GIC Rates Up | Bridgewater Bank | Discussion forum

GR said
New higher GIC rates range from 2.53% for 1 year to 2.57% for 5 yrs.
GIC rates at Bridgewater are changing almost daily.  

Yes, this is almost entirely related to the tight corporate credit markets. With the BoC's 0.50% rate drop today and, more specifically, to the likely forthcoming purchases of corporate bonds (including corporate bond ETFs and mutual funds) at its April 15th regular meeting following its announced daily purchase of $5 billion in government securities (including residential mortgages securitized through Canada Mortgage Bond from CMHC), I suspect you will see the GIC rates normalize and you will see sudden, corresponding moves downward. Take advantage of these rates while you can, if you prefer GICs, and I'm now shifting my recommendation from 1-3 year GIC maturities to fully 5 year maturities because I see 0-0.25% BoC rates for at least the next 2, possibly 3, years. In short, sub-1.00% BoC rate for the next 5-10 years as this economy is going to need all the stimulus it can get.

I will be tactically shifting my large cash position into secure equities later this year when my Coast GIC matures and next year when my Concentra GIC matures. I'll probably take my cash position down to as little as $25,000.

Cheers,
Doug

New rates since August 25

1yr 1.35%
18m 1.40%
2yr 1.61%
3yr 1.87%
4yr 2.02%
5yr 2.12%

Here's another thawing.

1-year 18-mths 2-years 3-years 4-years 5-years
2.11% 2.16% 2.39% 2.69% 2.78% 2.91%

... won't be long before everybody to offer 2% or above for a 1-yr term

The page referenced says "Complete the short form below and a deposit broker from our external preferred partner will be in touch within 1 business day to discuss your investment options."
Does anyone know who that deposit broker is?