High interest rates for savings, GICs and MMFs (2017)

Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
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AltaRed
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 15 May 2017 16:13

Maybe but I doubt it would take CDIC more than 1-2 months to move registered money, especially from a relatively small outfit like HCG. Still, if you can get an Equitable Bank GIC for the same rate, why not go there? Unless it is next in the dominos. But if they are vulnerable, then start to imagine where other alternative lenders are at too. Granted, it is demand deposits that caused the crisis at HCG, so maybe it is best to look around at all those online banks offering 'excessive' HISA rates. Go down the list at https://www.highinterestsavings.ca/ and take your pick.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus » 15 May 2017 18:54

AltaRed wrote:
15 May 2017 16:13
Still, if you can get an Equitable Bank GIC for the same rate, why not go there?
Upthread and on the site you linked, Oaken is at 2.6%, but you have to have an Oaken RRSP account (which I do). Equitable, People's, etc. don't come close to that even with a direct investment. But there an additional layer of transfer with the account being held independent of a broker.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 15 May 2017 19:00

SoninlawofGus wrote:
15 May 2017 18:54
AltaRed wrote:
15 May 2017 16:13
Still, if you can get an Equitable Bank GIC for the same rate, why not go there?
Upthread and on the site you linked, Oaken is at 2.6%, but you have to have an Oaken RRSP account (which I do). Equitable, People's, etc. don't come close to that even with a direct investment. But there an additional layer of transfer with the account being held independent of a broker.
Fair enough for those that wish to do that (I don't).
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by optionable68 » 15 May 2017 21:20

hamor wrote:
13 May 2017 11:57
which ETFs?
optionable68 wrote:
09 May 2017 22:17
optionable68 wrote:
04 May 2017 20:37
My offer:

"Earn 2.5%* interest tax-free on new TFSA deposits until August 31, 2017."
I`ve grown a bit weary of chasing Tangerine for short term rates. Moving my TFSA to iTrade - will buy 2 low cost ETFs and let it ride.
50% XIC and 50% VFV
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by poedin » 16 May 2017 09:00

Oaken's rates this morning [term-yr, annual/compound, monthly]:
1 2.35 2.25
2 2.55 2.45
3 2.65 2.55
4 2.75 2.65
5 2.85 2.75
HISA 1.75, other terms/rates https://www.oaken.com/gic-rates/

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 16 May 2017 10:38

Likely makes sense to increase rates to retain/attract GIC deposits than to pay usury rates on that HOOPP loan. I'd buy a Home Trust GIC if indeed HT also moves up to those rates. Have a GIC coming due in August in my RRSP 5 year ladder. We shall see how things look by then.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 » 16 May 2017 12:00

I'd buy a Home Trust GIC if indeed HT also moves up to those rates.
When you buy a GIC from Oaken I thought you were with Home Trust?

On the Oaken website
Each deposit is available through either Home Bank or Home Trust Company, both of which are separate members of CDIC.

Separate website for Home Trust shows rates at Home Bank & Home Trust as lower than Oaken?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 16 May 2017 12:26

As I understand it, Home Trust GICs are primarily brokered GICs (via GIC brokers and brokerages) and Oaken GICs are issued via their online retail arm (Oaken Financial). Oaken GICs have higher deposit rates, generally about 15-50 bp more.

As of today, a compound Home Trust 5 yr GIC is 2.4% on their website (2.35% at Scotia iTrade) while an Oaken equivalent is 2.85%. Oaken GICs cannot be purchased via brokers/brokerages.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by snowback96 » 16 May 2017 19:53

That is not my understanding.

I do not believe there is such thing as an "Oaken GIC" or even an "Oaken-issued GIC". There are only Home Trust GICs and Home Bank GICs. I consider Oaken as kind of like Home Capital's in-house deposit broker. They do not "issue" GICs, they only sell them. As far as I know, a Home Trust GIC bought from a traditional deposit broker and a Home Trust GIC bought from Oaken are identical, except for the rate (which makes sense since, since Home Trust does not pay Oaken a commission). All they have done by creating Oaken is to cut out the external deposit broker and related commissions and those savings are passed along to their clients. At least that is my understanding of the whole setup.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 16 May 2017 19:59

Those involved with Oaken will have to comment.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by 2of3aintbad » 16 May 2017 20:42

The printed GIC certificates that I have recently received now include the line:
Issuer: Home Trust Company. (presumably because you can also choose Home Bank)

The old ones do not, but both contain the sentence:
Home Trust Company is a member the Canada Deposit Insurance Corporation.

The word 'Company' was added recently, ie to match the Issuer line.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by snowback96 » 16 May 2017 20:42

AltaRed - Look at Oaken as kind of being like Motive Financial (formerly CDF). You might buy a GIC from Motive/CDF but under the hood it is 100% Canadian Western Bank... both your T5 tax reporting and your CDIC coverage are through the Bank.

Even the Oaken HISA is really a Home Trust (or Home Bank) savings account.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 16 May 2017 20:48

Yes, got it (am with Motive). Just didn't know how Home (Oaken) operated its "online" retail side.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Taggart » 17 May 2017 14:20

Signed on to BMO Investorline to get a new GIC after a redemption. Looked at the offerings for 2 through 5 years. Equitable or Canadian Western Bank.......and that was it. Least choice of GIC offerings I can ever remember and I've been doing this annually for the past fifteen years. I don't think you have to figure out which financial institution I chose.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 17 May 2017 14:26

I just looked myself and have never seen a list that small either. There must be some strategy change going on in the background. Will have to watch and wait. By contrast, Scotia iTrade has offerings from 31 insitutions this morning, including Home Trust at 2.35%, Equitable Bank at 2.25% and CWB at 2.2%.

