Friday, October 15, 2010

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.


  1. LOL, the evils of GIC's. That's amazing that you were able to get such a good deal.

    I guess it was akin to having to kiss a frog to get to the prince?

  2. Well, you might even get a higher rate than 12.1% since you only pay taxes on the $25, the $96 being a reduced expense. So depending on your marginal rate, let's say 35%, to get $96 net of taxes, you'd have to earn $147. So the return on that "GIC" is 17.2% !!! It's just to bad it's limited to $1000.

  3. Can't you simply change to a financial institution that has lower (or no) fees and save the full $30 per month?

  4. I would but this RBC VIP account was the only account type I found that doesn't charge you when your tenants checks bounce after you deposit them.