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If you want a guaranteed rate of return over a specific period of time, investing or rather purchasing a Guaranteed Investment Certificate (GIC) would be a good choice. The safety and security features offered by this type of investment make it an attractive option for anyone who wants to create a balanced investment portfolio.
The first thing a person needs to do before purchasing a GIC is opening an account though there are some exceptions. It’s important to note that the guaranteed return after purchasing a GIC is lesser compared to other investments such as bonds stocks and mutual funds because of its low-risk profile.
We need to understand that Guaranteed Investment Certificates (GICs) are common among trust companies and banking institutions. However, when it comes to choosing the best GIC rates in Alberta, you may want to consider credit unions since they tend to offer a better deal than large banks. Despite the fact that you’re loyal to your lender and enjoying their service doesn’t necessarily mean they do offer the best rates for GICs.
If you’re planning to purchase a GIC from a credit union, understand that the deposits are insured/protected by provincial deposit insurance plans and not the Canadian Deposit Insurance Corporation. That doesn’t mean you shouldn’t buy it.
Well, most Canadians tend to think that they need a lot of money in order to invest in a GIC. Probably they believe that they might be stuck with low-interest rates. Consider shopping around, and you might just find a good rate. In most cases, the interest rates that most banks offer tend to stagnate behind what credit union banks and online banks are offering. You can compare interest rates at CompareMyRates.ca and find the best GIC rate.
GICs are investment products that guarantee to protect the amount you invest with a guaranteed income for a specific period of time. It, therefore, follows that the returns for this type of investment are guaranteed regardless of the type of GIC you purchase. Whether you’re investing in registered or non-registered GIC or a redeemable or non-redeemable GIC, you’re guaranteed the principal amount.
You may consider purchasing a non-redeemable GIC since it offers higher returns than the others. Make sure you’ve read through the terms of each GIC because they vary. When you purchase a redeemable GIC, note that redeeming it before the maturity date will lower the interest rate.