# Royal Trust 3-year GIC @ 2.41%



## jargey3000 (Jan 25, 2011)

Would you feel comfortable putting over $100,000 (CDIC limit) into the above GIC?
Is "Royal Trust" any more reliable than some others who are also offering this % - ie ICIC , equitable, Laurentin etc??


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## james4beach (Nov 15, 2012)

I think Royal Trust is a subsidiary of RBC. Whenever possible, it's best to split among several different sub issuers to maximize CDIC coverage. Do they offer the same GIC rate with one of the other issuer names under the RBC umbrella?

- Royal Bank of Canada
- The Royal Trust Company
- Royal Trust Corporation of Canada

http://www.rbcroyalbank.com/product...BRO_0611_07039_CDIC_Deposit_Register_E_V6.pdf

Also, where are you seeing this? Through iTrade, I only see 1.45% for RBC 3 year GIC.


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## Eder (Feb 16, 2011)

https://contact.rbc.com/gicrates/


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## jargey3000 (Jan 25, 2011)

yes, i realise it's best to split among different issures, but just for simplicity, would you take a chance on say, 200k-400k at royal trust, for 3 years to get this rate? rather than spreading it among, what i would call, some of the "lesser-known" issuers??


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## james4beach (Nov 15, 2012)

What I meant is that, just sticking to RBC (as per Eder's link) I think you should be able to buy GICs under each of the 3 RBC sub-issuers. All the money stays within RBC but gets 3 x 100K deposit insurance.


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## jargey3000 (Jan 25, 2011)

yes...but the rate i see at RBC(bank)and Royal Trust Corp is just 1.35%
vs the 2.41% at Royal Trust Company


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## agent99 (Sep 11, 2013)

jargey3000 said:


> yes...but the rate i see at RBC(bank)and Royal Trust Corp is just 1.35%
> vs the 2.41% at Royal Trust Company


Where are you seeing this? So far as I know, Royal Trust were bought out by Royal Banks many moons ago. We used to have an account with them as well as our home mortgage. 

I am confused. Doesn't eder's link show 2.42% for 3 yr gics? Mind you, eders link is from RBC Direct and those rates are not likely for RBC or Royal Trust GIC offerings.

This a summary of best current GIC offerings: https://www.ratesupermarket.ca/gic_...compounded=&tax_status=registered&cashable=no


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## jargey3000 (Jan 25, 2011)

I'm on RBC-DI. Here's from the GIC page:
ROYAL BANK OF CANADA	Oct 16, 2020	Compound	1.45	
Buy
ROYAL TRUST CORP	Oct 16, 2020	Compound	1.45	
Buy
ROYAL TRUST COMPANY	Oct 16, 2020	Compound	2.41


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## jargey3000 (Jan 25, 2011)

what I'm asking here is.... would you feel comfortable investing 2-300k with an "established"? name like Royal Trust vs some of the other" lesser-known"? brands ??...and thus forsaking the CDIC coverage???


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## Eder (Feb 16, 2011)

I wouldn't do it...why take any risk at all for measly 2.4%? Spread the cash around


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## agent99 (Sep 11, 2013)

jargey3000 said:


> what I'm asking here is.... would you feel comfortable investing 2-300k with an "established"? name like Royal Trust vs some of the other" lesser-known"? brands ??...and thus forsaking the CDIC coverage???


This document from RBC wealth management confirms that higher rate. In past, RBC & ROYAL Trust rates were about the same. You might want to double check with RBCDI, but no reason not to go with the 2.41% that I can see. They must be doing that to be competitive. You might split the amount with another solid bank like CWB that has almost same rate.?

http://ca.rbcwealthmanagement.com/documents/10180/0/gicrates.pdf


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## RBull (Jan 20, 2013)

Jargey, there are other options with RBCDI. - 3yrs GIC
Definitely spread the money around - as long as its CDIC you're good. 

