Meridian dropping its GIC rate starting Dec30 | Meridian Credit Union | Discussion forum

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Meridian dropping its GIC rate starting Dec30
December 28, 2022
12:59 pm
savemoresaveoften
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The following rates are changing as of Friday, December 30:

3 Year Non-Redeemable GIC
Current Rate: 5.05%
New Rate: 5.00%

4 Year Non-Redeemable GIC
Current Rate: 5.10%
New Rate: 5.00%

5 Year Non-Redeemable GIC
Current Rate: 5.15%
New Rate: 5.00%

3 Year Escalator GIC (1)
Current Rate: 5.05%
New Rate: 5.00%

5 Year Escalator GIC (1)
Current Rate: 5.15%
New Rate: 5.00%

3 Year Raise the Rate GIC (2)
Current Rate: 4.80%
New Rate: 4.75%

5 Year Raise the Rate GIC (2)
Current Rate: 4.90%
New Rate: 4.75%

December 28, 2022
1:25 pm
The Rock
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Even though BOC rates will be going higher. Gutless move by Meridian.

December 28, 2022
1:31 pm
GR
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While they are dropping their GIC rates, note that they are increasing their mortgage rates at the same time, including a .50% increase in the 1 yr. fixed closed mortgage rate!!

https://www.meridiancu.ca/offers/upcoming-rate-change?utm_campaign=ratescoop&utm_source=email&utm_medium=email&spMailingID=9051674&spUserID=NDQzMDM2MTU2NzcS1&spJobID=1640573562&spReportId=MTY0MDU3MzU2MgS2

December 28, 2022
1:53 pm
AltaRed
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In fairness, the margin between GIC and mortgage rates was rather slim. Even with new 5 year GIC @ 5% and 5 year fixed mortgage @ 6.29%, that 1.29% (unrisked) is still thin. Not much room for error in event of some arrears/foreclosures.

December 28, 2022
3:00 pm
Loonie
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Rate drops may represent housecleaning to prepare for TFSA/RSP promos in Jan/Feb.

I would think that margins might be better now than they were when rates were really low and banks were complaining about low margins.

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