Tandia: 4.50% for a 5-year GIC | GIC discussions | Discussion forum

gicjunkie said
Tandia Makes a Splash: 4.5% for 5 years

NON-REDEEMABLE LONG TERM DEPOSITS RATE
1 Year Term Deposit 2.00
18 Month Term Deposit 2.75
2 Year Term Deposit 3.00
3 Year Term Deposit 4.00
4 Year Term Deposit 3.30
5 Year Term Deposit 4.50

Minimum $500, youth/trust $100, non-redeemable. Semi-annual or monthly interest payments (min. $5,000) available at slightly lower rates. Renews for same term at maturity

https://www.tandia.com/personal/product-services/rates  

Nice! We're going to be at 6 percent sooner than we think...

phrank said

I'm not going to be tempted until we get into the double digits OR we enter a recession.  

You won't have long to wait, methinks, for a recession. Double digit returns? I'm not so sure we'll ever see that again.

No, I don't think it's a typo. The four year terms rarely attract promotional rates. Tandia has put its energy where they are likely to get the most business.

3.30 was their four year rate last time I checked, on May 3. They just haven't increased it like they increased the others.

Ah-hah! I guess they just forgot to update that one.
Good to know.

I doubt any of us ever knows what's really going on inside financial institutions, so we have to rely on what we can glean from their annual reports, attending their AGMs and reading the press. But they are not going to tell you, "the ship is sinking", if it is.

So, as turquoise said, we have to rely on the insurance. Just keep your money within insured limits and you should be OK. The worst that is likely to happen would be that your GIC would be terminated prematurely. I don't buy CU investment shares as they are not insured at all.

It appears to me that currently Tandia is the leader of the rate pack.

Sometimes a high rate may not be a good sign.

The big problem with investment shares is that they have no maturity date. How do you get your money back?

Are you sure about the redemption schedule? I was under the impression that the graduated redemption applied to the shares awarded from profit-sharing, not from investment shares that you buy, being two different categories. However, it's quite a while since I looked at them in any detail.

As I said, I've never bought any but I currently have about $100 in "bonus" profit-sharing shares at DUCA which are on the 10% p.a. schedule. It's so little that I will let them ride out the 7 years until I get the principal back from the first year, and so on in subsequent years. In most cases, from what I've seen, there is the option of selling them to another member, through the CU, if you want, and there are often people waiting to get them.

I don't really understand the appeal either, but they do seem to market them a on the basis of loyalty and rate. I guess that if you've bought them once and it is proving successful, you will do so again.

I do have a small amount in the shares of two credit unions, both of which paid double the GIC rates during most of their terms. One of them allows withdrawals at any time (subject to not being more than a specified percentage OF THE TOTAL SHARES ISSUED) and the other is very reluctant to allow withdrawals but has kept dividends at 5%, which is attractive.

Risky, but I keep an eye on them. The first one kept paying its dividends during the 2008 crisis, and has over the 25 years I've held it has been extremely lucrative.

But, again, I keep to the risk I can afford.
RetirEd