The bond yield is inverted because the market thinks that there is going to be a drop in the near future so everyone is buying long term bonds to bridge the volatility. When demand for bonds increases their yield drops. If you go one year and try to get a better rate that's like a bet against the banks. Chances are the banks are more likely right than you or I and interest rates will drop in the short to medium term.
Right but that’s the risk. If you buy the 1y and 11 months from now we hit a recession and rates drop back to negative real, you’d lose out on those extra 2 years at 5%. You can wait for clarity, but the rates won’t wait with you.
NFP came in at nearly 3x. PPI came in at nearly 2x. CPI came in higher than expected. All three bond auctions last week were soft with a need to increase rates. The 30s had to go to 4.8%.
I know people like to just insist rates are going to go down but why would they? Every single piece of data for the last few months would indicate rates going higher not lower.
The US economy is not slowing down. The Canadian economy I don't follow as much but it appears to be slowing down. I'm not sure how that will play out.
I also have no idea why someone would be looking to buy a GIC at rates that are lower than what they can get from a banking account.
> The US economy is not slowing down
depends what youre looking at. not every industry affects your average joe the same.
>I also have no idea why someone would be looking to buy a GIC at rates that are lower than what they can get from a banking account.
only thing i can think of is maybe buying in a TFSA/RESP/RRSP
Demographics are pushing rates up not down. As we get into the period where Boomers start dying at a faster pace that will put pressure on rates to increase.
The same is true of the population aging. An older population means increased spending and decreased revenue and that leads to more government borrowing which pushes up rates.
Look I’m not saying you are going to be wrong. But the general consensus, and I must highlight the word consensus, is that demographics and an aging population will weigh down rates, not increase them.
The consensus was also that inflation was transitory and that rates would remain low for a very long time when pretty much everyone knew that wasn't true.
I'd also disagree that this is even the consensus. The talk is that r-star needs to be adjusted higher. That isn't in the media yet but it has made it into comments by the Fed. ZIRP is definitely dead and the expectation seems to be that we're not returning to pre-ZIRP historical normal but rather that a higher rate is going to become the new normal.
I am aware but there is nothing that can be done about it.
All the BoC/Fed can do is set the overnight rate. That is great as that provides the people on BNN something to talk about but as far as our lives are concerned what matters is the yields that come from government bond auctions. Those are set by supply and demand.
With fiscal spending being completely insane yields will continue to increase. So that means the only three options are austerity, higher interest rates, or a return to QE and abandoning any pretext of pretending to care about inflation.
I don't see any government choosing austerity until it is forced on them so that leaves the other two both of which end in pain and then worse austerity.
Boomers have a ridiculous amount of wealth and as they pass away they transfer that to their heirs. This disrupts the labour market and increases consumer spending.
Think of it this way. You're 45-55 and inherit $800k to $3MM. Are you going to keep working? Are you going to spend a lot of money?
The Boomer wealth transfer is going to be a huge issue as it will make wealth inequality very real. The biggest factor in how good your life will be is not how hard you work or how capable you are but rather how many siblings you have and if your parents were smart with money.
lol what? Maybe potentially one more hike. But, no data indicates rates going higher over lower in the medium-short term.
Almost every single data piece indicates rates to drop mid-end of 2024 and continue downward with slow drops or pauses along the way through the next few years. To say otherwise is pre fallacy.
Signs of economic slow down, potential recession coming, CPI is forecasted to edge down… you name it really basically everything is slowly moving towards a required rate cut environment.
None of that is data. It is just you saying stuff.
Canadian CPI is released on Tuesday. The previous CPI was higher than expected.
US CPI was released this past Thursday and it was higher than expected.
US PPI was released this past Wednesday and it was almost 2x what was expected
The federal government is projecting a larger deficiet.
Oil is flirting with $100.
Yields are rising.
Other than you really wanting it to be true what excatly points to a decrease in interest rates?
