Motive Decreases GIC Rates for 2, 3 & 4 yrs. | Motive Financial | Discussion forum

wonder how long the Tangerine 1y 4.5% will last. I expect them to drop that soon

Nirvana7734 said
Fascinating. This is a curious development given the fact that inflation is still well above target and, therefore, the overnight interest rates are almost certainly going to continue to increase in both the September 7th and October 26th Bank of Canada interest rate announcements. I suspect that this has more to do with Motive's individual circumstances than it does with the overall rate environment. We'll see what the competition does.  

This may be Motive's individual circumstance. It seems that as each of EQ (twice), Simplii, CIBC, and Motive have all reduced some GIC rates fairly recently. Will other FI's circumstance join the movement? Are Fi's over balancing loans/mortgages as customers borrow less?
I continued to build my ladder with some 3, 4 and 5 year GIC purchases last week.

HermanH said
Sigh, another plan shot down. I was going to go very long term with some funds.

Here's hoping Equity CU will keep its 5-yr 5.25% rate for another week or so, when my GICs mature.  

They are still showing 5% for 5 yr on their web site. do you know something we should know?

HermanH said
Yes, I contacted Monarch Wealth and they told me EquityCU is matching the 5-yr 5.25% offered by MyNeighbourhoodCU (Ont. only)  

now thats a place worth doing business with...

Nirvana7734 said
Fascinating. This is a curious development given the fact that inflation is still well above target and, therefore, the overnight interest rates are almost certainly going to continue to increase in both the September 7th and October 26th Bank of Canada interest rate announcements. I suspect that this has more to do with Motive's individual circumstances than it does with the overall rate environment. We'll see what the competition does.  

The BoC's mandate is to control inflation while doing its best to not help trigger a recession.

Since inflation is a measurement of the CPI change vs 12 months ago, prices remaining stable will drive inflation to near 0, eventually. In fact, there are signs that some prices are stabilizing and some are dropping. Some like housing because of reducing demand. Others because issues like Supply Chain issues are getting resolved. So, it is possible previously expected significant BoC Rate increases may now be tempered.

But ...

Employers and governments providing people with more $ to spend would help keep demand and some prices high keeping upward pressure on CPI and inflation.

People worrying about a recession because of fears of incomes dropping to low and/or prices too high could end up with demand really dropping which could cause employment to drop to adjust supply. The recession self fulfilling profecy - the more we think/expect a recession will happen, the more likely it is to happen!

Just a few simple thoughts ...

HermanH said
I did the opposite. I saw that EquityCU had offered 5% for 2-yr thru 5-yr GIC. I was already talking to Kevin Rotenberg at GIC Wealth Mgmt. and told him that they were higher than his offers. I said that I could just buy directly from Equity, but would give him the chance to earn a commission. He contacted Equity directly and go them to let him sell for the same rate.

Sadly, he did not offer me any of the commission he was going to earn. I would still only get 5% for the GIC. I went out of my way to help him earn a commission without any personal benefit, so hope that I will get some consideration in future GIC transactions with his company.  

Give the guy a break - he gave you excellent personal service. He is entitled to his commission - which you don't know the amount - Equity's commission to him might be piddly for all u know.

canadian.100 said

Give the guy a break - he gave you excellent personal service. He is entitled to his commission - which you don't know the amount - Equity's commission to him might be piddly for all u know.  

I don't think you should give anyone in business "a break" as they will quickly hide behind that business or corporate shield as an excuse to not help you out, but I do think you should tell them what you want from them and walk away if they don't provide you what you want or something acceptable to you vs whining about it afterwards like they owed you something.

Giving anyone in business the benefit of the doubt is how a fool and their money are soon parted.

HermanH:

Here's hoping Equity CU will keep its 5-yr 5.25% rate for another week or so, when my GICs mature.

Herman, most financial institutions will hold a rate for you if you say you want to move a bundle there - typically up to a week. Just tell them (truthfully) that it will take a few days to get the cash to them.

Everyone: remember that you have 10 days to pull out of a GIC (by law at least in British Columbia) so you can still claim the newer rate if it goes up).

I doubt the downturn in rates is the result of forum manipulation. The most recent US 1-month overall inflation rate was zero - perhaps a fluke or outlier, but it's pretty generally accepted that at least a mild recession is developing before the end of the year.

RetirEd