High interest rates for savings, GICs and MMFs (2014)

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gsp_
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by gsp_ »

IdOp wrote:Has anyone seen anything from PCF offering bonus interest for new money? Or is it too early yet to be expecting such a new offer?
Not too early and no sign at all of a promo. Offering it now would include all the funds that bailed after the last promo so my guess is it won't happen. Usually the new promo starts immediately as the previous one ends so as to set a high bar on new deposits. Perhaps they just don't need the funding right now.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by IdOp »

gsp_ wrote:Not too early and no sign at all of a promo. Offering it now would include all the funds that bailed after the last promo so my guess is it won't happen. Usually the new promo starts immediately as the previous one ends so as to set a high bar on new deposits. Perhaps they just don't need the funding right now.
Thanks gsp_ . This would have been my first time participating in their promo so I wasn't sure as to the timing of previous offers. I had moved some money out for TFSA and decided to take out some more in case of a promo. I'll wait a little longer before returning it, just in case.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by Raul »

DYN500 at iTrade, to my understanding is not an HISA but a money-market mutual fund.

For those that have it, I have a couple of questions:
1. is there a charge/penalty if money is withdrawn within the 90 day period?
2. How's interest paid. Is interest calculated daily and paid at month's end?

Couldn't find answers to these questions on their website.
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Re: High interest rates for savings, GICs and MMFs (2014)

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I use DYN500 all the time in my iTrade account. I have been known to buy/sell units on a daily basis a few times. No minimum withholding period. To the best of my knowledge, interest is calculated daily and paid monthly.

DYN500 is traded like a mutual fund but is classified as an ISA (interest savings account). It is no different than any of the other 'in house' ISAs from the other discount brokers, ManuLife, etc. The key to avoiding 90 day retention period penalties is to restrict yourself to the 'in-house' ISAs such as DYN500 at Scotia iTrade, RBF2010 at RBC DI, etc.
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Re: High interest rates for savings, GICs and MMFs (2014)

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AltaRed wrote:I use DYN500 all the time in my iTrade account. I have been known to buy/sell units on a daily basis a few times. No minimum withholding period. To the best of my knowledge, interest is calculated daily and paid monthly.

DYN500 is traded like a mutual fund but is classified as an ISA (interest savings account). It is no different than any of the other 'in house' ISAs from the other discount brokers, ManuLife, etc. The key to avoiding 90 day retention period penalties is to restrict yourself to the 'in-house' ISAs such as DYN500 at Scotia iTrade, RBF2010 at RBC DI, etc.
I do the same with DYN1300 at Itrade in both my registered an non-registered accounts without any problems. I don't remember why I went with DYN1300 over DYN500. A quick check shows they have the same interest rate. http://www.canadiancapitalist.com/high- ... t-brokers/
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Re: High interest rates for savings, GICs and MMFs (2014)

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With some GICs maturing in March we're keeping on eye on current 5 year rates @ our brokerage accounts (TDII & BMOIL). Not much difference (~2.55%), but interesting to note that TangerING: has upped their 5yr to the same rate (we still have outstanding TFSAs maturing next year), and their 90 day GIC still pops up at 2% when attempting to transfer 25k or more.
Also keeping on eye on Oaken-Home Trust (HISA 1.65%, 1yr cashable after 90 days 2.00%, very competitive 1-5 yr GICs; online banking option not yet available) as a future HISA/90d alternative for T-ING.
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Re: High interest rates for savings, GICs and MMFs (2014)

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Oaken - online banking option not yet available)
They were saying Mayish at the Zoomer show.
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Re: High interest rates for savings, GICs and MMFs (2014)

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poedin wrote:With some GICs maturing in March we're keeping on eye on current 5 year rates @ our brokerage accounts (TDII & BMOIL). Not much difference (~2.55%), but interesting to note that TangerING: has upped their 5yr to the same rate (we still have outstanding TFSAs maturing next year), and their 90 day GIC still pops up at 2% when attempting to transfer 25k or more.
Thanks again for the heads-up: 90 day GIC + new 5 year rate.

