High Interest Rates for Savings, GICs, MMFs [2012]

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
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sunkenradish
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by sunkenradish »

Insomniac wrote:Here's something on topic. Park cash for 6 months at 1.75%. $500 minimum.

https://www.coastcapitalsavings.com/Per ... _Cash_GIC/
How about:
Canadian Direct Financial KeyRate savings account, earning 2%?
Their KeyReach TFSA savings account pays 3%.

https://www.canadiandirectfinancial.com/Personal/Rates/
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cedeebee
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by cedeebee »

CJOttawa wrote: How about:
Canadian Direct Financial KeyRate savings account, earning 2%?
Their KeyReach TFSA savings account pays 3%.

https://www.canadiandirectfinancial.com/Personal/Rates/
That's amazing! (Who knew 3% would ever seem so exciting? :P) It almost seems too good to be true, though. I'm curious if anyone has any ideas as to why it's so high compared to their other rates as per their rate table. This 3% has been in effect since April 2010 yet the TFSA GIC rates were revised this month. Would this have something to do with laddering GICs? (I don't 'ladder' so my knowledge is limited.)
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by NorthernRaven »

cedeebee wrote:
CJOttawa wrote: Canadian Direct Financial KeyRate savings account, earning 2%?
Their KeyReach TFSA savings account pays 3%.
That's amazing! (Who knew 3% would ever seem so exciting? :P) It almost seems too good to be true, though. I'm curious if anyone has any ideas as to why it's so high compared to their other rates as per their rate table. This 3% has been in effect since April 2010 yet the TFSA GIC rates were revised this month. Would this have something to do with laddering GICs? (I don't 'ladder' so my knowledge is limited.)
It is probably chalked up as a promotional/customer acquisition cost. People going to the trouble of setting up their TFSA with CDF may decide to bring over other business as well, and as a savings account they aren't committing to it long term, although they so far haven't done the yo-yo thing of some of the other banks. Keeping it to the demand savings account limits the costs, and TFSAs in themselves are effectively capped (around $20K) - you'll notice that as well as the GICs being excluded, nothing like that 3% rate is available on their (in-branch) RRSP savings account, although it is for the TFSA. The rate is being paid out on what is likely a relatively small proportion of their deposit base.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by freedom_2008 »

Arby wrote:I found one minor advantage for TDB8150 over 3rd party HISA's at TDWH. The minimum purchase for TDB8150 is $100 (versus $1000 which was the former limit for 3rd party HISA's at TDWH). That saves me the trouble of waiting until I accumulate $1K in cash to make a HISA purchase.
True. But if you already have $1K in the HISA, you can always order to sell out some to make total cash $1K and then another order to buy back in, all in the same day. Never a trouble for us, except the 3rd parties are gone now :( .
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fundamental
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by fundamental »

Arby wrote:I found one minor advantage for TDB8150 over 3rd party HISA's at TDWH. The minimum purchase for TDB8150 is $100 (versus $1000 which was the former limit for 3rd party HISA's at TDWH). That saves me the trouble of waiting until I accumulate $1K in cash to make a HISA purchase.
Another advantage with TDB8150 is marginability vs. Manulife which does not offer it.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Quebec »

Quebec wrote:I haven't called Questrade yet to see what they actually have (they don't post FI offerings online anymore)
I take that back, they still so, http://campaigns.questrade.com/bonds/default.aspx. Minimum order $5k.

