Avail the Best GIC rates

Looking for
the Best GIC Rates?

        Click Here

 

The Guaranteed Investment Certificate or GIC provides a low-risk alternative to invest your money. The GIC investments are known for their low-risk factor, so naturally they earn low returns. The only way to make more money with GIC is to find the investment option with the best GIC rates. As a general rule, you can get the best GIC rates by investing in a long term GIC plan.

GIC investments are offered under different terms; accordingly the rate of interest also varies. Interest is calculated annually on the principal investment and is paid to customers at the end of each financial year. However the rate of interest is calculated based on the duration of the investment. The more the duration is, the higher the interest rate would be. So an investor with long-term investment plans such as that of 10, 15, 20 or 25 years will earn the best GIC rates.

Like other investments, GIC investments also have certain pros and cons. With the best GIC rates you are able to make a significant profit over a period of time. There are no potential risks involved in GIC investments like that in mutual funds or stocks. However, there is a drawback associated with GIC investments. Once your GIC investment plan matures, you are given an option to either continue the investment by renewing the terms or withdraw the payment. If you opt to withdraw, your amount could be taxable.

GIC investment is one of the trickiest investments available today. For example, if you invest for one year in GIC and withdraw the amount after that, you may earn a profit on investment, but here you may not be eligible for the best GIC rates offered during that period. On the other hand, if you invest in a long-term plan, say 5 years, you may get a better interest rate, sometimes the best GIC rates prevailing at that time. However, if the rates shoot up within that five-year period, you will not be entitled to the new rate, and your earnings will be based on the old rates. In this case, you could lose even after gaining the best GIC rates at the time of investment.

Here you need to exercise some math and do some speculations on the market.  You will be able to compare the benefits you earn in both types of plans: a short-term GIC plan with lower interest rates and a long-term plan with best GIC rates. Then you should try to get an estimate on what could be possibly the best GIC rates during the period of your long-term investment. By comparing both, you will be able to predict which investment option will earn you the maximum benefits.

If you find difficulty in identifying the best GIC rates and calculating the benefits associated with each type of GIC investment, seek professional guidance from a Certified Financial Advisor (CFA). Alternatively, you could get all your queries on how to avail the best GIC rates answered at the web site http://www.canadafinancial.ca.