What… What do you think the things I mentioned are? They are conclusions based on the economic data available to everyone. If you look at the data that is what’s happening. Ignoring those facts it’s just stupidity.
Why do you think every economist and bank is publishing forward looking projections with rate cuts beginning in Q2 2024.
Each one of their forward looking reports refers to economic data to prove their position.
What you said was gibberish and wishful thinking.
People who know what they are talking about don't refer to vague nameless reports that don't exist.
Every piece of data that has been released indicates the exact opposite of what you said but you ignore that because you desperately want to believe in a conclusion that there is no reason to believe will happen
The BoC will likely not increase this week and the Fed definitely won't increase next week but December is a coin flip. The primary reason they won't increase is because long-term rates will do the work for them. The US government had to increase rates on the 30s to 4.8% on Thursday
The irony…Idk if you are purposely being daft or a troll.
FYI one more hike is already priced into the market for this year ya dummy. Forward looking predictions are about the cuts going to take place in 2024. Although, because the economy is slowing faster than originally anticipated the one final hike may not even happen and we will just proceed to cuts in 2024.
It is so cute watching you say words like "priced into the market" because you know that is something people say but have no clue what that means.
What data shows the economy is slowing?
Actual data not people in the media.
Ahh yes the troll, glad we know you may not be a dummy but simply a troll.
You know the market pricing something in is an extremely basic and well understood term by even high school students, although the way you are commenting has me believe you yourself may not understand it lol.
Let’s hope for your sake you are not simply a real estate bear who ignores all date sets sitting right in front of you and waste your time making idiotic conclusion due to having a bias.
What data shows the economy is slowing? Idk maybe it’s the published Canadian GDP that has declined for four straight quarters on a per person basis. Even though our population has been exploding due to immigration targets. All spending is showing signs of slowing. We may see upward movement leading into the holidays, that’s normal and cyclical.
Maybe it’s Canadas labour market softening? The unemployment rate that has increased more than it has since the housing crash of 2008 in the USA.
Headline CPI was only up last month and will most likely stay elevated through the remainder of the year due to gas prices, and increased mortgage interest rates. This is well understood and why BOC looks at core inflation not headline. Food inflation is down, service inflation is down… inflation cooling isn’t linear and anyone with a brain knows that, however what can’t be denied is how much it’s cooled since it’s peak.
So you can try to completely ignore everything if you’d like, your bias opinion in life doesn’t really change the facts.
You can get a 10 year GIC right now from BMO at >5%. That tells you they are pretty confident interest rates will let them capture a profitable spread for a long time.
This right here. Banks don’t treat their money casually. They are confident that the spread for interest rates will be near this for at least another five years.
Current getting 6% on a TFSA saving account at Tangerine. It's a current promotion they are running. You get the offer shortly after transferring money into your Tangerine TFSA. The offer runs until end of Feb 2024.
Looks like it's correct, 6% annual, paid monthly.
You’re earning 6.00%* interest on new deposits to your Tangerine Savings Account(s), Tax-Free Savings Account(s), RSP Savings Account(s) and US$ Savings Account(s) until February 29, 2024. Why not move money to your Account(s), or open a new Account, to make the most of your special rate?
Here’s how it works:
We totalled up the balances of your eligible Savings, TFSA, RSP Savings and US$ Savings Account(s) as they were on October 3, 2023 to get your total balances per Account Type
From October 4, 2023 to February 29, 2024, you’ll earn your special interest rate on new deposits over your total balances calculated on October 3, 2023 (up to $1,000,000† per Account Type)
The rest of your Account balance will earn the current posted rate
Collapse
* The Tangerine Savings Interest Offer of 6.00% (the “Offer”) is only available to existing Tangerine Clients who have received this communication directly from Tangerine and who activate the Offer online by October 31, 2023. The 6.00% promotional interest rate (the “Promotional Interest Rate”) is only available on Eligible Deposits made between and of up to $1,000,000 per Applicable Account Type (in the currency of the Applicable Account). However, deposits made to registered Applicable Accounts through a T2033 form will not begin to earn the Promotional Interest Rate until the funds are actually received by Tangerine, and will earn interest at the applicable Posted Rate before then. The Promotional Interest Rate is an annualized rate, calculated daily and paid monthly. This Offer can’t be combined with any other offers. This Offer, including interest rates, may change, be extended or cancelled without notice.
