Rate decreases June 2, 2020 | Hubert Financial | Discussion forum

christinad said
At this rate it will below 2% when i renew mid june.:-(

Are people still renewing into 1 year gics or is the thought 2 year is better?  

When rates are dropping have you ever considered borrowing from yourself......buy GIC now.......then pay yourself back when the GIC your mid June GIC matures....assuming is non registered. That also allows you to change to FI with higher rate. I do it all the time to get my GICs into the correct quarter and when I find a higher rate.

Sorry. TFSA wouldn’t be possible unless you did not contribute yet this year. But you could transfer out, if free, and if another FI would guarantee a higher rate. Things seem more customer unfriendly lately.

We all have our own banking techniques and I have ledgered money in HISA that I can always borrow from and have always had enough to do it with.

You might want to adopt 5 year laddering and see how it works. I do now....crappy rates this year for a fifth of my money but the other 4 years look nice!!

For TFSA a 5 year ladder is a fifth or a fifth + 6500 per year. It just takes a bit of getting used to.

Another couple of things to think of for TFSA......does your FI have free transfers like Hubert, PT, and Oaken.....and does your FI offer a TFSA GIC with interest paid out annually to TFSA savings account like PT and Hubert. You will see the advantage as you get older.

I would stay away from LOC only because I don’t know how they work but if you are comfortable with the cost by all means do so.

Yes the economy is going to take awhile.
And long term for ever changes like:
Store opening days and hours of operation.
School at home
Work at home
Transit availability more or less required
Malls closing or store foot prints much smaller with more online buying.
And many others.

But do take a look at what a five year ladder will do for you. Look at it, believe in it, manage it, and don’t miss 5 year rates. All of your money is eventually in a 5 year rate. And not the small stuff % wise. You sound young and you might be short changing yourself?

GICinvestor said
Yes the economy is going to take awhile.
And long term for ever changes like:
Store opening days and hours of operation.
School at home
Work at home
Transit availability more or less required
Malls closing or store foot prints much smaller with more online buying.
And many others.

But do take a look at what a five year ladder will do for you. Look at it, believe in it, manage it, and don’t miss 5 year rates. All of your money is eventually in a 5 year rate. And not the small stuff % wise. You sound young and you might be short changing yourself?  

Nothing wrong with 5 year ladder. I am currently building mine. I have about 20% maturing each year. I take out the interest. I will buy a 5 year GIC once a year. 5 year GICS average the yield. You do not even care about the renewal rate.

GICinvestor said
That’s great. We all have our own agendas. Some likely based on age. So cruzinalong are you talking everything....RRSP...TFSA.....Non Registered? We have non registered and TFSA laddered but I need to do something with RRSP soon moving to RRIF. I like to learn from others based on what and why they have what they have in place. I expect last money to ever used will be TFSA. All funded from RRIF. It is a slow process but I have another idea to pull out more RRIF and will invest likely in a reserved block of $1000 1 year Hubert GICs. My plan for TFSA is to all be in 5 year ladder and pay interest annually into TFSA savings. If funds are needed will take otherwise will be put into $1000 GICs as first usable money if needed, all from interest.  

When I started my RRSP in my mid 20's you needed to buy a minimum of $100. It did not take long for me to switch from 6 month and 1 year to 5 year GICS. I am close to withdrawing RRIF. My GICS are non-registered. My RRSP is 100% stock. TFSA were not around when I retired at 53. Everyone is UNIQUE. Each has different priorities.