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Email this8:32 am
December 12, 2009
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Received an e-mail blast from Hubert Financial this morning notifying that in early January 2020, its 1- and 5-year GIC rates are increasing marginally (by about 0.10% each) to 2.50% and 2.70%, respectively. 
I suspect they've seen a bit of market share erosion and, perhaps, felt they were a bit aggressive at efforts to reduce interest expense so this is more likely to be an effort to maintain market share rather than a move with respect to bond yields or interest rates. 😉
Cheers,
Doug
8:36 am
January 12, 2019
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.
I received that same email this morning. It reads like this . . .
.
" Rate Update
Happy New Year! Our 1-year and 5-year rates are going Up on January 1.
The new term rates are as follows:
1-year term - 2.50% average
5-year term - 2.70% "
.
Every little bit counts, I guess❗
" Live Long, Healthy ... And Prosper! "
8:56 am
September 7, 2018
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It was a good event when Hubert dropped their 1 yr GIC to 2.25% (starting quarter) because it prompted me to buy Canadian bank shares with over 4% dividend rate and likely to increase both dividend and price next year. It was a good decision.
9:05 am
January 12, 2019
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canadian.100 said
It was a good event when Hubert dropped their 1 yr GIC to 2.25% (starting quarter) because it prompted me to buy Canadian bank shares with over 4% dividend rate and likely to increase both dividend and price next year. It was a good decision.
Hmmm ... I can't see where Hubert's 1yr rate has been as low as 2.25%, in recent history.
Link ➡ https://www.highinterestsavings.ca/profile/hubert-financial/gic-rate-history/
Is there a misprint somewhere❓
" Live Long, Healthy ... And Prosper! "
9:08 am
December 12, 2009
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Dean said
canadian.100 said
It was a good event when Hubert dropped their 1 yr GIC to 2.25% (starting quarter) because it prompted me to buy Canadian bank shares with over 4% dividend rate and likely to increase both dividend and price next year. It was a good decision.
Hmmm ... I can't see where Hubert's 1yr rate has been as low as 2.25%, in recent history.
Link ➡ https://www.highinterestsavings.ca/profile/hubert-financial/gic-rate-history/
Is there a misprint somewhere❓
I think Canadian.100 meant their HISA. 🙂
Over the long-term, and notwithstanding Laurentian Bank, you will do very well to buy Canadian bank shares. However, the return will be less than the historical return. One would also do well just to buy XIC, XIU, or ZCN and probably better on a total return basis. 😉
When my Coast Capital Savings 4% GIC (approximately 25% of my net worth) matures December 1, 2020, it's going to Scotia iTRADE where it will likely be staggered into ZBAL/ZGRO and MAW104 or a value-tilted balanced index ETF comparable to MAW104 if I can find one.
Cheers,
Doug
9:22 am
September 7, 2018
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Dean said
canadian.100 said
It was a good event when Hubert dropped their 1 yr GIC to 2.25% (starting quarter) because it prompted me to buy Canadian bank shares with over 4% dividend rate and likely to increase both dividend and price next year. It was a good decision.
Hmmm ... I can't see where Hubert's 1yr rate has been as low as 2.25%, in recent history.
Link ➡ https://www.highinterestsavings.ca/profile/hubert-financial/gic-rate-history/
Is there a misprint somewhere❓
Hubert absolutely was paying 2.25% on their 1 year term for the first quarter. (yes the AVERAGE is higher if you keep for the 4 quarters.)
Here is a copy and paste for one I did buy Nov 13 at that rate.
It pays 2.25% for the FIRST 3 months (Nov 13 to Feb 13) then increases each quarter.
"12 Month Term- Interest Pays Quarterly - 28 T12Q CAD 2.25% Nov/13/2020 Feb/13/2020 $$$$$ "
9:30 am
September 7, 2018
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Doug said
I think Canadian.100 meant their HISA. 🙂
Cheers,
Doug
No Doug - I did not mean their HISA. 🙂 I did mean the 1 Year Term as I explained above. Yes the HISA was 2.25% also, but I did not take that - figured if interest rates dropped again, at least I would have the second quarter of the Term more than 2.25%. (or I could cash it at the end of the 1st quarter Feb 13 if something else came up that was preferable.
9:35 am
January 12, 2019
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Doug said
I think Canadian.100 meant their HISA. 🙂
. . .
Cheers,
Doug
Apparently, he didn't ... 'Chuckle' 
" Live Long, Healthy ... And Prosper! "
9:35 am
December 12, 2009
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canadian.100 said
No Doug - I did not meant their HISA. 🙂 I did mean the 1 Year Term as I explained above. Yes the HISA was 2.25% also, but I did not take that - figured if interest rates dropped again, at least I would have the second quarter of the Term more than 2.25%. (or I could cash it at the end of the 1st quarter Feb 13 if something else came up that was preferable.
