GIC rates lowered | Peoples Trust | Discussion forum

yeah...was good while it lasted. Was rather disappointed they dropped TFSA rates in lock-step with the new year and new contribution room, then again when contributions were upped to 10K, then again with the BoC rate cut. I think they have reached the maximum deposit base they are willing to pay above average rates to retain. Am considering doing a "December maneuver" in preparation for a rate drop in the new year when it's time to contribute again so I can transfer it out, just in case they lose their competitive edge. I won't bother with the inconvenience having 4 FI's for .1 or 2% in a savings account. CDF's GIC Rates are now better with the CDI loyalty bonus, and their regular hi interest savings has been .05% better for a while now. There is still an election to go through that may have a bearing on TFSA contribution limits before 2016. They cut it too close, they may instigate a mass migration in funds, both TFSA and regular come the new year.

Thinking I might move it to my non-registered HIS and let it sit for a few weeks just to see where the cookies crumble. Don't need it liquid, so I may lock it into a 1 to 3 year GIC when the new year craziness to attract deposits starts and I can see what's available. Still a lot can happen by January. Just don't want to be committed to PT for another year if/when they start dropping rates when the new contribution room kicks in in January. This year they waited until everyone contributed then dropped rates on the 5th of January. Lost a bit of trust with me when they did that, even though they were still leading the pack in rates.

Loonie said

I see. Yes,that might work, but, then again, rates could fall still further in the interim.

Well, it's past midnight here. Time to check my quarterly balances, which are not keeping up with the rising cost of groceries, cotton clothing, etc. Inflation is definitely a factor now, but will it really result in higher rates? That's the theory, but I am not confident. We may just continue to get squeezed at both ends - poor rates and inflationary prices.

I agree...and the election may have a profound effect on interest rates/CDN dollar/inflation. If rates DO go down, I think PT will be following along with them. So many variables globally, nationally and provincially coming into play in the next few months, I think I would like to keep options open, even if I have to pay capital gains for a few weeks. The only bright spot I see is the competition for my money when it's time to contribute in January.