Best rates on Friday from CDIC-insured institutions were 1.51/2.11/2.31/2.42/2.5% on a five year GIC ladder (non-redeemable), all from AGF trust. (Actually a few competitors offers 4 basis points more on the two-year GIC)
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by AltaRed »

More like 1.8/2.2/2.40/2.42/2.6 at places like RBC-DI
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Shakespeare »

Quebec wrote:Best rates on Friday from CDIC-insured institutions were 1.51/2.11/2.31/2.42/2.5% on a five year GIC ladder (non-redeemable), all from AGF trust. (Actually a few competitors offers 4 basis points more on the two-year GIC)
Ladder set up today at RBCDI using their best rates, annual pay non-compounding:
Equitable Trust 1.8 2013
Bank of Nova Scotia 2.2 2014
Home Trust 2.4 2015
AGF Trust 2.41 2016
Manulife Bank 2.6 2017
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freedom_2008
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by freedom_2008 »

Peoples Trust (under CDIC) rates seem a bit better, https://thebestrate.peoplestrust.com/main/?mainhome# (login id: peoples, passwd: turst, if you need):

1 year 2.150
2 year 2.500
3 year 2.750
4 year 3.000
5 year 3.250
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StuBee
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by StuBee »

Is anyone able to explain how Peoples Trust can have such widely diverging interest rate schedules when comparing there "normal site" with the "back door" that Freedom 2008 refers to.

Clearly the back door does not involve any priveleged information and all of the conditions surrounding the GIC's are identical (from what I am able to see...).

I personally am insecure about using this back door since it appears to be too good to be true: A "normal" 5 year GIC is at 2.4% and a "back door" GIC is at 3.25%!
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by NorthernRaven »

StuBee wrote:Is anyone able to explain how Peoples Trust can have such widely diverging interest rate schedules when comparing there "normal site" with the "back door" that Freedom 2008 refers to.

Clearly the back door does not involve any priveleged information and all of the conditions surrounding the GIC's are identical (from what I am able to see...).

I personally am insecure about using this back door since it appears to be too good to be true: A "normal" 5 year GIC is at 2.4% and a "back door" GIC is at 3.25%
The effectively seem to be competing against the Manitoba credit union rates. Because they don't offer those high rates indiscriminately through deposit brokers, they probably reduce the proportion of GIC deposits they pay the higher interest rate on, and probably have a better chance of getting other business from those direct customers.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Benchwarmer »

StuBee wrote:I personally am insecure about using this back door since it appears to be too good to be true: A "normal" 5 year GIC is at 2.4% and a "back door" GIC is at 3.25%!
As long as it is CDIC insured, I don't care.

I figure if public money can be used to bailout the investment banks or backstop CMHC, then as a small fish I should also benefit. Not that I am comparing PT to Lehman Brothers :D
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Pickles
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Pickles »

Stubee, if you've been following this thread, you'll know I and others have been benefiting from PT's best rate without problems. By cutting out the middleman and avoiding the expense of establishing a full-service banking web site, they can afford to offer us such great rates.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by StuBee »

Thanks for all your answers! :D (Now I have some serious thinking to do :( )

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BRIAN5000
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by BRIAN5000 »

Manulife Bank 2.6 PT 5 year 3.250
IIRC if a GIC broker could talk you into a 5 year GIC he used to get almost 1/2 % commish that almost makes up the difference right there.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by johnfranks »

StuBee wrote:Is anyone able to explain how Peoples Trust can have such widely diverging interest rate schedules when comparing there "normal site" with the "back door" that Freedom 2008 refers to.

Clearly the back door does not involve any priveleged information and all of the conditions surrounding the GIC's are identical (from what I am able to see...).

I personally am insecure about using this back door since it appears to be too good to be true: A "normal" 5 year GIC is at 2.4% and a "back door" GIC is at 3.25%!
Has anyone tried this? I noticed the same thing posted on redflagdeals that is a post about 2 years old (they were offering 3.7% back then). Sounds like a great way to pick up an extra percent over a bank GIC, and it even beats 10 year provincial bonds! But like you, I'm a little concerned about what interest rate I'll actually get.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Pickles »

johnfranks wrote:
StuBee wrote:Is anyone able to explain how Peoples Trust can have such widely diverging interest rate schedules when comparing there "normal site" with the "back door" that Freedom 2008 refers to.

Clearly the back door does not involve any priveleged information and all of the conditions surrounding the GIC's are identical (from what I am able to see...).

