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Email this10:01 am
November 4, 2014
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I remember last year around September-2013, Scotia had an offer of 3.00% 5 year GIC, RRSP, RRIF, RESP, TFSA rates. It now has really low rates trying to pass as special rates with their 5 year at only 2.30%.
You can see this at http://www.scotiabank.com and click on rates and prices above and GIC's in the drop down list that . Who is going to put money in these things? I have no idea why would anyone do this.
4:01 pm
August 9, 2014
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Most Canadian are not that financial savvy' or they are too afraid to deal with small FI, or they cannot use or fear to use computer for banking.
7:24 pm
December 23, 2011
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I am retired and in my 60's. Since the advent of Ing I chose to do virtual banking but with Citizens Bank as Ing would not clearly state that they had CDIC coverage. I was hooked! I moved from BC to AB for 5 years and kept all my banking and adviser as is, in BC. How handy it was to call Citizens at 10pm on the last day to do an RRSP contribution! Since then I have done as much as possible on line with BMO and Coast Capital. And now I have broadened out to Outlook Financial, Accelerate etc. Since my investments with my adviser are so conservative I am taking that over on my own and should have done it years ago as I am doing better than he.
So I have a younger friend that was packaged off last month and much to my surprise he still pays all his bills personally at the bank and does nothing online. Another older friend with a deaf wife has been interested in Oaken and all of his investments are GICs only. I told him about the .25 bonus and he got back to me to say the problem is that his wife is deaf and that she would have difficulties on the phone. I totally overlooked how would hearing or speech impaired folks deal with this? Are they being short changed? I mentioned to my friend that Oaken had an office in Vancouver that he could visit. So here is the surprise, my friend with the deaf wife does no online banking.
So some folks are still not that adventurous or trusting online?
I guess, due to whatever, the big 5 have attractive GIC rates to some.
10:32 pm
December 2, 2012
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kanaka said .
So some folks are still not that adventurous or trusting online?
I guess, due to whatever, the big 5 have attractive GIC rates to some.
I imagine some of it is trust. Some of it is just being lazy. And some is not being informed.
The big 5 aren't interested in losing your business to a CU or similar.
And it's not like there are millions of members on this site. 
3:46 am
October 21, 2013
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It's the same problem for the visually disabled, not just the hearing impaired. As a society, we have a long way to go.
I was at a Loblaw's grocery store this evening, which has just been completely renovated. I noticed that PC Financial now has a kind of mini-store just outside the Loblaw's itself but inside the same building. It's not like a regular store inasmuch as there were no doors, there were bank machines but no employees (this was about 9pm). Still, it took up as much space as any other kind of small convenience store etc. I didn't examine it closely to see what else was there.
It strikes me that over time the online banking world and the bricks-and-mortar ones are more or less meeting in the middle. Rates at PC aren't that much better than CIBC parent.
I suspect that this little "store" is the way of the future. Scotia is cutting huge number of branches, but now they have Tang to play around with, the new transfer-out fees being just the beginning. I think each of the BigBanks would like to eat up a smaller one that has developed its online market, so they can each have a piece of the pie and prepare for the day when branches will be, in their view, all but unnecessary. In my crystal ball (ha!) it looks like the big will eat the small, and the resulting indigestion will lead to mediocre service and rates. The only real differences will continue to be in smaller new banks and credit unions.
6:59 am
November 4, 2014
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These are all very good points and it seems that people that are not capable, comfortable, informed, experienced or educated with having money and making financial decisions about savings accounts, GIC's, RESP's, RRSP's, RRIF's, TFSA's etc. on getting the best rate for their particular needs can fall into getting less for sure.
I guess for those got 3.00% for 5 years in September-2013 made a fine decision so far. It is now a 3.83 year GIC or 46 month GIC as time has passed.
Thanks for all the different view points and take care.
12:51 pm
November 4, 2014
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They have a 24 month 2.01% GIC rate sale that is better than their last rate sale but is still not competitive enough with others 2 year GIC rates, 2.25%, 2.40%, 2.60%, Hubert Financial,Canadian Direct Financial, Maxa, Outlook, Accelerate, Achieva, Oaken Financial.
2:53 pm
March 2, 2014
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2.01% for 2 Years? Why bother. Implicity has 2.41% and that's not a special.
9:23 am
November 4, 2014
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Bb123, their are even 1 year GIC rates that are 2.40%. Just comparing the highest rates and not looking at liquidity or access to money as a factor.
I Just hope are getting more informed and not just settling for whatever rate they show them.
11:07 am
November 4, 2014
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Steinbach Credit Union, http://www.scu.mb.ca/rates/investments has 2.60% 30 month GIC, RRSP, RRIF, TFSA rates for anyone that can lock in for 6 more months than Scotia Bank's or others 2 year terms and wants another option or in addition to Oaken Financial's 2.60% 2 year rates.
9:33 am
November 4, 2014
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Scotia Bank's quarterly earnings came in and they are not as good as they estimated, http://www.theglobeandmail.com.....e21966230/.
Their profits are starting fall or decline as they already announced 1,500 job cuts earlier about few weeks ago which I believe 1,000 of this 1,500 are in Canada.
Now, I can see why they, meaning Scotia Bank and Tangerine Bank has much lower GIC, RRSP, RRIF, TFSA and lower savings accounts rates plus much higher mortgage rates.
Also, the $45+H.S.T. RRSP transfer fee they just brought in. It looks like in the future there is a good chance that we can see more fees on different items, likeTFSA's for example, maybe higher fees, more restrictions like their getting rid of no cashable GIC's at 0.50% for GIC's and possibly longer deposit holding periods.
