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Email this12:43 pm
December 20, 2019
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Sep 7 - 2022 - The Bank of Canada today increased its target for the overnight rate to 3¼%, with the Bank Rate at 3½% and the deposit rate at 3¼%. The Bank is also continuing its policy of quantitative tightening.
Still waiting for this to hit the GIC or HISA
1:11 pm
January 12, 2019
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.
No offence intended KamWest, but I wouldn't hold your breath on that ⬆.
Regardless of the new BoC rates, very few changes (increases) to HISA & GIC Rates are expected. For now, it appears those rates may have topped out.
Yes ... I'm as disappointed as you are. 
- Dean
" Live Long, Healthy ... And Prosper! "
1:14 pm
October 21, 2013
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Don't hold your breath; it isn't inevitable. Other factors have to also move in order to boost retail investment rates.
Consumer debt is back to pre-pandemic levels and borrowing rates have increased significantly already.
EDIT: Looks like Dean and I were writing at the same time!
1:49 pm
December 7, 2011
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I think, that Hubert will increase 1 year GIC from 4.25% to 4.50% on October 7 or October 14, 2022.
Only 0.25% increase, not 0.50%, not 0.75%
2:38 pm
April 2, 2018
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Winnie said
I think, that Hubert will increase 1 year GIC from 4.25% to 4.50% on October 7 or October 14, 2022.
What's wrong with Oct 6th or 8th or 13th????
Can you rent your crystal ball for a few hours? 🙂
2:45 pm
March 30, 2017
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Winnie said
I think, that Hubert will increase 1 year GIC from 4.25% to 4.50% on October 7 or October 14, 2022.Only 0.25% increase, not 0.50%, not 0.75%
I will bet against that. Next bank meeting is Oct 26. Zero reason for Hubert to jump the gun especially at the moment, its not "confirmed" if bank will go 75 with 100% certainty yet.
5:47 pm
September 11, 2013
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USA August numbers indicate inflation picking up steam, Canada interest rate increases will follow lead of USA. So at least for short term rate increases look to continue.
6:10 pm
January 28, 2015
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Expect another .75 rate hike Oct 26th to 4%
6:57 pm
December 12, 2021
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All Canadian banks raise prime rates after Bank of Canada hike. Banks raise rate 75 basis points to 5.45%. GREEDY the reason why no change for GIC and HISA.
However from BNN dont have the link now "data from the Investment Funds Institute of Canada (IFIC) showed investors pulled $4.5 billion net from mutual funds in July following a net redemption of $10.4 billion in June much of the money pulled from RBC mutual funds in its fiscal third quarter went into GIC products."
Don’t jump on the highest yield just yet
The rate have not peak, just billions are leaving the stock market for GIC and the banks knows
7:09 pm
March 30, 2017
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agit said
All Canadian banks raise prime rates after Bank of Canada hike. Banks raise rate 75 basis points to 5.45%. GREEDY the reason why no change for GIC and HISA.
All Canadian banks are NOT charities.
As a GIC investor, I wish deposit / GIC rates are higher too.
As a bank shareholder, they are taking action / inaction to max shareholder value which is also proper.
7:14 pm
December 12, 2021
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savemoresaveoften said
All Canadian banks are NOT charities.
As a GIC investor, I wish deposit / GIC rates are higher too.
As a bank shareholder, they are taking action / inaction to max shareholder value which is also proper.
All Canadian banks raise prime rates after Bank of Canada hike. Banks raise rate 75 basis points to 5.45%. GREEDY the reason why no change for GIC and HISA.
However from BNN dont have the link now "data from the Investment Funds Institute of Canada (IFIC) showed investors pulled $4.5 billion net from mutual funds in July following a net redemption of $10.4 billion in June much of the money pulled from RBC mutual funds in its fiscal third quarter went into GIC products."
Don’t jump on the highest yield just yet
The rate have not peak, just billions are leaving the stock market for GIC and the banks knows
7:33 pm
January 12, 2019
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.
A wise man (Norman1) recently said in another thread/topic on these forums :
"So, deposit rates are adjusted up or down depending on how the deposits flowing in compare with the loans being made, regardless of the Bank of Canada rate.
The deposits versus loans is not the same for each bank. If a bank has no need for more 3-year deposits for 3-year loans, then the bank won't care if its 3-year GIC rate falls to the bottom of the rate charts."
