The benefits of a GIC is just like mutual funds and bonds. Guaranteed Investment Certificates (GIC) are investment products which as their name suggest guarantees to protect your principal amount for a certain period of time. They work in such a way that once bought, the individual automatically agrees to lend their money to the bank at either a fixed or variable interest rate for a certain period known as the term. The investor benefits in such a way that at the end of the term, they get their money back plus the interest earned.
Types of GICs
There are basically two types of GICs: those that pay a fixed interest rate and those that pay a variable interest rate. Variable GICs are normally linked to an index such as a stock market so that they are able to pay you that variable interest rate.
Different financial institutions may use different terms to refer to types of GICs. You need to know where to invest money in Canada to get the best GIC rates. There are only two types as mentioned above. Some different terms include:
There are a number of benefits associated with investing in GICs; this section will highlight some of them:
Does my Homeowner’s Insurance Decrease by Purchasing a Home Security System?
Top Low-Interest Balance Transfer Credit Card in Canada
Satellite TV vs IPTV vs Cable TV - Compare Best Forms of TV with Examples
Top 10 Best Family Cell Phone Plans with data share in Canada
Best Debt Consolidation Loans in Toronto
Top 10 Best Internet Providers in Kitchener, ON
Top 10 Internet Providers Near Me - Find The Best ISPs in Your Area
EQ Bank Savings Plus Account Review
Top 10 Best Internet Providers in Hamilton