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Email this7:56 pm
October 21, 2013
Online
As far as I can determine, the RSP "season" is sliding by with very little fanfare. I haven't seen any ads for GIC rates that are aimed at standing solidly above the competition. Same goes for TFSA. Pretty soon, one of those market-linked funds with principal guaranteed is actually going to start looking attractive, which they certainly never did before, as there's very little to lose.
Any ideas why this is so? Or am I missing something?
4:35 am
December 12, 2015
Offline
Once again, Loonie, you have said exactly what I've been thinking. No clue why, except that I just received for the first time from Tang a flier advertising their index funds. Feels like I am being forced into considering stocks.
6:54 am
October 21, 2013
Online
Yes, I got that flyer too, now that you mention it.
It seems like the advertising, such as it is, is about anything except rates.
5:07 pm
April 6, 2013
Offline
Loonie said
As far as I can determine, the RSP "season" is sliding by with very little fanfare. I haven't seen any ads for GIC rates that are aimed at standing solidly above the competition. Same goes for TFSA. …Any ideas why this is so? Or am I missing something?
Maybe the financial institutions think it's hopeless promoting GIC's now, after last year's stock market returns.
For 2016, the S&P/TSX Total Return index is up 21.08%. Mawer Canadian Equity Fund is up 15.8%. PH&N Canadian Equity Fund is up 22.4%. 
With that backdrop, the 2.4% per annum from a five-year GIC doesn't seem very enticing.
6:53 pm
October 27, 2013
Online
It may also be that the latest BoC commentary suggests lower short term rates for longer than anyone expected, US trends to the contrary. Why offer more than you have too and squeeze margins?
7:47 pm
October 21, 2013
Online
I am not convinced the problem is stock market related per se. I've had RSPs for 40 years, during bulls and bears, and don't recall such lack of interest in the past. They also aren't pushing mutual funds very hard as far as I can see, compared to other "good" years. The Tang flyer, for instance, did not tout past returns at all.
I'm not sure what AltaRed means by "short term". Bonds or GICs? I'm looking at GICs. Most of us, who have ladders, would be looking at 5 yrs., not short terms.
The fact that rates were at historic lows didn't stop them from competing for our money in the past, e. g. last year - and at a time when market returns were less encouraging. It's only in savings accounts where there is any real competition now. They can't sell a lot of mortgages from that.
In any event, it seems I haven't missed any good offers, as none of you has reported any!
8:10 pm
October 27, 2013
Online
What I am saying is the BoC has recently changed its tune from the 'imminent' raising of short term interest rates that it had the past few years, to a more forceful statement of potentially the holding (or even lowering) of rates longer term. If the sentiment has changed to low rates indefinitely while at the same time gov'ts are trying to take more heat off RE markets (and thus less mortgages), why would FIs want to attract GIC money?
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