- Take notes ⬆
It's Not about Greed ... it's about 'Supply & Demand' ❗
- Dean
" Live Long, Healthy ... And Prosper! "
7:34 am
September 14, 2022
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Higher government bond yields will put upward pressure on GIC rates and knock steam out of the economy. For example, which would you buy a liquid Canada 3yr note yielding 3.95% or a 4.25% GIC. Something to ponder.
8:00 am
December 7, 2011
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pooreva said
Winnie said
I think, that Hubert will increase 1 year GIC from 4.25% to 4.50% on October 7 or October 14, 2022.What's wrong with Oct 6th or 8th or 13th????
Can you rent your crystal ball for a few hours? 🙂
No crystal ball, just simple thinking.
Oct 7 or Oct 14 will be a few weeks before next BOC possible increase.
I think, that Friday would be the best day of the week for Hubert to have some rate increase fun. 
8:38 am
December 20, 2019
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My 3 month term was up last week and I ended up renewing for 3 months yesterday for a full percentage point higher than before.
Hopefully I can repeat that in the next three months.
PS: If anyone is doing higher amount GIC's remember to split them up into 2-3 GIC's so you can get at some funds without penalizing all the funds.
11:52 am
January 12, 2019
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.
For further details on why GIC Rates appear to have peaked (for now), read Peter's latest Savers Roundup email for September, that he just sent out today.
There's no link available yet, but this is the 'meat' of it . . .
-
". . . We spoke to a few financial institution representatives, and got a roughly consistent answer: there are many factors affecting GIC interest rates, such as a financial institution’s various alternative funding sources (including the Canadian Dollar Offered Rate) and good ol’ competition. But the main reason why there isn’t as much correlation between GIC rates and the Bank of Canada’s key interest rate is that GIC rates are more forward-looking. Earlier in the year, there was a greater expectation of interest rates increasing, thus we saw bigger increases in GIC interest rates. Looking ahead to 2023, the Bank of Canada isn’t currently expected to increase its key interest rate as much as it did in 2022, thus GIC rates have plateaued, at least for now. . . ."
.
Thanks Peter,
- Dean
" Live Long, Healthy ... And Prosper! "
1:42 pm
March 30, 2017
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Dean said
.
For further details on why GIC Rates appear to have peaked (for now), read Peter's latest Savers Roundup email for September, that he just sent out today.There's no link available yet, but this is the 'meat' of it . . .
". . . We spoke to a few financial institution representatives, and got a roughly consistent answer: there are many factors affecting GIC interest rates, such as a financial institution’s various alternative funding sources (including the Canadian Dollar Offered Rate) and good ol’ competition. But the main reason why there isn’t as much correlation between GIC rates and the Bank of Canada’s key interest rate is that GIC rates are more forward-looking. Earlier in the year, there was a greater expectation of interest rates increasing, thus we saw bigger increases in GIC interest rates. Looking ahead to 2023, the Bank of Canada isn’t currently expected to increase its key interest rate as much as it did in 2022, thus GIC rates have plateaued, at least for now. . . ."
.
Thanks Peter,Dean
I have also point out numerous time current GIC rates are still way higher than the O/N rate. To expect GIC rate to go lock step with bank move is just not realistic....
9:05 am
December 12, 2021
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Dean said
.
For further details on why GIC Rates appear to have peaked (for now), read Peter's latest Savers Roundup email for September, that he just sent out today.There's no link available yet, but this is the 'meat' of it . . .
". . . We spoke to a few financial institution representatives, and got a roughly consistent answer: there are many factors affecting GIC interest rates, such as a financial institution’s various alternative funding sources (including the Canadian Dollar Offered Rate) and good ol’ competition. But the main reason why there isn’t as much correlation between GIC rates and the Bank of Canada’s key interest rate is that GIC rates are more forward-looking. Earlier in the year, there was a greater expectation of interest rates increasing, thus we saw bigger increases in GIC interest rates. Looking ahead to 2023, the Bank of Canada isn’t currently expected to increase its key interest rate as much as it did in 2022, thus GIC rates have plateaued, at least for now. . . ."
.
Thanks Peter,Dean
Since the bonds yields continue climbing higher suddenly the GIC no longer link to the bonds yields as EQ bank representative told GM last month "Bond yields, a big influence on GIC rates"
And now the above
...cherry picking...
Banks raise prime rate immediately following BoC.
9:21 am
January 13, 2022
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There are many bank apologists on this forum, and while they are quick to defend the bank's actions (or lack of), their posts and knowledge are appreciated in that they do explain the reasons that underlie these actions and, more importantly, serve as a simple reminder: the banks, and other FIs, are not your friends. Best to use them as they use you.
Please write your comments in the forum.