GICs through discount brokers | Page 3 | GIC discussions | Discussion forum

Discount brokerages like Scotia iTrade are simply order takers for a commission paid by the issuing parties. Rates are identical, or near identical, at all the discount brokerages although some will have more offerings than others.

Rates will almost always be lower than through other sales channels. That is the price of convenience where I can simply go into my online account at Scotia iTrade or BMO Investorline or RBC Direct Investing and buy. No chasing rates, no proliferation of accounts, etc. That is what many of us want for simplicity.

The price of convenience can be steep.

According to Norman1's most recent figures, a $100,000 five year GIC will yield $113,141 through iTrade, $114,249 through GICWealth, and $115,366 at Oaken, at maturity.

Based on my own experience, assuming all these banking relationships are already in place, it would take about 15 minutes to compare the rates at Oaken aor GICWeatjh and to set up a transfer for a new GIC.

The difference in return between the one that pays best (Oaken) and the one that pays worst (iTrade) is $2,225. Let's assume it takes AltaRed 5 minutes to select and arrange a transaction through iTrade, RBC, or BMO. So, the net extra time is about 10 minutes. That's an hourly rate of $13,350 for the extra work and inconvenience involved. I don't think many of us would find that much value in the simplicity of not having an account at GiCWealth or Oaken, but each to their own.

One doesn't need to be transferring RRSP money back and forth. If one can accept a resulting rate that is much better but not the best, one can spread the RRSP money between the top three and leave the money there.

If Oaken is likely the highest with Hubert being #2 and EQ Bank being #3, then have something like:

• 60% of the money with Oaken,
• 25% with Hubert, and
• 15% with EQ Bank.

I just checked. EQ Bank doesn't offer registered accounts, RRSP or TFSA, yet.

For GIC's in RRSP's, one would need to pick another financial institution. Perhaps, Peoples Trust:

It has been a while since the last sampling of discount broker, deposit broker, and rate chasing rates.

Still better rates by shopping around oneself:

since the pandemic, the discount broker GIC rate for 3rd party is a laugh.
They can get away with it for registered account as the money is basically "captive", and their message is "buy our own GIC" as the spread is now a lot smaller than it used to be.

At the quoted rate, may as well park it in CSAV compared to their 1 year rate if the cash is stuck inside a registered account.

I didn't mean direct purchases of GOC5 bonds, but debt that is correlated to short term bonds such as asset backed Commercial Paper and Banker's Acceptances http://www.rbc.com/economics/e.....ts/fmw.pdf

I find it amusing that what we are now calling "respectable" is 2.06% for 5 years. I recently got a 2.25% rate for 5 years from GIC Wealth which must now be considered terrific, though, I really didn't think so at the time.

A single-branch credit union in Ajax, Ontario is currently offering close to 2¼% on five-year GIC's:

Need to live or work in Ontario to join.

Norman1 said
A single-branch credit union in Ajax, Ontario is currently offering close to 2¼% on five-year GIC's:

	1 year	2 year	3 year	4 year	5 year
Equity Credit Union	1.30%	1.50%	1.75%	2.00%	2.15%

Need to live or work in Ontario to join.  

This information is mainly of interest to those living or working in the eastern GTA. Even better rates than those above are likely available directly from Equity Credit Union in Ajax, Ontario. Cannex shows 1 year GIC at 1.70% (new money?). Also, a banner outside their storefront recently showed 2.25% for 1 year for $250,000.