Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this7:36 am
November 7, 2014
Offline
Don't know if everyone missed this, or I just missed it, or if nobody cares anymore, but TANG has new (higher) GIC rates:
1 year 2.10%
2 years 2.30%
3 years 2.50%
4 years 2.60%
5 years 3.00%
I guess they finally decided they weren't competitive ?
10:42 am
November 19, 2014
Offline
Cool... thanks.
11:12 am
February 27, 2018
Offline
As i said in another thread. I believe the reasons for these higher rates are... bad paper. Debts are not going to be repaid and the banks want cash. Credit card, auto, mortgage, they are all debt.
When a FI needs to make a purchase, they often offer a higher rate of interest to get an 'x' amount of dollars. Once their goal has been reached, their rates drop back down.
In todays enviroment, every week FI's seem to be increasing their rates, either their savings, gics or both. I see this as a cash grab. Why do they all want your cash?
1:23 pm
March 30, 2017
Offline
gicjunkie said
Don't know if everyone missed this, or I just missed it, or if nobody cares anymore, but TANG has new (higher) GIC rates:1 year 2.10%
2 years 2.30%
3 years 2.50%
4 years 2.60%
5 years 3.00%I guess they finally decided they weren't competitive ?
still not competitive if you ask me 🙂
1:29 pm
May 15, 2007
Offline
According to https://www.tangerine.ca/en/rates/historical-rates/index.html
... the increases are:
1 year: 0.10%
2 years: 0.15%
3 years: 0.20%
4 years: 0.20%
5 years: 0.40%
7:50 pm
January 3, 2013
Offline
It is still not competitive as long as the blessing of Manitoba keeps coming.
I am doing the ladder with Oaken for RRSP, LIRA, TFSA from 18 months to 5 years for now.
9:24 am
November 19, 2014
Offline
Peter said
According to https://www.tangerine.ca/en/rates/historical-rates/index.html... the increases are:
1 year: 0.10%
2 years: 0.15%
3 years: 0.20%
4 years: 0.20%
5 years: 0.40%
Will you be adding them to the gic comparison chart ?
9:48 am
May 15, 2007
Offline
So far I've been sticking to the same financial institutions that are on the main comparison chart, although we could start to make exceptions since the two aren't really tied together.
12:23 pm
November 19, 2014
Offline
Probably worthwhile. There are a lot of Tangerine fans out there.
It would also increase the number of CDIC insured institutions on the GIC list.
Most of them are DGCM/DICO members. Some people seem to be happier dealing with CDIC members so that would give them more choice.
10:15 pm
May 15, 2007
Offline
I've added Tangerine to the GIC chart now.
7:14 am
September 15, 2017
Offline
Some GIC rates increased:
1 Year Guaranteed Investment 2.50%
1½ Year Guaranteed Investment 2.55%
2 Year Guaranteed Investment 2.60%
3 Year Guaranteed Investment 2.70%
4 Year Guaranteed Investment 2.75%
5 Year Guaranteed Investment 3.00%
12:44 pm
August 17, 2010
Offline
Not too shabby tangerine!
1:05 pm
January 26, 2018
Offline
It looks like the GIC interest terms have changed. I have current Tangerine GICs that pay interest annually but the fine print now says interest is paid at maturity. "Interest is calculated daily and paid monthly in the case of our Savings and Chequing Accounts; and is calculated daily and paid at maturity on a GIC."
4:50 pm
February 27, 2018
Offline
Scruge, thanks for the heads up.
So there is no compounding of interest?
How is the yearly T5 calculated, if all the interest is paid at the end of the term? A 5 year GIC could be one HELL of a big T5.
5:23 pm
October 21, 2013
Offline
Sleazy! It's not the first itme we've seen this, but it is usually just with special promo rates. Tangerine's are not even at the top of the heap.
I believe you have to declare interest annually with CRA, regardless of whether paid out yet. This means you would be paying tax on money you don't yet have,with principal tied up.
5:38 pm
December 17, 2016
Offline
Loonie said
Sleazy! It's not the first itme we've seen this, but it is usually just with special promo rates. Tangerine's are not even at the top of the heap.I believe you have to declare interest annually with CRA, regardless of whether paid out yet. This means you would be paying tax on money you don't yet have,with principal tied up.
Where's the argument - that's the way it's always been for long term, non-registered, compounded annually GICs - trying to make a hornet's nest where there is none ... sheesh.
5:57 pm
October 21, 2013
Offline
I see no evidence so far that the interest is in fact compounded annually.
Obviously, if it were compounded, it would not also be paid out annually.
6:11 pm
February 27, 2018
Offline
Hi,
By the wording of tangerine's "gic interest to be paid at maturity" here's the difference.
Example, $1,000 for 5 years at 3%
Compounded
Year 1 principal is $1,000, interest is $30.
Year 2 principal is $1,030, interest is $30.90.
Year 3 principal is $1,060.90, interest is $31.83.
Year 4 principal is $1,092.72, interest is $32.78
Year 5 principal is $1,125.51, interest is $33.77
At maturity Total $1,159.27. Interest paid $159.27
If the interest is paid at maturity, it becomes "simple" interest, not compounded.
Year 1 principal is $1,000, interest is $30 but not paid.
Year 2 principal is $1,000, interest is $30 but not paid.
Year 3 principal is $1,000, interest is $30 but not paid
Year 4 principal is $1,000, interest is $30 but not paid
Year 5 principal is $1,000, interest is $30 but not paid
At maturity Total $1,150. Interest paid $150.00
Norman1? Is this correct? By reading tangerine's gic policy, i take this to mean simple interest?
When the interest is compounded, it is realized at the end of each year. A T5 is issued stating the interest earned for that year.
6:53 pm
February 27, 2018
Offline
I love to hate tangerine
7:55 pm
April 6, 2013
Offline
Kidd said
…
Example, $1,000 for 5 years at 3%Compounded
…
At maturity Total $1,159.27. Interest paid $159.27If the interest is paid at maturity, it becomes "simple" interest, not compounded.
…
At maturity Total $1,150. Interest paid $150.00Norman1? Is this correct? By reading tangerine's gic policy, i take this to mean simple interest?
When the interest is compounded, it is realized at the end of each year. A T5 is issued stating the interest earned for that year.
It could mean simple interest. It could also mean paid out only at maturity. One will need to ask Tangerine to clarify whether one will be receiving $1,159.27 or $1,150 on maturity.
A T5 can be issued yearly for simple interest as well.
Compounded rate of return is just a measurement unit. Five year, 3% per annum, compounded annually is the same as five year, 3.18548% per annum, no compounding.
Please write your comments in the forum.