If you’re planning to take money out of your RRSP for the Home Buyers’ Plan or Lifelong Learning Plan you may need to keep it safe in either a cash account of a short-term GIC. Or you may just want to keep some of your fixed income RRSP investments in GICs. Whatever the reason, it’s getting harder each year to find a decent interest rate for your GICs. Today I went searching around the internet to see what types of rates are on offer. I was disappointed to find that very few places are offering a promotion with a good rate for this RRSP season. Here’s where I found the best (and worst) rates for RRSP GICs.
RRSP GIC Rates Vary Daily: Be Wary
These are the rates being offered on Monday February 9 2015. They are subject to change without notice but may give you some idea of where to start looking. Please be sure to call and confirm a rate before applying!
A Comparison of RRSP GIC Rates February 2015
|Place||Cash deposit rate||1 year GIC||5 year GIC||Insurance and Other Comments|
|BMO||0.1%||1.0% min $1000||1.5% min $1000||A 5-year RateRiser Max GIC has an annual equivalent rate of 1.82%CDIC insured|
|CIBC||0.25%||0.65% min $500 or0.75% on Bonus Rate RRSP GIC min $500||1.5% min $500 or1.5269% on Escalating Rate GIC min $500||CDIC insured|
|DUCA||n/a||1.8 % min $500||2.6% m in $500||DICO insured|
|Meridian||n/a||1.4% min $500||2.1% min $500||3 month term GIC with an annual rate of 3% min $500 DICO insured|
|Oaken Financial||n/a||1.9 min $1000||2.6 % min $1 000||1.75% min $2500 cashable after 90 days CDIC insured|
|PC Financial||0.50 %||1.05%||1.8%||CDIC insuredFee to transfer out|
|People’s Trust||n/a||2.4% min $1000||2.65% min $1000||Currently no transfer fees! CDIC insured|
|Tangerine||1.05 %||1.05||1.8 %||CDIC insuredFee to transfer out|
|BMO InvestorLine||1.00 % min $5000||1.5% min $5000||2.05% min $5000||CDIC insured|
|CIBC Investor’s Edge||1.1% min $1000||1.4% min $5000||2.05% min $5000||CDIC insured|
|RBC Direct Investing||1.0% min $500||1.5 % min $3500||2.05% min $3500||CDIC insured|
Note: None of these GICs can be cashed before maturity unless otherwise noted. Be sure to check the terms and conditions before buying any GIC.
People’s Trust Is Offering the Best RRSP GIC Rate and Deal (At Least for Today!)
So the best rate I could find today for a 1-year term, RRSP GIC was from People’s Trust. They are offering 2.4%. They are also insured by CDIC. That’s the same one that insures big bank GICs like those offered by BMO and CIBC.
At this time, People’s Trust is also advertising that it does not charge any fees for transfers. That’s great news but always be aware that they could change that just like Tangerine did.
Upon maturity, your People’s Trust RRSP GIC will be re-invested for the same term if you don’t give alternate instructions. You can also change the instructions for 10 days after it matures. I’m not quite sure how you are supposed to handle it if you want to transfer the money out to another RRSP at maturity. I think you could do it by specifying on your transfer form that you want the transfer to be effective on the date the GIC matures. (It may also be possible to transfer the GIC in kind to a brokerage. You can discuss that with your brokerage ahead of time.)
- Why a 5-Year GIC Ladder May Not Be the Best Bet Right Now
- How to Buy a GIC in a BMO InvestorLine Brokerage Account
- How to Buy a GIC in a CIBC Investor’s Edge Brokerage Account
- How to Buy a GIC in a RBC Direct Investing Brokerage Account
- How to Open an Online Bank Account at Oaken Financial
Do you have some of your RRSP in GICs? Are you finding an acceptable rate? Please share your experiences with a comment.
Yes, we bank with Tangerine.ca among other places. If you open your first account ever with Tangerine (or ING Direct) using our Orange Key below, and deposit $100 before January 31, 2017, you and we will both get a cash bonus of $50 each. (Yes, they did extend the promotion for another few months!) All you have to do is enter the Orange Key 46470587S1 when you are opening your Account, and you’re set to go.
Just copy our Orange Key, then click on this Tangerine link to see the details and apply for an account. (Note: it only applies to people with no existing or previous accounts with Tangerine or ING Direct.)