# GIC Rates



## birdman (Feb 12, 2013)

I deal with Qtrade and was thinking of placing some of my GIC business with them as I could eliminate dealings with one of several institutions I deal with. Also, their rates seem fairly good (yes, I know there are some higher). In particular I am looking for rates only which are CDIC insured. One of the ones QTrades offesr that is insured is with Concentra Financial and the rates are as follows:

1 yr 2%
2 yr 2.15%
3 yr 2.4%
4 yr 2.5%
5 yr 2.75%

There is also a 1% per $1,000. fee.
I am aware of other entities which offer good rates (eg Peoples, Hubert Financial, etc) but was wondering if anyone could provide details of any CDIC insured GIC rates offerred thru their broker. A notation re fees, if any, would also be of interest. 
Thankyou for any responses.


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## GoldStone (Mar 6, 2011)

BMO Investorline and RBC Direct Investing post their GIC rates online. Google it. You don't have to be a client.


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## birdman (Feb 12, 2013)

Thanks Goldstone. I checked BNS but they seemed to require an account before you could view the rates. Interesting in that RBC rates are just a bit lower than Concentra but there is no fee of $1.00 per thousand. It seems RY offers 2.6% for 5 yrs vs their in branch rate of 2.0%. I wonder why would one purchase a GIC at the branch level as opposed to thru their brokerage acct? Perhaps I am missing something.


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## NorthernRaven (Aug 4, 2010)

frase said:


> Thanks Goldstone. I checked BNS but they seemed to require an account before you could view the rates. Interesting in that RBC rates are just a bit lower than Concentra but there is no fee of $1.00 per thousand. It seems RY offers 2.6% for 5 yrs vs their in branch rate of 2.0%. I wonder why would one purchase a GIC at the branch level as opposed to thru their brokerage acct? Perhaps I am missing something.


Not everyone has a brokerage account... 

Actually, I'd guess that they think branch customers tend to be "dumber" money that won't be as rate-concious, while brokerage accounts may be more likely to move the GIC money elsewhere. They'd want to offer higher rates to as few people as possible without losing too much business. Can you get those high rates from RBCDI inside an RRSP plan?

By the way, I assume the $1 per $1000 fee for GICs is the "fixed income" fee from Qtrade's fee page? That one has a "24.99 min" - does that mean at least a $25 charge for any GIC purchase, or do they waive it for GICs somehow?


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## AltaRed (Jun 8, 2009)

frase said:


> In particular I am looking for rates only which are CDIC insured. One of the ones QTrades offesr that is insured is with Concentra Financial and the rates are as follows:


Concentra is a CU to best of my knowledge and thus its deposits are not likely CDIC insured (to the best of my knowledge). Scotia iTrade has the same rates for Concentra Financial GICs. After Concentra Financial, Scotia iTrade, RBC DI and BMO IL all have Home Trust 5 yr at 2.6%.

As GoldStone said, some discount brokerages post their GIC rates online publicly. None of the 3 discount brokerages I have accounts with (BMO IL, RBC DI, Scotia iTrade) charge commissions to purchase GICs. They get their ounce of flesh directly from the issuer, e.g. may charge the issuer 25 bp or 1/4% of face value.


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## birdman (Feb 12, 2013)

My interpretation is that the $1 per $1000. fee for any GIC's is subject to a 24.99 minimum and a $250. maximum. Not much if you are investing for a longer term but worthy of consideration on shorter terms.


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## NorthernRaven (Aug 4, 2010)

AltaRed said:


> Concentra is a CU to best of my knowledge and thus its deposits are not likely CDIC insured (to the best of my knowledge). Scotia iTrade has the same rates for Concentra Financial GICs. After Concentra Financial, Scotia iTrade, RBC DI and BMO IL all have Home Trust 5 yr at 2.6%.


Concentra is a CDIC institution - it isn't a retail CU, rather a company that provides services for CUs, and needs to operate nationally.


