Would you go over the CDIC limit with Tangerine? | Page 2 | Tangerine Bank | Discussion forum

lisa said

Thank you all for your quick response and advice. I've got lots to think about. This website rocks!!  

When you get a chance, please share with us what you decide.

'Good Luck' with it ❗

Dean

lisa said
drum roll please...... I've decided to go with my gut and take a lower interest rate with cibc (big bank) 4.5% to feel safe. Still going with the 5 year, feel interest rates are going to drop and I do not need the money before 5 years. Thank you again for all your inputs!

How about divide the $300,000 up?

Put $77,000 in Tangerine Bank at 5.2% for five years. CDIC would cover both principal and interest.

Open an account with Scotia iTRADE and divide the remaining among GIC's from Bank of Nova Scotia, Montreal Trust, and Scotia Mortgage all at 5.1% for five years with full CDIC coverage.

If you prefer to place the entire $300,000 with CIBC, the CIBC 5-year Bonus Rate GIC is currently 4.75%.

"How about divide the $300,000 up?

Put $77,000 in Tangerine Bank at 5.2% for five years. CDIC would cover both principal and interest.

Open an account with Scotia iTRADE and divide the remaining among GIC's from Bank of Nova Scotia, Montreal Trust, and Scotia Mortgage all at 5.1% for five years with full CDIC coverage."
  

I wrote to the Minister of Finance several times and said just raise the CDIC ceiling and save Canadians all this gyration to maximize the CDIC coverage.

Bill makes a good point about Simplii. If you are comfortable with high amount at CIBC, then you can include Simplii in that high amount if they are giving a rate you like. You can also get double coverage at Oaken and Peoples, as you probably know.

i would like to make one other point, since you have told us that you are maxed out at several other banks.

If you have that much money, maybe you don't need to worry so much about getting the highest rates on all of it. You can afford to divide up your 300K, put $77k at Tang (~$95k if annual pay) and the rest elsewhere, even at lower rates if necessary. At a quick glance, I see about 14 CDIC-insured listings on this forum's GIC list and that doesn't include the big banks per se. If you go to a deposit broker, you will have quite a few more available to you. You could easily cover $2 million, almost certainly more, using only joint accounts, CDIC coverage, within insured limits; and much more if you add in single accounts and registered funds. And this does not include credit unions which have higher insurance limits under provincial jurisdiction.
There are lots of options for sleeping well.
It can be a big nuisance though, managing all those GICs with their various maturity dates. For that reason, you might want to look at the credit unions (especially in provinces with unlimited insurance), the Simplii option, and/or deposit brokers. I find deposit brokers are a huge help in both expanding the number of options and narrowing that list to suitable choices at a given date.

HermanH said

If you are sticking to the Big 5, you might find BMO interesting. Hayman did, but he put in 600K. You might still get a better deal than 4.5%. I think you should get at least 5%, IMO.

hayman said
I recently got 5.5 for 10 years paid monthly without the investor line account with BMO. I think they are the most aggressive bank around as of now. Also wondering with the yield curve inverted how that will be affecting longterm rates going forward? Hope someone on here has more experience then I. Kind regards

https://www.highinterestsavings.ca/forum/gic/bmoil-2-year-5-08-fairstone-bank/#p79496

Or, you could do joint and personal $75K accounts with Tang for 5.2% and then do the same for Habib (via GIC Wealth) at 5.25%. Everything would be fully covered, at much higher rates. That should net you at least an additional $10,875 over five years, with annual payouts. You would still be 100% protected by CDIC, for the minor inconvenience of using a broker and opening a couple of accounts. Nearly $11K return for a couple minutes of work.   

If you are really stuck on going with a big bricks and mortar bank, even RBC has 4.75% for 5yrs. With Manulife right now you get over 5% for I think 3yrs through an agent.

For sure, CIBC's Simpllii Financial is not the best channel to get a CIBC-issued GIC these days:

5.00% 5-year CIBC GIC, via Scotia iTRADE
4.75% 5-year CIBC Bonus Rate GIC, via CIBC branch
4.20% 5 year Simplii GIC, via Simplii Financial

lisa said
4.45% at CIBC but I can cash out anytime after 30 days.  

Is that 4.45% another convoluted mess of 3 different tiers? Normal rate, bonus rate, and promo rate?

The P - 2% rate is no longer available on the CIBC one-year variable rate GIC.

savemoresaveoften reported that new ones are issued at P - 2.2%. Current yield works out to 6.45% - 2.2% = 4¼% and not the 4.45% on previously issued ones.