GICs not coming from the big banks and the Home Capital saga

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Bobetpine
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GICs not coming from the big banks and the Home Capital saga

Post by Bobetpine »

Hi,

Is it me or GIC rates that I see on BMO IL are going up (a little bit)?

I have a lump sum to invest in GICs and wonder if I should wait a bit or jump in right now. I know that Home Capital is reporting results tonight and I wonder if it's reasonable to wait in case rates would go up again. I know that you don't read crystal balls but you could be aware of things I don't know/don't understand.

Thanks

PS: not worried about bankruptcy, all GICs offered by BMO IL are CDIC backed.
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AltaRed
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Re: GICs not coming from the big banks and the Home Capital saga

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GIC rates depend on what needs to be offered to attract deposits for mortgage lending purposes. Influences include the 2-5 year bond yield curve, and speculation on BoC short term interest rate movement. If you have a 6 sided dice, roll it.
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SoninlawofGus
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Re: GICs not coming from the big banks and the Home Capital saga

Post by SoninlawofGus »

Agree with AR. Even the GICs sold through brokerages are a good 1% more than the comparable 5-year GOC bond. You'd need to go out to six years or so to get the same with provincials (which have gotten better if I'm not mistaken). I don't know what's going to happen with rates. It could be that the worst news is priced in regarding the Home Capital saga, but I have no idea.
2of3aintbad
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Re: GICs not coming from the big banks and the Home Capital saga

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It is true that best GIC rate on BMOIL has gone up from just under 2% at the beginning of the year to 2.10% which I think the high for the year. But it is discouraging to see that the 5 year rate available outside is from Canadian Tire Bank at 2.5%, and that it is only 1.95% via BMOIL.
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Re: GICs not coming from the big banks and the Home Capital saga

Post by Hopetoretire »

http://www.zerohedge.com/news/2017-05-1 ... e-capital-

How much truth in this article about the banks' actions on Home Trust deposits and should I be concerned (have several Home Trust GIC's though RBCDI and TDDI)?

Sorry I don't understand CDIC coverage vs bail-out in this situation ...
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NorthernRaven
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Re: GICs not coming from the big banks and the Home Capital saga

Post by NorthernRaven »

Hopetoretire wrote: 14 May 2017 08:22 http://www.zerohedge.com/news/2017-05-1 ... e-capital-

How much truth in this article about the banks' actions on Home Trust deposits and should I be concerned (have several Home Trust GIC's though RBCDI and TDDI)?

Sorry I don't understand CDIC coverage vs bail-out in this situation ...
Step 1: Relax. Everything under the CDIC $100K limits is protected, in all circumstances, should it come to that.

Step 2: Stop reading ridiculous websites like zerohedge... :)
2of3aintbad
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Re: GICs not coming from the big banks and the Home Capital saga

Post by 2of3aintbad »

2of3aintbad wrote: 11 May 2017 17:01 It is true that best GIC rate on BMOIL has gone up from just under 2% at the beginning of the year to 2.10% which I think the high for the year. But it is discouraging to see that the 5 year rate available outside is from Canadian Tire Bank at 2.5%, and that it is only 1.95% via BMOIL.
To follow up on this, on BMOIL the best 5 year rate went up to 2.15% on Friday and 2.25% today (both Equitable Bank). Second highest is 2.10% Concentra Bank.
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AltaRed
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Re: GICs not coming from the big banks and the Home Capital saga

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On Scotia iTrade, both Home Trust and Equitable Bank are 2.25% and Concentra is 2.1%
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BRIAN5000
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Re: GICs not coming from the big banks and the Home Capital saga

Post by BRIAN5000 »

Oaken is looking for money :shock:

Guaranteed Investment Certificates (GIC)

Long-term GICs

Term 5 Year
Annual compound or annual pay 2.60
Semi-annual 2.55
Monthly 2.50
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
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AltaRed
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Re: GICs not coming from the big banks and the Home Capital saga

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That should capture some renewals.... albeit unlikely new money.
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poedin
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Re: GICs not coming from the big banks and the Home Capital saga

Post by poedin »

BRIAN5000 wrote: 15 May 2017 15:14 Oaken is looking for money :shock:

Guaranteed Investment Certificates (GIC)

Long-term GICs

Term 5 Year
Annual compound or annual pay 2.60
Semi-annual 2.55
Monthly 2.50
This morning I'm seeing 2.85 (compound/annual) 2.75 (monthly) for the five year!
other rates https://www.oaken.com/gic-rates/
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