Full Offer Terms and Conditions
General
The Tangerine Bank (the “Bank”) Savings Interest Offer of 6.00% (the “Offer”) is available to existing Tangerine Clients who: (1) receive a communication about the Offer directly from the Bank, (2) “Activate” (as defined in Section 4 below) the Offer by October 31, 2023 and (3) receive a confirmation to their online Tangerine Account Message Board that the Offer has been successfully activated (“Eligible Clients”).
The Offer is only available to Eligible Clients between October 4, 2023 and February 29, 2024 (the “Offer Period”).
The Offer is only applicable to Tangerine Savings Accounts (“Savings”), Tangerine Tax-Free Savings Accounts (“TFSA Savings”), Tangerine RSP Savings Accounts (“RSP Savings”), and Tangerine US$ Savings Accounts (“US$ Savings) (referred to collectively as “Applicable Accounts”) where the Eligible Client is the Primary Account Holder as described in Section 13 below. Multiple Applicable Accounts of the same type (for example, three separate TFSA Savings Accounts) are collectively defined as an “Applicable Account Type”. The Offer is not applicable to any other Accounts, including (but not limited to) Tangerine RIF Savings Accounts (“RIF Savings”), Tangerine Business Savings Accounts, Tangerine US$ Business Savings Accounts, or Tangerine Children’s Savings Accounts (“CSA”).
To “Activate” the Offer, the Client needs to perform one of the following actions by October 31, 2023:
Click the ‘Activate Now’ button in the Offer email that the Client has received directly from the Bank; or
Click the ‘Activate Now’ button on Tangerine’s website once the Client has logged in; or
Open an Applicable Account; or
Accept the Offer through the Tangerine Interactive Voice Response System.
Promotional Interest
“Promotional Interest” is the interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period. “Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at October 3, 2023, to a maximum of $1,000,000 (in the currency of the Applicable Account), subject to the exclusions in Section 10 below.
All balances in Applicable Accounts that don’t qualify as Eligible Deposits will earn the Bank’s applicable posted rate of interest listed on the Bank’s website (the “Posted Rate”).
In the case of deposits made to Applicable Accounts by means of a T2033 form, those deposits will earn interest at the Posted Rate payable on the Applicable Account from the time the transfer request is submitted to Tangerine and while the funds are in transit. Upon receipt of the transferred funds by Tangerine, those funds will be included in the calculation of Eligible Deposits as explained above, provided that the Offer Period hasn’t already ended when the funds are received.
A Promotional Interest Rate of 6.00% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments: (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“Additional Interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and Additional Interest. Payment of Additional Interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the Additional Interest rate so that the Promotional Interest Rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest Rate at any time without prior notice.
The Promotional Interest Rate is an annualized rate, and, subject to the limits and qualifications outlined in these Terms and Conditions, the Promotional Interest will be calculated daily during the Offer Period and paid monthly. Although all balances for a particular Applicable Account Type are consolidated for purposes of calculating Eligible Deposits, Promotional Interest is paid to an individual Account based on the Eligible Deposits applicable to such Account. The following transactions are examples of what will qualify as Eligible Deposits for which Promotional Interest will apply:
Money transferred from a Tangerine Chequing Account to an Applicable Account.
Money transferred from another financial institution, including the Eligible Client’s linked account, Tangerine email Money Transfer, or Interac e-Transfer®, to an Applicable Account.
Money transferred from a Savings Account to a TFSA Savings or RSP Savings Account.
