GIC Rates Quebec

An investment that is usually offered by banks or trust companies in Quebec is the Guaranteed Investment Certificate (GIC). It is a fixed-term type of investment that gives guaranteed return rates. However, the guaranteed return is much lower than the other investments like bonds, stocks and mutual funds. This is because there is lower risk in investing with GICs.

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Interest Rate 0.05%

Min Investment $1000

Interest Rate 0.05%

Min Investment $1000


Interest Rate 0.10%

Min Investment $5000

Interest Rate 0.10%

Min Investment $5000

Interest Rate 0.15%

Min Investment $5000

Interest Rate 0.15%

Min Investment $1000

Interest Rate 0.25%

Min Investment $5000

Interest Rate 0.25%

Min Investment $1000

Interest Rate 0.30%

Min Investment $1000

Interest Rate 0.30%

Min Investment $5000

GIC Rates in Quebec

 

Credit Unions offer the best GIC rates in Quebec. Their rates are much higher than what large banks offer. For example, Equitable Bank’s 1.10% rate is much lower than Oaken Financial’s 1.80% over a period of three months.

So it’s much better to compare the interest rates from a number of financial institutions. Don’t just settle with your trusted lender. There could be others that offer much higher rates. Check [company website] for more details on the best GIC rates.

High-Interest GIC Rates in Quebec

The GIC rates may be different depending on the investment amount and term period. Investment amount is acceptable for as low as $100 and can go up to $50,000.

 

Registered GIC Vs Non-Registered GIC

If the GIC and the lender are government registered, then it is a Registered GIC. The government registration is for taxation purposes. Here are the three types of registered GIC:

  1. Retirement income plan
  2. Tax-free savings account
  3. Retirement savings plan

A non-registered GIC on the other hand, can either be Personal or Commercial. It is still taxed by the government, but the only taxable part is the capital gains earned. It is most of the time at 50% of the highest marginal tax rate.

What is the difference between Redeemable GIC and Non-Redeemable GIC in Quebec?

A Redeemable GIC means funds can be withdrawn from the investment anytime. On the other hand, non-redeemable GIC are fixed term. Meaning, funds can only be withdrawn upon maturity of the investment.

Both of these GICs have their own benefits. Your choice will just really depend on your preferred benefits. Here are the ones that Redeemable GICs can offer:

  • Funds are withdrawable at any time
  • A number of redemption rates options are available
  • Guaranteed principal investment at all times

As for the non-redeemable GIC, the best benefit that you can get is higher investment return. Just make sure that you have enough money other than your investment because you can only get your investment fund once it matures.

 

The Advantages and Disadvantages in GIC Investments

Whether you choose a redeemable or non-redeemable GIC, the investment return is guaranteed. The principal is also guaranteed. Both GICs have renewable and varied investment terms but non-redeemable GIC has much higher return rate.

If you have a redeemable GIC, it is inadvisable for you to redeem before the investment matures. But if you wish to do so, a much lower interest rate will be given instead of the original one.

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