Peoples Trust 1yr GIC | General comparisons | Discussion forum

non-registered rate is now 2.3% for 1 yr.

I'm not planning on this investment for myself right now for various reasons, but, if I were considering it, I wouldn't wait for a higher rate. It's only a 1yr investment. If you wait another 2 or 3 months, you've lost a significant portion of the interest you might have gained by waiting, which is not likely to be a huge amount anyway. .1% on a maximum amount that fits into CDIC coverage is just under $100.
If you hold back and leave the money waiting in a savings account, even at 1.9%, you are still losing out while you wait. 2.3 minus 1.9 = .4 .4% x $99,000 x 2/12yr = approx $66. - this is what you would lose by waiting only 2 months. You don't really ever get it back. If you made the investment at 2.4 two months from now, it would run a full year starting at that time, so, even though you would get an extra $100 more or less, you would already have lost about $66. If you have to wait more than 2 months or if the rate never goes up, or goes down, you lose more. So, for a maximum net gain of about $34, and much less if your investment is less, it doesn't seem worth the risk, to me, to wait.

It seems to me though that what these rates do suggest is the possible arrival of a relatively rare twist in interest rates. Almost always, longer terms bring higher rates. When and if that reverses, which, as I said, is rare, then shorter term investments start to make more sense than longer ones. It's something to keep an eye on at least.

Thanks, Malquin. I have added the update to the other thread on this subject in the GIC Discussions forum.
Note that this rate still applies only to non-registered funds.