GIC INVESTING
Saving is Financial Self-Care: Invest in a GIC
In a time when the world feels uncertain and more complicated than ever, self-care and finding balance should be a goal for everyone. When it comes to saving for the future, and putting money aside for a rainy day, it can be difficult to know where to start. It doesn’t have to be complicated however, and sometimes taking the first step simply means learning a bit more about the savings tools available to you – and this includes Guaranteed Investment Certificates (GICs).
Talk to me about GICs
The G in GIC stands for guaranteed, and who couldn’t use the reassurance of a guarantee on their investment? With a GIC, you know exactly how much your money will be worth at the end of a term. No stressful rollercoaster of emotions as you watch stock prices go up and down, GICs – also known as Term Deposits - are an easy way to grow your savings without worrying about changes in the markets. Take a breath and find savings clarity with a product designed to help your money grow with security. It can be comforting to know what to expect!
How do I pick the right GIC for me?
The terms for a GIC – meaning the periods of time you can hold the GIC for – range from short-term (typically a few months to a year) to long-term (1-5 years or more). With the wide selection of term options, you can pick the timeline that work best for you and your goals. Each term will also have its own interest rate, so you can select the right option for you, knowing exactly what your investment will be worth at maturity (end of the term). GICs are the perfect way to reach your short to medium-term savings goals with peace of mind.
What about Index-Linked, or Market Growth GICs?
Index-Linked (or Market Growth) GICs are another option that allows investors to save in a secure, low-risk savings product. This type of GIC is different than other GICs in that the interest rate is variable and changes throughout the term, as it is determined by the rate of growth of a specific stock market. While there is more upside potential with this type of investment, unlike other GIC products, if the market performs poorly, the interest rate could be 0% - but rest assured that you would not lose money from your initial investment, it is simply your interest earnings that are at risk. An Index-Linked term deposit or GIC could be a great way to try out stock-linked investing without the risk of losing your original investment.
How to Get Started
If a guaranteed investment sounds like the right option for you, come talk to us! Our Tandia advisors are the experts you need to help you make sense of your savings options – from GICs to TFSAs and RRSPs. Feel confident about your investment choices and get the answers you need to all of your burning financial questions - we’re here to help!
