Visit
Our Official Website : Guaranteedinvestments.com
 GIC Interest Rates in Canada
GIC interest rates in Canada are very competitive and quite modest. These rates vary depending on the time period of the investment. For example, you may obtain a rate of possibly 1% higher if you are willing to lock up your money for a period of 5 years.
Other GICs like Market Growth GICs or Stock Market Indexed GICs have their individual interest rates or returns determined by the rate of growth of a particular Stock Market.
These GICs which are pegged with certain Stock Markets typically offer the investor potentially higher rates of return than standard GICs. However, being linked with the stock market also has its drawbacks – if the stock markets return does not meet a certain criteria or if there are negative market returns, the returns on the associated Stock Market GICs will be minimal or nothing in many cases.
Because of the low interest rate environment and the availability of numerous other investment options, investment into GICs is not as popular as it was 20 years ago. Investors now have the facility to invest into other secure investments which offer guaranteed capital in most cases with either fixed or sometimes variable returns. Products such as guaranteed minimum withdrawal benefit plans, guaranteed lifetime withdrawal benefit plans, annuities and other types of secure investments are the investment products of choice for many investors in today's economic climate.
GIC Rates Canada
GICs or a Guaranteed Investment Certificate is a form of investment that is offered in Canada by trust companies and banks. It is a certificate on which a guaranteed rate of return is offered over a fixed duration of time. GICs guarantee basically 100% of the amount of the principal you invest. It is a low risk investment and the return that it provides on its investment is generally less than other similar products such as Government Bonds including Canadian Bonds and Provincial Bonds, Treasury Bills, Mortgage Backed Securities, Corporate Bonds, Bankers Acceptances, Commercial Paper and other types of fixed income type investments with different qualities of credit backing.
Characteristics of GICs
Other attributes of GICs include:
- GICs can be registered or non-registered.
- They are available in the Canadian market in many forms, from conventional term deposits to market investments.
- Their maturity durations start from 6 months to 10 year terms.
- A minimum deposit of $500 Canadian is required in most cases for GICs.
- At the time of maturity they can be cashed or renewed for another term.
- If any of the principal is withdrawn before the maturity term expires, for most GICs the investor will not be paid any interest.
- GICs earn interest on a fixed or variable rate.
For all such products as well as the feature of professional and impeccable service turn to Guaranteedinvestments.com, where all your investment needs and queries will be addressed under one roof. If your interest lies with GICs, even then Guaranteedinvestments.com will give you the best possible alternatives for investments in GICs.
The financial advisors at Guaranteedinvestments.com will be happy to answer any of your queries and will strive to help derive a tailor made solution to all your investment needs.
|