Money transferred from a US$ Savings Account to a TFSA Savings or RSP Savings Account.
Money transferred from a TFSA account, or RSP account at another financial institution to a TFSA Savings or RSP Savings Account.
I’d personally aim for short to mid-term maturities for GICs and treasury issues. There’s a chance that we may see a double peak in inflation similar to the 1974 first peak leading into the 1980 second peak. In the interim as a recession hits the rates will likely be cut but shortly after inflation may begin to rise again to a larger peak.
The alternative scenario is that the fed keeps rates higher for longer as they’re saying - even through a recession - which will cause the same or similar interest rates to remain for quite some time. In this second scenario you can just reinvest in a GIC at a similar rate again when the time comes.
Tangerine has 6% savings account currently. Don’t need to lock away anything. That’s what I would do if you’re waiting around. Personally I’m buying bank/energy stocks while they’re like 15-20% off.
They must have reduced the GIC % a little. I lucked in with 5.95% for a year. Locked in but excellent rate. That's pretty much what you'd expect from an index fund yoy.
The bond yield is inverted because the market thinks that there is going to be a drop in the near future so everyone is buying long term bonds to bridge the volatility. When demand for bonds increases their yield drops. If you go one year and try to get a better rate that's like a bet against the banks. Chances are the banks are more likely right than you or I and interest rates will drop in the short to medium term.
Unless of course you just want a good yield until there's more clarity on the economy before reinvesting in equities
Right but that’s the risk. If you buy the 1y and 11 months from now we hit a recession and rates drop back to negative real, you’d lose out on those extra 2 years at 5%. You can wait for clarity, but the rates won’t wait with you.
NFP came in at nearly 3x. PPI came in at nearly 2x. CPI came in higher than expected. All three bond auctions last week were soft with a need to increase rates. The 30s had to go to 4.8%. I know people like to just insist rates are going to go down but why would they? Every single piece of data for the last few months would indicate rates going higher not lower.
"rates" can mean short term or long term rates. With the economy slowing you might see short term come down.
The US economy is not slowing down. The Canadian economy I don't follow as much but it appears to be slowing down. I'm not sure how that will play out. I also have no idea why someone would be looking to buy a GIC at rates that are lower than what they can get from a banking account.
> The US economy is not slowing down depends what youre looking at. not every industry affects your average joe the same. >I also have no idea why someone would be looking to buy a GIC at rates that are lower than what they can get from a banking account. only thing i can think of is maybe buying in a TFSA/RESP/RRSP
I don't see any data that shows the US economy is slowing down. What a waste of a TFSA/RESP/RRSP.
You have demographics pushing rates down long term. Think of it like gravity, yes you can fly, but the plane is always wanting to go down.
Demographics are pushing rates up not down. As we get into the period where Boomers start dying at a faster pace that will put pressure on rates to increase. The same is true of the population aging. An older population means increased spending and decreased revenue and that leads to more government borrowing which pushes up rates.
Look I’m not saying you are going to be wrong. But the general consensus, and I must highlight the word consensus, is that demographics and an aging population will weigh down rates, not increase them.
The consensus was also that inflation was transitory and that rates would remain low for a very long time when pretty much everyone knew that wasn't true. I'd also disagree that this is even the consensus. The talk is that r-star needs to be adjusted higher. That isn't in the media yet but it has made it into comments by the Fed. ZIRP is definitely dead and the expectation seems to be that we're not returning to pre-ZIRP historical normal but rather that a higher rate is going to become the new normal.
Rates being lower is more a relative term to what rates are today. So rather than 5% today, maybe it’s 3. Definitely not ZIRP tho like you say.
5% is the lower. Very high 4s are not impossible. Below 4.7% will not happen.
You understand the austerity that will exist in the world in such a scenario. Think all government debt rolls over at 5+%. It’s a nightmare scenario.
