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Would you go over the CDIC limit with Tangerine?
November 2, 2022
4:01 pm
Dean
Valhalla Mountains, British Columbia
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lisa said

Thank you all for your quick response and advice. I've got lots to think about. This website rocks!!  

When you get a chance, please share with us what you decide.

'Good Luck' with it ❗ sf-smile

    Dean

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

November 2, 2022
4:20 pm
lisa
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drum roll please...... I've decided to go with my gut and take a lower interest rate with cibc (big bank) 4.5% to feel safe. Still going with the 5 year, feel interest rates are going to drop and I do not need the money before 5 years. Thank you again for all your inputs!sf-cool

November 2, 2022
4:50 pm
Norman1
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lisa said
drum roll please...... I've decided to go with my gut and take a lower interest rate with cibc (big bank) 4.5% to feel safe. Still going with the 5 year, feel interest rates are going to drop and I do not need the money before 5 years. Thank you again for all your inputs!sf-cool

How about divide the $300,000 up?

Put $77,000 in Tangerine Bank at 5.2% for five years. CDIC would cover both principal and interest.

Open an account with Scotia iTRADE and divide the remaining among GIC's from Bank of Nova Scotia, Montreal Trust, and Scotia Mortgage all at 5.1% for five years with full CDIC coverage.

If you prefer to place the entire $300,000 with CIBC, the CIBC 5-year Bonus Rate GIC is currently 4.75%.

November 2, 2022
5:07 pm
lisa
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Everyone is awesome for giving their advice. Point is " would you go over the CDIC limit". I am maxed out at many financial institutions, with my husband's account as well, and wanted advice about going over the limit at banks. Sorry I did not specify this. Yes, I totally understand about splitting my money between banks. But, do you go over the limit, at a risk, or take a lower interest at one of the big banks and feel safe. Again thank you all for your input.

November 2, 2022
5:53 pm
COIN
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"How about divide the $300,000 up?

Put $77,000 in Tangerine Bank at 5.2% for five years. CDIC would cover both principal and interest.

Open an account with Scotia iTRADE and divide the remaining among GIC's from Bank of Nova Scotia, Montreal Trust, and Scotia Mortgage all at 5.1% for five years with full CDIC coverage."
  

I wrote to the Minister of Finance several times and said just raise the CDIC ceiling and save Canadians all this gyration to maximize the CDIC coverage.

November 2, 2022
6:28 pm
Bill
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Don't forget that if you have any funds at Simplii they would be included in your CIBC total, though it looks like that wouldn't matter to you as you're comfortable going over the $100k at CIBC.

I've come to the same view, i.e. that CDIC limits at the big 5 banks can be safely ignored. (That leaves out Tangerine for me, it is not part of BNS, they are separate corporations each with its own CDIC coverage.)

November 2, 2022
11:05 pm
Loonie
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Bill makes a good point about Simplii. If you are comfortable with high amount at CIBC, then you can include Simplii in that high amount if they are giving a rate you like. You can also get double coverage at Oaken and Peoples, as you probably know.

i would like to make one other point, since you have told us that you are maxed out at several other banks.

If you have that much money, maybe you don't need to worry so much about getting the highest rates on all of it. You can afford to divide up your 300K, put $77k at Tang (~$95k if annual pay) and the rest elsewhere, even at lower rates if necessary. At a quick glance, I see about 14 CDIC-insured listings on this forum's GIC list and that doesn't include the big banks per se. If you go to a deposit broker, you will have quite a few more available to you. You could easily cover $2 million, almost certainly more, using only joint accounts, CDIC coverage, within insured limits; and much more if you add in single accounts and registered funds. And this does not include credit unions which have higher insurance limits under provincial jurisdiction.
There are lots of options for sleeping well.
It can be a big nuisance though, managing all those GICs with their various maturity dates. For that reason, you might want to look at the credit unions (especially in provinces with unlimited insurance), the Simplii option, and/or deposit brokers. I find deposit brokers are a huge help in both expanding the number of options and narrowing that list to suitable choices at a given date.

November 3, 2022
1:32 am
HermanH
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lisa said
drum roll please...... I've decided to go with my gut and take a lower interest rate with cibc (big bank) 4.5% to feel safe. Still going with the 5 year, feel interest rates are going to drop and I do not need the money before 5 years. Thank you again for all your inputs!sf-cool  

If you are sticking to the Big 5, you might find BMO interesting. Hayman did, but he put in 600K. You might still get a better deal than 4.5%. I think you should get at least 5%, IMO.

hayman said
I recently got 5.5 for 10 years paid monthly without the investor line account with BMO. I think they are the most aggressive bank around as of now. Also wondering with the yield curve inverted how that will be affecting longterm rates going forward? Hope someone on here has more experience then I. Kind regards

https://www.highinterestsavings.ca/forum/gic/bmoil-2-year-5-08-fairstone-bank/#p79496

