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

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

3D Rendering Terminology: Guide For Architects to Communicate With CG Artists 3D Rendering Terminology: Guide For Architects to Communicate With CG Artists
Tech7 days ago

3D Rendering Terminology: Guide For Architects to Communicate With CG Artists

When chipping away at a building representation project, a modeler and a 3D delivering worker for hire need to see...

Learn and Become A Professional DevOps Engineer! Learn and Become A Professional DevOps Engineer!
Tech2 weeks ago

Learn and Become A Professional DevOps Engineer!

Have you been having a tough time deciding what you want to do when you grow up? Once your school...

Debunking The Common Myths About Cosmetic Surgery Debunking The Common Myths About Cosmetic Surgery
Health2 weeks ago

Debunking The Common Myths About Cosmetic Surgery

Just a few years back, plastic surgery was thought to be some kind of sorcery or something that existed in...

How to Choose The Right Type Of Flooring For Your New Home How to Choose The Right Type Of Flooring For Your New Home
Home Improvement2 weeks ago

How to Choose The Right Type Of Flooring For Your New Home

Building a house from scratch can be a tedious and stressful process even though you know you are doing something...

3 Ways To Style An Oversized White Shirt This Summer 3 Ways To Style An Oversized White Shirt This Summer
Lifestyle3 weeks ago

3 Ways To Style An Oversized White Shirt This Summer

If there is one staple item you need ready for your summer wardrobe, it’s an oversized white shirt. They are...

5 Tips For Picking The Perfect Wedding Ring 5 Tips For Picking The Perfect Wedding Ring
Lifestyle3 weeks ago

5 Tips For Picking The Perfect Wedding Ring

Your big day is coming up for your wedding day and you set the standards too high with your engagement...

What's That Thing Called? All You Need to Know About Your Car's Lift Struts What's That Thing Called? All You Need to Know About Your Car's Lift Struts
Autos3 weeks ago

What’s That Thing Called? All You Need to Know About Your Car’s Lift Struts

Imagine you’re out for grocery shopping or a weekend outing with family, and you need to load your shopping or...

10 Places to Explore In Ahmedabad Gujarat India 10 Places to Explore In Ahmedabad Gujarat India
Travel3 weeks ago

10 Places to Explore In Ahmedabad Gujarat India

In the state of Gujarat Ahmedabad or Ahmedabad is a significant region and one of the very prominent city areas...

Men’s Top Fashion Trends To Be Following Spring/Summer 2021 Men’s Top Fashion Trends To Be Following Spring/Summer 2021
Lifestyle4 weeks ago

Men’s Top Fashion Trends To Be Following Spring/Summer 2021

With us all being in lockdown on and off for a year, people are starting to get excited for the...

Find Blog Post Ideas Using Google Keyword Planner Find Blog Post Ideas Using Google Keyword Planner
Marketing4 weeks ago

Find Blog Post Ideas Using Google Keyword Planner

Being a successful blogger means that you have to create captivating and original content that will be helpful to your...

Best Vegan Egg Alternatives For Baking Best Vegan Egg Alternatives For Baking
Life Hacks4 weeks ago

Best Vegan Egg Alternatives For Baking

In recent years there has been a dramatic increase in veganism due to its numerous health benefits. People are much...

7 Smart Storage Solutions For A Small Bathroom 7 Smart Storage Solutions For A Small Bathroom
Home Improvement1 month ago

7 Smart Storage Solutions For A Small Bathroom

A small bathroom can be such a nuisance. You never have the space you need and everything seems to be...

What Are The Better Ways Of Building Data Lakes? : The Right Way Is Critical What Are The Better Ways Of Building Data Lakes? : The Right Way Is Critical
Tech1 month ago

What Are The Better Ways Of Building Data Lakes? : The Right Way Is Critical

The pattern is the main period that each enterprise needs to be conscious of if they need to generate greater...

Everything You Need to Think About Before The Road Trip Everything You Need to Think About Before The Road Trip
Autos2 months ago

Everything You Need to Think About Before The Road Trip

Road trips are perhaps the most flexible vacation format: they can be as long or fast, intense or relaxed, planned...

Justice Law In Rural Area: Keep Community Feels Secure Justice Law In Rural Area: Keep Community Feels Secure
Law2 months ago

Justice Law In Rural Area: Keep Community Feels Secure

In order to strive and keep on progressing forward, the judiciary system plays an important role in instituting trust within...

Categories

Archives

Trending