Tag Archives: fixed income GICs

How to Buy a GIC at BMO InvestorLine with the New (2015) Fixed Income Investment Screens

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When one of the GICs in my children’s RESP matured recently, I decided to re-invest the money in a new 1-year-term GIC. Since the last time I bought a GIC, BMO InvestorLine has re-designed their fixed income investment screens so the procedure has changed: here’s how I bought the guaranteed investment certificate.

Buying a Guaranteed Investment Certificate at BMO InvestorLine

  1. Sign in to your InvestorLine account.
  2. From the drop-down list at the right side of the screen, make sure you are looking at the information for the account within which you want to buy the GIC. For example, I made sure it was our RESP account, not my RRSP account.
  3. Hover the cursor on the Trading tab and from the list, click on Fixed Income.
  4. Click on the blue View GIC Offerings button.

GIC Offerings Page

The GIC Offerings screen has become much more complicated. Down the left side of the screen are the choices:

  • Quick Picks
  • Cashable
  • 1 year
  • 2 years
  • 3 years
  • 4 years
  • 5 years

And across the top of the data are tabs for:

  • Annual Pay
  • Compound
  • Semi-annual Pay
  • Monthly Pay

I wanted to buy a 1-year annual pay GIC, so from the list on the left side of the screen, I clicked on the 1 year box, then clicked on the Annual Pay tab.

Although I had not requested to see Cashable GICs, I notice three BMO cashable GIC products lead the list. All the other listed GICs are N/A for Cashable. In other words, they cannot be cashed before maturity.

Fortunately, BMO InvestorLine still lists the GICs in order from highest paying to lowest (if I ignore the BMO cashable products.)

Click on the name of the company offering the rate you want. For example, I clicked on Home Trust Co.

GIC Order Entry Page

The familiar GIC Order Entry screen opens.

  1. In the Amount box, type how much you want to invest in this GIC with a minimum purchase of $5000 in a RESP.
  2. Ensure the interest rate and payment terms you want are the ones beside the selected radio button.
  3. In the Daytime Phone Number box, type where you can be reached.
  4. Click on the button: Review Order
  5. Read the disclosure statement that warns you that BMO InvestorLine gets a commission from the sale. (You do not pay this separately. It is built into the lower interest rate you are getting for the GIC. So you will get the interest rate advertised and they will get some $$$ from the vendor.)
  6. Click on the Continue button if that’s ok.

The GIC Order Review Page

  1. Review the details of your request.
  2. If it all looks good,
    Type your trading password in the field: Please enter your trading password to submit this order:
  3. Click on the button: Submit Order

GIC Order Confirmation Page

Make a note in a secure location of the Order Reference Number in case of any problems.

As usual, your Cash Balance does NOT immediately reflect your purchase.

You’re done!

Does the New BMO InvestorLine Fixed Income Process Work Better for GICs Than the Old One?

Personally, I didn’t find it any easier. In fact, it took a few more clicks to get started with the purchase. It does look prettier, though. I’m glad they still show the GIC interest rates in the useful format of highest to lowest with no required clicks.

Overall, I’d rate the change as neutral, neither better nor worse, for GICs.

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Do you buy GICs in your RESP to keep the cash safe during the last few years before the educational institute gets it all? Please share your strategy with a comment.

How to Buy a GIC Online from Oaken Financial

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I keep some of our emergency fund in 12 one-year-term GICs. Each month one matures and could provide cash needed to pay the bills and buy some food. The interest rate for each GIC varies and is certainly not great but it generally is close to or slightly higher than inflation. I’ve found using an online bank like Oaken gives me a better rate than using one of the Big Five Canadian banks like BMO or CIBC. Recently, Oaken Financial upgraded their online offerings and now I can buy a GIC directly online: here’s how.