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## gibor365 (Apr 1, 2011)

The best rates I can get in CIBC Investor Edge
1 y - 1.95
2 y - 2.05
3 y - 2.15
4 y - 2.35
5 y - 2.51

Thus majority of my GICs in Peoples Trust that CDIC insured and offers 2.4% for 1 y GIC


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## heyjude (May 16, 2009)

The best rates I can get in TD Waterhouse
1 y - 1.95
2 y - 2.05
3 y - 2.12
4 y - 2.28
5 y - 2.51


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## gibor365 (Apr 1, 2011)

Also, in TDW, CIBC or PT there are no any fees


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## fatcat (Nov 11, 2009)

those are good rates at questrade
i have a fair bit at oaken financial and their 5-year is 2.80
so you are doing ok at questrade but the 1% fee is a bummer

on 100K it reduces a 1-year gic from 2.0 to 1.9

not so great but not too bad for 5 year terms i guess

most of the brokers have shite rates but i guess they are not in the gic business

its a perennial question: the paperwork and management for chasing the best rate or stick with the brokerage rates
another way is to use a gic broker which can cut down on much of the paperwork
i have used gic direct and like them

the best deal out there is oaken's 2% 1-year which is fully cashable without penalty after 90-days
you get the best of both world liquidity and a good guaranteed rate (and the ability to roll it after 90-days)


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## Butters (Apr 20, 2012)

fatcat said:


> those are good rates at questrade


I think OP said Qtrade

To OP go with People's Trust


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## gibor365 (Apr 1, 2011)

_the best deal out there is oaken's 2% 1-year which is fully cashable without penalty after 90-days_ the best deal right now is Tangerine with 3% on HISA, than PT with 2.4% on 1 y GIC (just make ladder and it will be very liquid )


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## fatcat (Nov 11, 2009)

gibor said:


> _the best deal out there is oaken's 2% 1-year which is fully cashable without penalty after 90-days_ the best deal right now is Tangerine with 3% on HISA, than PT with 2.4% on 1 y GIC (just make ladder and it will be very liquid )


yes, both very good gibor especially the 3% HISA, fantastic, fully insured and liquid ... that would worth the account opening


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## gibor365 (Apr 1, 2011)

fatcat said:


> yes, both very good gibor especially the 3% HISA, fantastic, fully insured and liquid ... that would worth the account opening


For sure  and you get $50 gift for account opening


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## AMABILE (Apr 3, 2009)

aside from oaken, does anyone else offer a great rate for a 1yr cashable gic


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## lonewolf (Jun 12, 2012)

frase said:


> I deal with Qtrade and was thinking of placing some of my GIC business with them as I could eliminate dealings with one of several institutions I deal with. Also, their rates seem fairly good (yes, I know there are some higher). In particular I am looking for rates only which are CDIC insured. One of the ones QTrades offesr that is insured is with Concentra Financial and the rates are as follows:
> 
> 1 yr 2%
> 2 yr 2.15%
> ...


 Hi Frase

Why would you want to decrease your odds by getting your principal back with interest with a CDIC insured GIC. The herd for safety goes CDIC insured I say for safety stay away from CDIC insured.


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## birdman (Feb 12, 2013)

Lonewolf:
For diversification. Right now only about 8% of my portfolio is CDIC insured and the balance is with CU's or invested in MIC's or the market. Thought I would bring the CDIC part up to about 25%. Also, I currently deal with 5 or more F/I's and would like to reduce that number as I get older but at the same time would like to get the better rates offered by these institutions. The GIC and CDIC insured Concentra deposit thru Qtrade would seem to accomplish this. Make sense?


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## GoldStone (Mar 6, 2011)

lonewolf said:


> Why would you want to decrease your odds by getting your principal back with interest with a CDIC insured GIC. The herd for safety goes CDIC insured I say for safety stay away from CDIC insured.


Outrageous, irresponsible comment.

lone, you are lucky this forum is not moderated. On many other forums, you would be long banned.


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## AltaRed (Jun 8, 2009)

frase said:


> For diversification. Right now only about 8% of my portfolio is CDIC insured and the balance is with CU's or invested in MIC's or the market. Thought I would bring the CDIC part up to about 25%. Also, I currently deal with 5 or more F/I's and would like to reduce that number as I get older but at the same time would like to get the better rates offered by these institutions. The GIC and CDIC insured Concentra deposit thru Qtrade would seem to accomplish this. Make sense?


Makes perfect sense to me albeit there probably is not much risk with CUs*. For me, account simplificiation is a key component to reduce the workload for my executors and beneficiaries should I get hit by a bus this afternoon. I thus limit myself to a few discount brokerages and a few eHISA accounts (CDF and PT). I have yet to dip my toe into MICs but probably should consider that in my brokerage accounts. 

* Though I have never and will never leave deposits with CUs. Remember the US savings and loan crisis? I would trust the Feds (CDIC) before I'd trust provincial CU guarantees.


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## 6811 (Jan 1, 2013)

Frase,

These are the rates for ANNUAL GIC's currently offered by I*Trade (non-cashable). As you can see in the notes at the bottom, all are CDIC insured. I tried to format these but the format is lost when I post this reply.

