How I got a 12.1% GIC from RBC

okay the title sounds like a scam, but it is effectively true.

RBC offers a multi-product discount. the GIC was the last product I was missing. and as I have made the evils of GIC's known in my previous post. buying a GIC from RBC allowed me to get the multi product discount and so my 1000$ was effectively earning a guaranteed 12.1% return.

The products you require from RBC in order to qualify for the multi-product discount are

1. chequing account
2. credit card
3. line of credit
4. mortgage
5. investment ( GIC ) self directed investments do not count

I have the VIP account with them which costs a whopping 30$ a month, I had to get this because it is the only account type that does not charge you when cheques you deposit bounce, (due to deadbeat tenants).

This account type also gives a free safety deposit box, free (annual free credit card) and 3 free chequing accounts and 1 US account

however with the multi product discount the fee is reduced from $30 to $22 a month. on top of that you get an unlimited number of free chequing accounts.

adding that GIC is going to earn $8 x 12 = $96 a year from the fees and $25 a year from interest = $121 a year or a %12.1 GIC

The multi product discount also applies to other account types, so even if you have a regular account it is likely worth trying to get it.

October Dividend Income Report

Dividend Lover NR     Portfolio: $16,553     $3,512 increase
Dividend Lover RRSP Portfolio: $10355.90 $58.9 increase
Dividend Lover TSFA Portfolio: $1919.03   $15.50 increase

The increase in the NR portfolio was due to investing new funds into Encana (ECA), bank of montreal (BMO) and Manulife Finanial (MFC)

The increase in the TSFA portfolio was due to 1 month of DRIP

The increase in the RRSP portfolio was due to 1 month of DRIP

This brings us to 28.83% of the 100,000 yearly dividend target a 3.59% increase