Personal Finance

Bank of Canada and GIC rates

  • Last Updated:
  • Jan 28th, 2023 1:24 am
Member
Jun 12, 2020
399 posts
223 upvotes
cyphr wrote: Where is this deal ?
I think any financial advisors can offer this rate, you may have to call or visit a branch for this rate.
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Jul 29, 2013
1783 posts
1530 upvotes
Ontario
Motus Bank lowering GIC rates:

Upcoming rate changes

Keep up with any changes to motusbank’s rates – that way you’re always in-the-know. The following rates are changing as of Thursday, January 19:

18 Month Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.25% | 5.30%
New Rate 4.70% | 4.75%

2 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.75% | 4.80%

3 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.55% | 4.60%

4 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.40% | 4.45%

5 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.20% | 5.25%
New Rate 4.30% | 4.35%

3 Year Escalator - Registered
Current Avg Yield 5.15%
New Avg Yield 4.60%

5 Year Escalator - Registered
Current Avg Yield 5.25%
New Avg Yield 4.35%
Deal Addict
Oct 13, 2008
1626 posts
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Mississauga
profile wrote: Motus Bank lowering GIC rates:

Upcoming rate changes

Keep up with any changes to motusbank’s rates – that way you’re always in-the-know. The following rates are changing as of Thursday, January 19:

18 Month Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.25% | 5.30%
New Rate 4.70% | 4.75%

2 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.75% | 4.80%

3 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.55% | 4.60%

4 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.40% | 4.45%

5 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.20% | 5.25%
New Rate 4.30% | 4.35%

3 Year Escalator - Registered
Current Avg Yield 5.15%
New Avg Yield 4.60%

5 Year Escalator - Registered
Current Avg Yield 5.25%
New Avg Yield 4.35%
It is one of the last banks to lower their rates. Most of them already have, especially their longer term rates.
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Sr. Member
Jan 23, 2009
834 posts
1346 upvotes
Ontario
This is a BS from all the banks

2 Year
GIC vs Fixed Closed Posted Rate

GIC
Current Rate 5.10% | 5.15%
New Rate 4.75% | 4.80%

Fixed Closed Posted Rate
Current Rate 6.19%
New Rate 6.39% | APR: 6.44%


3 Year
GIC vs Fixed Closed Posted Rate

GIC
Current Rate 5.10% | 5.15%
New Rate 4.55% | 4.60%

Fixed Closed Posted Rate
Current Rate 6.19%
New Rate 6.39% | APR: 6.43%
Deal Addict
Oct 13, 2008
1626 posts
2176 upvotes
Mississauga
Saven financial reduced their 3-4 year GIC rates as of today.
Jan. 18 RT.jpg
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Deal Expert
Mar 22, 2004
15264 posts
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RFD
profile wrote: Motus Bank lowering GIC rates:

Upcoming rate changes

Keep up with any changes to motusbank’s rates – that way you’re always in-the-know. The following rates are changing as of Thursday, January 19:

18 Month Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.25% | 5.30%
New Rate 4.70% | 4.75%

2 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.75% | 4.80%

3 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.55% | 4.60%

4 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.10% | 5.15%
New Rate 4.40% | 4.45%

5 Year Non-Redeemable GIC - Non-Registered | Registered
Current Rate 5.20% | 5.25%
New Rate 4.30% | 4.35%

3 Year Escalator - Registered
Current Avg Yield 5.15%
New Avg Yield 4.60%

5 Year Escalator - Registered
Current Avg Yield 5.25%
New Avg Yield 4.35%
Well those decreases just suck. I was contemplating going with motus but in the end even with the higher interest rates it's still not high enough to entice me to sign up. 6% or higher I might be considering, but anything under I don't think is good idea.
Deal Addict
Oct 18, 2014
3831 posts
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Oakville, ON
All my money tied up but recieved an email from meridian 5.25% for 18 months plus up to $750 bonus cash from them each 10,000 deposit at 1% percent so really in retrospect 6.25% pretty hot in my opinion
Sr. Member
Sep 14, 2009
810 posts
455 upvotes
Kingston
mrfrugal83 wrote: All my money tied up but recieved an email from meridian 5.25% for 18 months plus up to $750 bonus cash from them each 10,000 deposit at 1% percent so really in retrospect 6.25% pretty hot in my opinion
The 1% refers to when you transfer funds into their mutual fund division (Credential Securities) and so is a totally separate promo from buying a GIC at Meridian and they don't stack. Have a look - https://www.meridiancu.ca/offers/terms- ... onus-offer