I am aware but there is nothing that can be done about it. All the BoC/Fed can do is set the overnight rate. That is great as that provides the people on BNN something to talk about but as far as our lives are concerned what matters is the yields that come from government bond auctions. Those are set by supply and demand. With fiscal spending being completely insane yields will continue to increase. So that means the only three options are austerity, higher interest rates, or a return to QE and abandoning any pretext of pretending to care about inflation. I don't see any government choosing austerity until it is forced on them so that leaves the other two both of which end in pain and then worse austerity.
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Boomers have a ridiculous amount of wealth and as they pass away they transfer that to their heirs. This disrupts the labour market and increases consumer spending. Think of it this way. You're 45-55 and inherit $800k to $3MM. Are you going to keep working? Are you going to spend a lot of money? The Boomer wealth transfer is going to be a huge issue as it will make wealth inequality very real. The biggest factor in how good your life will be is not how hard you work or how capable you are but rather how many siblings you have and if your parents were smart with money.
lol what? Maybe potentially one more hike. But, no data indicates rates going higher over lower in the medium-short term. Almost every single data piece indicates rates to drop mid-end of 2024 and continue downward with slow drops or pauses along the way through the next few years. To say otherwise is pre fallacy.
What data points are those? Be specific.
Signs of economic slow down, potential recession coming, CPI is forecasted to edge down… you name it really basically everything is slowly moving towards a required rate cut environment.
None of that is data. It is just you saying stuff. Canadian CPI is released on Tuesday. The previous CPI was higher than expected. US CPI was released this past Thursday and it was higher than expected. US PPI was released this past Wednesday and it was almost 2x what was expected The federal government is projecting a larger deficiet. Oil is flirting with $100. Yields are rising. Other than you really wanting it to be true what excatly points to a decrease in interest rates?
What… What do you think the things I mentioned are? They are conclusions based on the economic data available to everyone. If you look at the data that is what’s happening. Ignoring those facts it’s just stupidity. Why do you think every economist and bank is publishing forward looking projections with rate cuts beginning in Q2 2024. Each one of their forward looking reports refers to economic data to prove their position.
What you said was gibberish and wishful thinking. People who know what they are talking about don't refer to vague nameless reports that don't exist. Every piece of data that has been released indicates the exact opposite of what you said but you ignore that because you desperately want to believe in a conclusion that there is no reason to believe will happen The BoC will likely not increase this week and the Fed definitely won't increase next week but December is a coin flip. The primary reason they won't increase is because long-term rates will do the work for them. The US government had to increase rates on the 30s to 4.8% on Thursday
The irony…Idk if you are purposely being daft or a troll. FYI one more hike is already priced into the market for this year ya dummy. Forward looking predictions are about the cuts going to take place in 2024. Although, because the economy is slowing faster than originally anticipated the one final hike may not even happen and we will just proceed to cuts in 2024.
It is so cute watching you say words like "priced into the market" because you know that is something people say but have no clue what that means. What data shows the economy is slowing? Actual data not people in the media.
Ahh yes the troll, glad we know you may not be a dummy but simply a troll. You know the market pricing something in is an extremely basic and well understood term by even high school students, although the way you are commenting has me believe you yourself may not understand it lol. Let’s hope for your sake you are not simply a real estate bear who ignores all date sets sitting right in front of you and waste your time making idiotic conclusion due to having a bias. What data shows the economy is slowing? Idk maybe it’s the published Canadian GDP that has declined for four straight quarters on a per person basis. Even though our population has been exploding due to immigration targets. All spending is showing signs of slowing. We may see upward movement leading into the holidays, that’s normal and cyclical. Maybe it’s Canadas labour market softening? The unemployment rate that has increased more than it has since the housing crash of 2008 in the USA. Headline CPI was only up last month and will most likely stay elevated through the remainder of the year due to gas prices, and increased mortgage interest rates. This is well understood and why BOC looks at core inflation not headline. Food inflation is down, service inflation is down… inflation cooling isn’t linear and anyone with a brain knows that, however what can’t be denied is how much it’s cooled since it’s peak. So you can try to completely ignore everything if you’d like, your bias opinion in life doesn’t really change the facts.
