Good time to lock in a GIC?

Apr 14th, 2022 2:32 pm

#1

Alberqerque [OP]: Newbie; Dec 20, 2018; 8 posts; 2 upvotes

Apr 14th, 2022 2:32 pm

Hello. CIBC has offered me a 1 year GIC, non-redeemable, fixed rate of 2.5%. I am eager to go ahead with this deal, especially after the horribly low rates the last few years.

However, this deal was offered just before the April 13th interest rate hike. I asked my bank if I should expect a better deal (due to the hike) in the next few days/weeks but they could not confirm.

Should I wait a bit longer in case a better offer comes?

Thanks in advance for any advice.

Apr 14th, 2022 2:35 pm

#2

will888: Deal Expert; Dec 12, 2009; 26878 posts; 16999 upvotes; Toronto

Apr 14th, 2022 2:35 pm

No, the rate rise cycle is in the early innings.

~~Koodo $40/6GB~~
Public Mobile $40/15GB, $35/20GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii

+2

Apr 14th, 2022 2:48 pm

#3

shylok: Deal Addict; Feb 26, 2006; 4349 posts; 2924 upvotes; Ottawa

Apr 14th, 2022 2:48 pm

Isn't there a plain old deposit account from someone at that rate recently. Think I saw it yesterday or day before here.

Rates going up steady.

Apr 14th, 2022 2:54 pm

#4

MrMom: Deal Fanatic; Aug 17, 2008; 9721 posts; 11315 upvotes

Apr 14th, 2022 2:54 pm

gic-2535424/

cashable-gic-2535837/

Answer not a fool according to his folly, lest thou also be like unto him = Never argue with an idiot, they'll only bring you down to their level & beat you with experience

Apr 14th, 2022 2:56 pm

#5

DaveTheDude: Deal Addict; Mar 3, 2018; 3146 posts; 3518 upvotes; GTA

Apr 14th, 2022 2:56 pm

I am waiting for the next two BOC rate hikes in June and July also predicted to be .5 increases. Then going short term unless the 5 year rate at least matches inflation.

Apr 14th, 2022 6:31 pm

#6

performance: Member; Oct 31, 2006; 294 posts; 151 upvotes

Apr 14th, 2022 6:31 pm

WAIT

Apr 15th, 2022 6:41 am

#7

bigblue1ca: Sr. Member; Sep 28, 2011; 806 posts; 1458 upvotes; Winnipeg

Apr 15th, 2022 6:41 am

Wait, BOC rate hikes are just getting going.

Apr 15th, 2022 11:39 am

#8

MarkG60891: Newbie; Apr 2, 2019; 76 posts; 67 upvotes

Apr 15th, 2022 11:39 am

Oaken Financial offers the best 1 year rate at 2.8% and 2 year at 3.45% . Personally , I would not get any GIC longer than 2 years at the moment as rates are targeted to rise another 1.75% over the next 12 months. You could be looking at 5% return on a 2 year or higher GIC by end of 2022. A modified GIC ladderis the best approach, splitting into 5 to cover 3m, 6m, 12m, 18m and 24 months. Otherwise, invest in XDIV.TO and get 4% in dividends.
https://www.everythingzoomer.com/money/ ... ic-ladder/

Apr 16th, 2022 1:10 pm

#9

kilburn305: Deal Addict; Aug 16, 2015; 1170 posts; 490 upvotes

Apr 16th, 2022 1:10 pm

will888 wrote: ↑ No, the rate rise cycle is in the early innings.

Based on What. Bonds have been selling off for 2 years now.

Apr 16th, 2022 1:35 pm

#10

will888: Deal Expert; Dec 12, 2009; 26878 posts; 16999 upvotes; Toronto

Apr 16th, 2022 1:35 pm

kilburn305 wrote: ↑ Based on What. Bonds have been selling off for 2 years now.

Based on the uncertainty with the current situation on inflation. We are not even sure what the peak is given that it's still rising.

~~Koodo $40/6GB~~
Public Mobile $40/15GB, $35/20GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii

+1

Apr 16th, 2022 2:54 pm

#11

kilburn305: Deal Addict; Aug 16, 2015; 1170 posts; 490 upvotes

Apr 16th, 2022 2:54 pm

will888 wrote: ↑ Based on the uncertainty with the current situation on inflation. We are not even sure what the peak is given that it's still rising.

Thats just silly. The central banks are now finally trying to fight it so it has definitely peaked.

Apr 19th, 2022 9:30 am

#12

smartie: Deal Guru; Dec 5, 2006; 14220 posts; 9602 upvotes; Markham

Apr 19th, 2022 9:30 am

How soon GIC rate will reflect interest rate hike? Like Fed will increase rate next month, will GIC increase 50bps right away?