It’s raining 5 per cent GICs – even the big banks are offering them

You might well leave money on the table if you buy a GIC from your bank without asking for a better rate than you were initially offered.

Asking for extra returns costs nothing, but it’s kind of an unpleasant process that some people just won’t put themselves through. For these people, there’s some good news in GIC-land right now. Promotional rates from some big banks mean you can get a five-year guaranteed investment certificate with a return of 5 per cent. In fact, you might be able to build a five-year ladder of guaranteed investment certificates with an average return of 5 per cent or more.

GIC rates close to 6 per cent are out there from alternative banks and credit unions, but there’s a cohort of people who prefer for whatever reason to deal with big banks. Now, great rates are available to these people, with zero effort required.

Example: Canadian Imperial Bank of Commerce this week offered a promotional rate of 5.35 per cent for a one-year GIC, 5.3 per cent for two years and 5 per cent for five years.

Bank of Nova Scotia had two strong offers this week – 5.75 per cent for two years and 5.45 per cent for four years. Royal Bank of Canada this week offered 5.35 per cent for a one-year GIC, 5.3 per cent for two years and 5 per cent for five years. For terms of both 18 and 24 months, Bank of Montreal offered 5.3 per cent.

Have a timeline for buying a home in the next while? Toronto-Dominion Bank had a 5.25 per cent offer this week with a cashable 100-day GIC for first home savings accounts, and rates of 5.6. per cent for 14-month FHSAs.

If you’re buying GICs from a bank based on a posted rate, don’t hesitate to ask for a rate bonus. I have heard quite a few stories from readers and others about banks coming through with modestly higher returns. It helps if you’re a valued customer who has some other lines of business with the bank.

Keep track of special GIC rates at your bank by monitoring its GIC rates page online regularly. The rate landscape is quite volatile these days, which means deals come and go all the time.