Or, you could do joint and personal $75K accounts with Tang for 5.2% and then do the same for Habib (via GIC Wealth) at 5.25%. Everything would be fully covered, at much higher rates. That should net you at least an additional $10,875 over five years, with annual payouts. You would still be 100% protected by CDIC, for the minor inconvenience of using a broker and opening a couple of accounts. Nearly $11K return for a couple minutes of work. sf-cool

November 3, 2022
9:39 am
Alexandra
British Columbia
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HermanH said

If you are sticking to the Big 5, you might find BMO interesting. Hayman did, but he put in 600K. You might still get a better deal than 4.5%. I think you should get at least 5%, IMO.

hayman said
I recently got 5.5 for 10 years paid monthly without the investor line account with BMO. I think they are the most aggressive bank around as of now. Also wondering with the yield curve inverted how that will be affecting longterm rates going forward? Hope someone on here has more experience then I. Kind regards

https://www.highinterestsavings.ca/forum/gic/bmoil-2-year-5-08-fairstone-bank/#p79496

Or, you could do joint and personal $75K accounts with Tang for 5.2% and then do the same for Habib (via GIC Wealth) at 5.25%. Everything would be fully covered, at much higher rates. That should net you at least an additional $10,875 over five years, with annual payouts. You would still be 100% protected by CDIC, for the minor inconvenience of using a broker and opening a couple of accounts. Nearly $11K return for a couple minutes of work. sf-cool  

If you are really stuck on going with a big bricks and mortar bank, even RBC has 4.75% for 5yrs. With Manulife right now you get over 5% for I think 3yrs through an agent.

November 3, 2022
1:05 pm
Loonie
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I need to revise my comments in my last post. I would not recommend Simplii, even though it shares CIBC's insurance. Their rates are not competitive. (I don't normally follow Simplii and had not checked when I posted earlier.)

November 5, 2022
2:41 pm
Norman1
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For sure, CIBC's Simpllii Financial is not the best channel to get a CIBC-issued GIC these days:

5.00% 5-year CIBC GIC, via Scotia iTRADE
4.75% 5-year CIBC Bonus Rate GIC, via CIBC branch
4.20% 5 year Simplii GIC, via Simplii Financial

December 7, 2022
1:32 pm
lisa
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Hi everyone,
Thought I would give an update, ended up getting a 1 year variable rate GIC with CIBC back in November, cashable after 30 days while I sit on the sidelines and debate how to invest the money. Rate went up today which is awesome. Feel very comfortable going over the limit with CIBC. It's such a guessing game, go long, go short, wait it out for better rates? Still eyeing the 10 year BMO GIC, hoping it might go up a bit.sf-smile

December 7, 2022
4:19 pm
pooreva
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What is the rate at CIBC?

December 7, 2022
10:14 pm
Pirithous
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lisa said
Hi everyone,
Would love some feedback from all of you as you've been my financial gurus for years. Have come into some inheritance and want to invest in some GIC's. Tangerine's 5 year rate looks really good. Not feeling very comfortable going over the 100,000 limit. How is your comfort level investing lets say $300,000 with Tangerine?  

I see that you've already made your choice and went with CBIC, but to your original question: No, I wouldn't go beyond the CDIC limit by that much.

I'm also not in a position where I can worry about that, but even then, mitigation of risk, to me, is always key. Staying within CDIC limits whenever and wherever possible is part of that for me.

Pirithous

"Sometimes I do what I want to do. The rest of the time, I do what I have to."

December 8, 2022
4:40 am
lisa
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4.45% at CIBC but I can cash out anytime after 30 days.

December 8, 2022
4:47 am
savemoresaveoften
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lisa said
4.45% at CIBC but I can cash out anytime after 30 days.  

I use that particular CIBC promo too when the orange bank wont offer me any promo. At 4.45% and BoC not cutting rates any time soon, its the best non HISA big bank promo for the time being, taking flexibility into account.

HSBA at 4.9% is excellent too if one is ok dealing with them.

December 8, 2022
11:19 am
HermanH
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lisa said
4.45% at CIBC but I can cash out anytime after 30 days.  

Is that 4.45% another convoluted mess of 3 different tiers? Normal rate, bonus rate, and promo rate?

December 8, 2022
12:01 pm
lisa
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Nope, just a variable 1 year GIC that is cashable after 30 days. Interest paid when you cash out.

December 9, 2022
12:19 pm
Norman1
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The P - 2% rate is no longer available on the CIBC one-year variable rate GIC.

savemoresaveoften reported that new ones are issued at P - 2.2%. Current yield works out to 6.45% - 2.2% = 4¼% and not the 4.45% on previously issued ones.

December 9, 2022
2:20 pm
pooreva
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HermanH said
Is that 4.45% another convoluted mess of 3 different tiers? Normal rate, bonus rate, and promo rate?  

You forgot to mention you have to stand on left leg's toes, scratch your right ear with left hand while holding 20kg dumbbell while singing loud holding your breath.

I HATE FI with funny conditions to get few (questionable) bucks more. It is SO nice to work with FI (not to mention name) where everything is clearly spelled out and you KNOW how much you will get at the end of term.

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