Added: By the way, had not noticed this before, but iTrade also has a USD Bank of Nova Scotia GIC at 2.3% (not CDIC insured).
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by 2of3aintbad » 17 May 2017 15:55

AltaRed wrote:
17 May 2017 14:26
I just looked myself and have never seen a list that small either. There must be some strategy change going on in the background. Will have to watch and wait. By contrast, Scotia iTrade has offerings from 31 insitutions this morning, including Home Trust at 2.35%, Equitable Bank at 2.25% and CWB at 2.2%.

Added: By the way, had not noticed this before, but iTrade also has a USD Bank of Nova Scotia GIC at 2.3% (not CDIC insured).
Go to Trading - Fixed Income, then View GIC Offerings, then on the left, select 5 years (or 4 years), and you will see about 19 different options.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 17 May 2017 16:08

Indeed. I guess I was only looking at Quick Picks. :oops:
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Taggart » 17 May 2017 16:32

2of3aintbad wrote:
17 May 2017 15:55
AltaRed wrote:
17 May 2017 14:26
I just looked myself and have never seen a list that small either. There must be some strategy change going on in the background. Will have to watch and wait. By contrast, Scotia iTrade has offerings from 31 insitutions this morning, including Home Trust at 2.35%, Equitable Bank at 2.25% and CWB at 2.2%.

Added: By the way, had not noticed this before, but iTrade also has a USD Bank of Nova Scotia GIC at 2.3% (not CDIC insured).
Go to Trading - Fixed Income, then View GIC Offerings, then on the left, select 5 years (or 4 years), and you will see about 19 different options.
Yes, I see what you're talking about. The BMOIL website wasn't like that a year ago. All available GIC's for the different terms were shown at once. Seems they are just showing the two GIC's with the highest yields, and you only see the rest when you click again to the left of the screen.

Thanks. I'll try and remember when I go to do the same a year from now.

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Rysto » 19 May 2017 14:28

Oaken raises GIC rates again. They must be really desperate:
Long-term GICs

1 Year GIC – 2.60% (currently 2.35%)
18 Month GIC – 2.70% (currently 2.45%)
2 Year GIC – 2.80% (currently 2.55%)
3 Year GIC – 2.90% (currently 2.65%)
4 Year GIC – 3.00% (currently 2.75%)
5 Year GIC – 3.10% (currently 2.85%)

Short-term GICs

30-59 Days – 2.00% (currently 1.75%)
60-89 Days – 2.00% (currently 1.75%)
90-119 Days – 2.10% (currently 1.85%)
120-179 Days – 2.15% (currently 1.90%)
180-269 Days – 2.20% (currently 1.95%)
270-365 Days – 2.20% (currently 1.95%)
I just bought a 5-year GIC a month ago to renew my ladder. It makes me wish a bit that this had blown up a bit early; I renewed at a lot lower than 3.1% (of course, if the CDIC has to step in then I wouldn't get 5 years at 3.1% anyway)

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 19 May 2017 15:03

It's getting to the point where I have to seriously consider a 5 year GIC for funds I've been holding in my TFSA for a 'well priced' CSH.UN instead. Been waiting for Chartwell to hit $14 again as it did last December... :roll: If a Home Trust ever gets higher than Chartwell's yield (currently ~3.6%), I will probably have to pull the trigger.... :shock:
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by NorthernRaven » 19 May 2017 15:05

Rysto wrote:
19 May 2017 14:28
Oaken raises GIC rates again. They must be really desperate
Hmm, yeah, I do seem to remember seeing some sort of minor news about them... :)

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by big easy » 19 May 2017 15:28

Taggart wrote:
17 May 2017 16:32
2of3aintbad wrote:
17 May 2017 15:55
AltaRed wrote:
17 May 2017 14:26
I just looked myself and have never seen a list that small either. There must be some strategy change going on in the background. Will have to watch and wait. By contrast, Scotia iTrade has offerings from 31 insitutions this morning, including Home Trust at 2.35%, Equitable Bank at 2.25% and CWB at 2.2%.

Added: By the way, had not noticed this before, but iTrade also has a USD Bank of Nova Scotia GIC at 2.3% (not CDIC insured).
Go to Trading - Fixed Income, then View GIC Offerings, then on the left, select 5 years (or 4 years), and you will see about 19 different options.
Yes, I see what you're talking about. The BMOIL website wasn't like that a year ago. All available GIC's for the different terms were shown at once. Seems they are just showing the two GIC's with the highest yields, and you only see the rest when you click again to the left of the screen.

Thanks. I'll try and remember when I go to do the same a year from now.
Rates/issuers at TDDI are very similar.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus » 19 May 2017 18:44

Upthread, I asked why they don't just raise the heck out of their rates, and they seem to be doing just that.

Like others, at 3.1%, it's getting awfully tempting. The question I'm having is how high can it go? It's starting to feel like the Nasdaq in the summer of 2000. :P

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed » 19 May 2017 19:43

SoninlawofGus wrote:
19 May 2017 18:44
Upthread, I asked why they don't just raise the heck out of their rates, and they seem to be doing just that.

Like others, at 3.1%, it's getting awfully tempting. The question I'm having is how high can it go? It's starting to feel like the Nasdaq in the summer of 2000. :P
A ways to go for Home Trust to get there though... currently 2.65% vs 3.1% for Oaken. Never say never, but the ceiling is coming vis-a-vis some margin is needed between deposits and lending.
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