $1,000,000 on piece of paper and give it to you, that does not make you instantly a millionaire. You only have unrealized capital gain.
You can be millionaire if I or someone else can take that piece of paper off your hands in exchange for $1M in cash. That is one big "if."

If I was smart enough to offer that piece of paper to you for $100,000 cash, and you bought it, I have the money. You have a dream of ten-fold ROI. A dream.

The time is about to come when older generation, the one heavily invested in stocks, will be ready to leave for good retirement life, en masse, by funding it from sales of stocks.
All is needed is enough smart folks realizing stock market Ponzi scheme is about to unravel. They will be first to sell stocks, reaping Ponzi scheme rewards. Relatively minor exodus from stock markets could trigger crash of that scam, or as financially educated people like to say "fully expected market correction finally happened."

Elon Musk sold $8B in TSLA shares, market cap of Tesla dropped by $150B. Think about that.

May 1, 2022
9:27 am
Bill
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If all I ever spent is $10 and now I'm getting $3/year on it that's 30% yield, done, end of story. Actually spending cash is very different from unrealized capital gain calculations, current valuations, potential gains, etc, i.e. none of them tie up any of my cash. If I ever sell the stock and get $10 for it then I'll have made various yields on that $10 during the time I owned the stock. If I never sell it until death then capital gains, valuations, etc are all irrelevant.

Can't compare Telsa-type stocks to more conservatively valued blue chips like utilities, etc. Markets consist of various options, many of them realistically valued securities.

Individual retail investors are usually a relatively small component of stock market holders, seems to me if the Ponzi scheme unravels the real victims will be all those 1st worlders who rely on pensions, gov't and private, that are invested in the markets.

May 1, 2022
10:11 am
canadian.100
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Alexandre said

Elon Musk sold $8B in TSLA shares, market cap of Tesla dropped by $150B. Think about that.  

I noted that about 30,000,000 Tesla shares were traded on Friday Apr29 alone. Bear in mind there were buyers for ALL those shares sold. I wonder how many shares the Environmental "Green-type" Pension Funds picked up. Buyers of Tesla shares were still willing to pay around $900 USD per share.

May 1, 2022
11:04 am
lifeonanisland
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Alexandre said
The time is about to come when older generation, the one heavily invested in stocks, will be ready to leave for good retirement life, en masse, by funding it from sales of stocks. All is needed is enough smart folks realizing stock market Ponzi scheme is about to unravel. They will be first to sell stocks, reaping Ponzi scheme rewards. Relatively minor exodus from stock markets could trigger crash of that scam, or as financially educated people like to say "fully expected market correction finally happened."

Elon Musk sold $8B in TSLA shares, market cap of Tesla dropped by $150B. Think about that.  

I'm trying not to be too doom and gloom. But I find myself agreeing with Alexandre. Too many people on this board are either too young or too forgetful to remember that things don't always go straight up. There's too many smart people, far smarter than me, who are ringing the warning bell about a significant recession and stock market correction. If your window is a long one, the prospect of your reliable yield-producing stocks dropping by 30 to 40 percent might not bother you. For someone like me who is a year away from retirement, and will have no corporate pension and only my own personal savings and investments to rely on, I will leap at the chance to invest heavily in 5 to 6 percent GICs over the longer term. I'll sleep better at night. And of course, I'll try to remain agile and move some funds into stocks if we do see such a precipitous drop.

May 1, 2022
12:28 pm
Doug
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savemoresaveoften said
I know a lot of you likes to look at current div $ / ur original cost and said your yield is super high / much higher than current.
Even tho that makes you a happier person, that’s not the proper way to look at the true meaning of yield.
If u buy 1 share of a stock at $10, now it is at $100 and pay $3 dividend, your yield is still 3% and not 30%. Reason being now you are risking $100 to earn $3, not risking just $10. Or I will describe it as you have $90 unrealized capital gain but your current yield is still 3%.  

Yes, that's all true, of course, but so too is my point that if you have a $100,000 GIC earning 2.5% for five years, with inflation running at a compounded average annual rate of 5%. After five years, you'll have $110,000, but you will have lost $15,000 in purchasing power, in real dollar terms, such that the same spending would require you to have $125,000, not $110,000. sf-cool

Cheers,
Doug

May 1, 2022
12:31 pm
Doug
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Bill said
If all I ever spent is $10 and now I'm getting $3/year on it that's 30% yield, done, end of story. Actually spending cash is very different from unrealized capital gain calculations, current valuations, potential gains, etc, i.e. none of them tie up any of my cash. If I ever sell the stock and get $10 for it then I'll have made various yields on that $10 during the time I owned the stock. If I never sell it until death then capital gains, valuations, etc are all irrelevant.

Can't compare Telsa-type stocks to more conservatively valued blue chips like utilities, etc. Markets consist of various options, many of them realistically valued securities.

Individual retail investors are usually a relatively small component of stock market holders, seems to me if the Ponzi scheme unravels the real victims will be all those 1st worlders who rely on pensions, gov't and private, that are invested in the markets.  

That's all true, too, Bill, and even when you die, you don't have to sell your shares. Not sure if this is a "thing," but I'm a big fan of estate heirs never selling their shares received as part of an inheritance. Sure, the shares are deemed to have been sold, for income tax purposes, but as long as one keeps enough liquid assets to cover the income taxes payable in that event, there's no reason those shares couldn't continue to be held across generations.

Cheers,
Doug

May 1, 2022
1:12 pm
Bill
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As the estate, i.e. beneficiaries, has to pay any capital gains tax to the value at date of death the beneficiaries' yields are based on current price, i.e. as if they had bought the shares on date of death. But if the shares at that time are still good investments at current value then, sure, beneficiary can choose to keep the shares.

May 1, 2022
2:17 pm
AllanB
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Scotia stock was 94.50 Feb 8/22, 93.84 Mar3/22 it closed Friday at 81.35. You can tell shareholders are nervous.

Warren Buffett said at his annual meeting inflation will require companies to carry more capital for costs. In addition, "he recognized the rising inflation as a big concern for almost everyone. He suggested that the damage from inflation will be broader, and it will ‘swindle’ companies, equity investors, bond investors. Buffett noted that Berkshire would always be cash-rich." Cnbc

I've been selling stocks the past few months the market is too speculative and many people are angry about food and housing.

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