But, I have taken advantage of the 5.25% 18 month GIC on it's own good deal.
Deal Addict
Oct 18, 2014
3831 posts
3698 upvotes
Oakville, ON
cardero wrote: The 1% refers to when you transfer funds into their mutual fund division (Credential Securities) and so is a totally separate promo from buying a GIC at Meridian and they don't stack. Have a look - https://www.meridiancu.ca/offers/terms- ... onus-offer

But, I have taken advantage of the 5.25% 18 month GIC on it's own good deal.
Oh my bad you’re correct the email they sent me at first looked like that… still not bad either option however as can be registered and doesn’t have to be a mutual fund as can be self directed via qtrade… and the 5.25% is very solid before it drops
Member
Jun 28, 2009
302 posts
142 upvotes
cardero wrote: The 1% refers to when you transfer funds into their mutual fund division (Credential Securities) and so is a totally separate promo from buying a GIC at Meridian and they don't stack. Have a look - https://www.meridiancu.ca/offers/terms- ... onus-offer

But, I have taken advantage of the 5.25% 18 month GIC on it's own good deal.
As someone who isn't experienced at all in investing, i have been trying to invest the maximum contribution room of my TFSA to a 12 month GIC. Despite the amount of my investment, CIBC or TD wouldn't offer me more than 4.65 percent.

Could I please ask you what you would say are the drawbacks of investing my entire TFSA contribution amount to an 18 month with Maridian (I already have an account) at this rate?

How do I transfer that large amount of money from CIBC or TD to Meridian?

Any resources or advice would be really appreciated. I don't have a high risk appetite but I haven't been investing my money at all and I don't want to leave any money on the table anymore.
Deal Addict
Oct 13, 2008
1626 posts
2176 upvotes
Mississauga
As announced before by @profile GIC rates for 18 mths - 5 years lowered at Motus Bank.
Jan. 19 RT.jpg
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User avatar
Jun 4, 2007
104 posts
102 upvotes
Longueuil
baskiddball wrote: As someone who isn't experienced at all in investing, i have been trying to invest the maximum contribution room of my TFSA to a 12 month GIC. Despite the amount of my investment, CIBC or TD wouldn't offer me more than 4.65 percent.

Could I please ask you what you would say are the drawbacks of investing my entire TFSA contribution amount to an 18 month with Maridian (I already have an account) at this rate?

How do I transfer that large amount of money from CIBC or TD to Meridian?

Any resources or advice would be really appreciated. I don't have a high risk appetite but I haven't been investing my money at all and I don't want to leave any money on the table anymore.
As far as i remember you cant link an external account in TD.
So you have to add your td account in Meridian. For Achieva they asked me to send a TD void cheque in Manitoba by mail lol. For more modern banks, you add your external bank account infos, they make a small deposit in your TD account, you report back those small amounts and then you can retrieve your money from TD (Tangerine does this for example). Some more "modern modern" banks like wealthsimple let you login in your TD bank account from their own webpage (but usually i dont like that for paranoia reasons lol).

All in all, ask Meridian how you link an external account.

4.65% doesnt sound that good, but if if you prefer to do business with Meridian, that's your choice. It can be boring to create accounts in all those banks and move money around in order to benefit from higher rates... :-)
Sr. Member
Sep 14, 2009
810 posts
455 upvotes
Kingston
baskiddball wrote: As someone who isn't experienced at all in investing, i have been trying to invest the maximum contribution room of my TFSA to a 12 month GIC. Despite the amount of my investment, CIBC or TD wouldn't offer me more than 4.65 percent.

Could I please ask you what you would say are the drawbacks of investing my entire TFSA contribution amount to an 18 month with Maridian (I already have an account) at this rate?

