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Super_Geo
09-07-2006, 11:38 AM
Ok let's all pool our heads together and find the best GICs available on the market. I will keep the list updated in this initial post, and anytime a better rate is found I will update list with the better rate and provider.


90 days: 3.50% - ING Direct
180 days: 4.00% - ING Direct
270 days: 4.25% - ING Direct
1 year: 4.10% - ING Direct
2 year: 4.20% - ING Direct
3 year: 4.40% - ING Direct
4 year: 4.45% - ING Direct
5 year: 4.50% - ING Direct

Alright, time to play king of the hill GIC rates ;)

ringmaster
09-07-2006, 12:05 PM
Hmmm im in a 5 year at TD Canada Trust @ 3.5% and that was only like a year ago... had to pry that rate out of the investment lady too.

Weapon_R
09-07-2006, 12:08 PM
You need to find an investment that will climb faster than the rate of inflation. I don't think there is any good GIC right now because most of the ones that the banks offer only give you a rate slightly better than inflation, so your investment is making little to no money.

You could try and invest in medium risk stocks, real estate, or even mutual funds and get better returns. These are not guaranteed but many (like real estate) have progressively increased for several decades at excellent rates.

Super_Geo
09-07-2006, 12:13 PM
Yeah I'm planning on going 40% GIC, 60% mutual funds. So far my plan is to have rolling 270 day GICs with ING... unless someone digs up some better rates.

Xtrema
09-07-2006, 12:47 PM
Who give a shit about GIC. President Choice bank give 4% on saving account balance over $1000. Enjoy the interest without locking it down.

sputnik
09-07-2006, 01:05 PM
Originally posted by Super_Geo
Yeah I'm planning on going 40% GIC, 60% mutual funds. So far my plan is to have rolling 270 day GICs with ING... unless someone digs up some better rates.

40% fixed assets is way too high for someone young investing for retirement.

I have 10% fixed assets and am kicking myself for locking them in.

liquid1010
09-07-2006, 01:13 PM
I wouldn't say that so fast.

Currently I have my entire RRSP in MF's... but all my personal after tax investments invested in equities on the TSX. With the way the equity markets seem to be re-adjusting somewhat, having some decent fixed assets is not a bad thing.

I'm hoping to get into some debt/bonds..... however I know very little about them. Anyone know a good deal about corporate bonds and the returns associated with them.

richardchan2002
09-07-2006, 01:15 PM
^ I actually lost money on my mutual funds in the last period.

PC savings account is 4% which is really decent because your money isn't locked up. I've found that the best is at Alberta Treasury Branch springboard GIC. At 5 years it's at 7.5%.

Rav4Guy
09-07-2006, 01:18 PM
Liquid1010 > RRSPs invested in mutual funds is the EASIEST way... but by far the best way to make a good return.

ok.. i edited my post. I didn't mean to be rude.

liquid1010
09-07-2006, 02:36 PM
Originally posted by Rav4Guy
Liquid1010 > RRSPs invested in mutual funds is the EASIEST way... but by far the best way to make a good return.

ok.. i edited my post. I didn't mean to be rude.

I think you mean..... by far NOT the best way....

and yes, I know that.

For me, it's simply a matter of understanding my risk tolerance. My risk tolerance in my RRSP in very low, as compared to that of my investment capital outside my RRSP. Outside my RRSP i'm 100% equity (currently all based in two holdings).

Rude and smart comments are NOT the best idea in financial conversations. There are so many variables that go into a persons choices, so what may be valuable for them... is not valuable for you, or vice versa.

Rav4Guy
09-07-2006, 03:07 PM
how are smart comments not the best idea in financial conversations? should I not be making them(comments) at all then?

the point is to create a high return on capital while subjecting it to minimal risks. that's the goal of every investor. It doesn't matter what your investment objectives are.. the point is to make money.

You're right. everyone does have different investment objective and style but you got to start wondering... if supposedly everyone has a different objective/tolerance.. why do banks only offer 4-5 in-house mutual funds?

