Comparing GIC Rates for BMO InvestorLine, CIBC Investor’s Edge

With a self-directed investing account, you can easily buy GICs online. Here’s a spot check of the available rates for 1 year non-reedemable RRSP GICs offered on BMO Investorline and CIBC Investor’s Edge at the same time.

The minimum purchase amount for this type of GIC for both InvestorLine and Investor’s Edge is $5000. After that, though, the amount goes up by $1 increments, so you can buy a $5001 or a $5123 GIC if you want.

UPDATE: These rates were as of 2012. The rates that are  not crossed out are as of February 2, 2014.

Institution BMO InvestorLine Rate CIBC Investor’s Edge Rate
Equitable Trust n/a 1.55% 1.4  1.85%***
Home Trust Co 1.65 1.85% n/a
Montreal Trust Canada 1.43 1.35% 1.43  1.35%
National Trust n/a 1.43  1.35%
Pacific Western Bank n/a 1.47  1.6%
People’s Trust 1.45 1.45% 1.45  1.45%
Vancity* 1.6% n/a
Canadian Western Bank 1.4 1.6% 1.4  1.6%
BMO 1.441.25% n/a
AGF Trust Co n/a 1.45% n/a  1.45%
B2B Trust n/a 1.45 1.45%
HSBC Bank 1.15 1.4% 1.15  1.4%
Laurentian Bank 1.45 n/a 1.45  1.45%
Royal Bank of Canada 1.4 1.35% n/a
Canadian Tire Bank 1.35 1.35% n/a
Manulife Bank 1.461.4% 1.46  1.4%
National Bank 1.4 1.4% 1.4  1.4%
TD Mtg Co 1.4 0.95% n/a
ICICI Bank n/a 1.3 0.9%
President’s Choice Bank 1.3 0.85% n/a

* Vancity GICs are not covered by CDIC. They are covered by the Credit Union Deposit Insurance Corporation of British Columbia.

*** I think this is an error, as the posted rate at the Equitable Trust website is 1.55% the same as the BMO  listing. I wish I had the $5000 to test it by requesting a purchase, but unfortunately I don’t have enough cash in hand to try.

As you can see, the two banks offer GICs from different financial institutions. Rates change daily and sometimes even within a day. These rates were updated on April 10, 2013.

I was a bit surprised that CIBC doesn’t offer Home Trust GICs. I’ve found Home Trust often has the highest rate for a 1 year.

To my surprise, when I spot checked the rates posted online for Equitable, Home, and People’s Trust they matched those offered through the discount brokerages. (They did match when I first posted this article. The Equitable Trust quirk was quite a surprise when I posted this: however, the rate is HIGHER than via the ET website, so not a concern.) The rate for Pacific Western Bank also matched. The rate for BMO online is only 1.15% versus 1.5% through their discount brokerage. Some of the institutions permitted purchases starting at $1000 vs $5000 but not all of them. Overall, it seems like the rates offered by InvestorLine and Investor’s Edge are competitive with those offered directly from the financial institutions.

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Do you use a discount brokerage? From which companies does it offer GICs? Have you noticed any excellent rates on offer? Please share your experiences with a comment.

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