4 yrs @ 2.0%, 5 yrs @2.1%, through GICWealth | GIC discussions | Discussion forum

canadian.100 said

Unfortunately with inflation likely to be 2% this year (and probably more in 2022) and after income taxes (which are going to increase), one still loses. These rates are a bit better but still not an incentive to freeze your capital for 3 and 4 years. Perhaps being offered by lesser known Credit Union(s)?  

All kinds of things might happen, but we don't really know, do we? Bank of Canada reversed its predictions last week, and could easily reverse them again.

There are no increased income taxes on the books for me. But I will continue to maximize RIF withdrawals within my tax bracket until they are gone. I think that's a more reliable way to deal with any possible tax hikes.

I do think inflation will be a factor at some point in the next few years, but I could be wrong.
People need to follow their financial plan, based on a balance of risks and rewards, and revise it periodically when there are significant changes.

I wouldn't assume these offers are coming from CUs, although they might be. GICWealth deals with both banks and CUs. The last GIC I bought through them was from a bank and it was the highest rate available for the term in question at the time.

gicjunkie said

I stand corrected. There is at least one broker that reveals FI names. No doubt GIC Wealth uses the same ones, so, problem solved. Thanks for the update.  

Don't assume they all serve the same FIs. Each broker has their own arrangements with FI clients. FI clients choose who they want to work with.
Let's say FI #1 needs to raise 10 million. They know from experience that broker A can do that for them within a few days at X%. They have no need to set up arrangements with brokers B,C, or D. They would go to B,C, and/or D if they needed more money than A could raise in the required time.
Sometimes however, different brokers will knowingly share a client.
(I asked questions, and this is what I gleaned from the answers.)
I suppose that if they all had identical offerings, there would be no point in separate companies.

i had the impression, from my inquiries, that the contract between the FI and the broker would specify how much they wanted, including a ceiling or the right to cut it off without notice.
That's why some of these offers only last a day or two. The higher the rate offered, the faster they will raise the money.
Anybody wanna offer me 3%?

There is nothing to prevent them cutting it off if that's the agreement, but it probably doesn't happen within the 1st day.
People are used to being too late for a specific deal. Happens all the time.
Right now, this thread has been read 453 times, which is 439 more times than the number of posts - and they all have friends. If a significant number pursued this deal, and it ended today, they would not all get it, simply because of insufficient workforce. Would they be disappointed? Yes, but it would not stop them trying again another time.

If you contact your deposit broker at noon and they say the offer may only be good for "today', do you not think that is the equivalent of "a few hours"? Remember, he has a toothache and has to get to the dentist by 4pm, LOL! These are not huge businesses, from what I've seen, although they deal with huge amounts of money. Some people could easily miss out, even on the first and only day.