Who knows but when they make less profit or lose money, they just pass it on to us. Next year 2015, I would not expect anything differently than what they did in 2014.
10:02 am
June 29, 2013
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Greg
BNS still made $7.3 billion profit - perhaps not quite what they estimated, but not too shabby either.
12:13 pm
November 4, 2014
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Yes, Brian, I agree but they are always looking forward and to maintain and increase their earnings, profits to find new revenue and profit centers to achieve it.
Just this year, we have seen some then changes that under ING Direct, ING Bank never did. This is true especially with more flexibility, higher rates and no fees that was in place by ING Direct, ING Bank but now is not the case with Scotia Bank, Tangerine Bank.
Shopping around to get better and higher rates, lower to no fees and more flexibility with our deposits is going to be our best way maximize savings, investments.
12:44 pm
June 29, 2013
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Greg - Have you ever considered buying some shares of BNS (or other of the big banks) - thus sharing in these profits - receiving quarterly dividends of now around 4% for BNS plus the dividend tax credit?
1:02 pm
November 4, 2014
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Brian, no. It is not my cup of tea. I just brought up this subject because since Scotia Bank bought ING Direct and changed it to Tangerine Bank, it is not the same and I'm sure that many others on forums and blogs knew this was coming.
Why don't they just call it Scotia Bank 2 or some other similar name because it is really the same thing. Regarding the dividend tax credit, there are already so many tax sheltering and tax reducing ways, RRSP's, LIRA's, LRIF's, LIF's, RESP's, RRIF's, TFSA's, annuities, gifting to family members over 18 that are non spouses, pension income splitting, union dues deduction, carrying charges and interest expenses, moving expenses, childcare expenses, RPP deductions, basic personal amount, employment insurance premiums, C.PP., Q.P.P. contributions, public transit amount, home buyers amount, caregiver amount, Canada employment amount, disability amount, age amount, medical expenses, pension income amount etc.
There are more than this but there are quite of bit of ways to reduce taxes. It just takes planning ahead.
1:32 pm
December 23, 2011
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Greg Franklin said
Brian, no. It is not my cup of tea. I just brought up this subject because since Scotia Bank bought ING Direct and changed it to Tangerine Bank, it is not the same and I'm sure that many others on forums and blogs knew this was coming.
Why don't they just call it Scotia Bank 2 or some other similar name because it is really the same thing. Regarding the dividend tax credit, there are already so many tax sheltering and tax reducing ways, RRSP's, LIRA's, LRIF's, LIF's, RESP's, RRIF's, TFSA's, annuities, gifting to family members over 18 that are non spouses, pension income splitting, union dues deduction, carrying charges and interest expenses, moving expenses, childcare expenses, RPP deductions, basic personal amount, employment insurance premiums, C.PP., Q.P.P. contributions, public transit amount, home buyers amount, caregiver amount, Canada employment amount, disability amount, age amount, medical expenses, pension income amount etc.
There are more than this but there are quite of bit of ways to reduce taxes. It just takes planning ahead.
Take a look at ETFS....XDV and FIE.
3:12 pm
November 4, 2014
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Kanaka, it looks like they have 3.60% to 3.80% dividend yields and annual fees of 0.50%. In Ontario, the dividend tax credit will not reduce or eliminate the annual Ontario Health premium of $300 to $900 depending on your income.
Also, in my case since I have a disability with my back injury, I have a certified letter and application approved for the disability amount. My first almost $18,000 is not taxed and RRSP's and TFSA's are sheltering most of my compound interest as well.
The dividend tax credit would not help much because interest from non-registered investments is already taxed at the lowest income tax rate around 20%.
3:12 pm
June 29, 2013
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Kanaka - I agree - etfs are a conservative way to invest in banks and get a piece of the bank profits in a tax efficient way. I like CEW too which also includes the largest insurance companies as well as the large banks.
3:32 pm
November 4, 2014
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For those that are interested in GIC's, shop around and compare because there usually is a better rate and deposit products out there.
Our main concern is trying to increase money in our pocket by investing in GIC's in this case. There are longer term interest bearing investments that pay 3.60%+ that are conservative too that can be tax sheltered in RRSP's, RESP's, TFSA's but I do not want to stay off topic anymore.
4:10 pm
December 23, 2011
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Brian said
Kanaka - I agree - etfs are a conservative way to invest in banks and get a piece of the bank profits in a tax efficient way. I like CEW too which also includes the largest insurance companies as well as the large banks.
Thanks I printed this for future consideration. I like the idea of the big insurance companies....when has one of them ever gone for broke!?
http://quote.morningstar.ca/qu.....ture=en-CA
Also check this out.
http://www2.morningstar.ca/too.....ture=en-CA
The two I showed and buy have a higher dividend yield though. But it is 4 star.
Sorry for off topic Greg but as much as I would like to do GICs only I do believe you need a mix of stock market purchases. Only if the rates would be greater than 5%! And as said here why settle for a GIC when you can invest in the bank at a higher rate. I know I have mentioned before I am phasing out my adviser and will not have as much money in mutual funds or ETFs with him but plan to add to more to what I already duplicated in my TFSA portfolio and plan to add more over the next two years. I reinvest the dividends every month with an ETF like FIE or CDZ that is commission free to buy or sell. Then once a year I will sell all FIE and CDZ and treat it like a GIC that pays interest annually. I can see getting 3-6 % vs 3% from a GIC if you are lucky.
In TFSA, no hassle for declaring dividends or gain/loss. No income tax. And it increases my TFSA contribution room for the next year.
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