Canada has several major banks and many schedule II banks – but with rates and plans all over the map, it’s difficult to know where to bring your business. Our aim is to help you navigate Canada’s banking options to discover which one suits your needs best.
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Switching to a better bank account Dec 16th
Almost every adult Canadian has a bank account, according to the Canadian Bankers Association. And there are practical reasons for that: most of us need a bank account to cover rent or mortgage payments, receive paycheques and to maintain our lifestyles.
But what if you’re looking for a bank acc.... More »
The best high-interest savings accounts in Canada for 2024 + MORE Jun 24th
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The best high-interest savings accounts in Canada for 2024
Here are the accounts offering the highest interest rates and lowest fees.
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Making sense of the markets this week: September 6, 2021 Sep 4th
Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.
The rich get richer as rates go lower
We know that lower rates set by central banks help to stimulate economic growth by providing cheap money. On the flipsi.... More »
The Fed's Obama-Era Hangover Jan 2nd
By paying banks not to lend, the central bank diminished its ability to control interest rates..... More »
Lowest Winnipeg mortgage rates: Save with Cambrian Credit Union + MORE Jul 29th
When Canadians need a mortgage, they often default to the big banks—but there’s a whole other world of financing options to explore. Credit unions have competitive interest rates in Canada, including Manitoba, plus innovative mortgage options you may not be able to find elsewhere. Shopping aroun.... More »
GICs have a hidden commission
– moneysense.ca
ShutterstockQ. After buying two GICs, I received a statement showing $575 in commissions paid to my broker by a third party. I thought GICs were free of commissions. Any light you could shed on these fees would be greatly appreciated.
— Tom
A. There are few universal truths in investing, Tom, but one is that nothing is free. Fees on financial products can be transparent or hidden, but they are always in there somewhere. In the case of GICs, the commissions are so well hidden that very few investors even know they exist.
If you buy a GIC through an agent—whether an online brokerage, a GIC broker, or a financial advisor—the issuer of the GIC pays a commission to that agent. The amount is typically 0.25% of the face value of the GIC multiplied by the number of years to maturity.
Related: Is it safe to have $600,000 invested in GICs?
Here’s an example. Let’s say you work with a financial advisor and she decides to purchase a five-year GIC in your account for $25,000. The advisor has a list of banks, credit unions and trust companies offering GICs, and she learns that XYZ Bank currently offers the best interest rates…