So.. after all that... most of us do have similar objectives/tolerance. the only thing is... do our portfolios reflect that?

liquid1010
09-07-2006, 03:37 PM
Originally posted by Rav4Guy
how are smart comments not the best idea in financial conversations? should I not be making them(comments) at all then?

the point is to create a high return on capital while subjecting it to minimal risks. that's the goal of every investor. It doesn't matter what your investment objectives are.. the point is to make money.

You're right. everyone does have different investment objective and style but you got to start wondering... if supposedly everyone has a different objective/tolerance.. why do banks only offer 4-5 in-house mutual funds?

So.. after all that... most of us do have similar objectives/tolerance. the only thing is... do our portfolios reflect that?

By smart comments, I meant Smart-ass comments. I thought that was self evident.

As for the rest of your statement, you're just slightly oversimplifying things. Of course we all want the most return in relation to the lowest amount of allowable risk. However, investments work in relation to variances, and within reason.... the higher the return, the higher the risk. (generally).

Therefore, of course we are all trying to maximize the use of our capital..... but we can all do that in very different ways. Mutual Funds are just giant baskets, which provide different strategies and risk tolerances. What major financial institution offers only 4-5 funds? They offer much more than that. They also offer brokergae services, and so forth. In addition to that most investors have accounts at more than just major banks. There are more options (no pun intended) than you can shake a stick at!

Anyhow... I'm done :)

lint
09-07-2006, 03:46 PM
Originally posted by liquid1010


I think you mean..... by far NOT the best way....

and yes, I know that.

For me, it's simply a matter of understanding my risk tolerance. My risk tolerance in my RRSP in very low, as compared to that of my investment capital outside my RRSP. Outside my RRSP i'm 100% equity (currently all based in two holdings).

Rude and smart comments are NOT the best idea in financial conversations. There are so many variables that go into a persons choices, so what may be valuable for them... is not valuable for you, or vice versa.

Not trying to be a smartass, but can you walk us through your logic for being super low risk in an RRSP, with a long investment horizon that will allow you to absorb any ups and downs and allow for maximum compounding, and super high risk in after tax investments? This doesn't make any sense at all.

Rav4Guy
09-07-2006, 03:51 PM
Originally posted by liquid1010


What major financial institution offers only 4-5 funds? They offer much more than that. They also offer brokergae services, and so forth. In addition to that most investors have accounts at more than just major banks. There are more options (no pun intended) than you can shake a stick at!

Anyhow... I'm done :)

Did I not say IN-HOUSE funds? I believe I did. I know exactly what types of services banks and brokerage houses offer and what their limitations are.

As for smart-(ass) comments, maybe you should be more specific when talking in an investment conversation... things can be miscontrued.

what liquid meant was he purchases low risk investments in his RRSP account and highER risk equities in his cash account. I just don't see why people see their RRSPs as a "savings account" when it should be thought of as an investment account. after all, money grows inside the fund TAX FREE.

Rav4Guy
09-07-2006, 03:59 PM
Originally posted by Super_Geo
Ok let's all pool our heads together and find the best GICs available on the market. I will keep the list updated in this initial post, and anytime a better rate is found I will update list with the better rate and provider.


90 days: 3.50% - ING Direct
180 days: 4.00% - ING Direct
270 days: 4.25% - ING Direct
1 year: 4.10% - ING Direct
2 year: 4.20% - ING Direct
3 year: 4.40% - ING Direct
4 year: 4.45% - ING Direct
5 year: 4.50% - ING Direct

Alright, time to play king of the hill GIC rates ;)

Those are pretty good long term rates. The short term rates... you can get them at a higher interest rate though...

Manulife Savings account has a 3.85% payout with no locked in days. Just a minimum of $5000 initial deposit.

liquid1010
09-07-2006, 04:23 PM
Originally posted by lint


Not trying to be a smartass, but can you walk us through your logic for being super low risk in an RRSP, with a long investment horizon that will allow you to absorb any ups and downs and allow for maximum compounding, and super high risk in after tax investments? This doesn't make any sense at all.

