TD Direct Investing GIC Rates | Page 2 | GIC discussions | Discussion forum

That last point in the Scotia RRIF Terms and Conditions is what I have read elsewhere in discussion forums. The question raised in post #12 still stands. From what I have read, at least some FIs would have prevented the situation from happening in the first place.

Example: A 70 year old has a maturing GIC in his RRSP. The FI won't allow a full renewal for a non-redeemable non-transferable GIC for 5 years if the RRSP does not contain other assets that could be liquidated in years 2, 3 and 4 to meet the mandatory minimum annual withdrawals needed in the RRIF when the annuitant is 72, 73 and 74 years old. I recall a thread, if not here, elsewhere where someone ran across that problem and didn't understand why that was the case. One can understand an FI potentially being smart enough to see that coming....while others may not do so and then a problem occurs in 2 years.

An individual with a fairly balanced 5 year GIC ladder of 5 or 10 GICs in a RRIF would not run into that issue because of maturing investments each year. This type of potential issue is a reason I, at age 73, am now collapsing my 5 year bond/GIC ladder in my RRIF into a single ETF. I don't want to 'forget' to renew properly or have my POA forget to manage this properly, or even burden a POA with this oversight and management. Much easier for an FI to sell units of an ETF to meet annual withdrawal requirements. One of the points made in post #9.

Brokerage GIC rates are typically significantly lower than the best bank/trust company/credit union rates.

However the Laurentian Bank & B2B Bank 2 year GIC rate is 4.95% with TD brokerage today. This rate is higher than the GIC rates comparison chart as well as what Laurentian & B2B are offering on their websites.

FYI

TDI GIC rate 3, 4 and 5 years gic at 5.02% and 2 years at 4.97%

Could someone please advise as to the current tdi 5 yr gic rate .
Is this rate different than the in branch rate.
Can the higher rate be used to negotiate a higher rate at the branch TD.

anita555 said

. . .

Can the higher rate be used to negotiate a higher rate at the branch TD.

As always ... it won't hurt to try ❗

See the info Bill provided in Post #28 above ⬆.

'Good Luck' with it,

Dean

With TD Direct Investing and Scotia iTRADE, the investment dealer holds the GIC's in the brokerage account. The GIC's are not registered in the client's name as they would be with one of the smaller deposit brokers.

Usually, joint broker accounts are supported. Page 7 of the Scotia iTRADE personal account application shows the different brokerage account types they support. The types include joint accounts as well as tenants-in-common accounts.

With GIC's, the commission is already included in the GIC yield quoted at Scotia iTRADE and presumably also at TD Direct Investing. However, the discount brokers are not interested in small accounts with not much trading commissions.

Scotia iTRADE will charge administration fees for such accounts. Not a problem if one wishes to buy $50,000 of GIC's. But, for total accounts under $10,000, there could be a $25/quarter admin fee at Scotia iTRADE:

²The Low Activity Account Administration Fee (“LAAA Fee”) is charged on a per account basis each calendar quarter. This fee will be assessed based on the client’s account balances, trading activity and age at the close of business on each of March 15, June 15, September 15 and December 15 of each year. The LAAA Fee will be waived;

i) for new clients who have opened their first account at Scotia iTRADE within the 6 preceding months,

ii) for client accounts where at least 1 commission-generating trade was executed in any one or more of client’s Scotia iTRADE accounts during the preceding 3 months,

iii) for Registered Plan accounts (RRSP, RIF, LIRA, LIF, RESP, TFSA),

iv) for Cash Optimizer Investment Accounts,

v) for clients with total account equity at Scotia iTRADE greater than $10,000,

vi) for accounts of clients who have achieved the age of majority but are under 26 years of age at any point during the year for which LAAA Fees are assessed and

vii) for Unclaimed Accounts,

provided that in each of (i), (ii), (iii), (iv), (v) and (vi), all accounts of the client are fully activated and the client has a valid and current mailing address on file with Scotia iTRADE.

With respect to (vi), if applicable, the LAAA Fees will be charged for the year subsequent to the year during which the client turns 26 years of age. Commission-generating trades are buys and sells of: Equities, Options, Mutual Funds subject to commissions, and Fixed Income instruments. Buys and Sells of GICs, ETFs which do not generate a commission, Canada Savings Bonds and Provincial Savings Bonds, are examples of trades that do not generate commissions.

TD Direct Investing will charge $25/quarter maintenance when accounts in household total under $15,000.

Only one joint brokerage account would be needed if one wishes to hold the GIC's jointly. Separate individual brokerage accounts would end up holding the GIC's separately.

Thanks Norman1,
Can anyone explain if my purchased gic's through TD Direct Investing are insured?

CDIC?

Bill said
Norman1, you say the investment dealer holds the GICs, not registered in client's (two in the case of a joint account) name. Then your last post says you'd need a joint account to hold GICs jointly. These seem contradictory to me, can you elaborate?
…

One needs to have joint brokerage account with the investment dealer so that it is recorded to whom the investment dealer owes the GIC's in the account.

In nominee placement, the GIC is registered to a nominee, in trust. The nominee then owes the GIC to the brokerage account owner.

If the brokerage account is an individual account for Alice, then the nominee owes the GIC to Alice only.

If the intent is for the nominee to owe the GIC to joint tenants, Alice and Bob, then the brokerage account must be a joint tenant account for Alice and Bob.