How do I transfer that large amount of money from CIBC or TD to Meridian?

Any resources or advice would be really appreciated. I don't have a high risk appetite but I haven't been investing my money at all and I don't want to leave any money on the table anymore.
I just checked my account, and you can transfer directly into your TFSA at Meridian from a linked account and the 18 month 5.25% GIC is available in registered accounts, and you can purchase the GIC from within the TFSA account too. I have set up several linked accounts so you should be fine with getting both TD and CIBC linked, and I have found setting up any bank without their logo displayed on the screen where you select the bank to link doesn't work and they make you print and scan in a one page form for them to do it manually through Secure Messaging on their website - but that happens within one day for me and your CIBC and TD have their logos there - so you should be good. I have used phone support for large transfers and you need to set up the transfer and pull in funds from the Meridian side once the links are set up and you can initiate a transfer from outside linked accounts from your TFSA account directly.

My only advice based on what you stated is that, despite not having a high risk appetite, if you do plan on investing in the stock/bond markets at all - you may want to reconsider using your TFSA room as a place for GIC's, as I think conventional wisdom says the TFSA is where you would want to put something like stocks that are tax sheltered rather than if you decide to take on risk outside the TFSA, but that is just a thought based on what I read from financial planners and you asked if there may be any drawbacks about putting all your TFSA in GICs.
Member
Mar 31, 2013
278 posts
1035 upvotes
Courtenay, BC
cardero wrote: I just checked my account, and you can transfer directly into your TFSA at Meridian from a linked account and the 18 month 5.25% GIC is available in registered accounts, and you can purchase the GIC from within the TFSA account too. I have set up several linked accounts so you should be fine with getting both TD and CIBC linked, and I have found setting up any bank without their logo displayed on the screen where you select the bank to link doesn't work and they make you print and scan in a one page form for them to do it manually through Secure Messaging on their website - but that happens within one day for me and your CIBC and TD have their logos there - so you should be good. I have used phone support for large transfers and you need to set up the transfer and pull in funds from the Meridian side once the links are set up and you can initiate a transfer from outside linked accounts from your TFSA account directly.

My only advice based on what you stated is that, despite not having a high risk appetite, if you do plan on investing in the stock/bond markets at all - you may want to reconsider using your TFSA room as a place for GIC's, as I think conventional wisdom says the TFSA is where you would want to put something like stocks that are tax sheltered rather than if you decide to take on risk outside the TFSA, but that is just a thought based on what I read from financial planners and you asked if there may be any drawbacks about putting all your TFSA in GICs.
It is all going to depend on your risk appetite....remember that interest outside of the TFSA will be taxed the same as regular income, There is nothing wrong with interest producing products in the TFSA if you don't want to deal with equities. Personally, the only thing I wouldn't keep in a TFSA are high dividend Canadian equities, as outside the TFSA you will save on income tax because of the dividend tax credit....
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Jan 31, 2004
3226 posts
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hwyc2007 wrote: Peoples pushing 2-yr to 5.40% Smiling Face With Open Mouth
Damn took 5.3 last week!
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Deal Fanatic
Dec 6, 2006
5607 posts
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Toronto
baskiddball wrote: As someone who isn't experienced at all in investing, i have been trying to invest the maximum contribution room of my TFSA to a 12 month GIC. Despite the amount of my investment, CIBC or TD wouldn't offer me more than 4.65 percent.

Could I please ask you what you would say are the drawbacks of investing my entire TFSA contribution amount to an 18 month with Maridian (I already have an account) at this rate?

How do I transfer that large amount of money from CIBC or TD to Meridian?

Any resources or advice would be really appreciated. I don't have a high risk appetite but I haven't been investing my money at all and I don't want to leave any money on the table anymore.
How is the CIBC 4.65% "offered"? CIBC Investor Edge currently I see has 5.0% 1 year from CIBC's GIC (also posted a few replies back), and some other 3rd party GICs (i.e. GIC from other bank/FI that you can buy via CIBC IE) up to 5.03-5.04% 1 year.
If want to stay with CIBC, get IE for better rates and moving funds around IE and bank account is easy.