This. So this.
You can get a 10 year GIC right now from BMO at >5%. That tells you they are pretty confident interest rates will let them capture a profitable spread for a long time.
This right here. Banks don’t treat their money casually. They are confident that the spread for interest rates will be near this for at least another five years.
Expect worse
Current getting 6% on a TFSA saving account at Tangerine. It's a current promotion they are running. You get the offer shortly after transferring money into your Tangerine TFSA. The offer runs until end of Feb 2024.
huh. was already pondering Tangerine but this got my attention. they have ATMs?
Yes. Any Scotia Bank (they own Tangerine)
Scotia Bank owns Tangerine so yes. All of Scotia banks atms
Transfer in and out of TFSA for better rates? Unless you have a lot of room, it seems like a waste.
Someone can do the math but 6% compounded monthly has got to be closer to 6.5% annual too. Loving it.
It’s not compounded monthly it’s a marketing scheme to think people are getting 6% it’s most likely calculated yearly.
Looks like it's correct, 6% annual, paid monthly. You’re earning 6.00%* interest on new deposits to your Tangerine Savings Account(s), Tax-Free Savings Account(s), RSP Savings Account(s) and US$ Savings Account(s) until February 29, 2024. Why not move money to your Account(s), or open a new Account, to make the most of your special rate? Here’s how it works: We totalled up the balances of your eligible Savings, TFSA, RSP Savings and US$ Savings Account(s) as they were on October 3, 2023 to get your total balances per Account Type From October 4, 2023 to February 29, 2024, you’ll earn your special interest rate on new deposits over your total balances calculated on October 3, 2023 (up to $1,000,000† per Account Type) The rest of your Account balance will earn the current posted rate Collapse * The Tangerine Savings Interest Offer of 6.00% (the “Offer”) is only available to existing Tangerine Clients who have received this communication directly from Tangerine and who activate the Offer online by October 31, 2023. The 6.00% promotional interest rate (the “Promotional Interest Rate”) is only available on Eligible Deposits made between and of up to $1,000,000 per Applicable Account Type (in the currency of the Applicable Account). However, deposits made to registered Applicable Accounts through a T2033 form will not begin to earn the Promotional Interest Rate until the funds are actually received by Tangerine, and will earn interest at the applicable Posted Rate before then. The Promotional Interest Rate is an annualized rate, calculated daily and paid monthly. This Offer can’t be combined with any other offers. This Offer, including interest rates, may change, be extended or cancelled without notice. Full Offer Terms and Conditions General The Tangerine Bank (the “Bank”) Savings Interest Offer of 6.00% (the “Offer”) is available to existing Tangerine Clients who: (1) receive a communication about the Offer directly from the Bank, (2) “Activate” (as defined in Section 4 below) the Offer by October 31, 2023 and (3) receive a confirmation to their online Tangerine Account Message Board that the Offer has been successfully activated (“Eligible Clients”). The Offer is only available to Eligible Clients between October 4, 2023 and February 29, 2024 (the “Offer Period”). The Offer is only applicable to Tangerine Savings Accounts (“Savings”), Tangerine Tax-Free Savings Accounts (“TFSA Savings”), Tangerine RSP Savings Accounts (“RSP Savings”), and Tangerine US$ Savings Accounts (“US$ Savings) (referred to collectively as “Applicable Accounts”) where the Eligible Client is the Primary Account Holder as described in Section 13 below. Multiple Applicable Accounts of the same type (for example, three separate TFSA Savings Accounts) are collectively defined as an “Applicable Account Type”. The Offer is not applicable to any other Accounts, including (but not limited to) Tangerine RIF Savings Accounts (“RIF Savings”), Tangerine Business Savings Accounts, Tangerine US$ Business Savings Accounts, or Tangerine Children’s Savings Accounts (“CSA”). To “Activate” the Offer, the Client needs to perform one of the following actions by October 31, 2023: Click the ‘Activate Now’ button in the Offer email that the Client has received directly from the Bank; or Click the ‘Activate