Tangerine parent company, Scotiabank, offering 3.00% non-promotional 1 year GIC | Tangerine Bank | Discussion forum

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.

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.

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%.

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.

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.