Having said that I want to open another bank/trade acc in other platform and kinda difficult to decide which one with the rates changing all the time...
Last edited by boyohboy on Jan 19th, 2023 3:30 pm, edited 1 time in total.
Member
Jun 28, 2009
302 posts
142 upvotes
nicoco3000 wrote: As far as i remember you cant link an external account in TD.
So you have to add your td account in Meridian. For Achieva they asked me to send a TD void cheque in Manitoba by mail lol. For more modern banks, you add your external bank account infos, they make a small deposit in your TD account, you report back those small amounts and then you can retrieve your money from TD (Tangerine does this for example). Some more "modern modern" banks like wealthsimple let you login in your TD bank account from their own webpage (but usually i dont like that for paranoia reasons lol).

All in all, ask Meridian how you link an external account.

4.65% doesnt sound that good, but if if you prefer to do business with Meridian, that's your choice. It can be boring to create accounts in all those banks and move money around in order to benefit from higher rates... :-)
cardero wrote: I just checked my account, and you can transfer directly into your TFSA at Meridian from a linked account and the 18 month 5.25% GIC is available in registered accounts, and you can purchase the GIC from within the TFSA account too. I have set up several linked accounts so you should be fine with getting both TD and CIBC linked, and I have found setting up any bank without their logo displayed on the screen where you select the bank to link doesn't work and they make you print and scan in a one page form for them to do it manually through Secure Messaging on their website - but that happens within one day for me and your CIBC and TD have their logos there - so you should be good. I have used phone support for large transfers and you need to set up the transfer and pull in funds from the Meridian side once the links are set up and you can initiate a transfer from outside linked accounts from your TFSA account directly.

My only advice based on what you stated is that, despite not having a high risk appetite, if you do plan on investing in the stock/bond markets at all - you may want to reconsider using your TFSA room as a place for GIC's, as I think conventional wisdom says the TFSA is where you would want to put something like stocks that are tax sheltered rather than if you decide to take on risk outside the TFSA, but that is just a thought based on what I read from financial planners and you asked if there may be any drawbacks about putting all your TFSA in GICs.
phantomfj wrote: It is all going to depend on your risk appetite....remember that interest outside of the TFSA will be taxed the same as regular income, There is nothing wrong with interest producing products in the TFSA if you don't want to deal with equities. Personally, the only thing I wouldn't keep in a TFSA are high dividend Canadian equities, as outside the TFSA you will save on income tax because of the dividend tax credit....
Thank you all for giving me some context and decisions.

I think I thought through putting all my TFSA contributions into GICs is because if I invest in any of those EFTs people have chatted about on here and Reddit, based on my risk profile (which I've classified as 60 percent bonds and 40 percent stocks), then they will be considered capital gains and I'll only be taxed on 50 percent of it.

Versus the GICs where it will be taxed 100 percent.

Which is why I'm considering putting money outside of my TFSA contribution room into those EFTs instead of that 5 percent garage rate until April 30 for Simplii. Does that make sense?
Member
Jun 28, 2009
302 posts
142 upvotes
boyohboy wrote: How is the CIBC 4.65% "offered"? CIBC Investor Edge currently I see has 5.0% 1 year from CIBC's GIC (also posted a few replies back), and some other 3rd party GICs (i.e. GIC from other bank/FI that you can buy via CIBC IE) up to 5.03-5.04% 1 year.
I spoke to an advisor on the phone yesterday from CIBC and he specifically told me that he could only give me 4.65 percent for a 1 year GIC and nothing more even when I threatened to move out all my money.

He said he could apply for a higher rate that would need to be reviewed by the back office for anything higher.

Am I missing something?
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Dec 6, 2006
5607 posts
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Toronto
baskiddball wrote: I spoke to an advisor on the phone yesterday from CIBC and he specifically told me that he could only give me 4.65 percent for a 1 year GIC and nothing more even when I threatened to move out all my money.

He said he could apply for a higher rate that would need to be reviewed by the back office for anything higher.

Am I missing something?
I assume that's with CIBC Banking? CIBC IE is self-directed investing platform, don't need to call advisor for rates. Doubt the rates I see is anything special, my portfolio isn't big.

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