Who said my risk tolerance is all that low in my RRSP; I said it's comparitavely Low. Let me quote myself "My risk tolerance in my RRSP in very low, as compared to that of my investment capital outside my RRSP." I have my RRSP in the TD growth fund for the time being, since I have under 10k in there right (recent grad). Once I break my personal limit for that... I'll diversify.

My after tax income I have in my self directed brokerage is used for relatively volatile (high growth-small cap) stocks. I'm using it as a way to learn my way through my continuing education. if you would prefer that I use my RRSP to fund this sort of investment behaviour then be my guest.... but I think you're floating in that boat alone. :thumbsup: Therefore your statement that I should use my RRSP for more aggressive growth is flat-out wrong... because you lacked the full information. That is exactly what I've been telling you all along. You cannot make blanket statements.

As for In-House funds... they still have more than 4 or 5. Without looking, I believe TD probably has around 30. Unless of course you're defining them by sector..... but that's a whole different story.

max_boost
09-07-2006, 04:38 PM
Originally posted by richardchan2002
^ I actually lost money on my mutual funds in the last period.

PC savings account is 4% which is really decent because your money isn't locked up. I've found that the best is at Alberta Treasury Branch springboard GIC. At 5 years it's at 7.5%.

That's because you invested in a resource fund. We all know how volatile that can be. BUt it's still at 11% YTD and 3 year average is stil over 31%. Awesome returns if you ask me. :bigpimp:

Anyway, PC Savings 4% FTW.

What about a market linked GIC? You can get higher returns but still guarantees your original investment.

My portfolio is 90% mutual funds and 10% stocks. Forget about GIC's. I need my investments to grow. haha I aim for a return of 10%+/year

canadian_hustla
09-07-2006, 10:43 PM
ATB Financial has springboard investments....

yr 1 = 3.9ish
yr 2 = 4.2ish
...
...
...
yr 5 = 7.0ish

that average definately beats out 4.5% steady with ING

pros: interest is compounded monthly and paid annually.
, you can also take the investment out on any annual
maturity date.


3.5% for a 1 year cashable definately sounds like the market rate, most GIC's at banks are 3.5%

Rav4Guy
09-08-2006, 09:34 AM
sorry... I meant groups/sectors of funds. but then again, it's always subdivided. TD has like 60+ funds...

90% mutual fund and 10% equity. that's pretty hard getting 10+% return on the whole portfolio as you'll need to be generating 90+% on your equity while assuming MF growth at 5%(after fees!!)

ShOwOfF
09-08-2006, 06:53 PM
ING will have the best GIC rates, because they don't have any branches and thus need to advertise a high rate in order to obtain business. Any of the major financial institutions will match these advertised rates in person, however do not advertise themselves these high rates.

sputnik
09-08-2006, 07:01 PM
Originally posted by ShOwOfF
ING will have the best GIC rates, because they don't have any branches and thus need to advertise a high rate in order to obtain business. Any of the major financial institutions will match these advertised rates in person, however do not advertise themselves these high rates.

That would be nice if it was true.

Outlook Financial has much better GIC rates.

http://www.outlookfinancial.com/products_and_rates/rates_chart.aspx?ts=6934

biggie_82
09-08-2006, 10:25 PM
Given the rates you quoted for GIC's your better off opening a PC account and leaving your money there. Money isn't locked up and readily available to you.

ShOwOfF
09-09-2006, 11:35 AM
Originally posted by sputnik


That would be nice if it was true.

Outlook Financial has much better GIC rates.

http://www.outlookfinancial.com/products_and_rates/rates_chart.aspx?ts=6934

What would be nice? The matching of GIC rates by major FI's? They'll do it, just ask, and bring in the competitive advertised rate when you visit your personal banker.

snoop101
09-11-2006, 08:25 PM
ING is the best. No fees at all and there savings account is awesome.

Nitron88
09-19-2006, 12:05 AM
ING provides some crazily high interest rates.. bang for the buck. :eek: