People park cash in a 30 day GIC at 3% per annum that is earmarked for a near-term purchase.
I have never done so myself but it happens.

The gentleman who had a friend who got a 60% return in a PM Mutual Fund last year wanted to do better than the GIC that he has been rolling over for more than a year at around 3%. He was told by the Bank that it was safe and he couldn’t lose. When queried he admitted that he had some doubts about the “not losing” part of the conversation. I guided him to the self-realization that if the CPI was just 3% he was just breaking even before the CRA takes their cut at his marginal rate. Cuts that return in half and he is losing purchasing power in a major way as his own personal CPI was admitted to be 10%.

Was he pissed off for this Bank advice? Didn’t appear to be so. A high trust individual. A Uni Prof of all things.

Well today, most of us saw a 3% + return in our PM portfolio.

Bank tellers have tried to “sell” me a product that was pitiful a few times when I had transferred cash in from my brokerage account and was immediately put to a productive use after sitting there a day. I would politely tell them that that advice sucks and why. I know they are required to sell products to customers.

I have had a low interest floating investment HELOC since day one when I purchased my house. There is always a huge unused portion. I know they can see all the products I have with them and especially the HELOC. They never miss a beat and tell me that I have been pre-approved for a loan at XX%. It has always been a much higher than the HELOC. Why would I accept this stand alone loan when I can utilize a portion of the HELOC at a much lower rate? The tellers never appear to see the point. I bet this guy I was talking about would have taken the new loan.

Our educational system has been dismal for decades as it teaches very little practical content, Canadians are high trust or just stupid. Sheesh!