Buying a GIC from Oaken Financial, the Online Presence of Home Trust

  1. Sign in to your Oaken Financial accounts.
  2. Check whether you have enough money in your account to pay for the GIC. (If not, you may have to make a transfer or mail in a cheque.)
  3. If you want to check what interest rate is being offered, click on the Current Interest Rates link on the left side and read the details.

To Buy the GIC

  1. Click on the Open New Account tab.
  2. Ensure that the Online tab is selected and read the info about what you’ll need to know to buy the GIC. (Generally, you’ll need your Oaken client account number and if you’re paying using it, your Oaken savings account number.
  3. Click on the button: Let’s get started

The Online Application Page

  1. Click to select the radio button
    • beside whether the account or investment is
      Personal or
      Commercial.
    • beside GIC to answer the question: What account or investment interests you?
    • beside Yes to answer the question: “Are you an existing customer?”
    • beside No to answer the question: “Were you referred by a broker?”
  2. Click on the Next button.

The Investment Details Page

  1. Click to select the desired term for the GIC.
  2. If applicable, click to select your interest payment frequency, such as annual pay, semi-annual, or monthly.
  3. If you do not like the suggested dates for the start and maturity of the GIC, you can change them by selecting the month, day or year from the drop-down lists. Note: this could affect your interest rate.
  4. In the Amount text box, type the cash value of the GIC you wish to purchase.

In the Select Your Instructions Section

  1. Click to select whether you want the interest payment sent to
    * another Financial Institution by direct deposit
    * you by cheque
    * your Oaken Savings Account If so, you will need to enter your Oaken Savings Account number.
  2. Click to select what to do with the GIC when it reaches maturity. You can choose to
    * renew it
    * direct deposit the value of it to another financial institution
    * send you a cheque for the amount
    * deposit the amount to your Oaken Savings Account If so, you will be asked whether to use the same savings account. If you select Yes, it will fill in the account number for you based on what you typed earlier.
  3. Click to select whether you would like to buy another GIC right now.
  4. Click to select where to get the cash to buy the GIC. You can choose
    * to mail in a cheque.
    * to take the money from your Oaken Savings Account. If you do, it will ask if you want to take the money from the same savings account you identified earlier. If you select Yes, it will fill in the account number for you based on what you typed earlier.
  5. Click to select whether you wish to register this GIC/account as an informal trust.
  6. Click on the Next button.

The Customer Details Page

  1. In the Oaken Client Number field, type your number.
  2. Select your title such as Mr. Ms. or Dr.
  3. Type the relevant information in the fields
    * First Name
    * Last Name
    * Email Address
    * Please Confirm your Email Address
  4. Click to answer Yes or No to the questions
    * “Are you a U.S. Citizen or U.S. Resident for tax purposes?”
    * “Has your personal information changed?”
    * “Would you like to add a joint-owner?”
  5. Click on the Next button.

The Legal Statements Page

  1. Click to answer Yes or No to the questions
    * “Does any owner(s) or any of their family members hold or have ever held, or is a close associate to, one of the following offices or positions in or on behalf of a domestic or foreign state?”
    * “Are any owners acting on behalf of an individual or entity other than the account holder or those authorized to give instructions about the account or who directs what happens to the account?”
  2. Read the Acknowledgement and Authorization statement carefully. If you agree, click to select Yes.
  3. Click on the Submit form button.

It will say Submitting and soon respond with the Online application – Thank you page.

Make a note of your reference number.

You should also receive a confirmation email. They state it should be received within two hours on business days during working hours.

Nothing was received within the first few minutes after sending in the request. No change was visible to my savings account balance either. However, sometime in the next 22 minutes, a message was sent to my email account. According to the email, no further action is required by me.

The cash has not been taken out of my Oaken savings account yet, though, within the first half hour after sending in the application. Ah, now at 7:30 p.m. the same day, the money is out of my Oaken savings account.

I will wait to receive the usual GIC investment confirmation in the mail.

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Do you keep your emergency fund in cash in a savings account? Or do you keep some of it in GICs to try to get a slightly higher interest rate? Please share your views with a comment.