This is the thread to post rate changes, questions, special offers, etc. Please do not use this thread to discuss the relative merits of HISAs and GICs as an investment vehicle. There are threads on asset allocation, TFSA strategies, etc., in the Financial Planning and Retirement Planning sub-forums. Here
is just one of the discussions on the merits of setting up a GIC ladder and another
on the changing role of GICs in financial planning/investment.
Some of the current rates offered on High Interest Savings Accounts (HISAs) as of January 1, 2014:
ING savings account 1.35%
ING RRSP savings account: 1.35% (there is a time limited promo rate of 2.5% for new contributions
ING TFSA account 1.4% (there is a time limited promo rate of 2.5% for new contributions
) plus a cash bonus of $25 for new clients opening up a TFSA
People's Trust Savings account 1.8%
Peoples Trust TFSA account 3%
President's Choice Financial Interest Plus/No Fee and RRSP Savings - 1.35% (does not include their current promotional rate of 2.25% that ends Jan 31 on Interest Plus and No Fee)
President's Choice TFSA Savings - 1.4%
Canadian Tire Bank Savings 1.5%
Canadian Tire Bank TFSA 1.9%
Canadian Direct Financial Savings 1.9%
Canadian Direct Financial TFSA 2.25%
Oaken Financial (a new online banking option from Home Trust) Savings 1.65%
All of these institutions' deposits, subject to $100,000 limit per account are covered by federal CDIC insurance.
There are also credit unions which offer savings accounts and GICs. Their deposits are insured by provincial deposit insurance plans. Some members believe the guaranteed of these provincial insurance plans is not as secure as CDIC insurance.
Some online banks charge service fees (eg. Canadian Tire will charge $50 to transfer your TFSA to another provider) while others -- notably ING, are fee-free. It pays to check out what fees may apply, particularly if you like to move your cash around frequently.
GIC rates vary from provider to provider. ING, Oaken and Canadian Tire offer cashable GICs in addition to the more usual hold-to-maturity GICs (though early redemption pays less interest and sometimes no interest at all). Discount Brokerages offer Money Market Funds and GICs as well, from a variety of providers at fairly competitive rates. For example, here are the top GIC rates
offered to BMO Investorline clients. This list is updated at the beginning of each trading day and draws from a stable of more than a dozen GIC issuers. More of these links will follow in subsequent posts.
Oaken Financial currently has the best rates of CDIC insured institutions and offers the option of semi-annual or monthly interest payments for a slightly lower rate:
1 year 2.00%
2 year 2.2%
3 year 2.4%
4 year 2.6%
5 year 3.0%
Major changes took place during 2013 and more will occur in 2014.
Ally Bank was bought by RBC which promptly closed down accounts and reissued GICs under the RBC banner. Peoples Trust developed a new online bank to handle non-registered, RRSP and TFSA savings accounts and GICs. Their website was hacked and some clients' personal information was compromised. Scotiabank bought ING bank and will be re-branding it "Tangerine" later this year. There are separate threads on these topics in the Under the Mattress sub-forum.
Home Trust is following Peoples Trust strategy (with better website security, we hope) and opening an online bank called Oaken Financial (only a savings account for non-registered deposits but GICs for RRSPs and TFSAs can be bought in addition to non-registered GICs).
There is a great deal of useful and relevant information on GIC laddering, comparison of different online banks, the difference between CDIC guarantees of your deposit (banks and trust companies) and guarantees offered by credit unions and insurance companies, etc., etc in previous years' threads on this topic. It is worthwhile to do a search in the 2012 and 2013 threads before posting a question on these topics here.
Happy New Year!edited to add new information and links