Highest GIC rates for investors dealing only with major banks, including a 5% offer.


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dated: 2022-11-25 16:23:28 .

The big bank has hit the 5 percent mark in GIC, a welcome development for people who shy away from dealing with online alternatives.

If you’re willing to use an alternative online bank, GIC returns of up to 5.3 percent are available. But Canadians are loyal to the big banks — as evidenced by the difficulty online competitors are having in establishing their market power. EQ Bank has succeeded, but few others have.

We currently have a highly competitive market for GICs, so much so that the major banks have pushed rates to new highs. Bank of Nova Scotia offered a special rate of 5 per cent on two- and three-year GICs later this week. Laurentian Bank, with offices primarily in Quebec, offered 5.25 per cent for two years and 5 per cent for five, seven and 10 years.

Other banks approached the 5 percent mark this week, but could not muster enough competitive energy to reach that threshold. The Royal Bank of Canada had a special rate of 4.85 percent for five years and 4.75 percent for two years. If you’re nervous about locking up money, there was a 3 percent one-year GIC on offer. The Canadian Imperial Bank of Commerce had a subsidy rate of 4.7 percent for two years.

These tariffs are available directly to the public, often online or through branches. If you invest through an online broker, 5 percent rates offered by major banks and their mortgage and bond company divisions have been available occasionally for some time. You can find your broker’s GIC account platform under Fixed Income Trading.

Big banks have an aura of security that comes from their size, branch network and marketing presence. But banks of all sizes are part of the Canada Deposit Insurance Corp., which insures qualified accounts up to $100,000 in principal and interest.

A realist assumes that big banks offer less risk than an alternative online bank, where you may have to rely on the CDIC to get your money back in the event of bankruptcy.

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Source: www.theglobeandmail.com

Highest GIC rates for investors dealing only with major banks, including a 5% offer.

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Source https://canadatoday.news/ca/top-gic-rates-for-investors-who-only-deal-with-big-banks-including-a-5-offer-162372/

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