It is nice to see ING-Tangerine wake up a little. They've not had a 5 year rate this high for almost 3 years.
BMOIL has a few GICs at 2.56% but this amounts to little more than a $50 difference for 100K. Not worth the effort to move the funds.
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Re: High interest rates for savings, GICs and MMFs (2014)

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BRIAN5000 wrote:
Oaken - online banking option not yet available)
They were saying Mayish at the Zoomer show.
:thumbsup:
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Re: High interest rates for savings, GICs and MMFs (2014)

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FYI: Received a T5 from Peoples Trust that had extremely short interest income reported. Couldn't make any sense of the amount. Called in and one of their menu options is specifically for T5s, the automated message mentioned some customers will be getting 2 T5s as they moved accounts from one system to another. Did not bother talking to a rep.

I now realize the T5 I received was for the old Peoples Choice account and presumably I'll be receiving the T5 for the e savings account soon. Just something to keep in mind for those who converted their account type in 2013.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by Koogie »

I'm trying to put together a new 5 year GIC ladder and have been looking at rates. If anyone knows of any better, could you advise. I assume this might be of use to others. Plain vanilla, non redeemable GICs held in taxable accounts.

1 year
CDIC - 2.10% - Peoples Trust
DGCM - 2.20% - Maxa/Outlook/Implicity/Accelerate

2 year
CDIC - 2.20% - Peoples Trust
DGCM - 2.40% - Maxa/Outlook/Implicity/Accelerate

3 year
CDIC - 2.40% - Oaken
DGCM - 2.70% - Outlook

4 year
CDIC - 2.60% - Oaken
DGCM - 2.85% - Outlook

5 year
CDIC - 3.05% - Oaken
DGCM - 3.10% - Maxa/Outlook/Implicity/Accelerate
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Re: High interest rates for savings, GICs and MMFs (2014)

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I would stick to one provider to avoid proliferation of accounts, unless of course, one already has accounts with several providers. What would you do next year if CDF or PCF had the better rate for your maturing 1 yr GIC at PT?

Unless you are investing in $100k per year where 0.2% differences equal $200, it seems hardly worth the hassle.
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Re: High interest rates for savings, GICs and MMFs (2014)

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Good summary of rates. I would add 2.3% for 18 months at Oaken. It beats their 2year rate. The obvious winner is Oaken. They are substantially higher if you are setting up a ladder.
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Re: High interest rates for savings, GICs and MMFs (2014)

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AltaRed wrote:I would stick to one provider to avoid proliferation of accounts, unless of course, one already has accounts with several providers. What would you do next year if CDF or PCF had the better rate for your maturing 1 yr GIC at PT?
Unless you are investing in $100k per year where 0.2% differences equal $200, it seems hardly worth the hassle.
I'm doing this for the business so I have to spread it around to a variety of carriers since we are over the CDIC limits of protection for each rung of the ladder. Agreed it's a pain to keep track of but in a sense I'm being "paid" to do it, so no harm.

As I'm doing this, I'm tempted by two very bad impulses.

One is that the DGCM has no limit to coverage, unlike CDIC. (For what that may be worth based on your opinion of DGCM). So, normally I would choose the DGCM carriers for the short term rungs (to mitigate "risk") but then again since their coverage is "unlimited" I am being tempted to use them for the longer term rungs. Thoughts on this and/or DGCM ?

Secondly, since rates are so low, I'm tempting to make the ladder "lopsided" and weight the longer rungs with more funds to heighten the average. I'm aware this is simply nothing more market timing but it is sorely tempting.
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Re: High interest rates for savings, GICs and MMFs (2014)

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Koogie wrote:Secondly, since rates are so low, I'm tempting to make the ladder "lopsided" and weight the longer rungs with more funds to heighten the average. I'm aware this is simply nothing more market timing but it is sorely tempting.
That defeats part of the reason for building a ladder. If you equal weight, then every year there is a maturing rung, which is then re-invested at the going rate of the far-end rung, in your case a 5 year GIC. You then become somewhat indifferent to the rise and fall of interest rates. If rates rise in the next year, you'll benefit when you purchase the new 5 year GIC.
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Re: High interest rates for savings, GICs and MMFs (2014)

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Koogie wrote:Agreed it's a pain to keep track of but in a sense I'm being "paid" to do it, so no harm.
In my case, a portion of my FI will be non-registered. I am going to switch around to chase the best rates. For example about 2 weeks ago, the best 5-year rate from my discount broker was 2.55%, whereas it was 3.05% at Oaken, a significant difference.

