# Any Success Negotiating GIC Rates?



## derp (Feb 23, 2014)

I'm looking to buy some GICs for the fixed income portion of my portfolio and would prefer to keep all my accounts under a single roof (TD). Unfortunately, the rates they (and the rest of the big banks) currently offer are a fair bit less than the competing credit unions (Oaken, Outlook, etc.). 

I called up TDW to try and negotiate on their GIC rates but they weren't having any of it. However, the representative indicated I might have some success negotiating at a retail bank branch. So, have any forum members successfully negotiated better GIC rates with any of the big banks? Or am I just wasting my time?


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## Silverbird (Mar 5, 2013)

My parents use CIBC and have had success in getting a few tenths better than the posted rate on GICs. That is dealing with their in bank advisor though.

I think they've also been able to get CIBC to match the rates posted by a Credit Union that was located in the same town. So talking in person, your mileage may vary. Amount to be invested probably factors in as well.


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## OptsyEagle (Nov 29, 2009)

Well, if you go into your TD branch and look at their listed rate for a GIC, you will notice the one offered through TD Waterhouse is about 0.5% to 1% higher, already. 

So yes, I am sure if you go into your branch and talk to the representative, then demand to see the manager, threaten to move all your accounts, provide specific competitive examples and listen to them argue against it for an hour or so, they will probably offer you a higher rate that is almost as high as the TD GIC you could have just clicked on at TD Waterhouse


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## derp (Feb 23, 2014)

Not from what I have seen. TDCT offers 5yr @ 2.3%. Best rate I see at TDW is 2.55%.

What I'm hoping to negotiate is closer to 3%, as Oaken is offering.


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## derp (Feb 23, 2014)

I just spoke with my TD branch and they are unable to beat the rates offered at TDW.

I'm disappointed, to say the least..


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## spirit (May 9, 2009)

My husband and I were just at our local B of M to discuss some cash we had sitting on the sidelines. My preference was for a laddered GIC since this is the "bond" portion of our portfolio. We have the other half with mutual funds at another institution.
The young man was very curteous, did not try to upsell us and gave us slightly higher than the posted rate on each of the 5 years....without being asked!!! We would have asked but he beat us to it.
We have been long time customers and our son has a house loan from them. The size of the portfolio was around 400000. Not bragging just stating facts (;


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## humble_pie (Jun 7, 2009)

derp said:


> Not from what I have seen. TDCT offers 5yr @ 2.3%. Best rate I see at TDW is 2.55%.
> 
> What I'm hoping to negotiate is closer to 3%, as Oaken is offering.



you can see a pattern in these responses, which is that a client's history & profile with a particular bank do determine the small increments above posted rates for GICs that will be offered to him.

several cmf members with extensive GIC holdings have documented this. They always receive a rate that is a notch higher than the posted rate. How to ascend into their glittering & exclusive company? i have no idea, i suppose criteria such as size of account, length of time in the bank relationship, size of mortgage matter ...

the higher increment itself is usually reported to be quite tiny. Jumping from 2.30 or 2.55% to 3% would be unheard of.

in addition, are credit union GICs CDIC guaranteed? i'm not sure ... this detail in itself could mean a big difference between a non-insured credit union rate (would be higher) & a CDIC insured rate.


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## fatcat (Nov 11, 2009)

if you buy a GIC from a bank you pay for the brand and the convenience .... substantially ... shopping around will always bring much better rates at the cost of more paperwork

https://www.cannex.com/canada/english/index.htm


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## AltaRed (Jun 8, 2009)

Credit union GICs are not CDIC insured. They are regulated at the provincial level and deposit insurance is typically not backed by the provincial governments.


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## derp (Feb 23, 2014)

Credit unions may not offer CDIC insured GICs, but there _are_ institutions (i.e. Oaken Financial) whose offerings are CDIC insured _and_ at better rates than the big banks offer.
Anyhow, I never expected TD to match the Oaken offerings.. I was just hoping to land somewhere in the middle.

It seems I will have to settle with what is offered at TDW.


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## Spudd (Oct 11, 2011)

spirit said:


> The young man was very curteous, did not try to upsell us and gave us slightly higher than the posted rate on each of the 5 years....without being asked!!! We would have asked but he beat us to it.
> We have been long time customers and our son has a house loan from them. The size of the portfolio was around 400000. Not bragging just stating facts (;


Actually I wonder if this is standard practice at BMO. I have no business with them at all, but I cashed in some Air Miles for a BMO investment voucher, so I bought a $1000 GIC. They gave me higher than posted rate without me even asking.


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## wendi1 (Oct 2, 2013)

That's a very odd marketing ploy - the opposite of the bait-and-switch. You are enticed into the branch, having already decided to buy, but then get surprised by the price.

I wonder what genius thought of it? Surely you would get more business if everyone knew about the great rate.


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## ChrisR (Jul 13, 2009)

wendi1 said:


> That's a very odd marketing ploy - the opposite of the bait-and-switch. You are enticed into the branch, having already decided to buy, but then get surprised by the price.
> 
> I wonder what genius thought of it? Surely you would get more business if everyone knew about the great rate.



I've had the same experience with RBC over the phone. I called in to move some money out of a their bond fund, and into a GIC. They immediately offered me a better than posted rate, even though the money was already in their possession.


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