In response to yesterday’s post, reader JB left the following comment:
I’ve placed some cash into several GICs (30 day cashable) at 3.95%. As interest rates increase I’ll roll it over into a higher paying GIC. I’ve gone from 3.5 to 3.75 to 3.95 in the last 3 months. I thought this seemed like a good idea. Is there any advantage to have the money in a high-interest savings account instead?
JB also further explanied that he invests through BMO InvestorLine and got the idea from this post on Larry MacDonald’s blog. Thanks for the excellent tip, JB!
As an aside, ActionDirect probably has to be the worst among the big five bank’s discount brokers. I’ve been mildly annoyed before that they offer absolutely no stock or research reports. While researching this post, I found that the website provides absolutely no information such as whether a GIC is cashable. If I have to call them to find out basic information like this wasting my time and theirs, what is the point of a discount brokerage? You would think that some rinky-dink outfit, not the biggest bank in this country, runs ActionDirect.
Update: Check out the excellent comments to yesterday’s post. The consensus is that a cashable GIC beats the Altamira CashPerformer as there are no redemption charges.