Right, the first 3 months are 2.25%, but the effective p.a. yield (currently 2.40%) was never as slow as 2.25%, which is what Dean correctly noted.
Thanks for clarifying.
Cheers,
Doug
3:41 pm
February 24, 2015
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canadian.100 said
It was a good event when Hubert dropped their 1 yr GIC to 2.25% (starting quarter) because it prompted me to buy Canadian bank shares with over 4% dividend rate and likely to increase both dividend and price next year. It was a good decision.
The decision does not need to be 'either Canadian bank shares or Hubert 1 year cashable quarterly'. If you might need access to the principal in the near term or want an emergency fund, Hubert is not a bad choice. If you want income without regard to the share price, then Canadian bank shares or a diversified dividend ETF is also a good choice. I hold some bank shares, but I do not expect that they will increase in price next year, based on the current situation in Canada.
7:32 pm
September 7, 2018
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2of3aintbad said
The decision does not need to be 'either Canadian bank shares or Hubert 1 year cashable quarterly'. If you might need access to the principal in the near term or want an emergency fund, Hubert is not a bad choice. If you want income without regard to the share price, then Canadian bank shares or a diversified dividend ETF is also a good choice. I hold some bank shares, but I do not expect that they will increase in price next year, based on the current situation in Canada.
It was not an "either or" decision; it was a diversification decision.
10:50 pm
October 21, 2013
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A 3-month rate is not a one-year rate.
Hence, Hubert did not offer a one-year rate of 2.25% during the period in question.
When they DID offer a one-year rate of 2.25, beginning in November 2017, the first quarter rate was 2.10% and the 4th quarter was 2.40%.
They are now reverting to the rate they offered last Sept-Oct.
My guess is that they acquired too many expensive one-year deposits last winter when the annual rate offered was 3.1 from 19 Dec 2019 through March 2019. Those have begun maturing so are off the books. We had 3 of them that just matured, and have 4 to go, with the current quarter earning 3.25%. We didn't buy any at 2.4, and I doubt many did, especially as 3% on savings was not hard to find and better one year terms were available. I doubt Hubert especially wanted us to buy them as they were full of cash. I agree with Doug that the decision to increase now is unrelated to bond rates or Bank of Canada.
I wouldn't be surprised if Hubert goes up to 2.6 soon as they continue to offload more of the 3.1's and return to their usual position of being slightly above most of the competition.
It's all in how you look at it. And hindsight can provide a wonderful rose-coloured lens.
2:12 am
December 12, 2009
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Loonie said
A 3-month rate is not a one-year rate.
Hence, Hubert did not offer a one-year rate of 2.25% during the period in question.
When they DID offer a one-year rate of 2.25, beginning in November 2017, the first quarter rate was 2.10% and the 4th quarter was 2.40%.
They are now reverting to the rate they offered last Sept-Oct.
Yep, well said, as usual, Loonie.
My guess is that they acquired too many expensive one-year deposits last winter when the annual rate offered was 3.1 from 19 Dec 2019 through March 2019. Those have begun maturing so are off the books.
Yeah, I think my current effective average 1-year GIC yield is 3.15%, which matures on January 19th. I'll probably let it renew for 3-6 months or so, as I finish up my final semester (yay!) and then transfer it out and average it in to ZGRO/MAW104 (or similar). 😉
We had 3 of them that just matured, and have 4 to go, with the current quarter earning 3.25%. We didn't buy any at 2.4, and I doubt many did, especially as 3% on savings was not hard to find and better one year terms were available. I doubt Hubert especially wanted us to buy them as they were full of cash. I agree with Doug that the decision to increase now is unrelated to bond rates or Bank of Canada.
I wouldn't be surprised if Hubert goes up to 2.6 soon as they continue to offload more of the 3.1's and return to their usual position of being slightly above most of the competition.
It's all in how you look at it. And hindsight can provide a wonderful rose-coloured lens.
Yep, that's a solid theory. I could see them conceivably going as high as 2.75% on their 1-year quarterly, particularly if Oaken and Peoples get competitive. There's a strong possibility Peoples may bring back its popular 15-month 3% GIC through May/June as they've done in prior years about this time. I could also see Oaken boosting their 1-year rate marginally.
Cheers,
Doug
5:13 am
October 21, 2013
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That would be great if Peoples went to 3%. But they were offering that that as recently as last September, so it seems a bit soon to me. But who knows? We bought some last September but would buy more if offered as we're below CDIC. Will only do joint or TFSA with them.
Only one more semester? Congratulations!
6:22 am
September 7, 2018
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Loonie said
That would be great if Peoples went to 3%. But they were offering that that as recently as last September, so it seems a bit soon to me. But who knows? We bought some last September but would buy more if offered as we're below CDIC. Will only do joint or TFSA with them.Only one more semester? Congratulations!
I also like that 15 month GIC at Peoples. Picked it up @3.1% for 15 months last June. Don't think I would exceed CDIC limits for that issuer.
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