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Email this5:05 pm
February 17, 2013
Offline5:58 pm
November 4, 2014
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I have doubts about interest rates rising much as they did start in the middle of 2013 to about April, May 2014 and then a big drop since August-2014. It is a 35% to 42% drop over the last 12 to 13 months.
It is the interest income or annual yield I am talking about dropping 35% to 42%.
They will go up and maybe down but expecting more than 3.10% to 3.25% 5 year GIC's is in my opinion unrealistic. How long will they last. Home Trust before it was Oaken Financial in September to October 2013 had a 3.20% 5 year GIC for maybe 1 week then down to 3.15% for 5 year GIC's for about 2 to 3 weeks and down to 3.05% to 3.00% 5 year GIC's for a few months.
Home Trust had one of the highest 5 year GIC rates out there at 3.20% for that short time.
Rick, did you see what is happening to U.S. and Canadian bond yields? They are crashing, the are about at all time lows of July-2012.
9:18 am
November 4, 2014
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Rick, since the Bank of Canada stopped raising their interest rate leaving it at 1.00% in September-2010 until now, 2015, 5 year GIC rates were as high as 3.35% to 3.75% and longer term bonds, zero coupon bonds were around 4.40% to 4.90%.
We can now see how much rates have dropped almost 4.5 years later with 5 year GIC's at most 2.85% to 3.10% except for CFF Bank TFSA's which are 3.30% and longer term bonds, zero coupon bonds are around 2.55% to 3.30% at most.
Now, look at this, http://www.cbc.ca/news/busines.....-1.2891304.
Now, the Bank of Canada may hold off increasing interest rates in 2015 and maybe longer than that.
Believe it or not, there is a possibilty they may cut interest rates if Canadian housing and economy slumps, gets caught in a downturn.
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