Okay, I'll admit to having been more of a pinball
wizard than a financial one. I'll also acknowledge that I'm highly risk averse. I wanted to ensure a batch of money earn steady and stable interest. I divided the amount to five units. Then, I bought 1, 2, 3, 4, and 5 year GICs. (
Guaranteed Investment Certificate is Canadian banking jargon for a
Time Deposit.) As they mature I'm rolling each into a 5-year. This way, I'll always be spreading interest rates across time and will have 20% of those funds coming up for renewal each year.
![]()
Yesterday, I called my main, toll-free banking number to set up instructions for this year's roll over. I talked to a customer support person who was in Ontario. Of course, he could only offer the 'listed' rates. I told him quite frankly that I wanted better. A competitor's rates on the Internet showed a better yield but he didn't have the power to negotiate.
So, I thanked him, and went uptown to a branch where I could speak to a person. "No, I don't want to consider a money market," I had to say. "I'm absolutely sure that I won't withdraw before maturity." "I know you can do better than that," I added. She disappeared and returned with the manager who immediately added 0.25% as a bonus. It put me over the rates posted at most other banks. Agreement came so quickly that I probably should have held out for more.
It just goes to show, which I didn't know before, a bank has plenty of room to negotiate rates. If you're a good customer, then leverage that fact. If you don't demand, they surely aren't going to offer.
