Scotia | General comparisons | Discussion forum

On a more serious note, you could keep an eye on some deposit brokers such as but not limited to fiscalagents. (I havenever dealt with them personally. I used to deal with another one but can't remember the name of it any more. It was a very easy straightforward process.)

The deposit brokers have an organization, the name of which I can't remember. I would choose one that belongs to the organization and subscribes to any code of ethics they may have or is regulated somehow. I can't even remember what the proper name is for such brokers, but I think this is it.

Sometimes, but not always, they have better rates than what you can get yourself. It all depends on how badly the particular FIs need your cash and what kinds of deals the brokers have been able to cut with them. It's essentially bulk buying. The bank wants, let's say, another a certain amount of cash at a particular time, for which it is willing to pay a certain rate. It can wait for you and I to show up individually with our piggy banks or it can cut a deal with a rate broker who has access to more piggy banks looking for a secure home, and will bring them the money from various depositors, and bring it more quickly. The broker takes a cut, you get a better rate, and the bank gets its money, on which it can still easily make a profit, which it had calculated before offering the deal.
Deposit brokers also offer the convenience of contacting you when the GIC is about to become due, to ask you what you want to do next. They will arrange the transfers; all you have to do is sign the papers.

You can also phone up and ask any and all banks. I was once offered an extra 5 basis points at one of the smaller banks, which surprised me. I was only offered this because I asked, and I was already a customer. I expected this at the bigger banks, where they obviously have a lot of wiggle room, but not the smaller ones.

It's true that the big banks all own several corporations, each of which is typically fully insured by CDIC. If you are going to deal with a major bank, check the CDIC list for their names before you go in to negotiate. It can be tricky to get them to separate your funds so that they are spread around, as they are so convinced that their bank could never fail, that they sometimes act like the customer is being a PITA for asking. I have had this experience at TD. I no longer ask, and take my money elsewhere. That said, you will not likely be able to get the product you want through ALL of the corporations that a particular bank owns because they don't all offer the same products. However, there is some overlap.

Here's another thought, perhaps way off the map. perhaps it's more of a question.
I keep getting these pop-up ads for gov't of Israel bonds. I think the ad currently says 3.62%. I have never clicked on these ads and have never bought Israeli bonds or shown any interest in them. I am imagining they are very long bonds. I find it hard to imagine the state of Israel going under because of its unique place in history. I think most of the developed world would come to its defence. Any thoughts?

Thanks, Brian. That's very helpful. Will have to look into it further.

dentgal said

Thank you Loonie et al:
Here are the Israel Bond rates (i get them sent to me regularly); i never find their rates particularly great!

Bonds & Rates
Israel Bonds Rates from March 15 TO 31, 2016

Deadline for current rates:

To purchase at the rates listed below, full payments and completed forms
must be received by Thursday, March 31, 2016, at 12pm.
New rates will be posted on Thursday, March 31, 2016.

Jubilee Bonds
CDN $25,000 Minimum Subscription
Term Fixed Interest Rate Semi-Annual Interest
2 yr 1.46% CDN $182.50
3 yr 1.72% CDN $215.00
5 yr 2.20% CDN $275.00
10 yr 3.35% CDN $418.75

This is a fixed term bond issued twice each month.
Semi-annual interest paid every May 1st and Nov. 1st.
CDN $5,000 additional amounts available within one year of initial purchase.
....

They may not be good in comparison to the best rates for GIC's and term deposits. But, they are actual quite good as far as government bonds are concerned.

These are the wholesale yields (before dealer markup and commissions) for Canadian dollar Government of Canada marketable bonds, shown on CBID:

2 Year 0.54%
5 Year 0.71%
10 Year 1.28%
30 Year 2.08%