1 yr = 5.45%, 2 yr = 5.55%, 3 yr = 5.10% (via RBC Online Banking) | RBC Royal Bank | Discussion forum

Thank you Norman, these are helpful.

FYI for anyone interested in getting a GIC from RBC (which until recently was something I wouldn't taunt my worst enemy with, but these days their rates are actually quite good).

I was told by an RBC Investment Advisor last week, that they have a glitch in their system. Clients can see (as Norman indicated) what 'special offers' they can get, but when they get to the final stage of the process before the GIC officially opens, they are told to call a number and speak to an Investment Advisor.

It was explained that this is because RBC has shifted things so that instead of assigning different account numbers (or registration numbers) to multiple GICs, they want to assign a single Investment Account # to a client, which can contain one or multiple GICs. The Investment Advisor called the fact that clients can even see special offers in the first place as a "glitch" that they will eventually fix.

I have not tested this flow. But I am just mentioning it in case someone runs into it and is concerned.

Also, I have two experiences in the last year where I have spoken with an RBC Investment Advisor and asked if they can match a higher rate available elsewhere.

The Investment Advisor filled out an "exception report" with the details, and submitted it in real-time while I was on the phone. In one case the system (AI) instantly approved it. In the other case, the system flagged it to be reviewed (this is the only other possibility when instant approval is not forthcoming. Within a couple of days, I received a call from the Investment Advisor telling me that RBC wouldn't match the requested rate, but they did give me a higher rate than what was offered in my online banking (the special rate + a little bit more). That increased rate was good for 5 business days.

Last thing in case it helps anyone: RBC has 4 CDIC entities. When you purchase a GIC, you choose which one you want. This is a good way to spread around your funds to maximize your coverage. Other big banks also do the same thing (not all of them have 4 entities...I think CIBC has 3). You can find the details on the CDIC website.

Is that prime-linked variable rate cashable?

Norman1 said
From RBC online banking website non-redeemable GIC purchase page:

1 Year Non-Redeemable GIC
4.05% Posted Rate
1.40% Your Bonus
5.45% Your Rate

2 Years Non-Redeemable GIC
4.25% Posted Rate
1.30% Your Bonus
5.55% Your Rate

3 Years Non-Redeemable GIC
4.00% Posted Rate
1.10% Your Bonus
5.10% Your Rate

   

Norman1, can you provide a link to the information in Post 1? I am having a hard time finding the information including 'bonus rates'. I have done searches on the web and within my RBC account with no luck.

Thanks for any info you can provide.

Norman, rather than trying to chase HISA promos throughout 2024, I am now thinking of opening 3 or 4 smaller prime-linked cashable GICs -- all earning the same rate, with the option to cash out one (or more) if necessary.

I know everyone has their own profile and needs, but I'd like your opinion on this. Am I missing something?

Thanks for your perspective Norman. Yes, I am in the same boat. In the past I was fine with opening accounts to take advantage of new client HISA promotions, but now I am focusing on the FIs that I deal with.

I like the idea of purchasing a few of these prime-linked cashable GICs. I'm fine with not getting the very best cash savings rate available (through a HISA promo somewhere), as long as it's in the ballpark. I also like the idea that there is no end date for the rate, and even if (when) it falls, it will almost certainly be in .25 or at most .50 drops -- not something precipitous like when a Simplii promo ends and the rate falls from 6% to 2% overnight.

I'll call RBC next week and see what's up. Thanks again

Norman, correct me if I'm wrong but since this is a variable GIC wouldn't the actual bottom-line interest owed fluctuate if either:

a) the RBC prime rate changes; or
b) the % RBC is using to determine the rate changes?

For example, for this product the current rate up to $250k is 4.75%.

Couldn't this 4.75% change even during the life of the GIC (whatever term) if either a) or b) change, in any direction?

Thanks Norman, that is interesting. I will look into it. I like that the factor rate is fixed.

Personally, I don't expect the policy rate to drop anytime before 2025 no matter what happens.

In my view the BoC spent the last 2 years grasping to get some of its credibility back, and they realize that even a .25 drop is going to be wildly misinterpreted by most people who do not understand (and do not want to understand) macroeconomics as a clear signal that the cycle is over and we're on a slide back down to 1-2%.

I know that seems insane for the folks here, but we all know (and may even be related to) people who would see things that way.

Yes, I like the idea of viewing them as savings accounts instead of GICs. Or at the least, as cashable GICs.

I had a Flex Notice account with CWB but it was problematic. The rep I was working with was miserable and inefficient when I triggered a withdrawal (my guess is that he had quotas/bonuses but not sure why that would be my issue). Then CWB completely screwed up the withdrawal, which led to a formal complaint and 3-figure compensation and an apology. I normally don't escalate things and am pretty much the anti-Karen in my circle, but they didn't just drop the ball, they put it through a Vitamix machine and buried the remains.

I'll call RBC tomorrow and see what's up.

rodeworthy said
ITYW, I share your perspective in not wanting to constantly chase rates and especially do not want to add more FIs to our already extensive list. I have resisted limited term promotional rates along the way. I also believe that interest rates are somewhat normalized right now and will not go down by much anytime soon.
 

Hi Roadworthy, you're more than welcome!

There was a time where I enjoyed playing the chase-a-HISA-promo game -- especially when HISAs (as we've come to understand them) were new. It was cool to get some treats from FIs like Ally and Zagg (before they were bought and crushed out of existence).

But now, I just stick to the FIs I have. The default when nothing better is available is EQ. But usually Tang or Simplii will be doing something, and occasionally even RBC gets in on the fun. Then there are the credit unions like Duca and Meridian.

I think the most important thing in any kind of investing is not to be completely obsessed with what's going on "out there," but to honestly and directly evaluate who you are and what you need. I think the biggest, most regrettable mistake people have is they forget who they are. Often, you see this when conservative investors snap and end up doing something recklessly risky and losing big.

You do you...if your neighbour has a higher risk tolerance and makes more $ than you, more power to them.