1 year GIC 5.15% (up from 5.0%) | EQ Bank | Discussion forum

Does any one remember what their 2 year was at before today? 4.55%? It’s now 4.7%

They are proactive and betting next BoC move will be another hike, which seems more plausible after the payroll release and what Powell advertised this week.
An extra 15bps is a cheap way to advertise anyway and they can change it anytime they want too.

The Fed often goes above the BoC rate during periods of inflation. The higher rates in the USA tend to devalue the CAD and subsequently have a similar result as the BoC raising rates. So just because the Fed is still raising, doesn't mean the BoC will resume unless other factors occur or the CAD becomes too devalued. The Fed also tends to cut during election years, so with 2024 being an election year one likely possibility is that the Fed is raising to cut next year and the BoC will not raise rates.

In the end the best economist is right 50% of the time, so who knows. The best thing to do is to do your own research and follow what you believe so that you have less regrets if things don't work out.

Bill said

USA rates look to be going up, Canada will follow, EQ being proactive? Or else they just need more 1-year deposits today.  

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Bingo ⬆ ❗❗

Dean

phrank said
The Fed often goes above the BoC rate during periods of inflation. The higher rates in the USA tend to devalue the CAD and subsequently have a similar result as the BoC raising rates. So just because the Fed is still raising, doesn't mean the BoC will resume unless other factors occur or the CAD becomes too devalued. The Fed also tends to cut during election years, so with 2024 being an election year one likely possibility is that the Fed is raising to cut next year and the BoC will not raise rates.

In the end the best economist is right 50% of the time, so who knows. The best thing to do is to do your own research and follow what you believe so that you have less regrets if things don't work out.

  

As some of you may have seen me post before, the rate changes have NOTHING to do with inflation or anything else other than BOTH US and CAN gov't following the BOND market... PERIOD! They NEVER lead, they ONLY FOLLOW!

Don't believe me? simply pull up a chart of the 3 and 6 month bonds vs the Bank of US/CAN Interest rates.... ALWAYS FOLLOWS! SO, YOU can actually predict fairly accurately if and when rates will change and even by how much....

AND as I have pointed out before... the US rate changes do NOT affect CAN rate changes. They only appear so because the respective BOND markets often are similar BUT they can and are sometimes different, and that is why the respective rates are not always in sync.

ATM, the US bond market is rising... CAN not so much.

BTW, I learned about this some time ago but only recently tested this out and proved it for myself.... very eye-opening... Holds true 100% of the time going back DECADES!

I now keep those rates on a custom-made chart to show all of this on one chart... (I use tradingview.com--FREE to use).

Alexandre said

1 year GIC 5.15% (up from 5.0%)

That goes against the common trend.  

As of today (March 11th), EQ's 1Yr GIC is already back Down to 5.00% . . .

Link ➡ https://www.eqbank.ca/personal-banking/investments/gics

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That didn't last long (one day).

Dean

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A 'One Day' Flash sale ... perhaps.

But I'm thinking most of their customers wouldn't notice such a minor change (+0.15%) that only lasted One day, and with no prior notice.

My guess ... "Oops, we shouldn't have done that. Change it back, Quick ❗"

Dean

It is what is is, one day flip flop, quietly and unannounced ... collectively here at HISA, we notice flip flops happened at other FIs as well. I am interested to know if anyone actually got that rate in that single day.

... and how did you fund it? Was it there all along at EQ earning the 2.50%? Did it come from recently matured GIC at EQ? Or just a small GIC that you could EFT in?