ICIC bank 2.42% (highest)
Equitable Bank 2.41%
General bnk of CDA 2.41%
Royal Trust 2.41%
B2B Bank 2.40%
CDN western bank or trust 2.40%
Laurentien Bnk 2.40%
LBC Trust 2.40%


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## 319905 (Mar 7, 2016)

jargey3000 said:


> what I'm asking here is.... would you feel comfortable investing 2-300k with an "established"? name like Royal Trust vs some of the other" lesser-known"? brands ??...and thus forsaking the CDIC coverage???


I'd be ok with $2-300K exceeding the CDIC coverage, but not for a 3 year period ... too locked in for my financial state. EQ at 2.3%/Alterna at 1.9% variable work for me, and I have a >$100K 1 year GIC at 2.2% through QTrade that's CDIC covered that also works for me. $300K at 2.41% for 3 years ... nope.


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## jargey3000 (Jan 25, 2011)

RBull said:


> Jargey, there are other options with RBCDI. - 3yrs GIC
> Definitely spread the money around - as long as its CDIC you're good.
> 
> ICIC bank 2.42% (highest)
> ...


yeah... that's what I'm asking...I'm oldschool Rbull.... and the only name on that list that's probably been around longer than me is Royal Trust...not sure i'm comfortable with those other names...


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## jargey3000 (Jan 25, 2011)

I've been doing a 3-year "rollover" with 3 GICs, this one just matured & the other 2 come due in Oct 2018 & 2019,
so for simplicity if nothing else, i'd just like to continue with the 1 3-yr GIC ...instead of spreading it around to 2 or 3 ....


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## agent99 (Sep 11, 2013)

jargey3000 said:


> .... and the only name on that list that's probably been around longer than me is  Royal Trust...


You must be pretty old! At least one of them was around when Canada still used Pounds and Shillings 

https://www.laurentianbank.ca/en/about_lbc/my_bank/our_history.html

B2B & LBC trust are subsidiaries of Laurentian bank.


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## jargey3000 (Jan 25, 2011)

the last time i jumped to one of these "alternative" issuers to get a bit better rate was to a company called Home Trust ...earlier this year...no kidding!


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## Eder (Feb 16, 2011)

Why wouldn't you ...Home Trust was offering a good gic rate with CDIC insurance. I even bought their bonds during their troubles...


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## jargey3000 (Jan 25, 2011)

Eder said:


> Why wouldn't you .....


blood pressure


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## james4beach (Nov 15, 2012)

jargey, we all different styles and preferences. For me, I don't want to exceed the 100K CDIC limit per issuer because then I have no problem sleeping at night. Even if it's RBC or TD proper, I don't exceed the limit - ever.

There are so many different issuers out there, all eligible for CDIC insurance, that I don't see any reason to stress myself out by having uninsured deposits. Savings accounts and GICs are supposed to be a no-stress thing, the safe part of your investments.

Next I would add, why are you bothering with 3 year GICs? The ideal GIC strategy is to form a ladder and always buy 5 year 
GICs routinely. Once the ladder is filled, you only buy 5 years again. You could be buying something like Manulife at 2.50% or Canadian Western at 2.70%.

A ladder filled exclusively with 5 year GICs is how you get the best long term return. Stagger them however you want, e.g. one maturing every 6 months.


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## jargey3000 (Jan 25, 2011)

yeah i know...kinda slipped into the 3-year cycle a while ago...cause rates got so miserably low i didnt want to get locked in for so long, & maybe miss a uptick...


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## james4beach (Nov 15, 2012)

I know that's a popular way to think about it but I don't think it's the best way. When you have a 5 year GIC ladder it's effectively like having a bond fund with average maturity of 2.5 years. That's already very short term and has minimal interest rate exposure.

If you have a ladder of 3 year GICs then your average maturity is only 1.5 years and that's probably unnecessarily short.

Basically you are forfeiting long term returns. With a well spaced ladder of 5 year GICs, you will still benefit nicely from rising interest rates (if they ever go up).

Also see the argument I posted here, same general idea
http://canadianmoneyforum.com/showt...vidual-bonds?p=1725570&viewfull=1#post1725570


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## jargey3000 (Jan 25, 2011)

got it!


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