ISSUER 1 year	2 year 3 year 4 year 5 year	DBRS Rating1	Purchase Minimum
Bank of Nova Scotia 1.45	1.8 2 2.2 2.5 AA $1,000
Canadian Western Bank 1.6	1.95 2.1 2.2 2.4 AL $5,000
HSBC Bank Canada 1.4	1.75 1.9 2.15 2.4 AA $5,000
Pacific and Western Bank of Canada 1.6	1.95 2.1 2.2 2.2 N/R $1,000
B2B Bank 1.5	1.97 2.15 2.35 2.51 BBBH $1,000
Toronto Dominion Mortgage Corp 1.4	1.4 1.85 2.1 2.2 AA $5,000
Bank of Montreal 1.61	1.96 2.12 2.27 2.41 AA $1,000
Manulife Bank 1.4	1.6 1.9 2.2 2.45 AH $5,000
Hollis Canadian Bank 1.45	1.8 2 2.2 2.5 AA $1,000
Home Trust 1.95	2.05 2.25 2.4 2.6 BBB $5,000
ICICI Bank Canada 1.3	1.51 1.82 2.15 2.4 N/R $1,000
Equitable Bank 1.95	2.05 2 2.15 2.4 BBBL $5,000
Home Equity 1.3	1.55 2.1 2.2 2.6 N/R $5,000
Royal Bank of Canada 1.5	1.81 2.11 2.28 2.51 AA $5,000
Manulife Trust 1.4	1.6 1.9 2.2 2.45 AH $2,500
CIBC 1.46	1.8 2.1 2.3 2.55 AA $5,000
Concentra Financial 2 2.15 2.4 2.5 2.75 N/R $5,000
Sun Life Financial Trust 1.15	1.55 1.8 2.2 2.6 AL $5,000
Scotia Mortgage Corp 1.45	1.8 2 2.2 2.5 AA $1,000
Montreal Trust Co of Canada 1.45	1.8 2 2.2 2.5 AA $1,000
National Trust Co 1.45	1.8 2 2.2 2.5 AA $1,000
Toronto Dominion Pacific Mortgage Corp 1.4	1.4 1.85 2.1 2.2 AA $5,000
Canada Trust Co. 1.4	1.4 1.85 2.1 2.2 AA $5,000
BMO Trust Company 1.61	1.96 2.12 2.27 2.41 AA $1,000
Bank of Montreal Mortgage Corp 1.61	1.96 2.12 2.27 2.41 AA $1,000
1 - DBRS Ratings as of 01/05/2013 

Disclaimer: GIC orders are accepted until 4:00 pm ET on business days and until 12:00 pm ET on early closing days. All GIC purchases settle the next business day. The settlement date is also the issue date. Minimum purchase amount applies to each GIC, as required by the issuer. Cashable GICs may not be redeemed for 5 business days after purchase, and also have a further holding period before which if you redeem your cashable GIC, you will receive no accrued interest and a fee may apply, depending on the GIC purchased. Upon maturity or early redemption of the GIC, the principal amount will be credited to the account separately from any accrued interest amount. The accrued interest amount (if applicable) may be credited into the account several days after the principal amount has been credited to the account. Early redemptions can take up to 5 business days to receive funds. BNS cashable GICs can be partially redeemed in increments of $1,000 but the principal value cannot be reduced below $1,000, without fully redeeming the GIC. 
Non-cashable GICs may not be cashed in before the maturity date. Some non-cashable GICs can be sold in the open market prior to maturity. Such sales are subject to market pricing, depending on the GIC, which will be determined at the time of the request. 
All of our GIC issuers are members of the Canada Deposit Insurance Corporation (CDIC) and provide insurance coverage for up to $100,000 per issuer, except for US dollar BNS GICs. Please refer to the CDIC website to find further information about the coverage.


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## lonewolf (Jun 12, 2012)

GoldStone said:


> Outrageous, irresponsible comment.
> 
> lone, you are lucky this forum is not moderated. On many other forums, you would be long banned.


 Hi, Goldstone

When it comes to investing I do not invest based on what the majority is doing. By insuring the GICs the banks can be more reckless with the money lent through them through GICs or what ever the form of IOU & still get lenders ( most call the lenders depositors) to lend them money. CDIC makes the whole system weak when lenders stop looking to see if the bank is practicing sound banking practices & putting the risk of paying back the IOUs lent to the bank. By not having the CDIC insurance it helps make the financial insitution strong because if the bank is doing things to put the IOUs @ risk the lender is going to say to himself who cares what the bank does because the money is insured by CDIC. In 2008 Canadian banks that were CDIC insured needed help not the credit unions. I trust more in the market then insurance to keep the IOUs safe.


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