Connect with us

General

5 Reasons To Buy A GIC

5 Reasons To Buy A GIC

Consider purchasing a GIC as a special kind of deposit you make to your bank. Why would you do this? Because these types of deposits, called Guaranteed Investment Certificates, offer some notable benefits on the usual savings-interest deposit arrangements.

5 Reasons To Buy A GIC

For one, you don’t pay any fees, and GICs will pay out a fixed interest rate over a pre-set time, such as six months up to 1, 2, 5, or 10 years. These interest rates can vary for some GI C plans, which will be based on how a stock index exchange benchmark performs. Basically, the longer your GIC term, the higher interest rate you will get. However, there’s a catch – unlike conventional deposit funds, if you withdraw your GIC money before the end of the term, you will have to pay a penalty, unless you can get a specific type of GIC that allows this without penalty. These no-penalty GICs, called cashable GICs, will also offer lower interest rates. This is a decision – cashable or non-cashable – that you’ll need to make before signing up for a GIC, so make sure you know whether you’ll be needing access to the money in the future. GICs sound pretty good to a lot of people for some very good reasons. Check out these five good reasons to buy a GIC today.

A guaranteed return on your GIC investment Your basic GIC will bring you a guaranteed return on your investment. If you buy a non-market-inked GIC, and hold it for a long term without cashing it out, you’ll get a reliable return and a high interest rate.

Your principle investment is guaranteed Unlike other investment vehicles, with GICs there is zero risk that your principle investment will run into trouble and not be returned to you. For those who view investing in the stock market as something as a gamble, a GIC offers a safe refuge for your money – a refuse that will also grow your money. Though the return won’t be as high as a health stock market investment index, you’re guaranteed not to lose your money.

They’re compatible with registered accounts This means that your GIC can be bought for a registered account such as an RRSP or TFSA. These savings vehicles are good places to stick your GIC. But why? For RRSPs and RESPs, you won’t pay any tax on the interest earned while your GIC is held in these investment vehicles. Same goes for TFCSA – when you do finish your GIC term, gaining the interest, you won’t be facing the taxman to pay capital gains on your investment growth.

Putting money where you can’t easily spend it Sometimes it’s best if we have our investments kept at arms-length. This prevents us from using these funds like a regular day-to-day savings account. In case of emergency, you may still be able to withdraw your GIC, but there will be a penalty.

GICs complement a fixed-income portfolio GICs are a great investment to add balance to a fixed income financial portfolio. Along with a mix of equities, fixed-income financial products like GIC let you safely grow your income at rates higher than bonds. Whether you’re saving for a short-term goal like a summer vacation in Europe or a long-term goal like a down payment for a new mortgage, GICs are an excellent choice

Author Bio: I am Eric Jones, a businessman by profession. Business and entrepreneurship are my passion and I love researching on the various aspects of those areas. I make sure that I don’t miss out any updates and for this reason I read quite a lot. Law is yet another area which I am passionate to know more about.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Recent Posts

Tech1 day ago

Now Selling Services Is Super Easy From Your WordPress Website

If you are in a profession that sells any sort of services offline, then this article can be really beneficial...

Gudi Padwa 2020 is on 25th. March Gudi Padwa 2020 is on 25th. March
Lifestyle2 days ago

How to Celebrate Gudi Padwa with all Hindu rituals

What is Gudi Padwa On the first day of the month of Chaitra, the state of Maharashtra and Konkan region...

Trip to Australia Trip to Australia
Travel2 days ago

The Best Planning Trip to Australia in a Budget in 2020

Australia is a beautiful country and is a dream place for many to visit. One of those many, I am...

industry_hair industry_hair
Tech1 week ago

Some Benefits Of Hair Salon Software That You Must Need To Know

If you are just investing or debating over the software of salon then you need to do it now. You...

Marketing Solutions for Your Business Marketing Solutions for Your Business
Tech1 week ago

Identify the Best Marketing Solutions for Your Business

Marketing of the brand name is much important that will provide ultimate benefits to the business. In the olden days,...

Business1 week ago

What Is AdsSupply? A Comprehensive Review

In the digital age, there’s no question that there’s big money to be made online. The old adage that you...

Education1 week ago

What are best colleges in Pune and witch one is right for you?

Masters in Business Administration(MBA) can be a significant addition to your current resume and can open the doors to new...

YouTube (1) YouTube (1)
Tech1 week ago

Is It Possible to Increase YouTube Views Through Backlinks?

YouTube plays a major role in Digital Marketing. You start your channel might be for marketing your business, but for...

GP-2 GP-2
Lifestyle2 weeks ago

Genuine Focus of Photography is on Holding Picture Moments and Emotions

In the event that you are inventive and want to get the world’s wonderfulness, conceivably you need to find a...

artificial-4082314_640 artificial-4082314_640
Education2 weeks ago

A little step to better learning with virtual learning

Education plays a vital role in the lives of the people. One can do anything while staying in any part...

Tech2 weeks ago

How to Reset a WordPress Site

Let’s conduct a little experiment. Take a good look at your desktop/browser/bookmarks and tell me what you see. AHA! Just...

Benefits of playing fantasy sports Benefits of playing fantasy sports
Sports2 weeks ago

Benefits of Playing Fantasy Sports

esports is the most talked about subject in the game industry. The trend of fantasy games is increasing day by...

Gold Loan Gold Loan
Business3 weeks ago

Merits And Demerits: Know All About Gold Loan

Imagine this. You need funds urgently. But your savings fail you and so do your friends and family. Worst still,...

Av equipment Av equipment
General3 weeks ago

Audio visual Provide Complete Event Solutions

Av is the electronic processing a sound and video component like presentation films and different type of television program AV...

mutual funds mutual funds
Finance3 weeks ago

A Direct or Regular Mutual Fund Which One is Good for You

Only the cost structure in the direct and regular mutual fund schemes differ from each other. From the fund manager...

Categories

Archives

Trending