GIC rates aren't high enough | Peoples Trust | Discussion forum

One thing that I have observed over the years is that whenever there's an economic crisis, we will all be made to pay for it. This can take the form of poor returns on investment, job losses, higher prices, , poorer public services, more fees, higher taxes, or some combination of the above.

I simply locked in at Peoples when they had the highest 5-year rate and I could start earning it earlier, in August. I think they got so much 5-year money that they wanted more short-term paper that would then have to be reinvested in a year or two at a lower rate. Committing to 5 years at 5 percent could leave them with an expensive hangover if/when rates dropped.

I'm happy with the deal I got. Earning well, and the outfit's still profitable. They don't do much mortgage business and have very profitable credit card and prepaid-card operations, so they don't have as much lending risk as credit unions and banks with huge mortgage portfolios at risk of default.
RetirEd