GIC Rate increase | Page 2 | Motive Financial | Discussion forum

I think that your idea to 1) purchase multiple GICs for each year and 2) have the interest paid out each year, will work. You get the flexibility of early redemption of the entire GIC principal without any penalty, since you already received any interest. By having several GIC for each year, you can control the number redeemed.

Personally, I would go for the long-term GIC because I do not expect rates to rise higher. For example, I would prefer the interest to compound at the 5.15% 7-yr rate because I do not expect any intermittent rates (between 1-6yr) to exceed 5.15% and would expect any money (interest or principal) taken before yr 7 to earn a lower rate. Of course, if you need or plan to spend the interest, then your scheme is eminently practical.

Greedy Guy said
New & higher GIC rates effective July 4:
1 yr = 4.24%
2 yr = 4.70%
3 yr = 4.74%
4 yr = 4.77%
5 yr = 4.88%
6 yr = 5.05%
7 yr = 5.15%  

There's still a rate gap ~0.5% of between 1yr and 2yr in general. Still want to wait a bit to see if the gap will narrow.

Yes, I think Hubert might be ideal for people who aren't familiar with using alternative banks or credit unions as their customer service by phone is the best in the industry in my opinion.
You might need to explain the concept of a credit union.
Also, if your parents are reluctant , you might just try to convince them to by one GIC. When the interest rolls in, they might be willing to buy another.

GIC rates effective July 18:
1 yr = 4.30%
2 yr = 4.75%
3 yr = 4.80%
4 yr = 4.82%
5 yr = 4.95%
6 yr = 5.10%
7 yr = 5.15%

GIC rates July19--> July 25 (no change to +0.05%):
1 yr = 4.30% -->4.35%
2 yr = 4.75%-->4.78%
3 yr = 4.80%-->4.83%
4 yr = 4.82%-->4.85%
5 yr = 5.00%-->5.00%
6 yr = 5.10%-->5.10%
7 yr = 5.15%-->5.15%

Simply a PR exercise, to show that they are 'top of the ladder'.

canadian.100 said

Ok with me - as soon as someone/anyone offers 5% for One Year GIC, I will start to buy some.......
Interest (1 Year GIC) has to somewhat match the 5%-6.25% dividends (plus dividend tax credit) I get from my stocks these days - and I DO expect the stock market to be up considerably by end of 2023 when interest rate increases will have run their course.  

agree 100% why would anyone lock in for that rate when Scotia bank HISA around 3.90% Tangerine, CIBC and soon Meridian over 3.5%.

1 year GIC rate increased slightly to 4.49% (was 4.43%). Strange that they would raise the rate, but stay 1 point under the 4.50% for 1 year offered by at least three other financial institutions.

GIC rates effective Oct 31:
1 yr = 4.60% -->4.70%
2 yr = 4.70%-->4.85%
3 yr = 4.70%-->5.05%
4 yr = 4.72%-->4.90%
5 yr = 4.85%-->5.10%

One feature motive has that many don’t offer is you can select any term you want , total flexibility. Ie to maintain my 5 yr ladder I have a chunk to invest in 2023 anytime. If I like the rates now I can take their 5 yr rate and book the term for 62 months which will keep my renewal in Jan 2028 where I want it. Most other institutions have no flexibility, they would say invest now if you like the rate for 60 months and keep it in HISA when it’s due for 2 months. I recommend motive also because they offer 1-10 yr terms if that’s of any interest. I get it 10 yrs is very long but I was comfortable with investing a small % of my total gic money for their 5.15 months back. Most don’t offer a 10 yr. So for total term flexibility down to any month and length of terms offered I give them an endorsement