Banks are competing for savers by matching, not raising, GIC rates
Canadian financial institutions are increasingly matching the highest GIC rates rather than raising them, with top one- to five-year rates remaining stable as more banks align with market leaders. Despite the Bank of Canada holding rates steady, savers can now earn higher returns on five-year GICs than the lowest insured five-year mortgage rates. The competitive shift is primarily in GICs, offering savers more provider options at top rates, though further increases appear limited amid stable bond yields.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe Bank of Canada may be standing still with Wednesday’s rate hold, but the country’s deposit market is still shifting. The difference is that banks are no longer competing by meaningfully raising rates. Instead, they are competing by matching the best ones. In terms of GICs, the best one-year rate is still 3.65 per cent from WealthONE. The best two-year rate remains 3.8 per cent from Achieva. The best three-year rate is 3.8 per cent by WealthONE. The best five-year is still 4 per cent, now in a four-way tie among MCAN, WealthONE, Oaken and Saven. The more interesting shift in April is not that the best GIC rates have moved higher, but that more banks moved up to meet the top of the table.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
