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Advice on GICs - Tangerine vs. EQ Bank, and U.S. GICs

  • Last Updated:
  • Dec 7th, 2018 11:12 am
[OP]
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Jul 9, 2010
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Advice on GICs - Tangerine vs. EQ Bank, and U.S. GICs

Hi everyone,

I am looking for advice on GIC investments for my parents. They are typically low-risk people and quite wary when it comes to high-interest rate GICs or rates from banks they haven't heard about or had experience with.

My questions are split into two parts, one for the regular GICs, and one for U.S. GICs.

Firstly, I'd like to ask about the regular GICs. Specifically two popular GIC offers I've seen here on RFD; Tangerine and EQ Bank.

Regular GICs

1. Tangerine 3.10% 1-year GIC.
I saw a thread earlier in November regarding Tangerine, and 3.1% seemed like a good choice. What do you guys think about investing in this GIC?

2. EQ bank - 3.33% 3-month GIC
I also saw a thread on EQ bank, and going by the posts, it seems like a good short-term investment. I was thinking of going with this first and then moving to Tangerine after the 3-months were over.

I want to know if anyone has tried this 3-month GIC though. Is it legit? I know EQ bank has CDIC insurance as I have called them and checked this myself.
However, what the experience was like dealing with them? For instance, was the process of transferring money in and out afterwards smooth? And were there are any hidden charges or unknown costs I should know about?

Simplii Financial - 3.10% 1-year GIC
I've ruled out Simplii financial because I read articles about them in the past regarding data hacks and leaks. And as mentioned earlier, my parents are the ones investing, so they're not to keen on this option based on that.

U.S. GICs

Tangerine U.S. GIC 3.00% 1-Year GIC
My parents have some U.S. money they wanted to invest and I was wondering what the best way to invest this would be in terms of GICs. What are your thoughts on Tangerine's U.S. GIC of 3.0%?

Is there any better way for them to invest U.S. money that is of low-risk? If there is anyone here that invests U.S. money who could provide some insight and advice on this, that would be much appreciated!

Looking forward to your responses. Thanks in advance everyone!
11 replies
Deal Addict
Oct 7, 2007
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Dostk wrote:
Dec 5th, 2018 3:12 pm
Hi everyone,

I am looking for advice on GIC investments for my parents. They are typically low-risk people and quite wary when it comes to high-interest rate GICs or rates from banks they haven't heard about or had experience with.

My questions are split into two parts, one for the regular GICs, and one for U.S. GICs.

Firstly, I'd like to ask about the regular GICs. Specifically two popular GIC offers I've seen here on RFD; Tangerine and EQ Bank.

Regular GICs

1. Tangerine 3.10% 1-year GIC.
I saw a thread earlier in November regarding Tangerine, and 3.1% seemed like a good choice. What do you guys think about investing in this GIC?

2. EQ bank - 3.33% 3-month GIC
I also saw a thread on EQ bank, and going by the posts, it seems like a good short-term investment. I was thinking of going with this first and then moving to Tangerine after the 3-months were over.

I want to know if anyone has tried this 3-month GIC though. Is it legit? I know EQ bank has CDIC insurance as I have called them and checked this myself.
However, what the experience was like dealing with them? For instance, was the process of transferring money in and out afterwards smooth? And were there are any hidden charges or unknown costs I should know about?

Simplii Financial - 3.10% 1-year GIC
I've ruled out Simplii financial because I read articles about them in the past regarding data hacks and leaks. And as mentioned earlier, my parents are the ones investing, so they're not to keen on this option based on that.

U.S. GICs

Tangerine U.S. GIC 3.00% 1-Year GIC
My parents have some U.S. money they wanted to invest and I was wondering what the best way to invest this would be in terms of GICs. What are your thoughts on Tangerine's U.S. GIC of 3.0%?

Is there any better way for them to invest U.S. money that is of low-risk? If there is anyone here that invests U.S. money who could provide some insight and advice on this, that would be much appreciated!

Looking forward to your responses. Thanks in advance everyone!
1. I think the Tangerine 1-year GIC at 3.1% is one of the best rates out there and you are getting CDIC insurance up to $100k so this is a good choice if you are looking for a one-year term.
2. The EQ Bank 3.33% 3-month GIC is also an excellent choice. It is only 3-months so it is what it is and also insured by CDIC. You may have to wait 5 business days after depositing funds with them to actually be able to make the purchase but other than that, I think this is an excellent rate and invested in this product myself.
3. Simplii is also CDIC insured so it just comes down to preference for banks or being able to split funds exceeding $100k between banks to maximize CDIC insurance coverage.

