A Comprehensive Guide to Guaranteed Investment Certificates (GICs)

💡GICs offer a guaranteed return for a fixed period of time, making them a low-risk investment option.

🔒GICs are protected by the Canada Deposit Insurance Corporation (CDIC), ensuring your deposits up to $100,000 per category.

🔄GICs can be redeemable or non-redeemable, offering different levels of liquidity for your investment.

📈GIC rates vary among financial institutions and can be influenced by the term length and type of GIC.

⏳Consider your time horizon and goals before choosing a GIC term and read the terms and conditions carefully.

Are GIC returns guaranteed?

—Yes, GICs offer a guaranteed return, as the interest rate is predetermined and not subject to market fluctuations.

Are GICs protected by insurance?

—Yes, GICs are protected by the Canada Deposit Insurance Corporation (CDIC), providing coverage up to $100,000 per category.

Can I withdraw my money from a GIC before the maturity date?

—It depends on whether the GIC is redeemable or non-redeemable. Redeemable GICs allow early withdrawals with potential penalties.

What factors affect GIC rates?

—GIC rates can vary depending on the financial institution, term length, redeemability, and current interest rate environment.

How can I make the most out of GICs?

—Consider a GIC ladder strategy to maximize your returns and liquidity by investing in multiple GICs with different maturity dates.

00:00Introduction to GICs and why they are an essential investment product.

03:00Explaining how GICs work, including guaranteed returns and the role of financial institutions.

07:30Comparison of GIC rates from different financial institutions and the current interest rate environment.

11:30Exploration of the different types of GICs, such as redeemable and non-redeemable.

15:00Benefits of investing in GICs, including low risk, guaranteed returns, and protection by CDIC.

18:30Important considerations before investing in GICs, such as time horizon and reading terms and conditions.

21:00Answers to frequently asked questions about GICs, including their guaranteed returns and insurance coverage.

25:00Strategies to make the most out of GICs, such as a GIC ladder approach for enhanced liquidity and returns.