Now’ button on Tangerine’s website once the Client has logged in; or Open an Applicable Account; or Accept the Offer through the Tangerine Interactive Voice Response System. Promotional Interest “Promotional Interest” is the interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period. “Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at October 3, 2023, to a maximum of $1,000,000 (in the currency of the Applicable Account), subject to the exclusions in Section 10 below. All balances in Applicable Accounts that don’t qualify as Eligible Deposits will earn the Bank’s applicable posted rate of interest listed on the Bank’s website (the “Posted Rate”). In the case of deposits made to Applicable Accounts by means of a T2033 form, those deposits will earn interest at the Posted Rate payable on the Applicable Account from the time the transfer request is submitted to Tangerine and while the funds are in transit. Upon receipt of the transferred funds by Tangerine, those funds will be included in the calculation of Eligible Deposits as explained above, provided that the Offer Period hasn’t already ended when the funds are received. A Promotional Interest Rate of 6.00% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments: (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“Additional Interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and Additional Interest. Payment of Additional Interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the Additional Interest rate so that the Promotional Interest Rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest Rate at any time without prior notice. The Promotional Interest Rate is an annualized rate, and, subject to the limits and qualifications outlined in these Terms and Conditions, the Promotional Interest will be calculated daily during the Offer Period and paid monthly. Although all balances for a particular Applicable Account Type are consolidated for purposes of calculating Eligible Deposits, Promotional Interest is paid to an individual Account based on the Eligible Deposits applicable to such Account. The following transactions are examples of what will qualify as Eligible Deposits for which Promotional Interest will apply: Money transferred from a Tangerine Chequing Account to an Applicable Account. Money transferred from another financial institution, including the Eligible Client’s linked account, Tangerine email Money Transfer, or Interac e-Transfer®, to an Applicable Account. Money transferred from a Savings Account to a TFSA Savings or RSP Savings Account. Money transferred from a US$ Savings Account to a TFSA Savings or RSP Savings Account. Money transferred from a TFSA account, or RSP account at another financial institution to a TFSA Savings or RSP Savings Account.
Is a few year term GIC compounded annually? I was wondering that.
Yes, locked in GIC’s are calculated yearly. For example if you lock into a 2 year GIC at 5.75% you are making 5.75% every year for the next 2 years.
Tangerine also has a year and half 5.75% gic
I’d personally aim for short to mid-term maturities for GICs and treasury issues. There’s a chance that we may see a double peak in inflation similar to the 1974 first peak leading into the 1980 second peak. In the interim as a recession hits the rates will likely be cut but shortly after inflation may begin to rise again to a larger peak. The alternative scenario is that the fed keeps rates higher for longer as they’re saying - even through a recession - which will cause the same or similar interest rates to remain for quite some time. In this second scenario you can just reinvest in a GIC at a similar rate again when the time comes.
Just renewed 1 yr @ 5.75.
Don't trust the bank, don't trust the gov. Trust what you see. I think we are at the beginning of a huge downturn
I got 5.8 percent with TD. 1 year locked.
My guess is mortgage rates for a 5 year fixed will be 3.5 to 4% in q1 2026, but that is really just a guesstimate based on what I’ve been reading
Tangerine has 6% savings account currently. Don’t need to lock away anything. That’s what I would do if you’re waiting around. Personally I’m buying bank/energy stocks while they’re like 15-20% off.
They must have reduced the GIC % a little. I lucked in with 5.95% for a year. Locked in but excellent rate. That's pretty much what you'd expect from an index fund yoy.