CIBC: 3.25% on 5yr GIC!? | CIBC | Discussion forum

You should read the previous thread of this offer. It has been thoroughly dissected! At last report, people thought their Escalator rate might be slightly better but I have not looked recently.
At present, the thread in question is in the "GIC DIscussions" section, but I have asked it to be moved to CIBC section.

I think CIBC just wants to get out ahead of the curve and scoop up lots of deposits before rates go higher and there is more competition. I can only think that they must know something about what is coming. To me, it suggests they believe inflation is here to stay and rates will raise accordingly. They are certainly in a better position to know than the average consumer. The alternative is that they are just offering a promotion that they don't really need to offer, which doesn't make much sense. For some reason, they REALLY want our money!

5 year GIC rate now down to 3% as of today

money grabber said
I bought this GIC and taking monthly payment option, they were very good to work with on my purchase. Also there was no penalty for taking this option, I still got the 3.25. I would say what you see on their web page is what you get.  

Did you still managed to get the 3.25% after the downgrade to 3%?

CIBC still has its AA debt rating from DBRS. That places it between the Province of BC with AA(high) and Province of Ontario with AA(low).

For five year debt, CIBC would normally pay around 2.0%, in between what BC bonds and Ontario bonds yield:

Ontario 2027/06/02 2.60%, 102.723 (YTM=2.060%)
British Columbia 2027/06/18 2.55%, 102.671 (YTM=2.025%)

Analysts still expect CIBC to earn at least $1 billion/quarter for the next few quarters. So, if it needs $1 billion for something, CIBC can just continue to run its business for a quarter.

Kidd said
This 3.25% for a 5 year gic has nothing to do with the cibc needing money.  

exactly !

When you see they are offering 5y fixed mortage at 2.90%, u know they dont really want to borrow 5y money at 3.25%. Its good advertising money spent for CIBC as even RFDers noticed and there are a 12-page discussion about it over there !

well i stopped in my CIBC at 4:45pm Wed. they close at 5pm, not a soul in the branch, I asked the teller who said I have to speak to the lady that just walked by and greeted me. He went to her office and came back and said she is cleaning up a few things and I would need to make an appointment. I said gladly will, but I would like a simple question answered first as we are all busy & if the original offer of 3.25% was available because if not I would save us all the time. Nope, you need to make the appointment!! I said the only reason I was there was because I tried to use the live chat and they said it wasnt but I have since been told they were making it available to some. My RSP due was a decent amount. They could not have given one crap! The young lad apologized and asked if i wanted to book me in. I told him that I dont deal with the big 5 regularly that I deal with credit unions that separate themselves on superior service valuing their customers. I politely said they just confirmed what I have long felt and respectfully decline the appointment. Big 5 are parasites plain and simple

The branch managers do have the authority. The catch is the branch has to eat the extra ¼% or ½% each year on the GIC. So, one needs to make it worthwhile somehow for the branch to do so.

I suspect that is the reason for the appointment. To talk and see if the prospect will also be bringing over a substantial mortgage, line of credit, or money for mutual funds. If not, the answer would be no, the branch will not give an ¼% or ½% each year on the GIC.

COIN said
Question: Has anybody been offered or requested a 0.50% add-on to the now current posted 3.00% rate for a total of 3.50%?  

savemoresaveoften said

I believe they dont have the authority nor room to give an extra 50bps, whether its an advisor or the branch manager. 25bps is doable (I think) if you already have a long term relationship with them.

I did call my long-term Imperial Service rep and asked her about the additional 0.5% and she told me that since the pandemic, they were no longer authorized to give any bonus rates. Previously, she had discretion for an additional 0.5%

Norman1 said
The branch managers do have the authority. The catch is the branch has to eat the extra ¼% or ½% each year on the GIC. So, one needs to make it worthwhile somehow for the branch to do so.

I suspect that is the reason for the appointment. To talk and see if the prospect will also be bringing over a substantial mortgage, line of credit, or money for mutual funds. If not, the answer would be no, the branch will not give an ¼% or ½% each year on the GIC.

I had significant GIC amounts, but no other products.

Loonie said
Essentially, what this means is they may give you an extra .25 if they believe they can make it up (and preferably more) by selling you something else.
You, of course, being a prudent person with regards to finances, will want to shop around when it comes to loans, mutual funds etc.
…

The CIBC branch isn't going fall for that!

The manager would likely invite one to drop by again after one has shopped around and decided to transfer the mortgage, line of credit, or mutual funds to the branch.

Their current 5 year Bonus Rate is still 3.0% and yes the branch has a limited number of bonus top ups of 0.5% they can offer select clients. I know this because I bought a 5 year non registered GIC at 3.5%