FYI/Blog Archives - Page 2 of 204 - GIC Wealth Management

CALL US TODAY!

1-866-228-9442

Category: FYI/Blog

3 Reasons Why GIC Wealth Management Offers Higher GIC Rates than Banks and Credit Unions

We all know that when a great offer seems “too good to be true,” that it often is — and reading the fine print before we sign on the dotted line protects us from making a bad decision, and suffering from a case of buyer’s remorse.

However, there are also times when a great offer is simply that: a great offer. There are no catches or strings, and moving forward is safe and smart. And one such scenario is using GIC Wealth Management to purchase your GICs.
Of course, you shouldn’t take our (or anyone else’s) word for this. There are three logical reasons why we offer higher GIC rates than banks and credit unions:

1. Lower Overhead Equals Higher Rates

Unlike banks and credit unions, we don’t have to maintain an expensive branch network. As a result, we pass the savings to our customers in the form of higher interest rates. In other words: we don’t need to make as much profit per sale to cover overhead and staffing costs. Plus, we’re paid directly by the GIC issuer, why is why our clients don’t pay us a cent.

Speaking of GIC issuers: one of the first things we tell our prospective clients is that we don’t issue GICs. We are brokers. That’s why our clients make their payments to the GIC issuer — not to us.

2. We Have Access to Smaller and Lesser-Known Institutions that Pay Higher Rates

While there are dozens of banks and around 700 credit unions and caisses populaires across Canada, most people would probably struggle to name 10. What’s more, they typically have accounts or other products with one or two. We have access to a vast nationwide network of smaller and lesser-known government regulated financial institutions that offer higher rates, and who rely on brokers like us to find new clients.

Plus, these financial institutions insure deposits (up to eligible amounts) via CDIC, DICO, or their respective province’s program if they’re outside of Ontario.

3. We Don’t Use Dynamic Pricing

Dynamic pricing is essentially when the cost of something — whether it’s a flight, car or tickets to a hockey game — changes from customer to customer. Businesses love dynamic pricing, but most customers hate it, since it means they might pay more for the exact same thing compared to someone else.

This is important to note, because banks and credit unions often use dynamic pricing when they sell GICs. This means some clients get lower rates than others — sometimes because they don’t have significant deposits (e.g. RRSPs, TFSAs, etc.), and sometimes because they simply don’t know that negotiating is an option. They accept the posted rate, the same way that they accept the sticker price on an item at the grocery store.

Simply put: we don’t engage in dynamic pricing. Every client gets the highest possible rate (or rates if they purchase multiple GICs), and there is never any worry that someone else might have negotiated a better deal.

Another Advantage: Value Added Service

In addition to getting higher rates, there is another key reason why many people choose GIC Wealth Management to purchase their GICs: to get value added service and support that many banks and credit unions don’t provide — especially when employees often try to push clients towards purchasing mutual funds, and away from GICs. As noted by the Globe and Mail’s Robert Carrick: “Beyond higher rates than the big banks, the benefit of dealing with a deposit broker is the service of having someone handle all the paper work for you while ensuring you stay onside with deposit insurance rules.”

What’s more, all of our value added services are offered to clients for free. We don’t charge a cent. As noted above, we’re paid directly by GIC issuers.

The Bottom Line

Some offers are indeed too good to be true. But others are straightforward and safe. The above reasons explain how and why we offer higher rates and better service than banks and credit unions. Frankly, the only regret that our clients have is that they didn’t find us sooner!

Learn More

To learn more, contact us today toll free at 1-866-2-BUY-GICs (228-9442), or email us through our website here. We’ll respond to you promptly, and look forward to answering all of your questions clearly and thoroughly — whether you are a seasoned GIC investor, or are making your first purchase. Our experience is your advantage.

Bank of Canada increases overnight rate target to 1 1/4 per cent

The Bank of Canada today increased its target for the overnight rate to 1 1/4 per cent. The Bank Rate is correspondingly 1 1/2 per cent and the deposit rate is 1 per cent. Recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity. However, uncertainty surrounding the future of the North American Free Trade Agreement (NAFTA) is clouding the economic outlook.

To read full article please click on the link below:
http://www.bankofcanada.ca/2018/01/fad-press-release-2018-01-17/?utm_source=RDBA+Email+List+May+2017&utm_campaign=e06ead2cb2-BOC_17_01_2018&utm_medium=email&utm_term=0_2fb13e0136-e06ead2cb2-226120685

Rob Carrick article highlights benefits of working with Deposit Brokers

January 4, 2018

Rob Carrick

Posted with permission from The Globe and Mail

There is no end to the indignity of being a conservative investor these days.

To start, rates on guaranteed investment certificates are ultralow by historical standards. Adding to the pain is the fact that GIC issuers have barely responded, if at all, to the rate increases initiated by the Bank of Canada in the second half of last year. One way to fight back as an investor is to use a deposit broker.

A deposit broker is like a mortgage broker – you benefit as a client by getting access to a variety of interest rates offered by multiple firms rather than dealing with a company selling just its own products. How much of a rate advantage is there with a deposit broker? According to the new Broker Advantage Index, a deposit broker can typically get you an additional percentage point of interest or more compared to the posted rates at big banks.

To read full article please click here.

Why GIC rates may soon head lower even in the wake of the BoC rate hike

As a seller of GICs and mortgages, Brandon Brot is the first to hear about how the financial industry is reacting to the recent rise in interest rates.

Every day, he receives bulletins about changes in rates for both guaranteed investment certificates and mortgages. “We’re getting mortgage rate increase, mortgage rate increase, mortgage rate increase these days,” said Mr. Brot, a principal at GIC Wealth Management. “But we don’t see anything on the GIC side.”

To read full article please click on the link below:

http://license.icopyright.net/user/viewFreeUse.act?fuid=MjU4MzA0Nzk=

Big Six banks raise prime rates but leave savings rates where they are

Canada’s biggest banks didn’t waste any time raising their prime lending rates following the Bank of Canada’s interest rate hike announcement this week. But of course interest rates on savings accounts, bonds, and GICs didn’t budge.

To read full article please click on the link below:

http://www.lowestrates.ca/news/big-six-banks-raise-prime-rates-leave-savings-rates-where-they-are-24748


Sidebars