I personally am insecure about using this back door since it appears to be too good to be true: A "normal" 5 year GIC is at 2.4% and a "back door" GIC is at 3.25%!
Has anyone tried this? I noticed the same thing posted on redflagdeals that is a post about 2 years old (they were offering 3.7% back then). Sounds like a great way to pick up an extra percent over a bank GIC, and it even beats 10 year provincial bonds! But like you, I'm a little concerned about what interest rate I'll actually get.
If you read through this thread -- even the first post -- you will get some answers to your question.
Regards,
Pickles
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by johnfranks »

Pickles wrote: If you read through this thread -- even the first post -- you will get some answers to your question.
Okay.... I read through the whole thread. Seems to be legit. I couldn't find any info about how people deal with maturities of GICs, but I suppose it's too soon to get any feedback on that. People's says they can deposit back to your original bank account, or they'll reinvest automatically for 30 days. Anyway, it looks like they check out... hopefully not some Bernie Madoff at the helm.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by slim »

Peoples Trust is owned by Triple Five Corporation http://triplefive.com/en/pages/banking/peoples-trust
Triple Five is owned by the Ghermezian Family http://en.wikipedia.org/wiki/Ghermezian_family
Better business bureau gives them a good ratiing http://www.bbb.org/mbc/business-reviews ... -bc-112138

I put 80 grand with them in February when they were still paying 3.5%
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Benchwarmer »

johnfranks wrote:I couldn't find any info about how people deal with maturities of GICs, but I suppose it's too soon to get any feedback on that.
For RRSP GICs, they automatically reinvest for the same term, at the rate in effect at the time. Unless you give them instructions otherwise.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Quebec »

AltaRed wrote:More like 1.8/2.2/2.40/2.42/2.6 at places like RBC-DI
Well, it seems like Questrade is not the place to buy GICs then! Thanks for the info, AltaRed and Shakespeare
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by randomwalker »

randomwalker wrote:"High Interest Rate" 5 year GICs" at 3.4 to 3.5%
Government of Canada 5 year bond at 1.94%
Government of Canada 30 year bond at 2.52%

Clearly credit quality of the issuer and duration to maturity no longer matter in the fixed income market. A world turned upside down. lol

Clearly the Government of Canada should issue five to thirty year bonds and then take the proceeds and purchase "high Interest" five year GICs, probably in Manitoba. It's perfect borrow long, lend short, all risk free. Like I said a world turned upside down.

Credit unions poised for cross-country expansion
Grant Robertson Banking Reporter, The Globe and Mail, Thursday, Jul. 05 2012

"Credit unions are getting the green light to expand across Canada, under new regulations that will let them grow beyond their own provincial borders. Federal Finance Minister Jim Flaherty made the announcement Thursday with the release of proposed regulations that could lead to the creation of larger credit unions and caisses populaires in Canada to compete with the country’s banks."

(and of interest to me)

"The changes involve putting credit unions under the oversight of the Office of the Superintendent of Financial Institutions."


http://www.theglobeandmail.com/report-o ... cmpid=rss1
Last edited by randomwalker on 09 Jul 2012 05:41, edited 2 times in total.
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by johnfranks »

randomwalker wrote: "Credit unions are getting the green light to expand across Canada, under new regulations that will let them grow beyond their own provincial borders.
So what does that mean for an investor? I thought credit union deposits weren't CDIC insured, instead being kind-of/sort-of insured by the province. IMO, that means I'd need at least 1% more yield on a credit union GIC over a bank GIC. Would these new regulations mean that credit unions could be CDIC insured?
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by fundamental »

For those still with ING...

9 mth GIC now 1.50% (up 0.25% from 1.25%) (improved, but still uncompetitive based on other non-bank ISA rates)

3 year GIC now 2.25% (up 0.25% from 2.00%)
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Re: High Interest Rates for Savings, GICs, MMFs [2012]

Post by Bylo Selhi »

optionable68 wrote:
Bylo Selhi wrote:ING Direct's is, by far, the least competitive HISA. That's quite a change from how they got established in Canada...
I agree that ING has lost its luster.
A sign of desperation?
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