If I set up non-registered accounts at 5 institutions, I pretty much have it covered. As long as there are savings accounts where I can park the cash for a few days.

Of course this approach is not feasible for RRSP/TFSA, but for non-registered, IMO it is well worth the effort.
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Re: High interest rates for savings, GICs and MMFs (2014)

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gsp_ wrote:
IdOp wrote:Has anyone seen anything from PCF offering bonus interest for new money? Or is it too early yet to be expecting such a new offer?
Not too early and no sign at all of a promo. Offering it now would include all the funds that bailed after the last promo so my guess is it won't happen. Usually the new promo starts immediately as the previous one ends so as to set a high bar on new deposits. Perhaps they just don't need the funding right now.
It took them a while, but here is the new bonus interest offer: it runs retroactively from February 1st to April 30th at 1.75% for the No-Fee Account (chequing) and the Interest Plus Savings Account.

As usual, the 1.75% interest is earned on the combined balance of the two accounts that is above the combined balance of January 31st. The promotional interest will be paid sometime in May.

To be eligible, you MUST sign up for the offer. Call them or visit a pavilion.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by Bylo Selhi »

adrian2 wrote:the new bonus interest offer: it runs retroactively from February 1st to April 30th at 1.75% for the No-Fee Account (chequing) and the Interest Plus Savings Account.

As usual, the 1.75% interest is earned on the combined balance of the two accounts that is above the combined balance of January 31st. The promotional interest will be paid sometime in May.
So if you'd taken money out on 30Jan, parked it at say 1.5% somewhere else, then move it back today, that money would earn 1.5% plus 1.75% for the month of February?

So how long does this double parking meter keep running, i.e. how long can we keep our money parked elsewhere before we have to move it back to PCF in order to collect the extra 1.75% retroactively? :twisted: :geek: :lol:
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Re: High interest rates for savings, GICs and MMFs (2014)

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Bylo Selhi wrote:
adrian2 wrote:the new bonus interest offer: it runs retroactively from February 1st to April 30th at 1.75% for the No-Fee Account (chequing) and the Interest Plus Savings Account.

As usual, the 1.75% interest is earned on the combined balance of the two accounts that is above the combined balance of January 31st. The promotional interest will be paid sometime in May.
So if you'd taken money out on 30Jan, parked it at say 1.5% somewhere else, then move it back today, that money would earn 1.5% plus 1.75% for the month of February?

So how long does this double parking meter keep running, i.e. how long can we keep our money parked elsewhere before we have to move it back to PCF in order to collect the extra 1.75% retroactively? :twisted: :geek: :lol:
Not exactly. :P

It would work if you'd taken money out on Friday 31 Jan, parked it at say 1.5% somewhere else for a few days, then move it back, say, on Monday Feb 03, that money would earn 1.5% plus 1.75% for most of the month of February.
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Re: High interest rates for savings, GICs and MMFs (2014)

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PCF_bonus_2014.jpg
The fine print.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by Bylo Selhi »

Thanks. It did sound too good to be true, hence my query.
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Re: High interest rates for savings, GICs and MMFs (2014)

Post by AltaRed »

PCF is getting clever, frustrating those who had withdrawn funds before Jan 31 in anticipation of a new offer. Tends to now mostly reward those who put their money back in Feb 1st on good faith. I likely won't bite on what now becomes a 55 day offer, about $80 on $100k above and beyond the vanilla HISA.
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Re: High interest rates for savings, GICs and MMFs (2014)

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Got off the PCF merry go round at the last stop. No incentive to get back on.
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Re: High interest rates for savings, GICs and MMFs (2014)

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PCF bonus rate is less than PT regular rate. Yawn.
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Re: High interest rates for savings, GICs and MMFs (2014)

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ig17 wrote:PCF bonus rate is less than PT regular rate. Yawn.
Yabbut it allows you to keep money in a PC chequing account and still earn 1.75% (for the next little while). From the chequing account one can pay bills with no notice (which I need to do, for reasons I'm not going to delve into).

I do have part of the family's TFSA's at PT (the other part is now mostly at TDW), but I did not bother to open non registered accounts with them. There's still a bitter taste every time I recall their privacy breach...
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