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Where Can I Get the Best Rate of Return on my RRSP GIC?

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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.)

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