Not sure about the US GIC's as I don't believe Canadian banks can insure US funds through CDIC. You may want to investigate your local credit union to see if you can get coverage there if that is important to your parents.

Remember with CDIC that insurance coverage of the $100k includes the interest earned so you may want to invest something slightly less if you want to be ultra-safe with coverage.
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OP why are you only considering Tang, EQ, Simplii? We also don't know where you're geographically located.

This means I'll have to broaden my answer, but may help out more RFDers. Simplii & EQ gives away your footprint is outside of QC...
  1. Simplii & Tang are on par here. If you were to use one over the other, it'd be based on history & relationship. No USD GIC at Simplii for now.
  2. EQ also no USD. 3 months offer is good.
  3. Province-agnostic, consider Meridian CU. They're in Ontario, so funds are insured by DICO. Not sure about USD.
  4. If you want USD insured, take your USD to a CU in Manitoba. All funds (no cap) insured at MB CU's, currency-agnostic
  5. ON only, outside of Windsor-Essex, Omni Direct. 3.4% 1 yr GIC. Can't beat that.
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EQ is the best at the moment in my opinion. 3 months is not too long. The difference between 3.33% and any of the other offerings is not great enough to entice me to lock up money for a significantly longer period. I use them for both the savings account (2.3% non-promo rate) and laddering their 3-month 3.33% GIC. I send money to myself via e-transfer so it's available pretty much instantly (you can do that for amounts up to $3k/day up to $10k/week). If the absolute highest rate GIC is the top consideration, then I think Meridian has the highest rate right now at 3.75% for a 5-year term. That's a pretty long time though, for anything longer than the 3-month GIC I personally prefer to just keep everything in my self directed account.
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zcypher wrote:
Dec 6th, 2018 4:17 pm
EQ is the best at the moment in my opinion. 3 months is not too long. The difference between 3.33% and any of the other offerings is not great enough to entice me to lock up money for a significantly longer period. I use them for both the savings account (2.3% non-promo rate) and laddering their 3-month 3.33% GIC. I send money to myself via e-transfer so it's available pretty much instantly (you can do that for amounts up to $3k/day up to $10k/week). If the absolute highest rate GIC is the top consideration, then I think Meridian has the highest rate right now at 3.75% for a 5-year term. That's a pretty long time though, for anything longer than the 3-month GIC I personally prefer to just keep everything in my self directed account.
All within one's level of comfort.
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Jan 3, 2013
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Sorry to hijack but can anyone offer any insight on Tangerine's Tax Free GIC, 1 yr at 3.10%. Is this a good rate for TFSA's? Thinking about this at least for some of my TFSA.
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looking4deals1 wrote:
Dec 6th, 2018 5:09 pm
Sorry to hijack but can anyone offer any insight on Tangerine's Tax Free GIC, 1 yr at 3.10%. Is this a good rate for TFSA's? Thinking about this at least for some of my TFSA.
If in Ontario and you want 1 yr GIC, can't beat Omni Direct.
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Oct 5, 2014
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titaniumtux wrote:
Dec 6th, 2018 5:12 pm
If in Ontario and you want 1 yr GIC, can't beat Omni Direct.
I think their rate dropped to 3.10% Nov 25th unless I'm not seeing the 3.4% rate.
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titaniumtux wrote:
Dec 6th, 2018 5:12 pm
If in Ontario and you want 1 yr GIC, can't beat Omni Direct.
But the Tangerine one I am referring to is a Tax Free GIC at 3.10% for 1 yr. I assume this works like a regular TFSA but you are locked in for the year.
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looking4deals1 wrote:
Dec 6th, 2018 10:31 pm
But the Tangerine one I am referring to is a Tax Free GIC at 3.10% for 1 yr. I assume this works like a regular TFSA but you are locked in for the year.
Most of these FI's offer GIC's within a TFSA or outside a TFSA.
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looking4deals1 wrote:
Dec 6th, 2018 10:31 pm
But the Tangerine one I am referring to is a Tax Free GIC at 3.10% for 1 yr. I assume this works like a regular TFSA but you are locked in for the year.
Just be aware that Tangerine, like most FI's, have TFSA transfer-out fees. Some other FI's like Oaken and Peoples, do not currently have transfer out fees. Just some additional information to keep in mind when moving money around.

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